diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/KotlinBundle.properties b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/KotlinBundle.properties
index 3608c2433ac..f9ee61a0b6e 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/KotlinBundle.properties
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/KotlinBundle.properties
@@ -74,6 +74,7 @@ options.kotlin.attribute.descriptor.kdoc.tag=Comments//KDoc//KDoc tag
 options.kotlin.attribute.descriptor.kdoc.value=Comments//KDoc//Link in KDoc tag
 options.kotlin.attribute.descriptor.object=Classes and Interfaces//Object
 options.kotlin.attribute.descriptor.enumEntry=Classes and Interfaces//Enum entry
+options.kotlin.attribute.descriptor.typeAlias=Classes and Interfaces//Type alias
 options.kotlin.attribute.descriptor.var=Properties and Variables//Var (mutable variable, parameter or property)
 options.kotlin.attribute.descriptor.local.variable=Properties and Variables//Local variable or value
 options.kotlin.attribute.descriptor.captured.variable=Properties and Variables//Variables and values captured in a closure
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java
index 57c2d7e1e1e..de3cf1454d9 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java
@@ -59,6 +59,7 @@ public class KotlinHighlightingColors {
     public static final TextAttributesKey ANNOTATION = createTextAttributesKey("KOTLIN_ANNOTATION", JavaHighlightingColors.ANNOTATION_NAME_ATTRIBUTES);
     public static final TextAttributesKey OBJECT = createTextAttributesKey("KOTLIN_OBJECT", CLASS);
     public static final TextAttributesKey ENUM_ENTRY = createTextAttributesKey("KOTLIN_ENUM_ENTRY", DefaultLanguageHighlighterColors.INSTANCE_FIELD);
+    public static final TextAttributesKey TYPE_ALIAS = createTextAttributesKey("KOTLIN_TYPE_ALIAS", CLASS);
 
     // variable kinds
     public static final TextAttributesKey MUTABLE_VARIABLE = createTextAttributesKey("KOTLIN_MUTABLE_VARIABLE");
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.kt
index 333be893293..e88de83289f 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.kt
@@ -57,6 +57,9 @@ internal class TypeKindHighlightingVisitor(holder: AnnotationHolder, bindingCont
             else if (referenceTarget is TypeParameterDescriptor) {
                 highlightName(expression, TYPE_PARAMETER)
             }
+            else if (referenceTarget is TypeAliasDescriptor) {
+                highlightName(expression, TYPE_ALIAS)
+            }
         }
     }
 
@@ -92,6 +95,16 @@ internal class TypeKindHighlightingVisitor(holder: AnnotationHolder, bindingCont
         super.visitClassOrObject(classOrObject)
     }
 
+    override fun visitTypeAlias(typeAlias: KtTypeAlias) {
+        val identifier = typeAlias.nameIdentifier
+        val descriptor = bindingContext.get(BindingContext.TYPE_ALIAS, typeAlias)
+        if (identifier != null && descriptor != null) {
+            if (applyHighlighterExtensions(identifier, descriptor)) return
+            highlightName(identifier, TYPE_ALIAS)
+        }
+        super.visitTypeAlias(typeAlias)
+    }
+
     override fun visitDynamicType(type: KtDynamicType) {
         // Do nothing: 'dynamic' is highlighted as a keyword
     }
diff --git a/idea/src/org/jetbrains/kotlin/idea/highlighter/KotlinColorSettingsPage.kt b/idea/src/org/jetbrains/kotlin/idea/highlighter/KotlinColorSettingsPage.kt
index 821a7de7dc7..9826d8c681b 100644
--- a/idea/src/org/jetbrains/kotlin/idea/highlighter/KotlinColorSettingsPage.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/highlighter/KotlinColorSettingsPage.kt
@@ -89,6 +89,9 @@ var <PACKAGE_PROPERTY><MUTABLE_VARIABLE>globalCounter</MUTABLE_VARIABLE></PACKAG
 <KEYWORD>interface</KEYWORD> <TRAIT>FunctionLike</TRAIT> {
     <BUILTIN_ANNOTATION>operator</BUILTIN_ANNOTATION> <KEYWORD>fun</KEYWORD> <FUNCTION_DECLARATION>invoke</FUNCTION_DECLARATION>() = <NUMBER>1</NUMBER>
 }
+
+<KEYWORD>typealias</KEYWORD> <TYPE_ALIAS>Predicate</TYPE_ALIAS><<TYPE_PARAMETER>T</TYPE_PARAMETER>> = (<TYPE_PARAMETER>T</TYPE_PARAMETER>) -> <CLASS>Boolean</CLASS>
+<KEYWORD>fun</KEYWORD> <FUNCTION_DECLARATION>baz</FUNCTION_DECLARATION>(<PARAMETER>p</PARAMETER>: <TYPE_ALIAS>Predicate</TYPE_ALIAS><<CLASS>Int</CLASS>>) = <PARAMETER><VARIABLE_AS_FUNCTION_CALL>p</VARIABLE_AS_FUNCTION_CALL></PARAMETER>(<NUMBER>42</NUMBER>)
 """
     }
 
