diff --git a/compiler/frontend.java/src/org/jetbrains/kotlin/resolve/jvm/JvmOverloadFilter.kt b/compiler/frontend.java/src/org/jetbrains/kotlin/resolve/jvm/JvmOverloadFilter.kt
index 54425d3f0c9..e12f68f3f1c 100644
--- a/compiler/frontend.java/src/org/jetbrains/kotlin/resolve/jvm/JvmOverloadFilter.kt
+++ b/compiler/frontend.java/src/org/jetbrains/kotlin/resolve/jvm/JvmOverloadFilter.kt
@@ -17,6 +17,7 @@
 package org.jetbrains.kotlin.resolve.jvm
 
 import org.jetbrains.kotlin.descriptors.CallableMemberDescriptor
+import org.jetbrains.kotlin.descriptors.ConstructorDescriptor
 import org.jetbrains.kotlin.descriptors.PackageFragmentDescriptor
 import org.jetbrains.kotlin.fileClasses.JvmFileClassUtil
 import org.jetbrains.kotlin.fileClasses.NoResolveFileClassesProvider
@@ -40,12 +41,14 @@ object JvmOverloadFilter : OverloadFilter {
         }
 
         for (overload in overloads) {
+            if (overload is ConstructorDescriptor) continue
             if (overload !is DeserializedCallableMemberDescriptor) continue
 
             val containingDeclaration = overload.containingDeclaration
             if (containingDeclaration !is PackageFragmentDescriptor) {
                 throw AssertionError("Package member expected; got $overload with containing declaration $containingDeclaration")
             }
+
             val implClassName = JvmFileClassUtil.getImplClassName(overload) ?:
                                 throw AssertionError("No implClassName: $overload")
             val implClassFQN = containingDeclaration.fqName.child(implClassName)
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index ed99c9b7006..e676e1c533c 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -297,7 +297,7 @@ public interface Errors {
 
     // Members
 
-    DiagnosticFactory2<KtDeclaration, CallableMemberDescriptor, String> CONFLICTING_OVERLOADS =
+    DiagnosticFactory2<KtDeclaration, CallableMemberDescriptor, CallableMemberDescriptor> CONFLICTING_OVERLOADS =
             DiagnosticFactory2.create(ERROR, DECLARATION_SIGNATURE_OR_DEFAULT);
 
     DiagnosticFactory0<KtNamedDeclaration> NON_FINAL_MEMBER_IN_FINAL_CLASS = DiagnosticFactory0.create(WARNING, modifierSetPosition(
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
index a7809882b2f..ed1bbe6e03d 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -611,7 +611,7 @@ public class DefaultErrorMessages {
         MAP.put(MANY_INTERFACES_MEMBER_NOT_IMPLEMENTED, "{0} must override {1} because it inherits multiple interface methods of it",
                 RENDER_CLASS_OR_OBJECT, FQ_NAMES_IN_TYPES);
 
-        MAP.put(CONFLICTING_OVERLOADS, "''{0}'' is already defined in {1}", COMPACT_WITH_MODIFIERS, STRING);
+        MAP.put(CONFLICTING_OVERLOADS, "''{0}'' conflicts with another declaration: {1}", COMPACT_WITH_MODIFIERS, COMPACT_WITH_MODIFIERS);
 
         MAP.put(FUNCTION_EXPECTED, "Expression ''{0}''{1} cannot be invoked as a function. " +
                                    "The function '" + OperatorNameConventions.INVOKE.asString() + "()' is not found",
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadResolver.java
index 802cae9c95f..0feb8924694 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadResolver.java
@@ -28,11 +28,10 @@ import org.jetbrains.kotlin.name.Name;
 import org.jetbrains.kotlin.psi.*;
 
 import java.util.Collection;
+import java.util.Iterator;
 import java.util.Map;
 import java.util.Set;
 
-import static org.jetbrains.kotlin.resolve.DescriptorUtils.getFqName;
-
 public class OverloadResolver {
     @NotNull private final BindingTrace trace;
     @NotNull private final OverloadFilter overloadFilter;
@@ -50,49 +49,43 @@ public class OverloadResolver {
     }
 
     private void checkOverloads(@NotNull BodiesResolveContext c) {
-        MultiMap<ClassDescriptor, ConstructorDescriptor> inClasses = MultiMap.create();
-        MultiMap<FqNameUnsafe, ConstructorDescriptor> inPackages = MultiMap.create();
-        fillGroupedConstructors(c, inClasses, inPackages);
+        MultiMap<ClassDescriptor, ConstructorDescriptor> inClasses = findConstructorsInNestedClasses(c);
 
         for (Map.Entry<KtClassOrObject, ClassDescriptorWithResolutionScopes> entry : c.getDeclaredClasses().entrySet()) {
             checkOverloadsInAClass(entry.getValue(), entry.getKey(), inClasses.get(entry.getValue()));
         }
-        checkOverloadsInPackages(c, inPackages);
+        checkOverloadsInPackages(c);
     }
 
