diff --git a/compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.kt b/compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.kt
new file mode 100644
index 00000000000..e27ded0f05b
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.kt
@@ -0,0 +1,7 @@
+import java.util.*
+import java.util.stream.Stream
+
+fun <T> Stream<T>?.getIfSingle() =
+        this?.map { Optional.ofNullable(it) }
+        ?.reduce(Optional.empty()) { _, _ -> Optional.empty() }
+        ?.orElse(null) // <<---- should not be an error
diff --git a/compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.txt b/compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.txt
new file mode 100644
index 00000000000..fecbc90fedf
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.txt
@@ -0,0 +1,3 @@
+package
+
+public fun </*0*/ T> java.util.stream.Stream<T>?.getIfSingle(): T?
diff --git a/compiler/tests-java8/tests/org/jetbrains/kotlin/checkers/DiagnosticsWithJava8TestGenerated.java b/compiler/tests-java8/tests/org/jetbrains/kotlin/checkers/DiagnosticsWithJava8TestGenerated.java
index a73b51f2b73..a2e0435d6f7 100644
--- a/compiler/tests-java8/tests/org/jetbrains/kotlin/checkers/DiagnosticsWithJava8TestGenerated.java
+++ b/compiler/tests-java8/tests/org/jetbrains/kotlin/checkers/DiagnosticsWithJava8TestGenerated.java
@@ -48,6 +48,12 @@ public class DiagnosticsWithJava8TestGenerated extends AbstractDiagnosticsWithFu
         doTest(fileName);
     }
 
+    @TestMetadata("nullForOptionalOrElse.kt")
+    public void testNullForOptionalOrElse() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/testsWithJava8/nullForOptionalOrElse.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("samWithConsumer.kt")
     public void testSamWithConsumer() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/testsWithJava8/samWithConsumer.kt");
diff --git a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhancement/typeEnhancement.kt b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhancement/typeEnhancement.kt
index a63fa53e5a2..ae8d9af53d7 100644
--- a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhancement/typeEnhancement.kt
+++ b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/typeEnhancement/typeEnhancement.kt
@@ -243,7 +243,8 @@ internal class NotNullTypeParameter(override val delegate: SimpleType) : CustomT
     }
 
     override fun replaceAnnotations(newAnnotations: Annotations) = NotNullTypeParameter(delegate.replaceAnnotations(newAnnotations))
-    override fun makeNullableAsSpecified(newNullability: Boolean) = this
+    override fun makeNullableAsSpecified(newNullability: Boolean) =
+        if (newNullability) delegate.makeNullableAsSpecified(true) else this
 
     override val isError: Boolean
         get() = false