diff --git a/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt b/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt
index dcd4ddb58e0..d22ee3c5386 100644
--- a/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt
@@ -20,8 +20,10 @@ import com.intellij.debugger.engine.DebugProcessImpl
 import com.intellij.debugger.engine.NamedMethodFilter
 import com.intellij.util.Range
 import com.sun.jdi.Location
+import org.jetbrains.kotlin.builtins.functions.FunctionInvokeDescriptor
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.descriptors.CallableMemberDescriptor.Kind.*
+import org.jetbrains.kotlin.descriptors.impl.AnonymousFunctionDescriptor
 import org.jetbrains.kotlin.idea.caches.resolve.resolveToDescriptor
 import org.jetbrains.kotlin.idea.core.getDirectlyOverriddenDeclarations
 import org.jetbrains.kotlin.idea.util.application.runReadAction
@@ -33,8 +35,8 @@ import org.jetbrains.kotlin.psi.psiUtil.getParentOfTypesAndPredicate
 import org.jetbrains.kotlin.resolve.DescriptorUtils
 
 class KotlinBasicStepMethodFilter(
-        val targetDescriptor: CallableMemberDescriptor,
-        val myCallingExpressionLines: Range<Int>
+        private val targetDescriptor: CallableMemberDescriptor,
+        private val myCallingExpressionLines: Range<Int>
 ) : NamedMethodFilter {
     private val myTargetMethodName = when (targetDescriptor) {
         is ClassDescriptor, is ConstructorDescriptor -> "<init>"
@@ -50,7 +52,7 @@ class KotlinBasicStepMethodFilter(
         val method = location.method()
         if (myTargetMethodName != method.name()) return false
 
-        val positionManager = process.positionManager ?: return false
+        val positionManager = process.positionManager
 
         val currentDescriptor = runReadAction {
             val elementAt = positionManager.getSourcePosition(location)?.elementAt
@@ -72,6 +74,10 @@ class KotlinBasicStepMethodFilter(
 
         if (compareDescriptors(currentDescriptor, targetDescriptor)) return true
 
+        if (targetDescriptor is FunctionInvokeDescriptor && currentDescriptor is FunctionDescriptor) {
+            return isCompatibleSignatures(targetDescriptor, currentDescriptor)
+        }
+
         // We should stop if current descriptor overrides the target one or some base descriptor of target
         // (if target descriptor is delegation or fake override)
 
@@ -94,4 +100,24 @@ class KotlinBasicStepMethodFilter(
 
 private fun compareDescriptors(d1: DeclarationDescriptor, d2: DeclarationDescriptor): Boolean {
     return d1 == d2 || d1.original == d2.original
+}
+
+private fun isCompatibleSignatures(target: FunctionDescriptor, current: FunctionDescriptor): Boolean {
+    // A very primitive approximation
+    if (target.valueParameters.size != current.valueParameters.size) {
+        return false
+    }
+
+    if (target.returnType != current.returnType) {
+        return false
+    }
+
+    for ((i, targetParam) in target.valueParameters.withIndex()) {
+        val currentParam = current.valueParameters[i]
+        if (targetParam.type != currentParam.type) {
+            return false
+        }
+    }
+
+    return true
 }
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.kt b/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.kt
new file mode 100644
index 00000000000..c49c0b8658a
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.kt
@@ -0,0 +1,50 @@
+package smartStepIntoToLambdaParameter
+
+fun nonDefaultParameter(paramFun: (Int) -> Int) {
+    // SMART_STEP_INTO_BY_INDEX: 0
+    // RESUME: 1
+    //Breakpoint!
+    paramFun(1)
+}
+
+fun defaultParameter(f: (String) -> Int = { it.toInt() }) {
+    // SMART_STEP_INTO_BY_INDEX: 0
+    // RESUME: 1
+    //Breakpoint!
+    f("12")
+}
+
+fun badSignatureIsSkipped(f: (String) -> Int = { it.toInt() }, paramFun: (Int) -> Int) {
+    // SMART_STEP_INTO_BY_INDEX: 0
+    // RESUME: 1
+    //Breakpoint!
+    paramFun(f("12"))
+}
+
+fun nonDefaultWithAnonymousFun(paramFun: (Int) -> Int) {
+    // SMART_STEP_INTO_BY_INDEX: 0
+    // RESUME: 1
+    //Breakpoint!
+    paramFun(12)
+}
+
+fun withExtensionParameters(paramFun: Int.() -> Int) {
+    // SMART_STEP_INTO_BY_INDEX: 0
+    // RESUME: 1
+    //Breakpoint!
+    12.paramFun()
+}
+
+fun main(args: Array<String>) {
+    val localFun : (Int) -> Int = { it + 1 }
+
+    nonDefaultParameter(localFun)
+
+    defaultParameter()
+
+    badSignatureIsSkipped { it + 1 }
+
+    nonDefaultWithAnonymousFun(fun (i: Int): Int { return i })
+
+    withExtensionParameters { this }
+}
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.out b/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.out
new file mode 100644
index 00000000000..e8f001bec24
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.out
@@ -0,0 +1,20 @@
+LineBreakpoint created at smartStepIntoToLambdaParameter.kt:7
+LineBreakpoint created at smartStepIntoToLambdaParameter.kt:14
+LineBreakpoint created at smartStepIntoToLambdaParameter.kt:21
+LineBreakpoint created at smartStepIntoToLambdaParameter.kt:28
+LineBreakpoint created at smartStepIntoToLambdaParameter.kt:35
+Run Java
+Connected to the target VM
+smartStepIntoToLambdaParameter.kt:7
+smartStepIntoToLambdaParameter.kt:39
+smartStepIntoToLambdaParameter.kt:14
+smartStepIntoToLambdaParameter.kt:10
+smartStepIntoToLambdaParameter.kt:21
+smartStepIntoToLambdaParameter.kt:45
+smartStepIntoToLambdaParameter.kt:28
+smartStepIntoToLambdaParameter.kt:47
+smartStepIntoToLambdaParameter.kt:35
+smartStepIntoToLambdaParameter.kt:49
+Disconnected from the target VM
+
+Process finished with exit code 0
diff --git a/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
index df412d19d8b..a9b09d5645b 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
@@ -1259,6 +1259,12 @@ public class KotlinSteppingTestGenerated extends AbstractKotlinSteppingTest {
             doCustomTest(fileName);
         }
 
+        @TestMetadata("smartStepIntoToLambdaParameter.kt")
+        public void testSmartStepIntoToLambdaParameter() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoToLambdaParameter.kt");
+            doCustomTest(fileName);
+        }
+
         @TestMetadata("smartStepIntoWithDelegates.kt")
         public void testSmartStepIntoWithDelegates() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoWithDelegates.kt");