-    private static void fillGroupedConstructors(
-            @NotNull BodiesResolveContext c,
-            @NotNull MultiMap<ClassDescriptor, ConstructorDescriptor> inClasses,
-            @NotNull MultiMap<FqNameUnsafe, ConstructorDescriptor> inPackages
-    ) {
+    private static MultiMap<ClassDescriptor, ConstructorDescriptor> findConstructorsInNestedClasses(@NotNull BodiesResolveContext c) {
+        MultiMap<ClassDescriptor, ConstructorDescriptor> inClasses = MultiMap.create();
+
         for (ClassDescriptorWithResolutionScopes klass : c.getDeclaredClasses().values()) {
             if (klass.getKind().isSingleton() || klass.getName().isSpecial()) {
                 // Constructors of singletons or anonymous object aren't callable from the code, so they shouldn't participate in overload name checking
                 continue;
             }
             DeclarationDescriptor containingDeclaration = klass.getContainingDeclaration();
-            if (containingDeclaration instanceof ClassDescriptor) {
+            if (containingDeclaration instanceof ScriptDescriptor) {
+                // TODO: check overload conflicts of functions with constructors in scripts
+            }
+            else if (containingDeclaration instanceof ClassDescriptor) {
                 ClassDescriptor classDescriptor = (ClassDescriptor) containingDeclaration;
                 inClasses.putValues(classDescriptor, klass.getConstructors());
             }
-            else if (containingDeclaration instanceof PackageFragmentDescriptor) {
-                inPackages.putValues(getFqName(klass), klass.getConstructors());
-            }
-            else if (containingDeclaration instanceof ScriptDescriptor) {
-                // TODO: check overload conflicts of functions with constructors in scripts
-            }
-            else if (!(containingDeclaration instanceof FunctionDescriptor || containingDeclaration instanceof PropertyDescriptor)) {
+            else if (!(containingDeclaration instanceof FunctionDescriptor ||
+                       containingDeclaration instanceof PropertyDescriptor ||
+                       containingDeclaration instanceof PackageFragmentDescriptor)) {
                 throw new IllegalStateException("Illegal class container: " + containingDeclaration);
             }
         }
+
+        return inClasses;
     }
 
-    private void checkOverloadsInPackages(
-            @NotNull BodiesResolveContext c,
-            @NotNull MultiMap<FqNameUnsafe, ConstructorDescriptor> inPackages
-    ) {
+    private void checkOverloadsInPackages(@NotNull BodiesResolveContext c) {
         MultiMap<FqNameUnsafe, CallableMemberDescriptor> membersByName =
-                OverloadUtil.groupModulePackageMembersByFqName(c, inPackages, overloadFilter);
+                OverloadUtil.groupModulePackageMembersByFqName(c, overloadFilter);
 
         for (Map.Entry<FqNameUnsafe, Collection<CallableMemberDescriptor>> e : membersByName.entrySet()) {
             FqNameUnsafe fqName = e.getKey().parent();
@@ -203,22 +196,38 @@ public class OverloadResolver {
         return file == null || file2 == null || file != file2;
     }
 
-    private void reportRedeclarations(@NotNull String functionContainer,
-            @NotNull Set<Pair<KtDeclaration, CallableMemberDescriptor>> redeclarations) {
+    private void reportRedeclarations(
+            @NotNull String functionContainer,
+            @NotNull Set<Pair<KtDeclaration, CallableMemberDescriptor>> redeclarations
+    ) {
+        if (redeclarations.isEmpty()) return;
+
+        Iterator<Pair<KtDeclaration, CallableMemberDescriptor>> redeclarationsIterator = redeclarations.iterator();
+        CallableMemberDescriptor firstRedeclarationDescriptor = redeclarationsIterator.next().getSecond();
+        CallableMemberDescriptor otherRedeclarationDescriptor = redeclarationsIterator.hasNext()
+                                                                ? redeclarationsIterator.next().getSecond()
+                                                                : null;
+
         for (Pair<KtDeclaration, CallableMemberDescriptor> redeclaration : redeclarations) {
+            KtDeclaration ktDeclaration = redeclaration.getFirst();
             CallableMemberDescriptor memberDescriptor = redeclaration.getSecond();
 
