diff --git a/idea/src/org/jetbrains/jet/plugin/JetBundle.properties b/idea/src/org/jetbrains/jet/plugin/JetBundle.properties
index db441d6bf92..50fc52c1247 100644
--- a/idea/src/org/jetbrains/jet/plugin/JetBundle.properties
+++ b/idea/src/org/jetbrains/jet/plugin/JetBundle.properties
@@ -52,7 +52,7 @@ macro.fun.anonymousSuper=anonymousSuper()
 change.visibility.modifier=Change visibility modifier
 
 options.jet.attribute.descriptor.builtin.annotation=Built-in annotation
-options.jet.attribute.descriptor.closure.braces=Function literal braces
+options.jet.attribute.descriptor.closure.braces=Function literal braces and arrow
 options.jet.attribute.descriptor.safe.access=Safe access dot
 options.jet.attribute.descriptor.arrow=Arrow
 options.jet.attribute.descriptor.kdoc.comment=KDoc comment
diff --git a/idea/src/org/jetbrains/jet/plugin/highlighter/JetColorSettingsPage.java b/idea/src/org/jetbrains/jet/plugin/highlighter/JetColorSettingsPage.java
index 8e80f0f4016..e20ca17824f 100644
--- a/idea/src/org/jetbrains/jet/plugin/highlighter/JetColorSettingsPage.java
+++ b/idea/src/org/jetbrains/jet/plugin/highlighter/JetColorSettingsPage.java
@@ -61,12 +61,13 @@ public class JetColorSettingsPage implements ColorSettingsPage {
                "        <NAMESPACE_FUNCTION_CALL>println</NAMESPACE_FUNCTION_CALL>(\"length is ${<PARAMETER>nullable</PARAMETER>?.<INSTANCE_PROPERTY>length</INSTANCE_PROPERTY>} <INVALID_STRING_ESCAPE>\\e</INVALID_STRING_ESCAPE>\")\n" +
                "        val <LOCAL_VARIABLE>ints</LOCAL_VARIABLE> = java.util.<CONSTRUCTOR_CALL>ArrayList</CONSTRUCTOR_CALL><Int?>(2)\n" +
                "        <LOCAL_VARIABLE>ints</LOCAL_VARIABLE>[0] = 102 + <PARAMETER>f</PARAMETER>()\n" +
+               "        val <LOCAL_VARIABLE>myFun</LOCAL_VARIABLE> = <FUNCTION_LITERAL_BRACES_AND_ARROW>{</FUNCTION_LITERAL_BRACES_AND_ARROW> <FUNCTION_LITERAL_BRACES_AND_ARROW>-></FUNCTION_LITERAL_BRACES_AND_ARROW> \"\" <FUNCTION_LITERAL_BRACES_AND_ARROW>}</FUNCTION_LITERAL_BRACES_AND_ARROW>\n" +
                "        var <LOCAL_VARIABLE><MUTABLE_VARIABLE><WRAPPED_INTO_REF>ref</WRAPPED_INTO_REF></MUTABLE_VARIABLE></LOCAL_VARIABLE> = <LOCAL_VARIABLE>ints</LOCAL_VARIABLE>.<FUNCTION_CALL>size</FUNCTION_CALL>()\n" +
-               "        if (!<LOCAL_VARIABLE>ints</LOCAL_VARIABLE>.<EXTENSION_PROPERTY>empty</EXTENSION_PROPERTY>) <FUNCTION_LITERAL_BRACES>{</FUNCTION_LITERAL_BRACES>\n" +
-               "            <LOCAL_VARIABLE>ints</LOCAL_VARIABLE>.<EXTENSION_FUNCTION_CALL>forEach</EXTENSION_FUNCTION_CALL> @lit {\n" +
+               "        if (!<LOCAL_VARIABLE>ints</LOCAL_VARIABLE>.<EXTENSION_PROPERTY>empty</EXTENSION_PROPERTY>) {\n" +
+               "            <LOCAL_VARIABLE>ints</LOCAL_VARIABLE>.<EXTENSION_FUNCTION_CALL>forEach</EXTENSION_FUNCTION_CALL> @lit <FUNCTION_LITERAL_BRACES_AND_ARROW>{</FUNCTION_LITERAL_BRACES_AND_ARROW>\n" +
                "                if (<FUNCTION_LITERAL_DEFAULT_PARAMETER>it</FUNCTION_LITERAL_DEFAULT_PARAMETER> == null) return @lit\n" +
                "                println(<FUNCTION_LITERAL_DEFAULT_PARAMETER><AUTO_CASTED_VALUE>it</AUTO_CASTED_VALUE></FUNCTION_LITERAL_DEFAULT_PARAMETER> + <LOCAL_VARIABLE><MUTABLE_VARIABLE><WRAPPED_INTO_REF>ref</WRAPPED_INTO_REF></MUTABLE_VARIABLE></LOCAL_VARIABLE>)\n" +
-               "            <FUNCTION_LITERAL_BRACES>}</FUNCTION_LITERAL_BRACES>\n" +
+               "            <FUNCTION_LITERAL_BRACES_AND_ARROW>}</FUNCTION_LITERAL_BRACES_AND_ARROW>\n" +
                "        }\n" +
                "    }\n" +
                "}\n" +
@@ -111,13 +112,13 @@ public class JetColorSettingsPage implements ColorSettingsPage {
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.operator.sign"), JetHighlightingColors.OPERATOR_SIGN),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.parentheses"), JetHighlightingColors.PARENTHESIS),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.braces"), JetHighlightingColors.BRACES),
+            new AttributesDescriptor(JetBundle.message("options.jet.attribute.descriptor.closure.braces"), JetHighlightingColors.FUNCTION_LITERAL_BRACES_AND_ARROW),
+            new AttributesDescriptor(JetBundle.message("options.jet.attribute.descriptor.arrow"), JetHighlightingColors.ARROW),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.brackets"), JetHighlightingColors.BRACKETS),
-            new AttributesDescriptor(JetBundle.message("options.jet.attribute.descriptor.closure.braces"), JetHighlightingColors.FUNCTION_LITERAL_BRACES),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.comma"), JetHighlightingColors.COMMA),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.semicolon"), JetHighlightingColors.SEMICOLON),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.dot"), JetHighlightingColors.DOT),
             new AttributesDescriptor(JetBundle.message("options.jet.attribute.descriptor.safe.access"), JetHighlightingColors.SAFE_ACCESS),
-            new AttributesDescriptor(JetBundle.message("options.jet.attribute.descriptor.arrow"), JetHighlightingColors.ARROW),
 
