diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponeArgumentsChecks.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponeArgumentsChecks.kt
index c3b1fdaeeee..c7f9b7ae916 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponeArgumentsChecks.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponeArgumentsChecks.kt
@@ -97,7 +97,15 @@ private fun extraLambdaInfo(
     val newTypeVariableUsed = returnType == typeVariable.defaultType
     if (newTypeVariableUsed) csBuilder.registerVariable(typeVariable)
 
-    return ResolvedLambdaAtom(argument, isSuspend, receiverType, parameters, returnType, typeVariable.takeIf { newTypeVariableUsed })
+    return ResolvedLambdaAtom(
+        argument,
+        isSuspend,
+        receiverType,
+        parameters,
+        returnType,
+        typeVariable.takeIf { newTypeVariableUsed },
+        expectedType
+    )
 }
 
 private fun extractLambdaInfoFromFunctionalType(expectedType: UnwrappedType?, argument: LambdaKotlinCallArgument): ResolvedLambdaAtom? {
@@ -114,7 +122,8 @@ private fun extractLambdaInfoFromFunctionalType(expectedType: UnwrappedType?, ar
         receiverType,
         parameters,
         returnType,
-        typeVariableForLambdaReturnType = null
+        typeVariableForLambdaReturnType = null,
+        expectedType = expectedType
     )
 }
 
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt
index 31c05c564c3..630e3631758 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/PostponedArgumentsAnalyzer.kt
@@ -5,6 +5,9 @@
 
 package org.jetbrains.kotlin.resolve.calls.components
 
+import org.jetbrains.kotlin.builtins.getReceiverTypeFromFunctionType
+import org.jetbrains.kotlin.builtins.getValueParameterTypesFromFunctionType
+import org.jetbrains.kotlin.builtins.isBuiltinFunctionalType
 import org.jetbrains.kotlin.resolve.calls.inference.ConstraintSystemBuilder
 import org.jetbrains.kotlin.resolve.calls.inference.addSubsystemFromArgument
 import org.jetbrains.kotlin.resolve.calls.inference.components.NewTypeSubstitutor
@@ -68,15 +71,31 @@ class PostponedArgumentsAnalyzer(
 
         fun substitute(type: UnwrappedType) = currentSubstitutor.safeSubstitute(type)
 
-        val receiver = lambda.receiver?.let(::substitute)
-        val parameters = lambda.parameters.map(::substitute)
+        fun expectedOrActualType(expected: UnwrappedType?, actual: UnwrappedType?): UnwrappedType? {
+            val expectedSubstituted = expected?.let(::substitute)
+            return if (expectedSubstituted != null && c.canBeProper(expectedSubstituted)) expectedSubstituted else actual?.let(::substitute)
+        }
+
+        val builtIns = c.getBuilder().builtIns
+
+        // Expected type has a higher priority against which lambda should be analyzed
+        // Mostly, this is needed to report more specific diagnostics on lambda parameters
+        val receiver = expectedOrActualType(lambda.expectedType.receiver(), lambda.receiver)
+
+        val expectedParameters = lambda.expectedType.valueParameters()
+
+        val parameters =
+            expectedParameters?.mapIndexed { index, expected ->
+                expectedOrActualType(expected, lambda.parameters.getOrNull(index)) ?: builtIns.nothingType
+            } ?: lambda.parameters.map(::substitute)
+
         val rawReturnType = lambda.returnType
 
         val expectedTypeForReturnArguments = when {
             c.canBeProper(rawReturnType) -> substitute(rawReturnType)
 
