diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/state/KotlinTypeMapper.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/state/KotlinTypeMapper.java
index 0d54f7bc657..349f27bfe30 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/state/KotlinTypeMapper.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/state/KotlinTypeMapper.java
@@ -1464,14 +1464,22 @@ public class KotlinTypeMapper {
     public String mapFieldSignature(@NotNull KotlinType backingFieldType, @NotNull PropertyDescriptor propertyDescriptor) {
         JvmSignatureWriter sw = new BothSignatureWriter(BothSignatureWriter.Mode.TYPE);
 
+        writeFieldSignature(backingFieldType, propertyDescriptor, sw);
+
+        return sw.makeJavaGenericSignature();
+    }
+
+    public void writeFieldSignature(
+            @NotNull KotlinType backingFieldType,
+            @NotNull PropertyDescriptor propertyDescriptor,
+            JvmSignatureWriter sw
+    ) {
         if (!propertyDescriptor.isVar()) {
             mapReturnType(propertyDescriptor, sw, backingFieldType);
         }
         else {
             writeParameterType(sw, backingFieldType, propertyDescriptor);
         }
-
-        return sw.makeJavaGenericSignature();
     }
 
     public void writeFormalTypeParameters(@NotNull List<TypeParameterDescriptor> typeParameters, @NotNull JvmSignatureWriter sw) {
@@ -1550,7 +1558,7 @@ public class KotlinTypeMapper {
         sw.writeParameterTypeEnd();
     }
 
-    private void writeParameterType(
+    public void writeParameterType(
             @NotNull JvmSignatureWriter sw,
             @NotNull KotlinType type,
             @Nullable CallableDescriptor callableDescriptor
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/state/typeMappingUtil.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/state/typeMappingUtil.kt
index 32a52f2fb9a..72acdac9bb2 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/state/typeMappingUtil.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/state/typeMappingUtil.kt
@@ -125,5 +125,5 @@ private fun AnnotationDescriptor?.suppressWildcardsMode(): Boolean? {
     return (this ?: return null).allValueArguments.values.firstOrNull()?.value as? Boolean ?: true
 }
 
-private val JVM_SUPPRESS_WILDCARDS_ANNOTATION_FQ_NAME = FqName("kotlin.jvm.JvmSuppressWildcards")
-private val JVM_WILDCARD_ANNOTATION_FQ_NAME = FqName("kotlin.jvm.JvmWildcard")
+val JVM_SUPPRESS_WILDCARDS_ANNOTATION_FQ_NAME = FqName("kotlin.jvm.JvmSuppressWildcards")
+val JVM_WILDCARD_ANNOTATION_FQ_NAME = FqName("kotlin.jvm.JvmWildcard")
diff --git a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/ultraLightPsi.kt b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/ultraLightPsi.kt
index 3bfc9157966..2894f336537 100644
--- a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/ultraLightPsi.kt
+++ b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/ultraLightPsi.kt
@@ -323,7 +323,7 @@ class KtUltraLightClass(classOrObject: KtClassOrObject, private val support: Ult
         val wrapper = KtUltraLightMethod(method, ktFunction, support, this)
         addReceiverParameter(ktFunction, wrapper)
         for (parameter in ktFunction.valueParameters) {
-            method.addParameter(KtUltraLightParameter(parameter.name.orEmpty(), parameter, support, wrapper, null))
+            method.addParameter(KtUltraLightParameter(parameter.name.orEmpty(), parameter, support, wrapper, null, ktFunction))
         }
         val returnType: PsiType? by lazyPub {
             if (isConstructor) null
@@ -333,11 +333,9 @@ class KtUltraLightClass(classOrObject: KtClassOrObject, private val support: Ult
         return wrapper
     }
 
-    private fun addReceiverParameter(f: KtDeclaration, method: KtUltraLightMethod) {
-        val receiver = (f as? KtCallableDeclaration)?.receiverTypeReference
-        if (receiver != null) {
-            method.delegate.addParameter(KtUltraLightParameter("\$self", f, support, method, receiver))
-        }
+    private fun addReceiverParameter(callable: KtCallableDeclaration, method: KtUltraLightMethod) {
+        val receiver = callable.receiverTypeReference ?: return
+        method.delegate.addParameter(KtUltraLightParameter("\$self", callable, support, method, receiver, callable))
     }
 
     private fun methodReturnType(ktDeclaration: KtDeclaration, wrapper: KtUltraLightMethod): PsiType {
@@ -434,7 +432,7 @@ class KtUltraLightClass(classOrObject: KtClassOrObject, private val support: Ult
         return f.hasModifier(INTERNAL_KEYWORD)
     }
 