-            KtDeclaration ktDeclaration = redeclaration.getFirst();
+            CallableMemberDescriptor redeclarationDescriptor;
+            if (otherRedeclarationDescriptor == null) {
+                redeclarationDescriptor = firstRedeclarationDescriptor;
+            }
+            else if (firstRedeclarationDescriptor == memberDescriptor) {
+                redeclarationDescriptor = otherRedeclarationDescriptor;
+            }
+            else {
+                redeclarationDescriptor = firstRedeclarationDescriptor;
+            }
+
             if (memberDescriptor instanceof PropertyDescriptor) {
                 trace.report(Errors.REDECLARATION.on(ktDeclaration, memberDescriptor.getName().asString()));
             }
             else {
-                String containingClassName = ktDeclaration instanceof KtSecondaryConstructor ?
-                                             ((KtSecondaryConstructor) ktDeclaration).getContainingClassOrObject().getName() : null;
-
-                trace.report(Errors.CONFLICTING_OVERLOADS.on(
-                        ktDeclaration, memberDescriptor,
-                        containingClassName != null ? containingClassName : functionContainer));
+                trace.report(Errors.CONFLICTING_OVERLOADS.on(ktDeclaration, memberDescriptor, redeclarationDescriptor));
             }
         }
     }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadUtil.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadUtil.kt
index d06f20ac265..9a0371bd6ab 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadUtil.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OverloadUtil.kt
@@ -82,14 +82,18 @@ object OverloadUtil {
 
     @JvmStatic fun groupModulePackageMembersByFqName(
             c: BodiesResolveContext,
-            constructorsInPackages: MultiMap<FqNameUnsafe, ConstructorDescriptor>,
             overloadFilter: OverloadFilter
     ): MultiMap<FqNameUnsafe, CallableMemberDescriptor> {
         val packageMembersByName = MultiMap<FqNameUnsafe, CallableMemberDescriptor>()
 
-        collectModulePackageMembersWithSameName(packageMembersByName, c.functions.values, overloadFilter) {
+        collectModulePackageMembersWithSameName(packageMembersByName, c.functions.values + c.declaredClasses.values, overloadFilter) {
             scope, name ->
-            scope.getContributedFunctions(name, NoLookupLocation.WHEN_CHECK_REDECLARATIONS)
+            val functions = scope.getContributedFunctions(name, NoLookupLocation.WHEN_CHECK_REDECLARATIONS)
+            val classifier = scope.getContributedClassifier(name, NoLookupLocation.WHEN_CHECK_REDECLARATIONS)
+            if (classifier is ClassDescriptor && !classifier.kind.isSingleton)
+                functions + classifier.constructors
+            else
+                functions
         }
 
         collectModulePackageMembersWithSameName(packageMembersByName, c.properties.values, overloadFilter) {
@@ -97,15 +101,12 @@ object OverloadUtil {
             scope.getContributedVariables(name, NoLookupLocation.WHEN_CHECK_REDECLARATIONS).filterIsInstance<CallableMemberDescriptor>()
         }
 
-        // TODO handle constructor redeclarations in modules. See also: https://youtrack.jetbrains.com/issue/KT-3632
-        packageMembersByName.putAllValues(constructorsInPackages)
-
         return packageMembersByName
     }
 
     private inline fun collectModulePackageMembersWithSameName(
             packageMembersByName: MultiMap<FqNameUnsafe, CallableMemberDescriptor>,
-            interestingDescriptors: Collection<CallableMemberDescriptor>,
+            interestingDescriptors: Collection<DeclarationDescriptor>,
             overloadFilter: OverloadFilter,
             getMembersByName: (MemberScope, Name) -> Collection<CallableMemberDescriptor>
     ) {
@@ -123,20 +124,25 @@ object OverloadUtil {
     }
 
     private inline fun getModulePackageMembersWithSameName(
-            packageMember: CallableMemberDescriptor,
+            descriptor: DeclarationDescriptor,
             overloadFilter: OverloadFilter,
             getMembersByName: (MemberScope, Name) -> Collection<CallableMemberDescriptor>
     ): Collection<CallableMemberDescriptor> {
-        val containingPackage = packageMember.containingDeclaration
+        val containingPackage = descriptor.containingDeclaration
         if (containingPackage !is PackageFragmentDescriptor) {
-            throw AssertionError("$packageMember is not a top-level package member")
+            throw AssertionError("$descriptor is not a top-level package member")
         }
 