             // For Unit-coercion
-            c.hasUpperOrEqualUnitConstraint(rawReturnType) -> lambda.returnType.builtIns.unitType
+            c.hasUpperOrEqualUnitConstraint(rawReturnType) -> builtIns.unitType
 
             else -> null
         }
@@ -121,4 +140,16 @@ class PostponedArgumentsAnalyzer(
             }
         }
     }
+
+    private fun UnwrappedType?.receiver(): UnwrappedType? {
+        return forFunctionalType { getReceiverTypeFromFunctionType()?.unwrap() }
+    }
+
+    private fun UnwrappedType?.valueParameters(): List<UnwrappedType>? {
+        return forFunctionalType { getValueParameterTypesFromFunctionType().map { it.type.unwrap() } }
+    }
+
+    private inline fun <T> UnwrappedType?.forFunctionalType(f: UnwrappedType.() -> T?): T? {
+        return if (this?.isBuiltinFunctionalType == true) f(this) else null
+    }
 }
\ No newline at end of file
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/ResolutionAtoms.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/ResolutionAtoms.kt
index 43860b3b842..6e1347f543c 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/ResolutionAtoms.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/ResolutionAtoms.kt
@@ -94,7 +94,8 @@ class ResolvedLambdaAtom(
     val receiver: UnwrappedType?,
     val parameters: List<UnwrappedType>,
     val returnType: UnwrappedType,
-    val typeVariableForLambdaReturnType: TypeVariableForLambdaReturnType?
+    val typeVariableForLambdaReturnType: TypeVariableForLambdaReturnType?,
+    val expectedType: UnwrappedType?
 ) : PostponedResolvedAtom() {
     lateinit var resultArguments: List<KotlinCallArgument>
         private set
diff --git a/compiler/testData/diagnostics/tests/AutoCreatedIt.kt b/compiler/testData/diagnostics/tests/AutoCreatedIt.kt
index db0b1006919..e012e7a9eee 100644
--- a/compiler/testData/diagnostics/tests/AutoCreatedIt.kt
+++ b/compiler/testData/diagnostics/tests/AutoCreatedIt.kt
@@ -13,7 +13,7 @@ fun text() {
     bar2 {<!TYPE_MISMATCH!><!>}
     bar2 {1}
     bar2 {<!UNRESOLVED_REFERENCE!>it<!>}
-    bar2 <!NI;TYPE_MISMATCH!>{<!OI;CANNOT_INFER_PARAMETER_TYPE, OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!>it<!> -> <!NI;TYPE_MISMATCH, NI;TYPE_MISMATCH, NI;TYPE_MISMATCH, OI;DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>it<!>}<!>
+    bar2 <!NI;TYPE_MISMATCH!>{<!CANNOT_INFER_PARAMETER_TYPE, EXPECTED_PARAMETERS_NUMBER_MISMATCH!>it<!> -> <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>it<!>}<!>
 }
 
 fun bar(<!UNUSED_PARAMETER!>f<!> :  (Int, Int) -> Int) {}
diff --git a/compiler/testData/diagnostics/tests/FunctionCalleeExpressions.kt b/compiler/testData/diagnostics/tests/FunctionCalleeExpressions.kt
index 64614f9b010..9bb5e8c019c 100644
--- a/compiler/testData/diagnostics/tests/FunctionCalleeExpressions.kt
+++ b/compiler/testData/diagnostics/tests/FunctionCalleeExpressions.kt
@@ -37,8 +37,8 @@ fun main(args : Array<String>) {
     foo2()({})
     foo2()<!TOO_MANY_ARGUMENTS!>{}<!>
     (foo2()){}
-    (foo2())<!NI;TYPE_MISMATCH!>{<!OI;CANNOT_INFER_PARAMETER_TYPE, OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH, UNUSED_ANONYMOUS_PARAMETER!>x<!> -> }<!>
-    foo2()(<!NI;TYPE_MISMATCH!>{<!OI;CANNOT_INFER_PARAMETER_TYPE, OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH, UNUSED_ANONYMOUS_PARAMETER!>x<!> -> }<!>)
+    (foo2())<!NI;TYPE_MISMATCH!>{<!CANNOT_INFER_PARAMETER_TYPE, EXPECTED_PARAMETERS_NUMBER_MISMATCH, UNUSED_ANONYMOUS_PARAMETER!>x<!> -> }<!>
+    foo2()(<!NI;TYPE_MISMATCH!>{<!CANNOT_INFER_PARAMETER_TYPE, EXPECTED_PARAMETERS_NUMBER_MISMATCH, UNUSED_ANONYMOUS_PARAMETER!>x<!> -> }<!>)
 