-    private fun propertyAccessors(declaration: KtNamedDeclaration, mutable: Boolean, onlyJvmStatic: Boolean): List<KtLightMethod> {
+    private fun propertyAccessors(declaration: KtCallableDeclaration, mutable: Boolean, onlyJvmStatic: Boolean): List<KtLightMethod> {
         val propertyName = declaration.name
         if (declaration.hasModifier(CONST_KEYWORD) || propertyName == null) return emptyList()
 
@@ -478,7 +476,9 @@ class KtUltraLightClass(classOrObject: KtClassOrObject, private val support: Ult
             val setterWrapper = KtUltraLightMethod(setterPrototype, declaration, support, this)
             addReceiverParameter(declaration, setterWrapper)
             val parameterOrigin = ktSetter?.parameter ?: declaration
-            setterPrototype.addParameter(KtUltraLightParameter(propertyName, parameterOrigin, support, setterWrapper, null))
+            setterPrototype.addParameter(
+                KtUltraLightParameter(propertyName, parameterOrigin, support, setterWrapper, null, declaration)
+            )
             result.add(setterWrapper)
         }
         return result
@@ -535,9 +535,14 @@ private class KtUltraLightField(
 
     private val _type: PsiType by lazyPub {
         fun nonExistent() = JavaPsiFacade.getElementFactory(project).createTypeFromText("error.NonExistentClass", declaration)
+
+        val propertyDescriptor: PropertyDescriptor? by lazyPub {
+            declaration.resolve() as? PropertyDescriptor
+        }
+
         when {
             declaration is KtProperty && declaration.hasDelegate() ->
-                (declaration.resolve() as? PropertyDescriptor)
+                propertyDescriptor
                     ?.let {
                         val context = LightClassGenerationSupport.getInstance(project).analyze(declaration)
                         PropertyCodegen.getDelegateTypeForProperty(declaration, it, context)
@@ -548,14 +553,14 @@ private class KtUltraLightField(
             declaration is KtObjectDeclaration ->
                 KtLightClassForSourceDeclaration.create(declaration)?.let { JavaPsiFacade.getElementFactory(project).createType(it) }
                     ?: nonExistent()
-            else ->
-                declaration.getKotlinType()?.let {
-                    val mode = when {
-                        (declaration.resolve() as? PropertyDescriptor)?.isVar == true -> TypeMappingMode.getOptimalModeForValueParameter(it)
-                        else -> TypeMappingMode.getOptimalModeForReturnType(it, false)
-                    }
-                    it.asPsiType(support, mode, this)
-                } ?: PsiType.NULL
+            else -> {
+                val kotlinType = declaration.getKotlinType() ?: return@lazyPub PsiType.NULL
+                val descriptor = propertyDescriptor ?: return@lazyPub PsiType.NULL
+
+                support.mapType(this) { typeMapper, sw ->
+                    typeMapper.writeFieldSignature(kotlinType, descriptor, sw)
+                }
+            }
         }
     }
 
@@ -633,7 +638,8 @@ internal class KtUltraLightParameter(
     override val kotlinOrigin: KtDeclaration,
     private val support: UltraLightSupport,
     method: KtLightMethod,
-    private val receiver: KtTypeReference?
+    private val receiver: KtTypeReference?,
+    private val containingFunction: KtCallableDeclaration
 ) : org.jetbrains.kotlin.asJava.elements.LightParameter(
     name,
     PsiType.NULL,
@@ -661,7 +667,11 @@ internal class KtUltraLightParameter(
         }
     }
     private val _type: PsiType by lazyPub {
-        kotlinType?.let { it.asPsiType(support, TypeMappingMode.getOptimalModeForValueParameter(it), this) } ?: PsiType.NULL
+        val kotlinType = kotlinType ?: return@lazyPub PsiType.NULL
+        val containingDescriptor = containingFunction.resolve() as? CallableDescriptor ?: return@lazyPub PsiType.NULL
+        support.mapType(this) { typeMapper, sw ->
+            typeMapper.writeParameterType(sw, kotlinType, containingDescriptor)
+        }
     }
 