-        val containingModule = DescriptorUtils.getContainingModuleOrNull(packageMember) ?: return listOf(packageMember)
+        val containingModule = DescriptorUtils.getContainingModuleOrNull(descriptor) ?:
+                               return when (descriptor) {
+                                   is CallableMemberDescriptor -> listOf(descriptor)
+                                   is ClassDescriptor -> descriptor.constructors
+                                   else -> throw AssertionError("Unexpected descriptor kind: $descriptor")
+                               }
 
         val containingPackageScope = containingModule.getPackage(containingPackage.fqName).memberScope
         val possibleOverloads =
-                getMembersByName(containingPackageScope, packageMember.name).filter {
+                getMembersByName(containingPackageScope, descriptor.name).filter {
                     // NB memberScope for PackageViewDescriptor includes module dependencies
                     DescriptorUtils.getContainingModule(it) == containingModule
                 }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassMemberScope.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassMemberScope.kt
index 662dc21d5b6..c0af18a12d5 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassMemberScope.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassMemberScope.kt
@@ -108,7 +108,7 @@ open class LazyClassMemberScope(
 
             override fun conflict(fromSuper: CallableMemberDescriptor, fromCurrent: CallableMemberDescriptor) {
                 val declaration = DescriptorToSourceUtils.descriptorToDeclaration(fromCurrent) as? KtDeclaration ?: error("fromCurrent can not be a fake override")
-                trace.report(Errors.CONFLICTING_OVERLOADS.on(declaration, fromCurrent, fromCurrent.getContainingDeclaration().getName().asString()))
+                trace.report(Errors.CONFLICTING_OVERLOADS.on(declaration, fromCurrent, fromSuper))
             }
         })
         OverrideResolver.resolveUnknownVisibilities(result, trace)
diff --git a/compiler/testData/cli/jvm/conflictingOverloads.out b/compiler/testData/cli/jvm/conflictingOverloads.out
index 426e908948c..51b79f53071 100644
--- a/compiler/testData/cli/jvm/conflictingOverloads.out
+++ b/compiler/testData/cli/jvm/conflictingOverloads.out
@@ -1,7 +1,7 @@
-compiler/testData/cli/jvm/conflictingOverloads.kt:1:1: error: 'public fun a(): kotlin.collections.List<kotlin.Int>' is already defined in root package
+compiler/testData/cli/jvm/conflictingOverloads.kt:1:1: error: 'public fun a(): kotlin.collections.List<kotlin.Int>' conflicts with another declaration: public fun a(): kotlin.collections.List<kotlin.String>
 fun a(): List<Int> = null!!
 ^
-compiler/testData/cli/jvm/conflictingOverloads.kt:2:1: error: 'public fun a(): kotlin.collections.List<kotlin.String>' is already defined in root package
+compiler/testData/cli/jvm/conflictingOverloads.kt:2:1: error: 'public fun a(): kotlin.collections.List<kotlin.String>' conflicts with another declaration: public fun a(): kotlin.collections.List<kotlin.Int>
 fun a(): List<String> = null!!
 ^
 COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/duplicateJvmSignature/missingNames.kt b/compiler/testData/diagnostics/tests/duplicateJvmSignature/missingNames.kt
index 751d8489e2a..0d8919d3ec8 100644
--- a/compiler/testData/diagnostics/tests/duplicateJvmSignature/missingNames.kt
+++ b/compiler/testData/diagnostics/tests/duplicateJvmSignature/missingNames.kt
@@ -1,5 +1,5 @@
 // !DIAGNOSTICS: -DUPLICATE_CLASS_NAMES
-<!FUNCTION_DECLARATION_WITH_NO_NAME!>fun ()<!> {
+<!FUNCTION_DECLARATION_WITH_NO_NAME, CONFLICTING_OVERLOADS!>fun ()<!> {
 
 }
 
diff --git a/compiler/testData/diagnostics/tests/recovery/namelessToplevelDeclarations.kt b/compiler/testData/diagnostics/tests/recovery/namelessToplevelDeclarations.kt
index 7b317d75391..3768e6f9a09 100644
--- a/compiler/testData/diagnostics/tests/recovery/namelessToplevelDeclarations.kt
+++ b/compiler/testData/diagnostics/tests/recovery/namelessToplevelDeclarations.kt
@@ -2,7 +2,7 @@
 
 package<!SYNTAX!><!>
 
-<!FUNCTION_DECLARATION_WITH_NO_NAME!>fun ()<!> {
+<!FUNCTION_DECLARATION_WITH_NO_NAME, CONFLICTING_OVERLOADS!>fun ()<!> {
 
