diff --git a/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt b/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt
index 0f309365b51..6e58936b981 100644
--- a/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/inspections/CanBeValInspection.kt
@@ -34,6 +34,7 @@ import org.jetbrains.kotlin.idea.caches.resolve.analyze
 import org.jetbrains.kotlin.idea.quickfix.ChangeVariableMutabilityFix
 import org.jetbrains.kotlin.idea.references.KtSimpleNameReference
 import org.jetbrains.kotlin.idea.references.readWriteAccess
+import org.jetbrains.kotlin.lexer.KtTokens
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.resolve.lazy.BodyResolveMode
@@ -49,7 +50,7 @@ class CanBeValInspection : AbstractKotlinInspection() {
 
                 when (declaration) {
                     is KtProperty -> {
-                        if (declaration.isVar && declaration.isLocal &&
+                        if (declaration.isVar && declaration.isLocal && !declaration.hasModifier(KtTokens.LATEINIT_KEYWORD) &&
                             canBeVal(declaration,
                                      declaration.hasInitializer() || declaration.hasDelegateExpression(),
                                      listOf(declaration))) {
diff --git a/idea/testData/inspectionsLocal/canBeVal/.inspection b/idea/testData/inspectionsLocal/canBeVal/.inspection
new file mode 100644
index 00000000000..cdd811ef674
--- /dev/null
+++ b/idea/testData/inspectionsLocal/canBeVal/.inspection
@@ -0,0 +1 @@
+org.jetbrains.kotlin.idea.inspections.CanBeValInspection
\ No newline at end of file
diff --git a/idea/testData/inspectionsLocal/canBeVal/lateinitVar.kt b/idea/testData/inspectionsLocal/canBeVal/lateinitVar.kt
new file mode 100644
index 00000000000..14d89542f5b
--- /dev/null
+++ b/idea/testData/inspectionsLocal/canBeVal/lateinitVar.kt
@@ -0,0 +1,7 @@
+// LANGUAGE_VERSION: 1.2
+// PROBLEM: none
+
+fun test() {
+    lateinit <caret>var foo: String
+    foo = "a"
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
index e36c5502cd0..71e27e824b9 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
@@ -51,6 +51,21 @@ public class LocalInspectionTestGenerated extends AbstractLocalInspectionTest {
         }
     }
 
+    @TestMetadata("idea/testData/inspectionsLocal/canBeVal")
+    @TestDataPath("$PROJECT_ROOT")
+    @RunWith(JUnit3RunnerWithInners.class)
+    public static class CanBeVal extends AbstractLocalInspectionTest {
+        public void testAllFilesPresentInCanBeVal() throws Exception {
+            KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/inspectionsLocal/canBeVal"), Pattern.compile("^([\\w\\-_]+)\\.kt$"), TargetBackend.ANY, true);
+        }
+
+        @TestMetadata("lateinitVar.kt")
+        public void testLateinitVar() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/inspectionsLocal/canBeVal/lateinitVar.kt");
+            doTest(fileName);
+        }
+    }
+
     @TestMetadata("idea/testData/inspectionsLocal/cascadeIf")
     @TestDataPath("$PROJECT_ROOT")
     @RunWith(JUnit3RunnerWithInners.class)