@@ -143,6 +146,7 @@ var <PACKAGE_PROPERTY><MUTABLE_VARIABLE>globalCounter</MUTABLE_VARIABLE></PACKAG
                        KotlinBundle.message("options.kotlin.attribute.descriptor.annotation") to KotlinHighlightingColors.ANNOTATION,
                        KotlinBundle.message("options.kotlin.attribute.descriptor.object") to KotlinHighlightingColors.OBJECT,
                        KotlinBundle.message("options.kotlin.attribute.descriptor.enumEntry") to KotlinHighlightingColors.ENUM_ENTRY,
+                       KotlinBundle.message("options.kotlin.attribute.descriptor.typeAlias") to KotlinHighlightingColors.TYPE_ALIAS,
                        KotlinBundle.message("options.kotlin.attribute.descriptor.var") to KotlinHighlightingColors.MUTABLE_VARIABLE,
                        KotlinBundle.message("options.kotlin.attribute.descriptor.local.variable") to KotlinHighlightingColors.LOCAL_VARIABLE,
                        OptionsBundle.message("options.java.attribute.descriptor.parameter") to KotlinHighlightingColors.PARAMETER,
diff --git a/idea/testData/highlighter/TypeAlias.kt b/idea/testData/highlighter/TypeAlias.kt
new file mode 100644
index 00000000000..2cf6a236554
--- /dev/null
+++ b/idea/testData/highlighter/TypeAlias.kt
@@ -0,0 +1,2 @@
+typealias <info textAttributesKey="KOTLIN_TYPE_ALIAS">Predicate</info><<info textAttributesKey="KOTLIN_TYPE_PARAMETER">T</info>> = (<info textAttributesKey="KOTLIN_TYPE_PARAMETER">T</info>) -> <info textAttributesKey="KOTLIN_CLASS">Boolean</info>
+fun <info textAttributesKey="KOTLIN_FUNCTION_DECLARATION">baz</info>(<info textAttributesKey="KOTLIN_PARAMETER">p</info>: <info textAttributesKey="KOTLIN_TYPE_ALIAS">Predicate</info><<info textAttributesKey="KOTLIN_CLASS">Int</info>>) = <info textAttributesKey="KOTLIN_PARAMETER"><info textAttributesKey="KOTLIN_VARIABLE_AS_FUNCTION">p</info></info>(42)
diff --git a/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java
index 8a78ca7bb30..279e21566b4 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java
@@ -126,6 +126,12 @@ public class HighlightingTestGenerated extends AbstractHighlightingTest {
         doTest(fileName);
     }
 
+    @TestMetadata("TypeAlias.kt")
+    public void testTypeAlias() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("idea/testData/highlighter/TypeAlias.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("TypesAndAnnotations.kt")
     public void testTypesAndAnnotations() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("idea/testData/highlighter/TypesAndAnnotations.kt");