diff --git a/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java b/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
index 0605f9f6c9be..650c46a6670a 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
@@ -472,6 +472,14 @@ public final class PsiUtil extends PsiUtilCore {
       PsiType argType = args[args.length - 1];
       if (argType == null) return ApplicabilityLevel.NOT_APPLICABLE;
       if (TypeConversionUtil.isAssignable(parmType, argType)) return ApplicabilityLevel.FIXED_ARITY;
+      if (isRawSubstitutor(method, substitutorForMethod)) {
+        final PsiType erasedParamType = TypeConversionUtil.erasure(parmType);
+        final PsiType erasedArgType = TypeConversionUtil.erasure(argType);
+        if (erasedArgType != null &&  erasedParamType != null &&
+            TypeConversionUtil.isAssignable(erasedParamType, erasedArgType)) {
+          return ApplicabilityLevel.FIXED_ARITY;
+        }
+      }
     }
 
     if (method.isVarArgs() && languageLevel.compareTo(LanguageLevel.JDK_1_5) >= 0) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/MethodCallParamsOnRawType.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/MethodCallParamsOnRawType.java
new file mode 100644
index 000000000000..e399e5a54e48
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/MethodCallParamsOnRawType.java
@@ -0,0 +1,32 @@
+class TestOnRawType {
+  public static void main(String[] args) {
+    new FooGenerator().process(TestOnRawType.class);
+    new FooGenerator().process(AFoo.class);
+    new FooGenerator().process(MFoo.class);
+    new FooGenerator<String>().process<error descr="'process(java.lang.Class<TestOnRawType.AFoo>)' in 'TestOnRawType.FooGenerator' cannot be applied to '(java.lang.Class<TestOnRawType>)'">(TestOnRawType.class)</error>;
+    new FooGenerator<String>().process(AFoo.class);
+    new FooGenerator<String>().process<error descr="'process(java.lang.Class<TestOnRawType.AFoo>)' in 'TestOnRawType.FooGenerator' cannot be applied to '(java.lang.Class<TestOnRawType.MFoo>)'">(MFoo.class)</error>;
+  }
+
+  static class AFoo {}
+  static class MFoo extends AFoo {}
+  static class FooGenerator<T> {
+    public void process(Class<AFoo> cls) {
+    }
+  }
+}
+
+class TestNonGenericType {
+  public static void main(String[] args) {
+    new FooGenerator().process<error descr="'process(java.lang.Class<TestNonGenericType.AFoo>)' in 'TestNonGenericType.FooGenerator' cannot be applied to '(java.lang.Class<TestNonGenericType>)'">(TestNonGenericType.class)</error>;
+    new FooGenerator().process(AFoo.class);
+    new FooGenerator().process<error descr="'process(java.lang.Class<TestNonGenericType.AFoo>)' in 'TestNonGenericType.FooGenerator' cannot be applied to '(java.lang.Class<TestNonGenericType.MFoo>)'">(MFoo.class)</error>;
+  }
+
+  static class AFoo {}
+  static class MFoo extends AFoo {}
+  static class FooGenerator {
+    public void process(Class<AFoo> cls) {
+    }
+  }
+}
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
index 9d466584a653..875f94ca174b 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -208,6 +208,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testWildcardsBoundsIntersection() throws Exception { doTest17Incompatibility(false); }
   public void testOverrideWithMoreSpecificReturn() throws Exception { doTest17Incompatibility(false); }
   public void testIDEA97888() throws Exception { doTest17Incompatibility(false); }
+  public void testMethodCallParamsOnRawType() throws Exception { doTest(false); }
 
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));