diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
index 5b3177aaba0..668214003d4 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
@@ -313,7 +313,11 @@ public class DescriptorResolver {
         Name parameterName;
 
         if (destructuringDeclaration == null) {
-            parameterName = UnderscoreUtilKt.isSingleUnderscore(valueParameter)
+            // NB: val/var for parameter is only allowed in primary constructors where single underscore names are still prohibited.
+            // The problem with val/var is that when lazy resolve try to find their descriptor, it searches through the member scope
+            // of containing class where, it can not find a descriptor with special name.
+            // Thus, to preserve behavior, we don't use a special name for val/var.
+            parameterName = !valueParameter.hasValOrVar() && UnderscoreUtilKt.isSingleUnderscore(valueParameter)
                             ? Name.special("<anonymous parameter " + index + ">")
                             : KtPsiUtil.safeName(valueParameter.getName());
         }
diff --git a/compiler/testData/diagnostics/tests/Underscore.kt b/compiler/testData/diagnostics/tests/Underscore.kt
index d8fafd4f730..57628b74cdd 100644
--- a/compiler/testData/diagnostics/tests/Underscore.kt
+++ b/compiler/testData/diagnostics/tests/Underscore.kt
@@ -19,9 +19,24 @@ fun <!UNDERSCORE_IS_RESERVED!>__<!>(<!UNDERSCORE_IS_RESERVED!>___<!>: Int, y: _<
 
     val <!UNDERSCORE_IS_RESERVED!>_<!> = 56
 
+    fun localFun(<!UNDERSCORE_IS_RESERVED!>_<!>: String) = 1
+
     <!UNDERSCORE_IS_RESERVED!>__<!>@ return if (y != null) __(____, y) else __(`_`, ______)
 }
 
+
+class A1(val <!UNDERSCORE_IS_RESERVED, UNDERSCORE_IS_RESERVED!>_<!>: String)
+class A2(<!UNDERSCORE_IS_RESERVED!>_<!>: String) {
+    class B {
+        typealias <!UNDERSCORE_IS_RESERVED!>_<!> = CharSequence
+    }
+    val <!UNDERSCORE_IS_RESERVED!>_<!>: Int = 1
+
+    fun <!UNDERSCORE_IS_RESERVED!>_<!>() {}
+
+    fun foo(<!UNDERSCORE_IS_RESERVED!>_<!>: Double) {}
+}
+
 // one underscore parameters for named function are still prohibited
 fun oneUnderscore(<!UNDERSCORE_IS_RESERVED!>_<!>: Int) {}
 
diff --git a/compiler/testData/diagnostics/tests/Underscore.txt b/compiler/testData/diagnostics/tests/Underscore.txt
index 93899cfef8b..a2647a6e5f1 100644
--- a/compiler/testData/diagnostics/tests/Underscore.txt
+++ b/compiler/testData/diagnostics/tests/Underscore.txt
@@ -7,6 +7,32 @@ public fun __(/*0*/ ___: kotlin.Int, /*1*/ y: _<kotlin.Int>?): kotlin.Int
 public fun doIt(/*0*/ f: (kotlin.Any?) -> kotlin.Any?): kotlin.Any?
 public fun oneUnderscore(/*0*/ <anonymous parameter 0>: kotlin.Int): kotlin.Unit
 
+public final class A1 {
+    public constructor A1(/*0*/ _: kotlin.String)
+    public final val _: kotlin.String
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A2 {
+    public constructor A2(/*0*/ <anonymous parameter 0>: kotlin.String)
+    public final val _: kotlin.Int = 1
+    public final fun _(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final fun foo(/*0*/ <anonymous parameter 0>: kotlin.Double): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final class B {
+        public constructor B()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        public typealias _ = kotlin.CharSequence
+    }
+}
+
 @kotlin.Deprecated(message = "") public final data class Pair {
     public constructor Pair(/*0*/ x: kotlin.Int, /*1*/ y: kotlin.Int)
     public final val x: kotlin.Int