diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallResolverUtil.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallResolverUtil.kt
index 2f2d50b1441..b0a01ac59d5 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallResolverUtil.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/CallResolverUtil.kt
@@ -27,7 +27,6 @@ import org.jetbrains.kotlin.descriptors.impl.TypeAliasConstructorDescriptor
 import org.jetbrains.kotlin.lexer.KtToken
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.resolve.BindingContext
-import org.jetbrains.kotlin.resolve.DescriptorUtils
 import org.jetbrains.kotlin.resolve.calls.CallTransformer
 import org.jetbrains.kotlin.resolve.calls.callUtil.getResolvedCall
 import org.jetbrains.kotlin.resolve.calls.callUtil.getValueArgumentForExpression
@@ -39,6 +38,7 @@ import org.jetbrains.kotlin.resolve.calls.inference.getNestedTypeVariables
 import org.jetbrains.kotlin.resolve.calls.model.ArgumentMatch
 import org.jetbrains.kotlin.resolve.calls.tasks.ExplicitReceiverKind
 import org.jetbrains.kotlin.resolve.calls.tasks.ResolutionCandidate
+import org.jetbrains.kotlin.resolve.descriptorUtil.isParameterOfAnnotation
 import org.jetbrains.kotlin.resolve.scopes.LexicalScope
 import org.jetbrains.kotlin.resolve.scopes.SyntheticScopes
 import org.jetbrains.kotlin.resolve.scopes.collectSyntheticConstructors
@@ -50,7 +50,6 @@ import org.jetbrains.kotlin.types.TypeUtils.DONT_CARE
 import org.jetbrains.kotlin.types.checker.KotlinTypeChecker
 import org.jetbrains.kotlin.types.expressions.OperatorConventions
 import org.jetbrains.kotlin.types.typeUtil.contains
-import org.jetbrains.kotlin.utils.addToStdlib.safeAs
 
 enum class ResolveArgumentsMode {
     RESOLVE_FUNCTION_ARGUMENTS,
@@ -215,11 +214,6 @@ private fun shouldCheckAsArray(
     return argument.isNamed() && parameterDescriptor.isVararg && isArrayOrArrayLiteral(argument, context)
 }
 
-fun isParameterOfAnnotation(parameterDescriptor: ValueParameterDescriptor): Boolean {
-    val constructedClass = parameterDescriptor.containingDeclaration.safeAs<ConstructorDescriptor>()?.constructedClass
-    return DescriptorUtils.isAnnotationClass(constructedClass)
-}
-
 fun isArrayOrArrayLiteral(argument: ValueArgument, context: ResolutionContext<*>): Boolean {
     val argumentExpression = argument.getArgumentExpression() ?: return false
     if (argumentExpression is KtCollectionLiteralExpression) return true
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/checkers/AssigningNamedArgumentToVarargChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/checkers/AssigningNamedArgumentToVarargChecker.kt
index 5c71ff19f1f..a7b95dd095f 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/checkers/AssigningNamedArgumentToVarargChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/calls/checkers/AssigningNamedArgumentToVarargChecker.kt
@@ -23,10 +23,10 @@ import org.jetbrains.kotlin.diagnostics.Errors
 import org.jetbrains.kotlin.psi.KtExpression
 import org.jetbrains.kotlin.psi.ValueArgument
 import org.jetbrains.kotlin.resolve.calls.callResolverUtil.isArrayOrArrayLiteral
-import org.jetbrains.kotlin.resolve.calls.callResolverUtil.isParameterOfAnnotation
 import org.jetbrains.kotlin.resolve.calls.components.isVararg
 import org.jetbrains.kotlin.resolve.calls.context.ResolutionContext
 import org.jetbrains.kotlin.resolve.calls.model.ResolvedCall
+import org.jetbrains.kotlin.resolve.descriptorUtil.isParameterOfAnnotation
 
