diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java
index d713431693a4..4391a775bf52 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightUtil.java
@@ -415,6 +415,16 @@ public class HighlightUtil extends HighlightUtilBase {
     return highlightInfo;
   }
 
+  static HighlightInfo checkLegalVarReference(PsiJavaCodeReferenceElement ref, @NotNull PsiClass resolved) {
+    if (PsiKeyword.VAR.equals(resolved.getName()) && PsiUtil.getLanguageLevel(ref).isAtLeast(LanguageLevel.JDK_X)) {
+      return HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR)
+        .descriptionAndTooltip("Illegal reference to restricted type 'var'")
+        .range(ObjectUtils.notNull(ref.getReferenceNameElement(), ref))
+        .create();
+    }
+    return null;
+  }
+
   static HighlightInfo checkVarTypeApplicability(@NotNull PsiVariable variable) {
     PsiTypeElement typeElement = variable.getTypeElement();
     if (typeElement != null && typeElement.isInferredType()) {
diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java
index efa2be8f485a..13c4a529e5d0 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightVisitorImpl.java
@@ -1191,6 +1191,7 @@ public class HighlightVisitorImpl extends JavaElementVisitor implements Highligh
     }
 
     if (!myHolder.hasErrorResults()) myHolder.add(HighlightUtil.checkPackageAndClassConflict(ref, myFile));
+    if (!myHolder.hasErrorResults() && resolved instanceof PsiClass) myHolder.add(HighlightUtil.checkLegalVarReference(ref, (PsiClass)resolved));
 
     return result;
   }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarClassNameConflicts.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarClassNameConflicts.java
index 900adbdefbd9..feb95207d044 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarClassNameConflicts.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advLVTI/VarClassNameConflicts.java
@@ -2,4 +2,8 @@ class Main {
   class <error descr="'var' is a restricted local variable type and cannot be used for type declarations">var</error> {}
 
   <<error descr="'var' is a restricted local variable type and cannot be used for type declarations">var</error> extends String> void foo() {}
+
+  class Usage {
+    <error descr="Illegal reference to restricted type 'var'">var</error> field = new <error descr="Illegal reference to restricted type 'var'">var</error>();
+  }
 }
\ No newline at end of file