diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
index 201d1e654a0..8a9a638bdbf 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
@@ -128,11 +128,21 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
             hasInlinable |= checkInlinableParameter(receiverParameter, receiver, functionDescriptor, trace);
         }
 
+        hasInlinable |= containsReifiedTypeParameters(functionDescriptor);
+
         if (!hasInlinable) {
             trace.report(Errors.NOTHING_TO_INLINE.on(function, functionDescriptor));
         }
     }
 
+    private static boolean containsReifiedTypeParameters(@NotNull FunctionDescriptor descriptor) {
+        for (TypeParameterDescriptor typeParameterDescriptor : descriptor.getTypeParameters()) {
+            if (typeParameterDescriptor.isReified()) return true;
+        }
+
+        return false;
+    }
+
     public static boolean checkInlinableParameter(
             @NotNull CallableDescriptor parameter,
             @NotNull JetElement expression,
diff --git a/compiler/testData/diagnostics/tests/generics/tpAsReified/Conventions.kt b/compiler/testData/diagnostics/tests/generics/tpAsReified/Conventions.kt
index 797d5cdff9e..bb0546bf698 100644
--- a/compiler/testData/diagnostics/tests/generics/tpAsReified/Conventions.kt
+++ b/compiler/testData/diagnostics/tests/generics/tpAsReified/Conventions.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE -UNUSED_PARAMETER
+// !DIAGNOSTICS: -UNUSED_PARAMETER
 
 inline fun <reified T> T.plus(p: T): T = this
 
diff --git a/compiler/testData/diagnostics/tests/generics/tpAsReified/InFunction.kt b/compiler/testData/diagnostics/tests/generics/tpAsReified/InFunction.kt
index 34157dc067a..e673b9e1fa5 100644
--- a/compiler/testData/diagnostics/tests/generics/tpAsReified/InFunction.kt
+++ b/compiler/testData/diagnostics/tests/generics/tpAsReified/InFunction.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE -UNUSED_PARAMETER
+// !DIAGNOSTICS: -UNUSED_PARAMETER
 
 inline fun <reified T> f(): T = throw UnsupportedOperationException()
 
diff --git a/compiler/testData/diagnostics/tests/generics/tpAsReified/InlineableReified.kt b/compiler/testData/diagnostics/tests/generics/tpAsReified/InlineableReified.kt
index a4fdc6c2574..d8c35c93cd3 100644
--- a/compiler/testData/diagnostics/tests/generics/tpAsReified/InlineableReified.kt
+++ b/compiler/testData/diagnostics/tests/generics/tpAsReified/InlineableReified.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE -UNUSED_PARAMETER
+// !DIAGNOSTICS: -UNUSED_PARAMETER
 
 inline fun<T1, reified T2> bar(x: T1, y: T2): T2 = y
 inline fun<reified R> foo(z: R): R = bar(1, z)
diff --git a/compiler/testData/diagnostics/tests/generics/tpAsReified/LocalFun.kt b/compiler/testData/diagnostics/tests/generics/tpAsReified/LocalFun.kt
index 2af48e7f4cf..6892134bc2d 100644
--- a/compiler/testData/diagnostics/tests/generics/tpAsReified/LocalFun.kt
+++ b/compiler/testData/diagnostics/tests/generics/tpAsReified/LocalFun.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE -UNUSED_PARAMETER -NOT_YET_SUPPORTED_IN_INLINE
+// !DIAGNOSTICS: -UNUSED_PARAMETER -NOT_YET_SUPPORTED_IN_INLINE
 
 inline fun<reified T> foo(x: T) {
     fun<<!REIFIED_TYPE_PARAMETER_NO_INLINE!>reified<!> R> bar() {
diff --git a/compiler/testData/diagnostics/tests/inline/inlineReified.kt b/compiler/testData/diagnostics/tests/inline/inlineReified.kt
new file mode 100644
index 00000000000..c6a4332e529
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/inlineReified.kt
@@ -0,0 +1,2 @@
+inline fun <T1, T2, reified T3, T4> foo(): T3 = null!!
+
diff --git a/compiler/testData/diagnostics/tests/inline/inlineReified.txt b/compiler/testData/diagnostics/tests/inline/inlineReified.txt
new file mode 100644
index 00000000000..49aa4c98e7f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/inlineReified.txt
@@ -0,0 +1,3 @@
+package
+
+kotlin.inline() internal fun </*0*/ T1, /*1*/ T2, /*2*/ reified T3, /*3*/ T4> foo(): T3
diff --git a/compiler/testData/diagnostics/testsWithStdLib/reified/arrayConstruction.kt b/compiler/testData/diagnostics/testsWithStdLib/reified/arrayConstruction.kt
index bd06668ac46..791c1aee9f7 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/reified/arrayConstruction.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/reified/arrayConstruction.kt
@@ -1,4 +1,3 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE
 
 fun <T> fail1(): Array<T> = <!TYPE_PARAMETER_AS_REIFIED!>Array<!>(1) { null!! }
 fun <T> ok1(block: () -> Array<T>): Array<T> = block()
diff --git a/compiler/testData/diagnostics/testsWithStdLib/reified/arrayOfNullsReified.kt b/compiler/testData/diagnostics/testsWithStdLib/reified/arrayOfNullsReified.kt
index cf6b8df0e93..83e9bfe9ceb 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/reified/arrayOfNullsReified.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/reified/arrayOfNullsReified.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_VARIABLE
 
 fun <T> foo() {
     val x = <!TYPE_PARAMETER_AS_REIFIED!>arrayOfNulls<!><T>(5)
diff --git a/compiler/testData/diagnostics/testsWithStdLib/reified/reifiedNothingSubstitution.kt b/compiler/testData/diagnostics/testsWithStdLib/reified/reifiedNothingSubstitution.kt
index 81219aaf2f6..13751a433b8 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/reified/reifiedNothingSubstitution.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/reified/reifiedNothingSubstitution.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -NOTHING_TO_INLINE -UNUSED_PARAMETER -UNREACHABLE_CODE -UNUSED_VARIABLE -REIFIED_TYPE_PARAMETER_NO_INLINE
+// !DIAGNOSTICS: -UNUSED_PARAMETER -UNREACHABLE_CODE -UNUSED_VARIABLE
 
 inline fun<reified T> foo(block: () -> T): String = block().toString()
 
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 49f45a31c00..4e3d4cc23bb 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -5597,6 +5597,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("inlineReified.kt")
+            public void testInlineReified() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inline/inlineReified.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("invoke.kt")
             public void testInvoke() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/inline/invoke.kt");