     override fun getType(): PsiType = _type
diff --git a/compiler/testData/asJava/ultraLightClasses/jvmWildcardAnnotations.kt b/compiler/testData/asJava/ultraLightClasses/jvmWildcardAnnotations.kt
new file mode 100644
index 00000000000..5185c2dba22
--- /dev/null
+++ b/compiler/testData/asJava/ultraLightClasses/jvmWildcardAnnotations.kt
@@ -0,0 +1,38 @@
+class Inv<E>
+class Out<out T>
+class OutPair<out Final, out Y>
+class In<in Z>
+
+class Final
+open class Open
+
+class Container {
+    @JvmSuppressWildcards(true)
+    fun deepOpen(x: Out<Out<Out<Open>>>) {}
+
+
+    @JvmSuppressWildcards(false)
+    fun bar(): Out<Open> = null!!
+
+    fun simpleOut(x: Out<@JvmWildcard Final>) {}
+    fun simpleIn(x: In<@JvmWildcard Any?>) {}
+
+    fun falseTrueFalse(): @JvmSuppressWildcards(false) OutPair<Final, @JvmSuppressWildcards OutPair<Out<Final>, Out<@JvmSuppressWildcards(false) Final>>> = null!!
+    fun combination(): @JvmSuppressWildcards OutPair<Open, @JvmWildcard OutPair<Open, @JvmWildcard Out<Open>>> = null!!
+
+    @JvmSuppressWildcards(false)
+    fun foo(x: Boolean, y: Out<Int>): Int = 1
+
+    @JvmSuppressWildcards(true)
+    fun bar(x: Boolean, y: In<Long>, z: @JvmSuppressWildcards(false) Long): Int = 1
+}
+
+interface A<T> {
+    @JvmSuppressWildcards(true)
+    fun foo(): Out<T>
+}
+
+interface B {
+    @JvmSuppressWildcards(true)
+    fun foo(): In<Open>
+}
diff --git a/compiler/testData/asJava/ultraLightClasses/wildcardOptimization.kt b/compiler/testData/asJava/ultraLightClasses/wildcardOptimization.kt
new file mode 100644
index 00000000000..28118caf952
--- /dev/null
+++ b/compiler/testData/asJava/ultraLightClasses/wildcardOptimization.kt
@@ -0,0 +1,53 @@
+class Inv<E>
+class Out<out T>
+class OutPair<out Final, out Y>
+class In<in Z>
+
+class Final
+open class Open
+
+class Container {
+    // The signatures are obtained from compiler/testData/writeSignature/declarationSiteVariance/wildcardOptimization
+    fun openClassArgument(x: Out<Open>, y: In<Open>) {}
+    fun finalClassArgument(x: Out<Final>, y: In<Final>) {}
+    fun oneArgumentFinal(x: OutPair<Final, Open>) {}
+
+    fun arrayOfOutOpen(x: Array<Out<Open>>) {}
+    fun arrayOfOutFinal(x: Array<Out<Final>>) {}
+    fun outOfArrayOpen(x: Out<Array<Open>>) {}
+    fun outOfArrayOutOpen(x: Out<Array<out Open>>) {}
+
+    fun deepOpen(x: Out<Out<Out<Open>>>) {}
+    fun deepFinal(x: Out<Out<Out<Final>>>) {}
+
+    fun skipAllOutInvWildcards(): Inv<OutPair<Open, Out<Out<Open>>>> = null!!
+    fun skipAllInvWildcards(): Inv<In<Out<Open>>> = null!!
+    fun notDeepIn(): In<Final> = null!!
+    fun skipWildcardsUntilIn0(): Out<In<Out<Open>>> = null!!
+    fun skipWildcardsUntilIn1(): Out<In<Out<Final>>> = null!!
+    fun skipWildcardsUntilIn2(): Out<In<OutPair<Final, Out<Open>>>> = null!!
+    fun skipWildcardsUntilInProjection(): Inv<in Out<Open>> = null!!
+
+    fun outIn(x: Out<In<Final>>) {}
+    fun outInAny(x: Out<In<Any?>>) {}
+
+    fun invInv(x: Out<Inv<Open>>) {}
+    fun invOut(x: Out<Inv<out Open>>) {}
+    fun invOutFinal(x: Out<Inv<out Final>>) {}
+    fun invIn(x: Out<Inv<in Final>>) {}
+    fun invInAny(x: Out<Inv<in Any>>) {}
+
+    fun inFinal(x: In<Final>) {}
+    fun inAny(x: In<Any>) {}
+    fun inOutFinal(x: In<Out<Final>>) {}
+
+    fun invOpen(x: Inv<Open>) {}
+    fun invFinal(x: Inv<Final>) {}
+    fun invOutOpen(x: Inv<Out<Open>>) {}
+    fun invOutFinal(x: Inv<Out<Final>>) {}
+    fun invInOutOpen(x: Inv<In<Out<Open>>>) {}
+    fun invInOutFinal(x: Inv<In<Out<Final>>>) {}
+    fun invOutProjectedOutFinal(x: Inv<out Out<Final>>) {}
+
+    fun <Q : Final> typeParameter(x: Out<Q>, y: In<Q>) {}
+}
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/caches/resolve/IDELightClassGenerationSupport.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/caches/resolve/IDELightClassGenerationSupport.kt
index 06003d1d1a0..e6d97095d17 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/caches/resolve/IDELightClassGenerationSupport.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/caches/resolve/IDELightClassGenerationSupport.kt
@@ -37,6 +37,8 @@ import org.jetbrains.kotlin.asJava.classes.lazyPub
 import org.jetbrains.kotlin.asJava.classes.shouldNotBeVisibleAsLightClass
 import org.jetbrains.kotlin.asJava.finder.JavaElementFinder
 import org.jetbrains.kotlin.codegen.JvmCodegenUtil
+import org.jetbrains.kotlin.codegen.state.JVM_SUPPRESS_WILDCARDS_ANNOTATION_FQ_NAME
+import org.jetbrains.kotlin.codegen.state.JVM_WILDCARD_ANNOTATION_FQ_NAME
 import org.jetbrains.kotlin.descriptors.ClassifierDescriptor
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
 import org.jetbrains.kotlin.descriptors.annotations.AnnotationDescriptor
@@ -52,6 +54,7 @@ import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.hasExpectModifier
 import org.jetbrains.kotlin.psi.stubs.elements.KtStubElementTypes
 import org.jetbrains.kotlin.resolve.BindingContext
+import org.jetbrains.kotlin.resolve.annotations.JVM_STATIC_ANNOTATION_FQ_NAME
 import org.jetbrains.kotlin.resolve.descriptorUtil.fqNameSafe
 import org.jetbrains.kotlin.resolve.descriptorUtil.getAllSuperClassifiers
 import org.jetbrains.kotlin.resolve.lazy.BodyResolveMode
@@ -107,9 +110,18 @@ class IDELightClassGenerationSupport(private val project: Project) : LightClassG
     }
 