 }
 
diff --git a/compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.kt b/compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.kt
new file mode 100644
index 00000000000..ea1aab8e583
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.kt
@@ -0,0 +1,10 @@
+// FILE: test1.kt
+class <!CONFLICTING_OVERLOADS!>A<!>
+class B<!CONFLICTING_OVERLOADS!>(val x: Int)<!> {
+    <!CONFLICTING_OVERLOADS!>constructor(x: Int, y: Int)<!>: this(x + y)
+}
+
+// FILE: test2.kt
+<!CONFLICTING_OVERLOADS!>fun A()<!> {}
+<!CONFLICTING_OVERLOADS!>fun B(x: Int)<!> = x
+<!CONFLICTING_OVERLOADS!>fun B(x: Int, y: Int)<!> = x + y
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.txt b/compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.txt
new file mode 100644
index 00000000000..b1097183788
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.txt
@@ -0,0 +1,21 @@
+package
+
+public fun A(): kotlin.Unit
+public fun B(/*0*/ x: kotlin.Int): kotlin.Int
+public fun B(/*0*/ x: kotlin.Int, /*1*/ y: kotlin.Int): kotlin.Int
+
+public final 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
+}
+
+public final class B {
+    public constructor B(/*0*/ x: kotlin.Int)
+    public constructor B(/*0*/ x: kotlin.Int, /*1*/ y: kotlin.Int)
+    public final val x: kotlin.Int
+    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 4ef04b8b9ba..79c07c9fcee 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -13083,6 +13083,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("FunVsCtorInDifferentFiles.kt")
+            public void testFunVsCtorInDifferentFiles() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/redeclarations/FunVsCtorInDifferentFiles.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt2418.kt")
             public void testKt2418() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/redeclarations/kt2418.kt");
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/IdeErrorMessages.java b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/IdeErrorMessages.java
index f54515c2335..02b602daaaa 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/IdeErrorMessages.java
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/IdeErrorMessages.java
@@ -137,8 +137,8 @@ public class IdeErrorMessages {
 
         MAP.put(MANY_IMPL_MEMBER_NOT_IMPLEMENTED, "<html>{0} must override {1}<br />because it inherits many implementations of it</html>",
                 RENDER_CLASS_OR_OBJECT, DescriptorRenderer.HTML);
-        MAP.put(CONFLICTING_OVERLOADS, "<html>''{0}''<br />is already defined in {1}</html>",
-                IdeRenderers.HTML_COMPACT_WITH_MODIFIERS, STRING);
+        MAP.put(CONFLICTING_OVERLOADS, "<html>''{0}''<br />conflicts with another declaration: {1}</html>",
+                IdeRenderers.HTML_COMPACT_WITH_MODIFIERS, IdeRenderers.HTML_COMPACT_WITH_MODIFIERS);
 