     val a = fooT1(1)()
     checkSubtype<Int>(a)
diff --git a/compiler/testData/diagnostics/tests/functionAsExpression/MissingParameterTypes.kt b/compiler/testData/diagnostics/tests/functionAsExpression/MissingParameterTypes.kt
index 34b51623d59..442c7f3c2a2 100644
--- a/compiler/testData/diagnostics/tests/functionAsExpression/MissingParameterTypes.kt
+++ b/compiler/testData/diagnostics/tests/functionAsExpression/MissingParameterTypes.kt
@@ -19,9 +19,9 @@ fun test1(a: (Int) -> Unit) {
 }
 
 fun test2(a: (Int) -> Unit) {
-    test2(<!TYPE_MISMATCH!>fun (<!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>x: String<!>) {}<!>)
+    test2(<!TYPE_MISMATCH!>fun (<!EXPECTED_PARAMETER_TYPE_MISMATCH!>x: String<!>) {}<!>)
 }
 
 fun test3(a: (Int, String) -> Unit) {
-    test3(<!TYPE_MISMATCH!>fun <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!>(<!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>x: String<!>)<!> {}<!>)
+    test3(<!TYPE_MISMATCH!>fun <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!>(<!EXPECTED_PARAMETER_TYPE_MISMATCH!>x: String<!>)<!> {}<!>)
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParameterTypeMismatchVariance.kt b/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParameterTypeMismatchVariance.kt
index dc14a07cfac..36d113e6f6f 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParameterTypeMismatchVariance.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParameterTypeMismatchVariance.kt
@@ -16,6 +16,6 @@ fun test(s: Sub) {
         t: Trait -> s
     }
 
-    foo(<!TYPE_MISMATCH!>fun(<!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>t: Sub<!>) = s<!>)
+    foo(<!TYPE_MISMATCH!>fun(<!EXPECTED_PARAMETER_TYPE_MISMATCH!>t: Sub<!>) = s<!>)
     foo(<!TYPE_MISMATCH!>fun(t): Super = s<!>)
 }
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.kt b/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.kt
index cb87406a4d8..8e41ca760af 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/ExpectedParametersTypesMismatch.kt
@@ -10,23 +10,23 @@ fun test1() {
         ""
     }
     foo0 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s<!>: String<!>-> ""
+        <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s<!>: String<!>-> ""
     }<!>
     foo0 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!OI;CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>x<!>, <!OI;CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>y<!><!> -> ""
+        <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>x<!>, <!NI;CANNOT_INFER_PARAMETER_TYPE, OI;CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>y<!><!> -> ""
     }<!>
 
     foo1 {
         ""
     }
     foo1 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s<!>: String<!> -> ""
+        <!EXPECTED_PARAMETER_TYPE_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s<!>: String<!> -> ""
     }<!>
     foo1 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>x<!>, <!OI;CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>y<!><!> -> ""
+        <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>x<!>, <!CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>y<!><!> -> ""
     }<!>
     foo1 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!>-> <!CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH!>42<!>
+        <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!>-> <!CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH!>42<!>
     }<!>
 
 
@@ -34,12 +34,12 @@ fun test1() {
         ""
     }
     foo2 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH, OI;EXPECTED_PARAMETER_TYPE_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s<!>: String<!> -> ""
+        <!EXPECTED_PARAMETERS_NUMBER_MISMATCH, EXPECTED_PARAMETER_TYPE_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s<!>: String<!> -> ""
     }<!>
     foo2 <!NI;TYPE_MISMATCH!>{
-        <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH, UNUSED_ANONYMOUS_PARAMETER!>x<!> -> ""
+        <!EXPECTED_PARAMETERS_NUMBER_MISMATCH, UNUSED_ANONYMOUS_PARAMETER!>x<!> -> ""
     }<!>
     foo2 <!NI;TYPE_MISMATCH!>{
-         <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!>-> <!CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH!>42<!>
+         <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!>-> <!CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH, NI;CONSTANT_EXPECTED_TYPE_MISMATCH!>42<!>
     }<!>
 }
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/simple.kt b/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/simple.kt
index 7f7ca456609..5ef660246c2 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/simple.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/simple.kt
@@ -47,7 +47,7 @@ fun bar() {
         b checkType { _<String>() }
     }
 
