diff --git a/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.kt b/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.kt
index e892898c94a..b904554b4f7 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.kt
+++ b/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.kt
@@ -11,4 +11,11 @@ class D
 fun test1(a: A, b: B, c: C) {
     assertEquals1(a, b)
     <!TYPE_INFERENCE_ONLY_INPUT_TYPES!>assertEquals1<!>(b, c)
+}
+
+@Suppress("INVISIBLE_MEMBER", "INVISIBLE_REFERENCE")
+public fun <@kotlin.internal.OnlyInputTypes T> expect1(expected: T, block: () -> T) {}
+
+fun test() {
+    expect1(2) { byteArrayOf(1, 2, 3).indexOf(3) }
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.txt b/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.txt
index ab366501ef7..325b223d2a9 100644
--- a/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.txt
+++ b/compiler/testData/diagnostics/testsWithStdLib/inference/annotationsForResolve/resolveWithOnlyInputTypesAnnotation.txt
@@ -1,6 +1,8 @@
 package
 
 @kotlin.Suppress(names = {"INVISIBLE_MEMBER", "INVISIBLE_REFERENCE"}) public fun </*0*/ T> assertEquals1(/*0*/ t1: T, /*1*/ t2: T): kotlin.Unit
+@kotlin.Suppress(names = {"INVISIBLE_MEMBER", "INVISIBLE_REFERENCE"}) public fun </*0*/ T> expect1(/*0*/ expected: T, /*1*/ block: () -> T): kotlin.Unit
+public fun test(): kotlin.Unit
 public fun test1(/*0*/ a: A, /*1*/ b: B, /*2*/ c: C): kotlin.Unit
 
 public open class A {
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt b/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt
index a5a19934a6e..aeec7425cdb 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/ConstraintSystemImpl.kt
@@ -84,13 +84,14 @@ public class ConstraintSystemImpl : ConstraintSystem {
 
         override fun hasContradiction() = hasParameterConstraintError() || hasConflictingConstraints()
                                           || hasCannotCaptureTypesError() || hasTypeInferenceIncorporationError()
-                                            || hasTypeParameterWithUnsatisfiedOnlyInputTypesError()
+
 
         override fun hasViolatedUpperBound() = !isSuccessful() && filterConstraintsOut(TYPE_BOUND_POSITION).getStatus().isSuccessful()
 
         override fun hasConflictingConstraints() = localTypeParameterBounds.values().any { it.values.size() > 1 }
 
-        override fun hasUnknownParameters() = localTypeParameterBounds.values().any { it.values.isEmpty() }
+        override fun hasUnknownParameters() =
+                localTypeParameterBounds.values().any { it.values.isEmpty() } || hasTypeParameterWithUnsatisfiedOnlyInputTypesError()
 
         override fun hasParameterConstraintError() = errors.any { it is ParameterConstraintError }
 
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/TypeBoundsImpl.kt b/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/TypeBoundsImpl.kt
index dcf8f716105..48331ae483b 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/TypeBoundsImpl.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/calls/inference/TypeBoundsImpl.kt
@@ -36,10 +36,6 @@ public class TypeBoundsImpl(
 ) : TypeBounds {
     override val bounds = ArrayList<Bound>()
 
-    private val typesInBoundsSet: Set<JetType> by lazy {
-        bounds.filter { it.isProper }.map { it.constrainingType }.toSet()
-    }
-
     private var resultValues: Collection<JetType>? = null
 
     var isFixed: Boolean = false
@@ -157,7 +153,10 @@ public class TypeBoundsImpl(
         // a captured type might be an answer
         if (!possibleAnswer.getConstructor().isDenotable() && !possibleAnswer.isCaptured()) return false
 
-        if (typeVariable.hasOnlyInputTypesAnnotation() && !typesInBoundsSet.contains(possibleAnswer)) return false
+        if (typeVariable.hasOnlyInputTypesAnnotation()) {
+            val typesInBoundsSet = bounds.filter { it.isProper && it.constrainingType.constructor.isDenotable }.map { it.constrainingType }.toSet()
+            if (!typesInBoundsSet.contains(possibleAnswer)) return false
+        }
 
         for (bound in bounds) {
             when (bound.kind) {