diff --git a/idea/src/META-INF/plugin.xml b/idea/src/META-INF/plugin.xml
index 5b6447916a5..f7511ef34e8 100644
--- a/idea/src/META-INF/plugin.xml
+++ b/idea/src/META-INF/plugin.xml
@@ -170,6 +170,7 @@
       <extendWordSelectionHandler implementation="org.jetbrains.jet.plugin.editor.wordSelection.JetCodeBlockSelectioner"/>
       <extendWordSelectionHandler implementation="org.jetbrains.jet.plugin.editor.wordSelection.JetListSelectioner"/>
       <typedHandler implementation="org.jetbrains.jet.plugin.editor.KotlinTypedHandler" />
+      <backspaceHandlerDelegate implementation="org.jetbrains.jet.plugin.editor.KotlinBackspaceHandler" />
 
       <copyPastePostProcessor implementation="org.jetbrains.jet.plugin.conversion.copy.JavaCopyPastePostProcessor"/>
       <lang.documentationProvider language="JAVA" implementationClass="org.jetbrains.jet.plugin.JetQuickDocumentationProvider" order="first"/>
diff --git a/idea/src/org/jetbrains/jet/plugin/editor/JetLtGtTypingUtils.java b/idea/src/org/jetbrains/jet/plugin/editor/JetLtGtTypingUtils.java
new file mode 100644
index 00000000000..7db03661649
--- /dev/null
+++ b/idea/src/org/jetbrains/jet/plugin/editor/JetLtGtTypingUtils.java
@@ -0,0 +1,78 @@
+/*
+ * Copyright 2010-2012 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.jet.plugin.editor;
+
+import com.intellij.codeInsight.editorActions.JavaBackspaceHandler;
+import com.intellij.codeInsight.editorActions.JavaTypedHandler;
+import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.editor.ex.EditorEx;
+import com.intellij.openapi.editor.highlighter.HighlighterIterator;
+import com.intellij.psi.tree.TokenSet;
+import org.jetbrains.jet.lexer.JetTokens;
+
+final class JetLtGtTypingUtils {
+    private static final TokenSet INVALID_INSIDE_REFERENCE = TokenSet.create(JetTokens.SEMICOLON, JetTokens.LBRACE, JetTokens.RBRACE);
+
+    private JetLtGtTypingUtils() {
+    }
+
+    static void handleJetAutoCloseLT(Editor editor) {
+        JavaTypedHandler.handleAfterJavaLT(editor, JetTokens.LT, JetTokens.GT, INVALID_INSIDE_REFERENCE);
+    }
+
+    static boolean handleJetGTInsert(Editor editor) {
+        return JavaTypedHandler.handleJavaGT(editor, JetTokens.LT, JetTokens.GT, INVALID_INSIDE_REFERENCE);
+    }
+
+    static void handleJetLTDeletion(Editor editor, int offset) {
+        JavaBackspaceHandler.handleLTDeletion(editor, offset, JetTokens.LT, JetTokens.GT, INVALID_INSIDE_REFERENCE);
+    }
+
+    static boolean shouldAutoCloseAngleBracket(int offset, final Editor editor) {
+        return isAfterClassIdentifier(offset, editor) || isAfterFunKeyword(offset, editor);
+    }
+
+    private static boolean isAfterClassIdentifier(int offset, Editor editor) {
+        HighlighterIterator iterator = ((EditorEx) editor).getHighlighter().createIterator(offset);
+        if (iterator.atEnd()) {
+            return false;
+        }
+
+        if (iterator.getStart() > 0) {
+            iterator.retreat();
+        }
+
+        return JavaTypedHandler.isClassLikeIdentifier(offset, editor, iterator, JetTokens.IDENTIFIER);
+    }
+
+    private static boolean isAfterFunKeyword(int offset, Editor editor) {
+        HighlighterIterator iterator = ((EditorEx) editor).getHighlighter().createIterator(offset);
+        if (iterator.atEnd()) {
+            return false;
+        }
+
+        if (iterator.getStart() > 0) {
+            iterator.retreat();
+        }
+
+        if (iterator.getTokenType() == JetTokens.WHITE_SPACE && iterator.getStart() > 0) {
+            iterator.retreat();
+        }
+
+        return iterator.getTokenType() == JetTokens.FUN_KEYWORD;
+    }
+}
diff --git a/idea/src/org/jetbrains/jet/plugin/editor/KotlinBackspaceHandler.java b/idea/src/org/jetbrains/jet/plugin/editor/KotlinBackspaceHandler.java
new file mode 100644
index 00000000000..b0b24d96d2b
--- /dev/null
+++ b/idea/src/org/jetbrains/jet/plugin/editor/KotlinBackspaceHandler.java
@@ -0,0 +1,49 @@
+/*
+ * Copyright 2010-2012 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.jet.plugin.editor;
+
+import com.intellij.codeInsight.editorActions.BackspaceHandlerDelegate;
+import com.intellij.openapi.editor.Editor;
+import com.intellij.psi.PsiFile;
+import org.jetbrains.jet.lang.psi.JetFile;
+
+public class KotlinBackspaceHandler extends BackspaceHandlerDelegate {
+    private boolean deleteGt;
+
+    @Override
+    public void beforeCharDeleted(char c, PsiFile file, Editor editor) {
+        int offset = editor.getCaretModel().getOffset() - 1;
+        deleteGt = c =='<' && file instanceof JetFile && JetLtGtTypingUtils.shouldAutoCloseAngleBracket(offset, editor);
+    }
+
+    @Override
+    public boolean charDeleted(final char c, final PsiFile file, final Editor editor) {
+        int offset = editor.getCaretModel().getOffset();
+        final CharSequence chars = editor.getDocument().getCharsSequence();
+        if (editor.getDocument().getTextLength() <= offset) return false; //virtual space after end of file