         MAP.put(RESULT_TYPE_MISMATCH, "<html>Function return type mismatch." +
                                       "<table><tr><td>Expected:</td><td>{1}</td></tr>" +
diff --git a/idea/testData/checker/custom/conflictingOverloadsMultifile1a.kt b/idea/testData/checker/custom/conflictingOverloadsMultifile1a.kt
new file mode 100644
index 00000000000..9da2d5dae2a
--- /dev/null
+++ b/idea/testData/checker/custom/conflictingOverloadsMultifile1a.kt
@@ -0,0 +1,3 @@
+class A<error>(val x: Int)</error> {
+    <error>constructor()</error>: this(0)
+}
diff --git a/idea/testData/checker/custom/conflictingOverloadsMultifile1b.kt b/idea/testData/checker/custom/conflictingOverloadsMultifile1b.kt
new file mode 100644
index 00000000000..80d95f7d79b
--- /dev/null
+++ b/idea/testData/checker/custom/conflictingOverloadsMultifile1b.kt
@@ -0,0 +1,2 @@
+fun A() {}
+fun A(x: Int) = x
diff --git a/idea/testData/checker/custom/conflictingOverloadsMultifile2a.kt b/idea/testData/checker/custom/conflictingOverloadsMultifile2a.kt
new file mode 100644
index 00000000000..b464fa79938
--- /dev/null
+++ b/idea/testData/checker/custom/conflictingOverloadsMultifile2a.kt
@@ -0,0 +1,2 @@
+<error>fun A()</error> {}
+<error>fun A(x: Int)</error> = x
diff --git a/idea/testData/checker/custom/conflictingOverloadsMultifile2b.kt b/idea/testData/checker/custom/conflictingOverloadsMultifile2b.kt
new file mode 100644
index 00000000000..af39bd8b02f
--- /dev/null
+++ b/idea/testData/checker/custom/conflictingOverloadsMultifile2b.kt
@@ -0,0 +1,3 @@
+class A(val x: Int) {
+    constructor(): this(0)
+}
diff --git a/idea/testData/codeInsight/overrideImplement/ambiguousSuper.kt.after b/idea/testData/codeInsight/overrideImplement/ambiguousSuper.kt.after
index d7c6ee6de1b..f6647ea4237 100644
--- a/idea/testData/codeInsight/overrideImplement/ambiguousSuper.kt.after
+++ b/idea/testData/codeInsight/overrideImplement/ambiguousSuper.kt.after
@@ -1,5 +1,5 @@
-// ERROR: 'public open fun foo(): kotlin.Unit' is already defined in C
-// ERROR: 'public open fun foo(): kotlin.Unit' is already defined in C
+// ERROR: 'public open fun foo(): kotlin.Unit' conflicts with another declaration: public open fun foo(): kotlin.Unit
+// ERROR: 'public open fun foo(): kotlin.Unit' conflicts with another declaration: public open fun foo(): kotlin.Unit
 interface I {
     open fun foo(){}
 }
diff --git a/idea/testData/diagnosticMessage/conflictingOverloadsClass1.html b/idea/testData/diagnosticMessage/conflictingOverloadsClass1.html
index 04e9376eab8..53268043a68 100644
--- a/idea/testData/diagnosticMessage/conflictingOverloadsClass1.html
+++ b/idea/testData/diagnosticMessage/conflictingOverloadsClass1.html
@@ -1,3 +1,3 @@
 <!-- conflictingOverloadsClass1 -->
 <html>
-'<b>public</b> <b>final</b> <b>fun</b> lol(x: kotlin.Int): kotlin.Int'<br />is already defined in conflictingOverloads</html>
\ No newline at end of file
+'<b>public</b> <b>final</b> <b>fun</b> lol(x: kotlin.Int): kotlin.Int'<br />conflicts with another declaration: <b>public</b> <b>final</b> <b>fun</b> lol(y: kotlin.Int): kotlin.Int</html>
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/conflictingOverloadsClass2.html b/idea/testData/diagnosticMessage/conflictingOverloadsClass2.html
index e8fca6ad5c7..c1d67ac84fe 100644
--- a/idea/testData/diagnosticMessage/conflictingOverloadsClass2.html
+++ b/idea/testData/diagnosticMessage/conflictingOverloadsClass2.html
@@ -1,3 +1,3 @@
 <!-- conflictingOverloadsClass2 -->
 <html>
-'<b>public</b> <b>final</b> <b>fun</b> lol(y: kotlin.Int): kotlin.Int'<br />is already defined in conflictingOverloads</html>
\ No newline at end of file
+'<b>public</b> <b>final</b> <b>fun</b> lol(y: kotlin.Int): kotlin.Int'<br />conflicts with another declaration: <b>public</b> <b>final</b> <b>fun</b> lol(x: kotlin.Int): kotlin.Int</html>
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage1.txt b/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage1.txt
index 283271018b8..42a2a4d5103 100644
--- a/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage1.txt
+++ b/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage1.txt
@@ -1,2 +1,2 @@
 <!-- conflictingOverloadsDefaultPackage1 -->
-'public fun foo(x: kotlin.Int): kotlin.Int' is already defined in root package
\ No newline at end of file
+'public fun foo(x: kotlin.Int): kotlin.Int' conflicts with another declaration: public fun foo(y: kotlin.Int): kotlin.Int
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage2.txt b/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage2.txt
index 00e3a11aeea..e3652a85914 100644
--- a/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage2.txt
+++ b/idea/testData/diagnosticMessage/conflictingOverloadsDefaultPackage2.txt
@@ -1,2 +1,2 @@
 <!-- conflictingOverloadsDefaultPackage2 -->
-'public fun foo(y: kotlin.Int): kotlin.Int' is already defined in root package
\ No newline at end of file
+'public fun foo(y: kotlin.Int): kotlin.Int' conflicts with another declaration: public fun foo(x: kotlin.Int): kotlin.Int
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/constructorsRedeclaration1.txt b/idea/testData/diagnosticMessage/constructorsRedeclaration1.txt
index d8c271f71c5..dd7082a4cf0 100644
--- a/idea/testData/diagnosticMessage/constructorsRedeclaration1.txt
+++ b/idea/testData/diagnosticMessage/constructorsRedeclaration1.txt
@@ -1,2 +1,2 @@
 <!-- constructorsRedeclaration1 -->
-'public constructor Element(x: kotlin.String)' is already defined in Element
\ No newline at end of file
+'public constructor Element(x: kotlin.String)' conflicts with another declaration: public constructor Element(x: kotlin.String)
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/constructorsRedeclaration2.txt b/idea/testData/diagnosticMessage/constructorsRedeclaration2.txt
index f5ece75ad73..cd8b41f5b85 100644
--- a/idea/testData/diagnosticMessage/constructorsRedeclaration2.txt
+++ b/idea/testData/diagnosticMessage/constructorsRedeclaration2.txt
@@ -1,2 +1,2 @@
 <!-- constructorsRedeclaration2 -->
-'public constructor Element(x: kotlin.String)' is already defined in Element
\ No newline at end of file
+'public constructor Element(x: kotlin.String)' conflicts with another declaration: public constructor Element(x: kotlin.String)
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel1.txt b/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel1.txt
index 6343216a27d..0ca4910816e 100644
--- a/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel1.txt
+++ b/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel1.txt
@@ -1,2 +1,2 @@
 <!-- constructorsRedeclarationTopLevel1 -->
-'public fun Element(x: kotlin.String): kotlin.Unit' is already defined in root package
\ No newline at end of file
+'public fun Element(x: kotlin.String): kotlin.Unit' conflicts with another declaration: public constructor Element(x: kotlin.String)
\ No newline at end of file
diff --git a/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel2.txt b/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel2.txt
index fc0b9a78128..a27264502e9 100644
--- a/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel2.txt
+++ b/idea/testData/diagnosticMessage/constructorsRedeclarationTopLevel2.txt
@@ -1,2 +1,2 @@
 <!-- constructorsRedeclarationTopLevel2 -->
-'public constructor Element(x: kotlin.String)' is already defined in Element
\ No newline at end of file
+'public constructor Element(x: kotlin.String)' conflicts with another declaration: public fun Element(x: kotlin.String): kotlin.Unit
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/checkers/AbstractPsiCheckerTest.java b/idea/tests/org/jetbrains/kotlin/checkers/AbstractPsiCheckerTest.java
index 3a44f6e7030..dec50b3ab51 100644
--- a/idea/tests/org/jetbrains/kotlin/checkers/AbstractPsiCheckerTest.java
+++ b/idea/tests/org/jetbrains/kotlin/checkers/AbstractPsiCheckerTest.java
@@ -31,6 +31,11 @@ public abstract class AbstractPsiCheckerTest extends KotlinLightCodeInsightFixtu
         checkHighlighting(true, false, false);
     }
 
