diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/TypeTransformingVisitor.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/TypeTransformingVisitor.java
index 5a782edbf2b..38ebcb60e14 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/TypeTransformingVisitor.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/TypeTransformingVisitor.java
@@ -118,11 +118,23 @@ class TypeTransformingVisitor extends JetVisitor<JetType, Void> {
 
         List<TypeProjection> altArguments = new ArrayList<TypeProjection>();
         for (int i = 0, size = arguments.size(); i < size; i++) {
-            JetTypeElement argumentAlternativeTypeElement = type.getTypeArgumentsAsTypes().get(i).getTypeElement();
+            JetTypeReference typeReference = type.getTypeArgumentsAsTypes().get(i);
+
+            if (typeReference == null) {
+                // star projection
+                assert type instanceof JetUserType
+                       && ((JetUserType) type).getTypeArguments().get(i).getProjectionKind() == JetProjectionKind.STAR;
+
+                altArguments.add(arguments.get(i));
+
+                continue;
+            }
+
+            JetTypeElement argumentAlternativeTypeElement = typeReference.getTypeElement();
             assert argumentAlternativeTypeElement != null;
 
             TypeProjection argument = arguments.get(i);
-            JetType alternativeType = computeType(argumentAlternativeTypeElement, argument.getType(), originalToAltTypeParameters);
+            JetType alternativeArgumentType = computeType(argumentAlternativeTypeElement, argument.getType(), originalToAltTypeParameters);
             Variance projectionKind = argument.getProjectionKind();
             Variance altProjectionKind;
             if (type instanceof JetUserType) {
@@ -135,18 +147,19 @@ class TypeTransformingVisitor extends JetVisitor<JetType, Void> {
                         altProjectionKind = Variance.OUT_VARIANCE;
                         break;
                     case STAR:
-                        throw new AlternativeSignatureMismatchException("Star projection is not available in alternative signatures");
+                        throw new IllegalStateException("star projection should have been processed above");
                     default:
                         altProjectionKind = Variance.INVARIANT;
                 }
                 if (altProjectionKind != projectionKind && projectionKind != Variance.INVARIANT) {
-                    throw new AlternativeSignatureMismatchException("Variance mismatch, actual: %s, in alternative signature: %s", projectionKind, altProjectionKind);
+                    throw new AlternativeSignatureMismatchException("Variance mismatch, actual: %s, in alternative signature: %s",
+                                                                    projectionKind, altProjectionKind);
                 }
             }
             else {
                 altProjectionKind = projectionKind;
             }
-            altArguments.add(new TypeProjection(altProjectionKind, alternativeType));
+            altArguments.add(new TypeProjection(altProjectionKind, alternativeArgumentType));
         }
 
         TypeConstructor typeConstructor;
diff --git a/compiler/testData/loadJava/kotlinSignature/StarProjection.java b/compiler/testData/loadJava/kotlinSignature/StarProjection.java
new file mode 100644
index 00000000000..a88acd75715
--- /dev/null
+++ b/compiler/testData/loadJava/kotlinSignature/StarProjection.java
@@ -0,0 +1,13 @@
+package test;
+
+import jet.runtime.typeinfo.KotlinSignature;
+
+public final class StarProjection {
+    @KotlinSignature("fun foo(): MyClass<*>")
+    public final MyClass<?> foo() {
+        throw new UnsupportedOperationException();
+    }
+
+    public interface MyClass<T extends CharSequence> {
+    }
+}
diff --git a/compiler/testData/loadJava/kotlinSignature/StarProjection.kt b/compiler/testData/loadJava/kotlinSignature/StarProjection.kt
new file mode 100644
index 00000000000..9d45bb6c1a9
--- /dev/null
+++ b/compiler/testData/loadJava/kotlinSignature/StarProjection.kt
@@ -0,0 +1,7 @@
+package test
+
+public final class StarProjection: Object() {
+    public final fun foo(): MyClass<*> = throw UnsupportedOperationException()
+
+    public trait MyClass<T: CharSequence?>: Object
+}
diff --git a/compiler/testData/loadJava/kotlinSignature/StarProjection.txt b/compiler/testData/loadJava/kotlinSignature/StarProjection.txt
new file mode 100644
index 00000000000..d36f20f3073
--- /dev/null
+++ b/compiler/testData/loadJava/kotlinSignature/StarProjection.txt
@@ -0,0 +1,8 @@
+namespace test
+
+public final class test.StarProjection : java.lang.Object {
+    public final /*constructor*/ fun <init>(): test.StarProjection
+    public final fun foo(): test.StarProjection.MyClass<out jet.CharSequence?>
+    public abstract trait test.StarProjection.MyClass</*0*/ T : jet.CharSequence?> : java.lang.Object {
+    }
+}
diff --git a/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java b/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java
index 89eedfa5292..476993e484c 100644
--- a/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java
@@ -310,6 +310,11 @@ public class LoadJavaTestGenerated extends AbstractLoadJavaTest {
             doTest("compiler/testData/loadJava/kotlinSignature/PropertySimpleType.java");
         }
         
+        @TestMetadata("StarProjection.java")
+        public void testStarProjection() throws Exception {
+            doTest("compiler/testData/loadJava/kotlinSignature/StarProjection.java");
+        }
+        
         @TestMetadata("compiler/testData/loadJava/kotlinSignature/error")
         public static class Error extends AbstractLoadJavaTest {
             @TestMetadata("AddingNullability.java")
diff --git a/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java b/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
index 2c4e2a886cd..06fceef7926 100644
--- a/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
@@ -1200,6 +1200,11 @@ public class LazyResolveNamespaceComparingTestGenerated extends AbstractLazyReso
                 doTestSinglePackage("compiler/testData/loadJava/kotlinSignature/PropertySimpleType.kt");
             }
             
+            @TestMetadata("StarProjection.kt")
+            public void testStarProjection() throws Exception {
+                doTestSinglePackage("compiler/testData/loadJava/kotlinSignature/StarProjection.kt");
+            }
+            
             @TestMetadata("compiler/testData/loadJava/kotlinSignature/error")
             public static class Error extends AbstractLazyResolveNamespaceComparingTest {
                 @TestMetadata("AddingNullability.kt")