diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
index 0012f0aee7b..c5c9e3e9a41 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/BasicExpressionTypingVisitor.java
@@ -841,6 +841,9 @@ public class BasicExpressionTypingVisitor extends ExpressionTypingVisitor {
         JetType type = getVariableType(nameExpression, receiver, callOperationNode, context.replaceBindingTrace(traceForVariable), result);
         if (result[0]) {
             traceForVariable.commit();
+            if (type instanceof NamespaceType && !context.namespacesAllowed) {
+                type = null;
+            }
             return JetTypeInfo.create(type, context.dataFlowInfo);
         }
 
diff --git a/compiler/testData/diagnostics/tests/NamespaceInExpressionPosition.kt b/compiler/testData/diagnostics/tests/NamespaceInExpressionPosition.kt
index 740ed2c0b3a..7b69e82dea8 100644
--- a/compiler/testData/diagnostics/tests/NamespaceInExpressionPosition.kt
+++ b/compiler/testData/diagnostics/tests/NamespaceInExpressionPosition.kt
@@ -5,7 +5,22 @@ class X {}
 val s = <!EXPRESSION_EXPECTED_NAMESPACE_FOUND!>java<!>
 val ss = <!NO_CLASS_OBJECT!>System<!>
 val sss = <!NO_CLASS_OBJECT!>X<!>
+val x = "${<!NO_CLASS_OBJECT!>System<!>}"
 val xs = java.<!EXPRESSION_EXPECTED_NAMESPACE_FOUND!>lang<!>
 val xss = java.lang.<!NO_CLASS_OBJECT!>System<!>
 val xsss = foo.<!NO_CLASS_OBJECT!>X<!>
-val xssss = <!EXPRESSION_EXPECTED_NAMESPACE_FOUND!>foo<!>
\ No newline at end of file
+val xssss = <!EXPRESSION_EXPECTED_NAMESPACE_FOUND!>foo<!>
+val f = { <!NO_CLASS_OBJECT!>System<!> }
+
+fun main(args : Array<String>) {
+    <!EXPRESSION_EXPECTED_NAMESPACE_FOUND, VARIABLE_EXPECTED!>java<!> = null
+    <!NO_CLASS_OBJECT!>System<!> = null
+    <!NO_CLASS_OBJECT!>System<!>!!
+    java.lang.<!NO_CLASS_OBJECT!>System<!> = null
+    java.lang.<!NO_CLASS_OBJECT!>System<!>!!
+    <!NO_CLASS_OBJECT!>System<!> is Int
+    <!INVISIBLE_MEMBER!>System<!>()
+    (<!NO_CLASS_OBJECT!>System<!>)
+    @foo <!NO_CLASS_OBJECT!>System<!>
+    null in <!NO_CLASS_OBJECT!>System<!>
+}