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.line.comment"), JetHighlightingColors.LINE_COMMENT),
             new AttributesDescriptor(OptionsBundle.message("options.java.attribute.descriptor.block.comment"), JetHighlightingColors.BLOCK_COMMENT),
diff --git a/idea/src/org/jetbrains/jet/plugin/highlighter/JetHighlightingColors.java b/idea/src/org/jetbrains/jet/plugin/highlighter/JetHighlightingColors.java
index b3ca1bda1c9..2d6b968c18c 100644
--- a/idea/src/org/jetbrains/jet/plugin/highlighter/JetHighlightingColors.java
+++ b/idea/src/org/jetbrains/jet/plugin/highlighter/JetHighlightingColors.java
@@ -76,8 +76,8 @@ public class JetHighlightingColors {
         SyntaxHighlighterColors.BRACKETS.getDefaultAttributes()
     );
 
-    public static final TextAttributesKey FUNCTION_LITERAL_BRACES = TextAttributesKey.createTextAttributesKey(
-        "KOTLIN_FUNCTION_LITERAL_BRACES",
+    public static final TextAttributesKey FUNCTION_LITERAL_BRACES_AND_ARROW = TextAttributesKey.createTextAttributesKey(
+        "KOTLIN_FUNCTION_LITERAL_BRACES_AND_ARROW",
         new TextAttributes(null, null, null, null, Font.BOLD)
     );
 
diff --git a/idea/src/org/jetbrains/jet/plugin/highlighter/SoftKeywordsHighlightingVisitor.java b/idea/src/org/jetbrains/jet/plugin/highlighter/SoftKeywordsHighlightingVisitor.java
index 337ceb1c863..e02eee1e1c4 100644
--- a/idea/src/org/jetbrains/jet/plugin/highlighter/SoftKeywordsHighlightingVisitor.java
+++ b/idea/src/org/jetbrains/jet/plugin/highlighter/SoftKeywordsHighlightingVisitor.java
@@ -52,14 +52,14 @@ class SoftKeywordsHighlightingVisitor extends HighlightingVisitor {
     public void visitFunctionLiteralExpression(JetFunctionLiteralExpression expression) {
         if (ApplicationManager.getApplication().isUnitTestMode()) return;
         JetFunctionLiteral functionLiteral = expression.getFunctionLiteral();
-        holder.createInfoAnnotation(functionLiteral.getOpenBraceNode(), null).setTextAttributes(JetHighlightingColors.FUNCTION_LITERAL_BRACES);
+        holder.createInfoAnnotation(functionLiteral.getOpenBraceNode(), null).setTextAttributes(JetHighlightingColors.FUNCTION_LITERAL_BRACES_AND_ARROW);
         ASTNode closingBraceNode = functionLiteral.getClosingBraceNode();
         if (closingBraceNode != null) {
-            holder.createInfoAnnotation(closingBraceNode, null).setTextAttributes(JetHighlightingColors.FUNCTION_LITERAL_BRACES);
+            holder.createInfoAnnotation(closingBraceNode, null).setTextAttributes(JetHighlightingColors.FUNCTION_LITERAL_BRACES_AND_ARROW);
         }
         ASTNode arrowNode = functionLiteral.getArrowNode();
         if (arrowNode != null) {
-            holder.createInfoAnnotation(arrowNode, null).setTextAttributes(JetHighlightingColors.FUNCTION_LITERAL_BRACES);
+            holder.createInfoAnnotation(arrowNode, null).setTextAttributes(JetHighlightingColors.FUNCTION_LITERAL_BRACES_AND_ARROW);
         }
     }
 }