diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/HighlightingVisitor.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/HighlightingVisitor.kt
index 02dbb44c3b8..68177688eef 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/HighlightingVisitor.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/HighlightingVisitor.kt
@@ -27,6 +27,14 @@ abstract class HighlightingVisitor protected constructor(
     private val holder: AnnotationHolder
 ) : KtVisitorVoid() {
 
+    protected fun createInfoAnnotation(element: PsiElement, textAttributes: TextAttributesKey, message: String? = null) {
+        createInfoAnnotation(element.textRange, textAttributes, message)
+    }
+
+    protected fun createInfoAnnotation(range: TextRange, textAttributes: TextAttributesKey, message: String? = null) {
+        createInfoAnnotation(range, message).textAttributes = textAttributes
+    }
+
     protected fun createInfoAnnotation(element: PsiElement, message: String? = null): Annotation =
         createInfoAnnotation(element.textRange, message)
 
@@ -35,13 +43,13 @@ abstract class HighlightingVisitor protected constructor(
 
     protected fun highlightName(element: PsiElement, attributesKey: TextAttributesKey, message: String? = null) {
         if (NameHighlighter.namesHighlightingEnabled && !element.textRange.isEmpty) {
-            createInfoAnnotation(element, message).textAttributes = attributesKey
+            createInfoAnnotation(element, attributesKey, message)
         }
     }
 
     protected fun highlightName(textRange: TextRange, attributesKey: TextAttributesKey, message: String? = null) {
         if (NameHighlighter.namesHighlightingEnabled) {
-            createInfoAnnotation(textRange, message).textAttributes = attributesKey
+            createInfoAnnotation(textRange, attributesKey, message)
         }
     }
 }
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java
index 697e802145d..ba9652cdd64 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinHighlightingColors.java
@@ -79,7 +79,7 @@ public class KotlinHighlightingColors {
     public static final TextAttributesKey PACKAGE_PROPERTY_CUSTOM_PROPERTY_DECLARATION = createTextAttributesKey("KOTLIN_PACKAGE_PROPERTY_CUSTOM_PROPERTY_DECLARATION", PACKAGE_PROPERTY);
 
     // functions
-    public static final TextAttributesKey FUNCTION_LITERAL_DEFAULT_PARAMETER = createTextAttributesKey("KOTLIN_CLOSURE_DEFAULT_PARAMETER");
+    public static final TextAttributesKey FUNCTION_LITERAL_DEFAULT_PARAMETER = createTextAttributesKey("KOTLIN_CLOSURE_DEFAULT_PARAMETER", PARAMETER);
     public static final TextAttributesKey FUNCTION_DECLARATION = createTextAttributesKey("KOTLIN_FUNCTION_DECLARATION", DefaultLanguageHighlighterColors.FUNCTION_DECLARATION);
     public static final TextAttributesKey FUNCTION_CALL = createTextAttributesKey("KOTLIN_FUNCTION_CALL", DefaultLanguageHighlighterColors.FUNCTION_CALL);
     public static final TextAttributesKey PACKAGE_FUNCTION_CALL = createTextAttributesKey("KOTLIN_PACKAGE_FUNCTION_CALL", DefaultLanguageHighlighterColors.STATIC_METHOD);
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/VariablesHighlightingVisitor.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/VariablesHighlightingVisitor.kt
index 1a8e9e8c8a2..ab228cef8c9 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/VariablesHighlightingVisitor.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/VariablesHighlightingVisitor.kt
@@ -42,14 +42,9 @@ internal class VariablesHighlightingVisitor(holder: AnnotationHolder, bindingCon
 
     override fun visitSimpleNameExpression(expression: KtSimpleNameExpression) {
         val target = bindingContext.get(REFERENCE_TARGET, expression) ?: return
-        if (target is ValueParameterDescriptor) {
-            if (bindingContext.get(AUTO_CREATED_IT, target) == true) {
-                createInfoAnnotation(expression, "Automatically declared based on the expected type")
-                        .textAttributes = FUNCTION_LITERAL_DEFAULT_PARAMETER
-            }
-        }
-
-        if (expression.parent !is KtValueArgumentName) { // highlighted separately
+        if (target is ValueParameterDescriptor && bindingContext.get(AUTO_CREATED_IT, target) == true) {
+            createInfoAnnotation(expression, FUNCTION_LITERAL_DEFAULT_PARAMETER, "Automatically declared based on the expected type")
+        } else if (expression.parent !is KtValueArgumentName) { // highlighted separately
             highlightVariable(expression, target)
         }
 