 class AssigningNamedArgumentToVarargChecker : CallChecker {
     override fun check(resolvedCall: ResolvedCall<*>, reportOn: PsiElement, context: CallCheckerContext) {
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/AdditionalDiagnosticReporter.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/AdditionalDiagnosticReporter.kt
index 2873a90c09d..a152c9e2942 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/AdditionalDiagnosticReporter.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/AdditionalDiagnosticReporter.kt
@@ -16,6 +16,7 @@
 
 package org.jetbrains.kotlin.resolve.calls.components
 
+import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.descriptors.CallableDescriptor
 import org.jetbrains.kotlin.descriptors.ReceiverParameterDescriptor
 import org.jetbrains.kotlin.resolve.calls.model.*
@@ -25,7 +26,7 @@ import org.jetbrains.kotlin.types.checker.KotlinTypeChecker
 // very initial state of component
 // todo: handle all diagnostic inside DiagnosticReporterByTrackingStrategy
 // move it to frontend module
-class AdditionalDiagnosticReporter {
+class AdditionalDiagnosticReporter(private val languageVersionSettings: LanguageVersionSettings) {
 
     fun reportAdditionalDiagnostics(
             candidate: ResolvedCallAtom,
@@ -79,7 +80,8 @@ class AdditionalDiagnosticReporter {
 
         for (parameter in resultingDescriptor.valueParameters) {
             for (argument in candidate.argumentMappingByOriginal[parameter.original]?.arguments ?: continue) {
-                val smartCastDiagnostic = createSmartCastDiagnostic(candidate, argument, argument.getExpectedType(parameter)) ?: continue
+                val effectiveExpectedType = argument.getExpectedType(parameter, languageVersionSettings)
+                val smartCastDiagnostic = createSmartCastDiagnostic(candidate, argument, effectiveExpectedType) ?: continue
 
                 val thereIsUnstableSmartCastError = candidate.diagnostics.filterIsInstance<UnstableSmartCast>().any {
                     it.argument == argument
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ArgumentsUtils.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ArgumentsUtils.kt
index 7be95c2bf9c..05fcce0bf3e 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ArgumentsUtils.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ArgumentsUtils.kt
@@ -16,9 +16,15 @@
 
 package org.jetbrains.kotlin.resolve.calls.components
 
+import org.jetbrains.kotlin.builtins.KotlinBuiltIns
+import org.jetbrains.kotlin.config.LanguageFeature
+import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.descriptors.ParameterDescriptor
 import org.jetbrains.kotlin.descriptors.ValueParameterDescriptor
+import org.jetbrains.kotlin.resolve.calls.model.CollectionLiteralKotlinCallArgument
 import org.jetbrains.kotlin.resolve.calls.model.KotlinCallArgument
+import org.jetbrains.kotlin.resolve.calls.model.SimpleKotlinCallArgument
+import org.jetbrains.kotlin.resolve.descriptorUtil.isParameterOfAnnotation
 import org.jetbrains.kotlin.resolve.scopes.receivers.ReceiverValueWithSmartCastInfo
 import org.jetbrains.kotlin.types.UnwrappedType
 import org.jetbrains.kotlin.types.checker.intersectWrappedTypes
@@ -42,8 +48,8 @@ internal val ReceiverValueWithSmartCastInfo.stableType: UnwrappedType
         return intersectWrappedTypes(possibleTypes + receiverValue.type)
     }
 
-internal fun KotlinCallArgument.getExpectedType(parameter: ParameterDescriptor) =
-        if (this.isSpread) {
+internal fun KotlinCallArgument.getExpectedType(parameter: ParameterDescriptor, languageVersionSettings: LanguageVersionSettings) =
+        if (this.isSpread || this.isArrayAssignedAsNamedArgumentInAnnotation(parameter, languageVersionSettings)) {
             parameter.type.unwrap()
         }
         else {
@@ -51,3 +57,23 @@ internal fun KotlinCallArgument.getExpectedType(parameter: ParameterDescriptor)
         }
 
