diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/PsiDiamondTypeUtil.java b/java/java-psi-impl/src/com/intellij/psi/impl/PsiDiamondTypeUtil.java
index 589b902fbab2..5bb044c3ffab 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/PsiDiamondTypeUtil.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/PsiDiamondTypeUtil.java
@@ -23,6 +23,7 @@ import com.intellij.pom.java.LanguageLevel;
 import com.intellij.psi.*;
 import com.intellij.psi.codeStyle.CodeStyleManager;
 import com.intellij.psi.codeStyle.JavaCodeStyleManager;
+import com.intellij.psi.infos.MethodCandidateInfo;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.util.PsiTypesUtil;
 import com.intellij.psi.util.PsiUtil;
@@ -243,7 +244,8 @@ public class PsiDiamondTypeUtil {
         return false;
       }
     }
-    return true;
+
+    return checkParentApplicability(exprCopy);
   }
 
   private static boolean isInferenceEquivalent(PsiType[] typeArguments, 
@@ -283,6 +285,18 @@ public class PsiDiamondTypeUtil {
         return false;
       }
     }
+    
+    return checkParentApplicability(exprCopy);
+  }
+
+  private static boolean checkParentApplicability(PsiCallExpression exprCopy) {
+    while (exprCopy != null){
+      final JavaResolveResult resolveResult = exprCopy.resolveMethodGenerics();
+      if (resolveResult instanceof MethodCandidateInfo && !((MethodCandidateInfo)resolveResult).isApplicable()) {
+        return false;
+      }
+      exprCopy = PsiTreeUtil.getParentOfType(exprCopy, PsiCallExpression.class, true);
+    }
     return true;
   }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/redundantTypeArgs/beforeNestedCallWithMethodRef.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/redundantTypeArgs/beforeNestedCallWithMethodRef.java
new file mode 100644
index 000000000000..35e8c7666fb4
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/redundantTypeArgs/beforeNestedCallWithMethodRef.java
@@ -0,0 +1,12 @@
+// "Remove explicit type arguments" "false"
+
+import java.util.*;
+import java.util.function.Function;
+import java.util.stream.Collectors;
+
+class Test {
+  void foo(List<String> input, Function<String, Integer> length) {
+    input.stream().collect(Collectors.groupingBy(length,
+                                                 Collectors.collectingAndThen(Collectors.<St<caret>ring>maxBy(Comparator.naturalOrder()), Optional::get)));
+  }
+}
\ No newline at end of file