@@ -156,7 +151,7 @@ internal class VariablesHighlightingVisitor(holder: AnnotationHolder, bindingCon
 
                 val parent = elementToHighlight.parent
                 if (!(parent is PsiNameIdentifierOwner && parent.nameIdentifier == elementToHighlight)) {
-                    createInfoAnnotation(elementToHighlight, msg).textAttributes = WRAPPED_INTO_REF
+                    createInfoAnnotation(elementToHighlight, WRAPPED_INTO_REF, msg)
                     return
                 }
             }
diff --git a/idea/performanceTests/org/jetbrains/kotlin/idea/perf/PerformanceHighlightingTestGenerated.java b/idea/performanceTests/org/jetbrains/kotlin/idea/perf/PerformanceHighlightingTestGenerated.java
index 98e45a99221..52a497b4c44 100644
--- a/idea/performanceTests/org/jetbrains/kotlin/idea/perf/PerformanceHighlightingTestGenerated.java
+++ b/idea/performanceTests/org/jetbrains/kotlin/idea/perf/PerformanceHighlightingTestGenerated.java
@@ -33,6 +33,11 @@ public class PerformanceHighlightingTestGenerated extends AbstractPerformanceHig
         runTest("idea/testData/highlighter/Annotations.kt");
     }
 
+    @TestMetadata("AutoCreatedItParameter.kt")
+    public void testAutoCreatedItParameter() throws Exception {
+        runTest("idea/testData/highlighter/AutoCreatedItParameter.kt");
+    }
+
     @TestMetadata("Destructuring.kt")
     public void testDestructuring() throws Exception {
         runTest("idea/testData/highlighter/Destructuring.kt");
diff --git a/idea/testData/highlighter/AutoCreatedItParameter.kt b/idea/testData/highlighter/AutoCreatedItParameter.kt
new file mode 100644
index 00000000000..f50f05c068b
--- /dev/null
+++ b/idea/testData/highlighter/AutoCreatedItParameter.kt
@@ -0,0 +1,10 @@
+fun <info textAttributesKey="KOTLIN_FUNCTION_DECLARATION">test</info>() {
+    val <info textAttributesKey="KOTLIN_LOCAL_VARIABLE">vect</info> = <info textAttributesKey="KOTLIN_CONSTRUCTOR">MyIterable</info><<info textAttributesKey="KOTLIN_CLASS">Int</info>>()
+    <info textAttributesKey="KOTLIN_LOCAL_VARIABLE">vect</info>.<info textAttributesKey="KOTLIN_FUNCTION_CALL">filter</info> { <info textAttributesKey="KOTLIN_CLOSURE_DEFAULT_PARAMETER">it</info> != 2 }.<info textAttributesKey="KOTLIN_FUNCTION_CALL">forEach</info> { <info textAttributesKey="KOTLIN_CLOSURE_DEFAULT_PARAMETER">it</info>.<info textAttributesKey="KOTLIN_FUNCTION_CALL">toString</info>() }
+}
+
+class <info textAttributesKey="KOTLIN_CLASS">MyIterable</info><<info textAttributesKey="KOTLIN_TYPE_PARAMETER">T</info>> {
+    fun <info textAttributesKey="KOTLIN_FUNCTION_DECLARATION">filter</info>(<warning textAttributesKey="NOT_USED_ELEMENT_ATTRIBUTES"><info textAttributesKey="KOTLIN_PARAMETER">function</info></warning>: (<info textAttributesKey="KOTLIN_TYPE_PARAMETER">T</info>) -> <info textAttributesKey="KOTLIN_CLASS">Boolean</info>) = this
+    fun <info textAttributesKey="KOTLIN_FUNCTION_DECLARATION">forEach</info>(<warning textAttributesKey="NOT_USED_ELEMENT_ATTRIBUTES"><info textAttributesKey="KOTLIN_PARAMETER">action</info></warning>: (<info textAttributesKey="KOTLIN_TYPE_PARAMETER">T</info>) -> <info textAttributesKey="KOTLIN_OBJECT">Unit</info>) {
+    }
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java
index c8de1c7d178..13fda2a8c79 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/highlighter/HighlightingTestGenerated.java
@@ -33,6 +33,11 @@ public class HighlightingTestGenerated extends AbstractHighlightingTest {
         runTest("idea/testData/highlighter/Annotations.kt");
     }
 
+    @TestMetadata("AutoCreatedItParameter.kt")
+    public void testAutoCreatedItParameter() throws Exception {
+        runTest("idea/testData/highlighter/AutoCreatedItParameter.kt");
+    }
+
     @TestMetadata("Destructuring.kt")
     public void testDestructuring() throws Exception {
         runTest("idea/testData/highlighter/Destructuring.kt");