 val ValueParameterDescriptor.isVararg: Boolean get() = varargElementType != null
+val ParameterDescriptor.isVararg: Boolean get() = this.safeAs<ValueParameterDescriptor>()?.isVararg ?: false
+
+private fun KotlinCallArgument.isArrayAssignedAsNamedArgumentInAnnotation(
+        parameter: ParameterDescriptor,
+        languageVersionSettings: LanguageVersionSettings
+): Boolean {
+    if (!languageVersionSettings.supportsFeature(LanguageFeature.AssigningArraysToVarargsInNamedFormInAnnotations)) return false
+
+    if (this.argumentName == null || !parameter.isVararg) return false
+
+    return isParameterOfAnnotation(parameter) && this.isArrayOrArrayLiteral()
+}
+
+private fun KotlinCallArgument.isArrayOrArrayLiteral(): Boolean {
+    if (this is CollectionLiteralKotlinCallArgument) return true
+    if (this !is SimpleKotlinCallArgument) return false
+
+    val type = this.receiver.receiverValue.type
+    return KotlinBuiltIns.isArrayOrPrimitiveArray(type)
+}
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ResolutionParts.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ResolutionParts.kt
index 08e5090f1d9..a819a38daf2 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ResolutionParts.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/components/ResolutionParts.kt
@@ -225,7 +225,7 @@ private fun KotlinResolutionCandidate.resolveKotlinArgument(
         isReceiver: Boolean
 ) {
     val expectedType = candidateParameter?.let {
-        resolvedCall.substitutor.substituteKeepAnnotations(argument.getExpectedType(candidateParameter))
+        resolvedCall.substitutor.substituteKeepAnnotations(argument.getExpectedType(candidateParameter, callComponents.languageVersionSettings))
     }
     addResolvedKtPrimitive(resolveKtPrimitive(csBuilder, argument, expectedType, this, isReceiver))
 }
diff --git a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/KotlinResolverContext.kt b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/KotlinResolverContext.kt
index 25860fc4d70..415112d18f1 100644
--- a/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/KotlinResolverContext.kt
+++ b/compiler/resolution/src/org/jetbrains/kotlin/resolve/calls/model/KotlinResolverContext.kt
@@ -18,6 +18,7 @@ package org.jetbrains.kotlin.resolve.calls.model
 
 import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.builtins.ReflectionTypes
+import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.descriptors.CallableDescriptor
 import org.jetbrains.kotlin.descriptors.FunctionDescriptor
 import org.jetbrains.kotlin.resolve.calls.components.*
@@ -40,7 +41,8 @@ class KotlinCallComponents(
         val typeArgumentsToParametersMapper: TypeArgumentsToParametersMapper,
         val constraintInjector: ConstraintInjector,
         val reflectionTypes: ReflectionTypes,
-        val builtIns: KotlinBuiltIns
+        val builtIns: KotlinBuiltIns,
+        val languageVersionSettings: LanguageVersionSettings
 )
 
 class SimpleCandidateFactory(
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt b/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt
index 0d28dd951d8..f5366fb3e92 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -42,6 +42,7 @@ import org.jetbrains.kotlin.types.typeUtil.isAnyOrNullableAny
 import org.jetbrains.kotlin.types.typeUtil.makeNullable
 import org.jetbrains.kotlin.utils.DFS
 import org.jetbrains.kotlin.utils.SmartList
+import org.jetbrains.kotlin.utils.addToStdlib.safeAs
 
 fun ClassDescriptor.getClassObjectReferenceTarget(): ClassDescriptor = companionObjectDescriptor ?: this
 
@@ -433,3 +434,8 @@ fun MemberDescriptor.isEffectivelyExternal(): Boolean {
     val containingClass = getContainingClass(this)
     return containingClass != null && containingClass.isEffectivelyExternal()
 }
+
+fun isParameterOfAnnotation(parameterDescriptor: ParameterDescriptor): Boolean {
+    val constructedClass = parameterDescriptor.containingDeclaration.safeAs<ConstructorDescriptor>()?.constructedClass
+    return DescriptorUtils.isAnnotationClass(constructedClass)
+}
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt b/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt
index 32b1ee9bf80..5c1e6025826 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2016 JetBrains s.r.o.
+ * Copyright 2010-2017 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.