+
+        char c1 = chars.charAt(offset);
+        if (c == '<' && deleteGt) {
+            if (c1 == '>') {
+                JetLtGtTypingUtils.handleJetLTDeletion(editor, offset);
+            }
+            return true;
+        }
+
+        return false;
+    }
+}
diff --git a/idea/src/org/jetbrains/jet/plugin/editor/KotlinTypedHandler.java b/idea/src/org/jetbrains/jet/plugin/editor/KotlinTypedHandler.java
index 07bbcf530c7..4916b458a65 100644
--- a/idea/src/org/jetbrains/jet/plugin/editor/KotlinTypedHandler.java
+++ b/idea/src/org/jetbrains/jet/plugin/editor/KotlinTypedHandler.java
@@ -19,6 +19,7 @@ package org.jetbrains.jet.plugin.editor;
 import com.intellij.codeInsight.CodeInsightSettings;
 import com.intellij.codeInsight.editorActions.TypedHandlerDelegate;
 import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.fileTypes.FileType;
 import com.intellij.openapi.project.Project;
 import com.intellij.psi.PsiDocumentManager;
 import com.intellij.psi.PsiElement;
@@ -33,8 +34,34 @@ import org.jetbrains.jet.lexer.JetTokens;
  * @since 7/16/12
  */
 public class KotlinTypedHandler extends TypedHandlerDelegate {
+
+    private boolean jetLTTyped;
+
+    @Override
+    public Result beforeCharTyped(char c, Project project, Editor editor, PsiFile file, FileType fileType) {
+        jetLTTyped = '<' == c &&
+                     file instanceof JetFile && CodeInsightSettings.getInstance().AUTOINSERT_PAIR_BRACKET &&
+                     JetLtGtTypingUtils.shouldAutoCloseAngleBracket(editor.getCaretModel().getOffset(), editor);
+
+        if ('>' == c) {
+            if (file instanceof JetFile && CodeInsightSettings.getInstance().AUTOINSERT_PAIR_BRACKET) {
+                if (JetLtGtTypingUtils.handleJetGTInsert(editor)) {
+                    return Result.STOP;
+                }
+            }
+        }
+
+        return super.beforeCharTyped(c, project, editor, file, fileType);
+    }
+
     @Override
     public Result charTyped(char c, Project project, Editor editor, @NotNull PsiFile file) {
+        if (jetLTTyped) {
+            jetLTTyped = false;
+            JetLtGtTypingUtils.handleJetAutoCloseLT(editor);
+            return Result.STOP;
+        }
+
         if (!(file instanceof JetFile) || !CodeInsightSettings.getInstance().AUTOINSERT_PAIR_BRACKET) {
             return Result.CONTINUE;
         }
diff --git a/idea/tests/org/jetbrains/jet/editor/TypedHandlerTest.java b/idea/tests/org/jetbrains/jet/editor/TypedHandlerTest.java
index 3518dbcb599..f6fde990531 100644
--- a/idea/tests/org/jetbrains/jet/editor/TypedHandlerTest.java
+++ b/idea/tests/org/jetbrains/jet/editor/TypedHandlerTest.java
@@ -29,4 +29,61 @@ public class TypedHandlerTest extends LightCodeInsightTestCase {
         EditorTestUtil.performTypingAction(getEditor(), '{');
         checkResultByText("val x = \"${}\"");
     }
+
+    public void testTypeLtInFunDeclaration() throws Exception {
+        doLtGtTest("fun <caret>");
+    }
+
+    public void testTypeLtInOngoingConstructorCall() throws Exception {
+        doLtGtTest("fun test() { Collection<caret> }");
+    }
+
+    public void testTypeLtInClassDeclaration() throws Exception {
+        doLtGtTest("class Some<caret> {}");
+    }
+
+    public void testTypeLtInPropertyType() throws Exception {
+        doLtGtTest("val a: List<caret> ");
+    }
+
+    public void testTypeLtInExtensionFunctionReceiver() throws Exception {
+        doLtGtTest("fun <T> Collection<caret> ");
+    }
+
+    public void testTypeLtInFunParam() throws Exception {
+        doLtGtTest("fun some(a : HashSet<caret>)");
+    }
+
+    public void testTypeLtInFun() throws Exception {
+        doLtGtTestNoAutoClose("fun some() { <<caret> }");
+    }
+
+    public void testTypeLtInLess() throws Exception {
+        doLtGtTestNoAutoClose("fun some() { val a = 12; a <<caret> }");
+    }
+
+    public void testMoveThroughGT() throws Exception {
+        configureFromFileText("a.kt", "val a: List<Set<Int<caret>>>");
+        EditorTestUtil.performTypingAction(getEditor(), '>');
+        EditorTestUtil.performTypingAction(getEditor(), '>');
+        checkResultByText("val a: List<Set<Int>><caret>");
+    }
+
+    private void doLtGtTestNoAutoClose(String initText) throws Exception {
+        doLtGtTest(initText, false);
+    }
+
+    private void doLtGtTest(String initText, boolean shouldCloseBeInsert) throws Exception {
+        configureFromFileText("a.kt", initText);
+
+        EditorTestUtil.performTypingAction(getEditor(), '<');
+        checkResultByText(shouldCloseBeInsert ? initText.replace("<caret>", "<<caret>>") : initText.replace("<caret>", "<<caret>"));
+
+        EditorTestUtil.performTypingAction(getEditor(), EditorTestUtil.BACKSPACE_FAKE_CHAR);
+        checkResultByText(initText);
+    }
+
+    private void doLtGtTest(String initText) throws Exception {
+        doLtGtTest(initText, true);
+    }
 }