-    foo <!NI;TYPE_MISMATCH!>{ <!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>(a, b): B<!> ->
+    foo <!NI;TYPE_MISMATCH!>{ <!EXPECTED_PARAMETER_TYPE_MISMATCH!>(a, b): B<!> ->
         a checkType { _<Double>() }
         b checkType { _<Short>() }
     }<!>
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/underscore.kt b/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/underscore.kt
index 5bae03b2eff..a81c28ab87f 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/underscore.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/destructuringInLambdas/underscore.kt
@@ -56,7 +56,7 @@ fun bar() {
         b checkType { _<String>() }
     }
 
-    foo <!NI;TYPE_MISMATCH!>{ <!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>(_, b): B<!> ->
+    foo <!NI;TYPE_MISMATCH!>{ <!EXPECTED_PARAMETER_TYPE_MISMATCH!>(_, b): B<!> ->
         <!UNRESOLVED_REFERENCE!>_<!>.<!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>hashCode<!>()
         b checkType { _<Short>() }
     }<!>
diff --git a/compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt b/compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt
index afcc28e4168..9f59e7247b8 100644
--- a/compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt
+++ b/compiler/testData/diagnostics/tests/j+k/sam/enhancedSamConstructor.kt
@@ -16,12 +16,12 @@ public interface J2 extends J {
 
 // FILE: main.kt
 fun main() {
-    J <!NI;TYPE_MISMATCH!>{ <!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>s: String<!> -> s}<!> // should be prohibited, because SAM value parameter has nullable type
+    J <!NI;TYPE_MISMATCH!>{ <!EXPECTED_PARAMETER_TYPE_MISMATCH!>s: String<!> -> s}<!> // should be prohibited, because SAM value parameter has nullable type
     J { "" + it<!UNSAFE_CALL!>.<!>length }
     J { <!NI;NULL_FOR_NONNULL_TYPE, NI;NULL_FOR_NONNULL_TYPE, NULL_FOR_NONNULL_TYPE!>null<!> }
     J { <!NI;TYPE_MISMATCH, NI;TYPE_MISMATCH, TYPE_MISMATCH!>it?.length?.toString()<!> }
 
-    J2 <!NI;TYPE_MISMATCH!>{ <!OI;EXPECTED_PARAMETER_TYPE_MISMATCH!>s: String<!> -> s}<!>
+    J2 <!NI;TYPE_MISMATCH!>{ <!EXPECTED_PARAMETER_TYPE_MISMATCH!>s: String<!> -> s}<!>
     J2 { "" + it<!UNSAFE_CALL!>.<!>length }
     J2 { <!NI;NULL_FOR_NONNULL_TYPE, NI;NULL_FOR_NONNULL_TYPE, NULL_FOR_NONNULL_TYPE!>null<!> }
     J2 { <!NI;TYPE_MISMATCH, NI;TYPE_MISMATCH, TYPE_MISMATCH!>it?.length?.toString()<!> }
diff --git a/compiler/testData/diagnostics/tests/when/whenAndLambdaWithExpectedType.kt b/compiler/testData/diagnostics/tests/when/whenAndLambdaWithExpectedType.kt
index b238e4b8658..4011f9bdcc4 100644
--- a/compiler/testData/diagnostics/tests/when/whenAndLambdaWithExpectedType.kt
+++ b/compiler/testData/diagnostics/tests/when/whenAndLambdaWithExpectedType.kt
@@ -19,7 +19,7 @@ val test3: (String) -> Boolean =
 
 val test4: (String) -> Boolean =
         when {
-            true -> <!NI;TYPE_MISMATCH!>{ <!OI;EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s1<!>, <!OI;CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>s2<!><!> -> true }<!>
+            true -> <!NI;TYPE_MISMATCH!>{ <!EXPECTED_PARAMETERS_NUMBER_MISMATCH!><!UNUSED_ANONYMOUS_PARAMETER!>s1<!>, <!CANNOT_INFER_PARAMETER_TYPE, UNUSED_ANONYMOUS_PARAMETER!>s2<!><!> -> true }<!>
             else -> null!!
         }