diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt
index 148c23a2b45..7fd3e67123b 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/PositioningStrategies.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2016 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.
@@ -219,7 +219,7 @@ object PositioningStrategies {
                     return ranges
                 }
             }
-            return listOf(element.getCalleeHighlightingRange())
+            return listOf(element.getHighlightingRange())
         }
     }
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt
index 7bb5c0de127..ea6ba046d9e 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/ktPsiUtil.kt
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2016 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.
@@ -150,16 +150,21 @@ fun KtExpression.getQualifiedExpressionForReceiverOrThis(): KtExpression {
 fun KtExpression.isDotReceiver(): Boolean =
         (parent as? KtDotQualifiedExpression)?.getReceiverExpression() == this
 
-fun KtElement.getCalleeHighlightingRange(): TextRange {
-    val annotationEntry: KtAnnotationEntry =
+fun KtReferenceExpression.getHighlightingRange(): TextRange {
+    // include '@' symbol if the reference is the first segment of KtAnnotationEntry
+    // if "Deprecated" is highlighted then '@' should be highlighted too in "@Deprecated"
+    val annotationEntry =
             PsiTreeUtil.getParentOfType<KtAnnotationEntry>(
                     this, KtAnnotationEntry::class.java, /* strict = */false, KtValueArgumentList::class.java
-            ) ?: return textRange
+            )
 
-    val startOffset = annotationEntry.getAtSymbol()?.getTextRange()?.getStartOffset()
-                      ?: annotationEntry.getCalleeExpression()!!.startOffset
-
-    return TextRange(startOffset, annotationEntry.getCalleeExpression()!!.endOffset)
+    val atSymbol = annotationEntry?.atSymbol
+    return if (atSymbol != null && atSymbol.endOffset == this.startOffset) {
+         TextRange(atSymbol.startOffset, this.endOffset)
+    }
+    else {
+        this.textRange
+    }
 }
 
 // ---------- Block expression -------------------------------------------------------------------------------------------------------------
diff --git a/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.kt b/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.kt
index 2f6867c828f..a6cadb8f310 100644
--- a/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.kt
+++ b/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.kt
@@ -1,3 +1,5 @@
 <!UNRESOLVED_REFERENCE!>@Ann<!> class A
 <!UNRESOLVED_REFERENCE!>@Ann<!> class B
-<!UNRESOLVED_REFERENCE!>@Ann<!>(1) class C
\ No newline at end of file
+<!UNRESOLVED_REFERENCE!>@Ann<!>(1) class C
+@kotlin.<!UNRESOLVED_REFERENCE!>Ann<!>(1) class D
+@kotlin.annotation.<!UNRESOLVED_REFERENCE!>Ann<!>(1) class E
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.txt b/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.txt
index c847af33fc8..102dd469cc9 100644
--- a/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.txt
+++ b/compiler/testData/diagnostics/tests/annotations/unresolvedReferenceRange.txt
@@ -20,3 +20,17 @@ package
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
+
+@[ERROR : kotlin.Ann]() public final class D {
+    public constructor D()
+    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
+}
+
+@[ERROR : kotlin.annotation.Ann]() public final class E {
+    public constructor E()
+    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
+}
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.java b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.java
index 4f3a44aec02..759472bb59a 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.java
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/TypeKindHighlightingVisitor.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2010-2015 JetBrains s.r.o.
+ * Copyright 2010-2016 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.
@@ -61,7 +61,7 @@ class TypeKindHighlightingVisitor extends AfterAnalysisHighlightingVisitor {
     }
 
     private void highlightAnnotation(@NotNull KtSimpleNameExpression expression) {
-        TextRange toHighlight = KtPsiUtilKt.getCalleeHighlightingRange(expression);
+        TextRange toHighlight = KtPsiUtilKt.getHighlightingRange(expression);
         NameHighlighter.highlightName(holder, toHighlight, KotlinHighlightingColors.ANNOTATION);
     }
 
diff --git a/idea/testData/checker/recovery/returnInFileAnnotation.kt b/idea/testData/checker/recovery/returnInFileAnnotation.kt
index d1ab3ebef9f..4efd92d81ab 100644
--- a/idea/testData/checker/recovery/returnInFileAnnotation.kt
+++ b/idea/testData/checker/recovery/returnInFileAnnotation.kt
@@ -1 +1 @@
-<error descr="[UNRESOLVED_REFERENCE] Unresolved reference: suppress">@file:suppress</error>(<error descr="[RETURN_NOT_ALLOWED] 'return' is not allowed here"><error descr="[RETURN_NOT_ALLOWED] 'return' is not allowed here">return <error descr="[UNRESOLVED_REFERENCE] Unresolved reference: a"><error descr="[UNRESOLVED_REFERENCE] Unresolved reference: a">a</error></error></error></error>)
\ No newline at end of file
+@file:<error descr="[UNRESOLVED_REFERENCE] Unresolved reference: suppress">suppress</error>(<error descr="[RETURN_NOT_ALLOWED] 'return' is not allowed here"><error descr="[RETURN_NOT_ALLOWED] 'return' is not allowed here">return <error descr="[UNRESOLVED_REFERENCE] Unresolved reference: a"><error descr="[UNRESOLVED_REFERENCE] Unresolved reference: a">a</error></error></error></error>)
\ No newline at end of file