diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
index aa7325a237a..af700113278 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
@@ -321,10 +321,10 @@ public class CandidateResolver {
         return resolvedCall.getResultingDescriptor().getReturnType();
     }
 
-    @Nullable
-    public <D extends CallableDescriptor> JetType completeNestedCallsInference(
+    public <D extends CallableDescriptor> void completeNestedCallsInference(
             @NotNull CallCandidateResolutionContext<D> context
     ) {
+        if (context.call.getCallType() == Call.CallType.INVOKE) return;
         ResolvedCallImpl<D> resolvedCall = context.candidateCall;
         for (Map.Entry<ValueParameterDescriptor, ResolvedValueArgument> entry : resolvedCall.getValueArguments().entrySet()) {
             ValueParameterDescriptor parameterDescriptor = entry.getKey();
@@ -335,7 +335,6 @@ public class CandidateResolver {
             }
         }
         recordReferenceForInvokeFunction(context);
-        return resolvedCall.getResultingDescriptor().getReturnType();
     }
 
     private <D extends CallableDescriptor> void completeInferenceForArgument(
@@ -371,7 +370,8 @@ public class CandidateResolver {
             type = completeTypeInferenceDependentOnExpectedTypeForCall(contextForArgument, true);
         }
         else {
-            type = completeNestedCallsInference(contextForArgument);
+            completeNestedCallsInference(contextForArgument);
+            type = contextForArgument.candidateCall.getResultingDescriptor().getReturnType();
             checkValueArgumentTypes(contextForArgument);
         }
         JetType result = BindingContextUtils.updateRecordedType(
@@ -387,6 +387,7 @@ public class CandidateResolver {
     }
 
     public void completeNestedCallsForNotResolvedInvocation(@NotNull CallResolutionContext<?> context, @NotNull Collection<? extends ValueArgument> arguments) {
+        if (context.call.getCallType() == Call.CallType.INVOKE) return;
         if (context.checkArguments == CheckValueArgumentsMode.DISABLED) return;
 
         for (ValueArgument argument : arguments) {
diff --git a/compiler/testData/diagnostics/tests/resolve/invoke/kt4204-completeNestedCallsForInvoke.kt b/compiler/testData/diagnostics/tests/resolve/invoke/kt4204-completeNestedCallsForInvoke.kt
new file mode 100644
index 00000000000..5fd22fd97d6
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/invoke/kt4204-completeNestedCallsForInvoke.kt
@@ -0,0 +1,24 @@
+//KT-4204 ConstraintSystem erased after resolution completion
+package c
+
+public abstract class TestBug1() {
+
+    public fun m3(<!UNUSED_PARAMETER!>position<!>: Int) {
+        position(m1().second<!UNNECESSARY_NOT_NULL_ASSERTION!>!!<!>)
+    }
+
+    public fun m4(position: (Int)->Int) {
+        position(m1().second)
+    }
+
+    private abstract fun m1(): Pair<Int, Int>
+
+    private fun position(<!UNUSED_PARAMETER!>p<!>: Int) {}
+
+}
+
+//from library
+public class Pair<out A, out B> (
+        public val first: A,
+        public val second: B
+)
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index ddc4f976650..077cf295db1 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -5355,6 +5355,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                     doTest("compiler/testData/diagnostics/tests/resolve/invoke/kt3833-invokeInsideNestedClass.kt");
                 }
                 
+                @TestMetadata("kt4204-completeNestedCallsForInvoke.kt")
+                public void testKt4204_completeNestedCallsForInvoke() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/resolve/invoke/kt4204-completeNestedCallsForInvoke.kt");
+                }
+                
             }
             
             @TestMetadata("compiler/testData/diagnostics/tests/resolve/nestedCalls")