diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadChecker.kt
index eb0a4381d4f..d6671e13bdc 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadChecker.kt
@@ -55,7 +55,9 @@ class OverloadChecker(val specificityComparator: TypeSpecificityComparator) {
         // They can be disambiguated by providing explicit type parameters.
         if (a.typeParameters.isEmpty() != b.typeParameters.isEmpty()) return true
 
-        if (ErrorUtils.containsErrorType(a) || ErrorUtils.containsErrorType(b)) return true
+        if (a is FunctionDescriptor && ErrorUtils.containsErrorTypeInParameters(a) ||
+            b is FunctionDescriptor && ErrorUtils.containsErrorTypeInParameters(b)
+        ) return true
         if (a.varargParameterPosition() != b.varargParameterPosition()) return true
 
         val aSignature = FlatSignature.createFromCallableDescriptor(a)
diff --git a/compiler/testData/codegen/bytecodeListing/annotations/kt27895.kt b/compiler/testData/codegen/bytecodeListing/annotations/kt27895.kt
new file mode 100644
index 00000000000..120785dc2f9
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeListing/annotations/kt27895.kt
@@ -0,0 +1,10 @@
+@Target(AnnotationTarget.FIELD)
+annotation class Anno
+
+data class C(val x: Int) {
+    @Anno
+    val json: String = ""
+        get() = field
+
+    fun copy() = this.also { json }
+}
diff --git a/compiler/testData/codegen/bytecodeListing/annotations/kt27895.txt b/compiler/testData/codegen/bytecodeListing/annotations/kt27895.txt
new file mode 100644
index 00000000000..6bf19f0e55c
--- /dev/null
+++ b/compiler/testData/codegen/bytecodeListing/annotations/kt27895.txt
@@ -0,0 +1,21 @@
+@kotlin.annotation.Target
+@java.lang.annotation.Retention
+@java.lang.annotation.Target
+@kotlin.Metadata
+public annotation class Anno
+
+@kotlin.Metadata
+public final class C {
+    private final @Anno @org.jetbrains.annotations.NotNull field json: java.lang.String
+    private final field x: int
+    public method <init>(p0: int): void
+    public final method component1(): int
+    public synthetic static @org.jetbrains.annotations.NotNull method copy$default(p0: C, p1: int, p2: int, p3: java.lang.Object): C
+    public final @org.jetbrains.annotations.NotNull method copy(): C
+    public final @org.jetbrains.annotations.NotNull method copy(p0: int): C
+    public method equals(@org.jetbrains.annotations.Nullable p0: java.lang.Object): boolean
+    public final @org.jetbrains.annotations.NotNull method getJson(): java.lang.String
+    public final method getX(): int
+    public method hashCode(): int
+    public @org.jetbrains.annotations.NotNull method toString(): java.lang.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java
index 33cee2fe318..f9f22ee0fe3 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BytecodeListingTestGenerated.java
@@ -215,6 +215,11 @@ public class BytecodeListingTestGenerated extends AbstractBytecodeListingTest {
             runTest("compiler/testData/codegen/bytecodeListing/annotations/JvmSynthetic.kt");
         }
 
+        @TestMetadata("kt27895.kt")
+        public void testKt27895() throws Exception {
+            runTest("compiler/testData/codegen/bytecodeListing/annotations/kt27895.kt");
+        }
+
         @TestMetadata("kt9320.kt")
         public void testKt9320() throws Exception {
             runTest("compiler/testData/codegen/bytecodeListing/annotations/kt9320.kt");
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/ErrorUtils.java b/core/descriptors/src/org/jetbrains/kotlin/types/ErrorUtils.java
index 2ac355fe2a9..61eddcc83b7 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/ErrorUtils.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/ErrorUtils.java
@@ -142,19 +142,11 @@ public class ErrorUtils {
         };
     }
 
-    public static boolean containsErrorType(@NotNull CallableDescriptor callableDescriptor) {
-        if (callableDescriptor instanceof FunctionDescriptor) {
-            return containsErrorType((FunctionDescriptor) callableDescriptor);
-        }
-        else {
-            return containsErrorType(callableDescriptor.getReturnType());
-        }
-    }
-
-    public static boolean containsErrorType(@NotNull FunctionDescriptor function) {
-        if (containsErrorType(function.getReturnType())) {
-            return true;
-        }
+    /**
+     * @return true iff any of the types referenced in parameter types (including type parameters and extension receiver) of the function
+     * is an error type. Does not check the return type of the function.
+     */
+    public static boolean containsErrorTypeInParameters(@NotNull FunctionDescriptor function) {
         ReceiverParameterDescriptor receiverParameter = function.getExtensionReceiverParameter();
         if (receiverParameter != null && containsErrorType(receiverParameter.getType())) {
             return true;
diff --git a/idea/src/org/jetbrains/kotlin/idea/codeInliner/CodeToInlineBuilder.kt b/idea/src/org/jetbrains/kotlin/idea/codeInliner/CodeToInlineBuilder.kt
index 4c34881a5c9..b7e886a8f3b 100644
--- a/idea/src/org/jetbrains/kotlin/idea/codeInliner/CodeToInlineBuilder.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/codeInliner/CodeToInlineBuilder.kt
@@ -16,7 +16,10 @@
 
 package org.jetbrains.kotlin.idea.codeInliner
 
-import org.jetbrains.kotlin.descriptors.*
+import org.jetbrains.kotlin.descriptors.CallableDescriptor
+import org.jetbrains.kotlin.descriptors.PropertyDescriptor
+import org.jetbrains.kotlin.descriptors.TypeParameterDescriptor
+import org.jetbrains.kotlin.descriptors.ValueParameterDescriptor
 import org.jetbrains.kotlin.diagnostics.Errors
 import org.jetbrains.kotlin.idea.caches.resolve.getResolutionFacade
 import org.jetbrains.kotlin.idea.core.asExpression
@@ -90,7 +93,10 @@ class CodeToInlineBuilder(
 
     private fun getParametersForFunctionLiteral(functionLiteralExpression: KtLambdaExpression, context: BindingContext): String? {
         val lambdaDescriptor = context.get(BindingContext.FUNCTION, functionLiteralExpression.functionLiteral)
-        if (lambdaDescriptor == null || ErrorUtils.containsErrorType(lambdaDescriptor)) return null
+        if (lambdaDescriptor == null ||
+            ErrorUtils.containsErrorTypeInParameters(lambdaDescriptor) ||
+            ErrorUtils.containsErrorType(lambdaDescriptor.returnType)
+        ) return null
         return lambdaDescriptor.valueParameters.joinToString {
             it.name.render() + ": " + IdeDescriptorRenderers.SOURCE_CODE.renderType(it.type)
         }