+    public void doTest(@NotNull String... filePath) throws Exception {
+        myFixture.configureByFiles(filePath);
+        checkHighlighting(true, false, false);
+    }
+
     public void doTestWithInfos(@NotNull String filePath) throws Exception {
         try {
             myFixture.configureByFile(filePath);
diff --git a/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerCustomTest.kt b/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerCustomTest.kt
index 6bed912190b..2f56e94f0c2 100644
--- a/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerCustomTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerCustomTest.kt
@@ -23,10 +23,22 @@ class PsiCheckerCustomTest : AbstractPsiCheckerTest() {
         val testAnnotation = "MyTestAnnotation"
         EntryPointsManagerBase.getInstance(project).ADDITIONAL_ANNOTATIONS.add(testAnnotation)
         try {
-            doTest("idea/testData/checker/custom/noUnusedParameterWhenCustom.kt")
+            doTest(getTestDataFile("noUnusedParameterWhenCustom.kt"))
         }
         finally {
             EntryPointsManagerBase.getInstance(project).ADDITIONAL_ANNOTATIONS.remove(testAnnotation)
         }
     }
+
+    fun testConflictingOverloadsMultifile1() {
+        doTest(getTestDataFile("conflictingOverloadsMultifile1a.kt"),
+               getTestDataFile("conflictingOverloadsMultifile1b.kt"))
+    }
+
+    fun testConflictingOverloadsMultifile2() {
+        doTest(getTestDataFile("conflictingOverloadsMultifile2a.kt"),
+               getTestDataFile("conflictingOverloadsMultifile2b.kt"))
+    }
+
+    private fun getTestDataFile(localName: String) = "idea/testData/checker/custom/$localName"
 }
\ No newline at end of file
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java
index 2ee8fd46724..ab67536190b 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java
@@ -335,6 +335,12 @@ public class ExperimentalIncrementalJpsTestGenerated extends AbstractExperimenta
             doTest(fileName);
         }
 
