diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java
index 28be6fac800..ceb9c7c2e48 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/Visibilities.java
@@ -105,17 +105,21 @@ public class Visibilities {
     }
 
     public static boolean isVisible(@Nullable DeclarationDescriptorWithVisibility what, @NotNull DeclarationDescriptor from) {
+        return findInvisibleMember(what, from) == null;
+    }
+
+    public static DeclarationDescriptorWithVisibility findInvisibleMember(
+            @Nullable DeclarationDescriptorWithVisibility what,
+            @NotNull DeclarationDescriptor from
+    ) {
         DeclarationDescriptorWithVisibility parent = what;
-        while (parent != null) {
-            if (parent.getVisibility() == LOCAL) {
-                return true;
-            }
+        while (parent != null && parent.getVisibility() != LOCAL) {
             if (!parent.getVisibility().isVisible(parent, from)) {
-                return false;
+                return parent;
             }
             parent = DescriptorUtils.getParentOfType(parent, DeclarationDescriptorWithVisibility.class);
         }
-        return true;
+        return null;
     }
 
     private static final Map<Visibility, Integer> ORDERED_VISIBILITIES = Maps.newHashMap();
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
index cc5e29548c7..d79ca3fbbf1 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
@@ -93,9 +93,12 @@ public class CandidateResolver {
             return;
         }
 
-        if (!Visibilities.isVisible(candidate, context.scope.getContainingDeclaration())) {
+
+        DeclarationDescriptorWithVisibility invisibleMember =
+                Visibilities.findInvisibleMember(candidate, context.scope.getContainingDeclaration());
+        if (invisibleMember != null) {
             candidateCall.addStatus(OTHER_ERROR);
-            context.tracing.invisibleMember(context.trace, candidate);
+            context.tracing.invisibleMember(context.trace, invisibleMember);
             return;
         }
 
diff --git a/idea/testData/diagnosticMessage/invisibleMember.kt b/idea/testData/diagnosticMessage/invisibleMember.kt
new file mode 100644
index 00000000000..ef88596578b
--- /dev/null
+++ b/idea/testData/diagnosticMessage/invisibleMember.kt
@@ -0,0 +1,15 @@
+package foo.bar
+
+class A {
+    private class B
+    public class C private()
+
+    private fun bar() {}
+}
+
+fun foo() {
+    A.B()     // ERROR 1: Cannot access 'B': it is 'private' in 'A'
+    A.C()     // ERROR 2: Cannot access '' : it is 'private' in 'C'
+
+    A().bar() // ERROR 3: Cannot access 'bar' : it is 'private' in 'A'
+}
diff --git a/idea/testData/diagnosticMessage/invisibleMember1.txt b/idea/testData/diagnosticMessage/invisibleMember1.txt
new file mode 100644
index 00000000000..a75f0462beb
--- /dev/null
+++ b/idea/testData/diagnosticMessage/invisibleMember1.txt
@@ -0,0 +1,2 @@
+<!-- invisibleMember1 -->
+Cannot access 'B': it is 'private' in 'A'
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/invisibleMember2.txt b/idea/testData/diagnosticMessage/invisibleMember2.txt
new file mode 100644
index 00000000000..2b57c2382f8
--- /dev/null
+++ b/idea/testData/diagnosticMessage/invisibleMember2.txt
@@ -0,0 +1,2 @@
+<!-- invisibleMember2 -->
+Cannot access '<init>': it is 'private' in 'C'
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/invisibleMember3.txt b/idea/testData/diagnosticMessage/invisibleMember3.txt
new file mode 100644
index 00000000000..47bf80a5bad
--- /dev/null
+++ b/idea/testData/diagnosticMessage/invisibleMember3.txt
@@ -0,0 +1,2 @@
+<!-- invisibleMember3 -->
+Cannot access 'bar': it is 'private' in 'A'
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java b/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java
index 982af03f815..c9ea336c646 100644
--- a/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java
+++ b/idea/tests/org/jetbrains/jet/plugin/highlighter/DiagnosticMessageTest.java
@@ -34,7 +34,6 @@ import org.jetbrains.jet.lang.resolve.java.AnalyzerFacadeForJVM;
 import org.jetbrains.jet.plugin.PluginTestCaseBase;
 
 import java.util.Collections;
-import java.util.HashSet;
 import java.util.List;
 import java.util.Set;
 
@@ -110,4 +109,8 @@ public class DiagnosticMessageTest extends JetLiteFixture {
     public void testTypeMismatchWithNothing() throws Exception {
         doTest("typeMismatchWithNothing", 1, Errors.TYPE_MISMATCH);
     }
+
+    public void testInvisibleMember() throws Exception {
+        doTest("invisibleMember", 3, Errors.INVISIBLE_MEMBER, Errors.INVISIBLE_MEMBER, Errors.INVISIBLE_MEMBER);
+    }
 }