diff --git a/compiler/testData/diagnostics/tests/j+k/contravariantIterable.kt b/compiler/testData/diagnostics/tests/j+k/contravariantIterable.kt
new file mode 100644
index 00000000000..6a78efd5e2e
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/j+k/contravariantIterable.kt
@@ -0,0 +1,20 @@
+// FILE: A.java
+import java.util.*;
+public class A {
+    public static void foo(Iterable<? super CharSequence> x) {}
+    public static void bar(Iterator<? super CharSequence> x) {}
+}
+
+// FILE: main.kt
+
+fun test(x: List<String>, y: List<*>, z: MutableList<*>, w: MutableList<in CharSequence>) {
+    A.foo(x)
+    A.foo(y)
+    A.foo(z)
+    A.foo(w)
+
+    A.bar(x.iterator())
+    A.bar(y.iterator())
+    A.bar(z.iterator())
+    A.bar(w.iterator())
+}
diff --git a/compiler/testData/diagnostics/tests/j+k/contravariantIterable.txt b/compiler/testData/diagnostics/tests/j+k/contravariantIterable.txt
new file mode 100644
index 00000000000..a1e900e1233
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/j+k/contravariantIterable.txt
@@ -0,0 +1,14 @@
+package
+
+public fun test(/*0*/ x: kotlin.collections.List<kotlin.String>, /*1*/ y: kotlin.collections.List<*>, /*2*/ z: kotlin.collections.MutableList<*>, /*3*/ w: kotlin.collections.MutableList<in kotlin.CharSequence>): kotlin.Unit
+
+public open class A {
+    public constructor A()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    // Static members
+    public open fun bar(/*0*/ x: kotlin.collections.(Mutable)Iterator<*>!): kotlin.Unit
+    public open fun foo(/*0*/ x: kotlin.collections.(Mutable)Iterable<*>!): kotlin.Unit
+}
diff --git a/compiler/testData/diagnostics/tests/j+k/matchers.kt b/compiler/testData/diagnostics/tests/j+k/matchers.kt
new file mode 100644
index 00000000000..6d65c7863e9
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/j+k/matchers.kt
@@ -0,0 +1,18 @@
+// FILE: Assert.java
+
+public class Assert {
+    public static <T> void assertThat(T actual, Matcher<? super T> matcher) {
+    }
+}
+
+// FILE: Matcher.java
+public class Matcher<T> {
+    public static <T> Matcher<java.lang.Iterable<? super T>> hasItem(T item) {
+        return null;
+    }
+}
+
+// FILE: main.kt
+fun test(x: List<String>) {
+    Assert.assertThat(x, Matcher.hasItem("abc"))
+}
diff --git a/compiler/testData/diagnostics/tests/j+k/matchers.txt b/compiler/testData/diagnostics/tests/j+k/matchers.txt
new file mode 100644
index 00000000000..8b326bb1c0b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/j+k/matchers.txt
@@ -0,0 +1,23 @@
+package
+
+public fun test(/*0*/ x: kotlin.collections.List<kotlin.String>): kotlin.Unit
+
+public open class Assert {
+    public constructor Assert()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    // Static members
+    public open fun </*0*/ T : kotlin.Any!> assertThat(/*0*/ actual: T!, /*1*/ matcher: Matcher<in T!>!): kotlin.Unit
+}
+
+public open class Matcher</*0*/ T : kotlin.Any!> {
+    public constructor Matcher</*0*/ T : kotlin.Any!>()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    // Static members
+    public open fun </*0*/ T : kotlin.Any!> hasItem(/*0*/ item: T!): Matcher<kotlin.collections.(Mutable)Iterable<*>!>!
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 5255320d8cd..905402411b0 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -10005,6 +10005,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("contravariantIterable.kt")
+            public void testContravariantIterable() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/j+k/contravariantIterable.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("differentFilename.kt")
             public void testDifferentFilename() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/j+k/differentFilename.kt");
@@ -10179,6 +10185,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("matchers.kt")
+            public void testMatchers() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/j+k/matchers.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("mutableIterator.kt")
             public void testMutableIterator() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/j+k/mutableIterator.kt");
diff --git a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/LazyJavaTypeResolver.kt b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/LazyJavaTypeResolver.kt
index b602ba37137..47dfa196bbb 100644
--- a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/LazyJavaTypeResolver.kt
+++ b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/java/lazy/types/LazyJavaTypeResolver.kt
@@ -148,10 +148,8 @@ class LazyJavaTypeResolver(
 
             if (javaToKotlin.isReadOnly(kotlinDescriptor)) {
                 if (howThisTypeIsUsedEffectively == MEMBER_SIGNATURE_COVARIANT
-                        || howThisTypeIsUsedEffectively == SUPERTYPE
-                        // Convert (Mutable)List<in A> to MutableList<in A>
-                        // Same for (Mutable)Map<K, in V>
-                        || javaType.typeArguments.lastOrNull().isSuperWildcard()) {
+                    || howThisTypeIsUsedEffectively == SUPERTYPE
+                    || javaType.argumentsMakeSenseOnlyForMutableContainer(readOnlyContainer = kotlinDescriptor)) {
                     return javaToKotlin.convertReadOnlyToMutable(kotlinDescriptor)
                 }
             }
@@ -159,6 +157,20 @@ class LazyJavaTypeResolver(
             return kotlinDescriptor
         }
 
+        // Returns true for covariant read-only container that has mutable pair with invariant parameter
+        // List<in A> does not make sense, but MutableList<in A> does
+        // Same for Map<K, in V>
+        // But both Iterable<in A>, MutableIterable<in A> don't make sense as they are covariant, so return false
+        private fun JavaClassifierType.argumentsMakeSenseOnlyForMutableContainer(
+                readOnlyContainer: ClassDescriptor
+        ): Boolean {
+            if (!typeArguments.lastOrNull().isSuperWildcard()) return false
+            val mutableLastParameterVariance = JavaToKotlinClassMap.INSTANCE.convertReadOnlyToMutable(readOnlyContainer)
+                    .typeConstructor.parameters.lastOrNull()?.variance ?: return false
+
+            return mutableLastParameterVariance != OUT_VARIANCE
+        }
+
         private fun JavaType?.isSuperWildcard(): Boolean = (this as? JavaWildcardType)?.let { it.bound != null && !it.isExtends } ?: false
 
         private fun isRaw(): Boolean {