+        @TestMetadata("funVsConstructorOverloadConflict")
+        public void testFunVsConstructorOverloadConflict() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/");
+            doTest(fileName);
+        }
+
         @TestMetadata("functionBecameInline")
         public void testFunctionBecameInline() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/functionBecameInline/");
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
index 49b4ef012aa..0d2f97b7183 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
@@ -335,6 +335,12 @@ public class IncrementalJpsTestGenerated extends AbstractIncrementalJpsTest {
             doTest(fileName);
         }
 
+        @TestMetadata("funVsConstructorOverloadConflict")
+        public void testFunVsConstructorOverloadConflict() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/");
+            doTest(fileName);
+        }
+
         @TestMetadata("functionBecameInline")
         public void testFunctionBecameInline() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/functionBecameInline/");
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/secondaryConstructorAdded/build.log b/jps-plugin/testData/incremental/classHierarchyAffected/secondaryConstructorAdded/build.log
index f9971a4960e..7122f36b6d3 100644
--- a/jps-plugin/testData/incremental/classHierarchyAffected/secondaryConstructorAdded/build.log
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/secondaryConstructorAdded/build.log
@@ -4,9 +4,19 @@ End of files
 Compiling files:
 src/A.kt
 End of files
+COMPILATION FAILED
+'public constructor A(x: kotlin.String)' conflicts with another declaration: public constructor A(x: kotlin.String)
+
+
+Cleaning output files:
+out/production/module/AConstructorFunctionKt.class
+out/production/module/META-INF/module.kotlin_module
+End of files
+Compiling files:
+src/A.kt
+End of files
 Cleaning output files:
 out/production/module/AChild.class
-out/production/module/AConstructorFunctionKt.class
 out/production/module/CreateAFromIntKt.class
 out/production/module/CreateAFromStringKt.class
 out/production/module/META-INF/module.kotlin_module
@@ -14,23 +24,6 @@ out/production/module/UseAKt.class
 End of files
 Compiling files:
 src/AChild.kt
-src/AConstructorFunction.kt
-src/createAFromInt.kt
-src/createAFromString.kt
-src/useA.kt
-End of files
-COMPILATION FAILED
-Overload resolution ambiguity: 
-public constructor A(x: kotlin.String) defined in A
-public fun A(x: kotlin.String): A defined in root package
-
-
-Cleaning output files:
-out/production/module/A.class
-End of files
-Compiling files:
-src/A.kt
-src/AChild.kt
 src/createAFromInt.kt
 src/createAFromString.kt
 src/useA.kt
diff --git a/jps-plugin/testData/incremental/pureKotlin/funRedeclaration/build.log b/jps-plugin/testData/incremental/pureKotlin/funRedeclaration/build.log
index 1e5f3f89482..1224d634ee4 100644
--- a/jps-plugin/testData/incremental/pureKotlin/funRedeclaration/build.log
+++ b/jps-plugin/testData/incremental/pureKotlin/funRedeclaration/build.log
@@ -6,4 +6,4 @@ Compiling files:
 src/fun2.kt
 End of files
 COMPILATION FAILED
-'public fun function(): kotlin.Unit' is already defined in test
\ No newline at end of file
+'public fun function(): kotlin.Unit' conflicts with another declaration: public fun function(): kotlin.Unit
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/build.log b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/build.log
new file mode 100644
index 00000000000..e3d39a6b779
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/build.log
@@ -0,0 +1,9 @@
+Cleaning output files:
+out/production/module/META-INF/module.kotlin_module
+out/production/module/test/Fun2Kt.class
+End of files
+Compiling files:
+src/fun2.kt
+End of files
+COMPILATION FAILED
+'public constructor function()' conflicts with another declaration: public constructor function()
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun1.kt b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun1.kt
new file mode 100644
index 00000000000..539d6344c39
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun1.kt
@@ -0,0 +1,5 @@
+package test
+
+fun function() {
+
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun2.kt b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun2.kt
new file mode 100644
index 00000000000..897d69e3641
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun2.kt
@@ -0,0 +1,3 @@
+package test
+
+val x = 1
diff --git a/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun2.kt.new b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun2.kt.new
new file mode 100644
index 00000000000..bf81e8e2e1d
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/funVsConstructorOverloadConflict/fun2.kt.new
@@ -0,0 +1,5 @@
+package test
+
+val x = 1
+
+class function
\ No newline at end of file