diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.java b/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.java
index 9ace3331f65..b6be0be35b4 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.java
@@ -69,8 +69,8 @@ public class DescriptorUtils {
      */
     public static boolean isLocal(@NotNull DeclarationDescriptor descriptor) {
         DeclarationDescriptor current = descriptor;
-        while (current instanceof MemberDescriptor) {
-            if (isAnonymousObject(current) || ((DeclarationDescriptorWithVisibility) current).getVisibility() == Visibilities.LOCAL) {
+        while (current != null) {
+            if (isAnonymousObject(current) || isDescriptorWithLocalVisibility(current)) {
                 return true;
             }
             current = current.getContainingDeclaration();
@@ -78,6 +78,11 @@ public class DescriptorUtils {
         return false;
     }
 
+    private static boolean isDescriptorWithLocalVisibility(DeclarationDescriptor current) {
+        return current instanceof DeclarationDescriptorWithVisibility &&
+         ((DeclarationDescriptorWithVisibility) current).getVisibility() == Visibilities.LOCAL;
+    }
+
     @NotNull
     public static FqNameUnsafe getFqName(@NotNull DeclarationDescriptor descriptor) {
         FqName safe = getFqNameSafeIfPossible(descriptor);
diff --git a/idea/testData/resolve/references/TypeParameterInAnonymousObject.kt b/idea/testData/resolve/references/TypeParameterInAnonymousObject.kt
new file mode 100644
index 00000000000..725ed8f3aaf
--- /dev/null
+++ b/idea/testData/resolve/references/TypeParameterInAnonymousObject.kt
@@ -0,0 +1,7 @@
+val prop = object {
+    private fun <K> foo(x: <caret>K) {
+
+    }
+}
+
+// REF: K
diff --git a/idea/testData/resolve/references/ValueParameter.kt b/idea/testData/resolve/references/ValueParameter.kt
new file mode 100644
index 00000000000..dce9d88589a
--- /dev/null
+++ b/idea/testData/resolve/references/ValueParameter.kt
@@ -0,0 +1,9 @@
+open class B
+class A
+val prop = object : B() {
+    private fun foo(x: A): A {
+        return <caret>x
+    }
+}
+
+// REF: x
diff --git a/idea/tests/org/jetbrains/kotlin/idea/resolve/ReferenceResolveTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/resolve/ReferenceResolveTestGenerated.java
index f6dfceb153a..5c38f574575 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/resolve/ReferenceResolveTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/resolve/ReferenceResolveTestGenerated.java
@@ -347,12 +347,24 @@ public class ReferenceResolveTestGenerated extends AbstractReferenceResolveTest
         doTest(fileName);
     }
 
+    @TestMetadata("TypeParameterInAnonymousObject.kt")
+    public void testTypeParameterInAnonymousObject() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/references/TypeParameterInAnonymousObject.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("TypeParameterInFunctionLiteral.kt")
     public void testTypeParameterInFunctionLiteral() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/references/TypeParameterInFunctionLiteral.kt");
         doTest(fileName);
     }
 
+    @TestMetadata("ValueParameter.kt")
+    public void testValueParameter() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/references/ValueParameter.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("WrongNumberOfTypeArguments.kt")
     public void testWrongNumberOfTypeArguments() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/references/WrongNumberOfTypeArguments.kt");