diff --git a/compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.kt b/compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.kt
new file mode 100644
index 00000000000..17f1e033cf6
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.kt
@@ -0,0 +1,3 @@
+class A<T : A<T>>
+fun <T : A<*>> foo() {}
+class B<T : A<*>>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.txt b/compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.txt
new file mode 100644
index 00000000000..dc5d01e41b5
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.txt
@@ -0,0 +1,17 @@
+package
+
+public fun </*0*/ T : A<*>> foo(): kotlin.Unit
+
+public final class A</*0*/ T : A<T>> {
+    public constructor A</*0*/ T : A<T>>()
+    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
+}
+
+public final class B</*0*/ T : A<*>> {
+    public constructor B</*0*/ T : 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
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 6ac1173b676..cf0befbc854 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -7439,6 +7439,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                     KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/diagnostics/tests/generics/starProjections"), Pattern.compile("^(.+)\\.kt$"), true);
                 }
 
+                @TestMetadata("checkBounds.kt")
+                public void testCheckBounds() throws Exception {
+                    String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/generics/starProjections/checkBounds.kt");
+                    doTest(fileName);
+                }
+
                 @TestMetadata("collectionInheritedFromJava.kt")
                 public void testCollectionInheritedFromJava() throws Exception {
                     String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/generics/starProjections/collectionInheritedFromJava.kt");
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.java b/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.java
index eae8d033232..1933750c197 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.java
@@ -171,6 +171,8 @@ public class TypeUtils {
         for (int i = 0, parametersSize = parameters.size(); i < parametersSize; i++) {
             TypeParameterDescriptor parameterDescriptor = parameters.get(i);
             TypeProjection typeProjection = arguments.get(i);
+            if (typeProjection.isStarProjection()) return true;
+
             Variance projectionKind = typeProjection.getProjectionKind();
             KotlinType argument = typeProjection.getType();