     private fun findTooComplexDeclaration(declaration: KtDeclaration): PsiElement? {
+        fun isNameOfUnsupportedJvmAnnotation(name: Name): Boolean {
+            if (!name.asString().startsWith("Jvm")) return false
+            if (name == JVM_STATIC_ANNOTATION_FQ_NAME.shortName()) return false
+            if (name == JVM_SUPPRESS_WILDCARDS_ANNOTATION_FQ_NAME.shortName()) return false
+            if (name == JVM_WILDCARD_ANNOTATION_FQ_NAME.shortName()) return false
+
+            return true
+        }
+
         fun KtAnnotationEntry.seemsNonTrivial(): Boolean {
             val name = shortName
-            return name == null || hasAlias(declaration, name) || name.asString().startsWith("Jvm") && name.asString() != "JvmStatic"
+            return name == null || hasAlias(declaration, name) || isNameOfUnsupportedJvmAnnotation(name)
         }
 
         if (declaration.hasExpectModifier() ||
diff --git a/idea/tests/org/jetbrains/kotlin/asJava/classes/UltraLightClassLoadingTestGenerated.java b/idea/tests/org/jetbrains/kotlin/asJava/classes/UltraLightClassLoadingTestGenerated.java
index 2607b732a9f..256ca924b6b 100644
--- a/idea/tests/org/jetbrains/kotlin/asJava/classes/UltraLightClassLoadingTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/asJava/classes/UltraLightClassLoadingTestGenerated.java
@@ -109,6 +109,11 @@ public class UltraLightClassLoadingTestGenerated extends AbstractUltraLightClass
         runTest("compiler/testData/asJava/ultraLightClasses/jvmOverloads.kt");
     }
 
+    @TestMetadata("jvmWildcardAnnotations.kt")
+    public void testJvmWildcardAnnotations() throws Exception {
+        runTest("compiler/testData/asJava/ultraLightClasses/jvmWildcardAnnotations.kt");
+    }
+
     @TestMetadata("lateinitProperty.kt")
     public void testLateinitProperty() throws Exception {
         runTest("compiler/testData/asJava/ultraLightClasses/lateinitProperty.kt");
@@ -138,4 +143,9 @@ public class UltraLightClassLoadingTestGenerated extends AbstractUltraLightClass
     public void testTypeAliases() throws Exception {
         runTest("compiler/testData/asJava/ultraLightClasses/typeAliases.kt");
     }
+
+    @TestMetadata("wildcardOptimization.kt")
+    public void testWildcardOptimization() throws Exception {
+        runTest("compiler/testData/asJava/ultraLightClasses/wildcardOptimization.kt");
+    }
 }