diff --git a/python/src/com/jetbrains/python/validation/PyBuiltinAnnotator.java b/python/src/com/jetbrains/python/validation/PyBuiltinAnnotator.java
index 4bcad0638a27..e1959e6d6bb4 100644
--- a/python/src/com/jetbrains/python/validation/PyBuiltinAnnotator.java
+++ b/python/src/com/jetbrains/python/validation/PyBuiltinAnnotator.java
@@ -16,8 +16,6 @@
 package com.jetbrains.python.validation;
 
 import com.intellij.lang.ASTNode;
-import com.intellij.lang.annotation.Annotation;
-import com.intellij.psi.PsiElement;
 import com.jetbrains.python.PyNames;
 import com.jetbrains.python.PyTokenTypes;
 import com.jetbrains.python.codeInsight.dataflow.scope.ScopeUtil;
@@ -40,16 +38,8 @@ public class PyBuiltinAnnotator extends PyAnnotator {
     if (highlightedAsAttribute) {
       return;
     }
-    if (PyBuiltinCache.isInBuiltins(node) || PyUtil.isPy2ReservedWord(node)) {
-      final Annotation ann;
-      final PsiElement parent = node.getParent();
-      if (parent instanceof PyDecorator) {
-        // don't mark the entire decorator, only mark the "@", else we'll conflict with deco annotator
-        addHighlightingAnnotation(parent.getFirstChild(), PyHighlighter.PY_BUILTIN_NAME);
-      }
-      else {
-        addHighlightingAnnotation(node, PyHighlighter.PY_BUILTIN_NAME);
-      }
+    if ((PyBuiltinCache.isInBuiltins(node) || PyUtil.isPy2ReservedWord(node)) && !(node.getParent() instanceof PyDecorator)) {
+      addHighlightingAnnotation(node, PyHighlighter.PY_BUILTIN_NAME);
     }
   }
 
diff --git a/python/src/com/jetbrains/python/validation/PyDefinitionsAnnotator.java b/python/src/com/jetbrains/python/validation/PyDefinitionsAnnotator.java
index cc7bf004789d..e3cfd4aba0c7 100644
--- a/python/src/com/jetbrains/python/validation/PyDefinitionsAnnotator.java
+++ b/python/src/com/jetbrains/python/validation/PyDefinitionsAnnotator.java
@@ -40,7 +40,7 @@ public class PyDefinitionsAnnotator extends PyAnnotator {
 
   @Override
   public void visitPyFunction(PyFunction node) {
-    ASTNode name_node =  node.getNameNode();
+    ASTNode name_node = node.getNameNode();
     if (name_node != null) {
       final String name = node.getName();
       LanguageLevel languageLevel = LanguageLevel.forElement(node);
@@ -61,7 +61,9 @@ public class PyDefinitionsAnnotator extends PyAnnotator {
           addHighlightingAnnotation(name_node, PyHighlighter.PY_PREDEFINED_DEFINITION);
         }
       }
-      else addHighlightingAnnotation(name_node, PyHighlighter.PY_FUNC_DEFINITION);
+      else {
+        addHighlightingAnnotation(name_node, PyHighlighter.PY_FUNC_DEFINITION);
+      }
     }
   }
 
@@ -69,7 +71,7 @@ public class PyDefinitionsAnnotator extends PyAnnotator {
   public void visitPyDecoratorList(PyDecoratorList node) {
     PyDecorator[] decos = node.getDecorators();
     for (PyDecorator deco : decos) {
-      highlightDecorator(deco);  
+      highlightDecorator(deco);
     }
   }
 
diff --git a/python/testData/highlighting/builtinDecorator.py b/python/testData/highlighting/builtinDecorator.py
new file mode 100644
index 000000000000..64ba47831ef1
--- /dev/null
+++ b/python/testData/highlighting/builtinDecorator.py
@@ -0,0 +1,13 @@
+<info descr="PY.DECORATOR">@</info> <info descr="PY.DECORATOR">foo</info>
+def <info descr="PY.FUNC_DEFINITION">f</info>():
+    pass
+
+
+class <info descr="PY.CLASS_DEFINITION">C</info>:
+    <info descr="PY.DECORATOR">@</info> <info descr="PY.DECORATOR">f</info>
+    def <info descr="PY.FUNC_DEFINITION">bar</info>(<info descr="PY.SELF_PARAMETER">self</info>):
+        pass
+
+    <info descr="PY.DECORATOR">@</info><info descr="PY.DECORATOR">staticmethod</info>
+    def <info descr="PY.FUNC_DEFINITION">bar</info>():
+        pass
\ No newline at end of file
diff --git a/python/testData/highlighting/builtins.py b/python/testData/highlighting/builtins.py
index 36aa74f6fe8c..b152bdd128b1 100644
--- a/python/testData/highlighting/builtins.py
+++ b/python/testData/highlighting/builtins.py
@@ -12,7 +12,7 @@ len # no highlight
 class <info descr="PY.CLASS_DEFINITION" type="INFORMATION">A</info>(<info descr="PY.BUILTIN_NAME" type="INFORMATION" foreground="0x00ff00" background="0x000000" effectcolor="0xffffff" effecttype="BOXED" fonttype="1">object</info>):
   <info descr="PY.PREDEFINED_USAGE" type="INFORMATION" foreground="0xffff00" background="0x000000" effectcolor="0xffffff" effecttype="BOXED" fonttype="1">__metaclass__</info> = M # assignment target
 
-  <info descr="PY.BUILTIN_NAME"><info descr="PY.DECORATOR">@</info></info><info descr="PY.DECORATOR">classmethod</info>
+  <info descr="PY.DECORATOR">@</info><info descr="PY.DECORATOR">classmethod</info>
   def <info descr="PY.FUNC_DEFINITION">foo</info>(<info descr="PY.SELF_PARAMETER">cls</info>):
     pass
 
diff --git a/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java b/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
index 72de2e84c24f..92552803d508 100644
--- a/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
+++ b/python/testSrc/com/jetbrains/python/PythonHighlightingTest.java
@@ -346,6 +346,11 @@ public class PythonHighlightingTest extends PyTestCase {
     doTest(true, true);
   }
 
+  // PY-25381
+  public void testBuiltinDecorator() {
+    doTest(true, true);
+  }
+
   // PY-11418
   public void testFunctionCalls() {
     doTest();