diff --git a/compiler/testData/diagnostics/tests/inference/regressions/kt2407.kt b/compiler/testData/diagnostics/tests/inference/regressions/kt2407.kt
new file mode 100644
index 00000000000..226ad6e04bb
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/regressions/kt2407.kt
@@ -0,0 +1,16 @@
+package n
+
+import java.util.*
+
+fun test() {
+    val foo = arrayList("").map { it -> it.length }.fold(0, { x, y -> Math.max(x, y) })
+    foo : Int
+    <!TYPE_MISMATCH!>foo<!> : String
+}
+
+//from library
+fun arrayList<T>(vararg <!UNUSED_PARAMETER!>values<!>: T) : ArrayList<T> {<!NO_RETURN_IN_FUNCTION_WITH_BLOCK_BODY!>}<!>
+
+fun <T, R> Collection<T>.map(<!UNUSED_PARAMETER!>transform<!> : (T) -> R) : List<R> {<!NO_RETURN_IN_FUNCTION_WITH_BLOCK_BODY!>}<!>
+
+fun <T> java.lang.Iterable<T>.fold(<!UNUSED_PARAMETER!>initial<!>: T, <!UNUSED_PARAMETER!>operation<!>: (T, T) -> T): T {<!NO_RETURN_IN_FUNCTION_WITH_BLOCK_BODY!>}<!>
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index bbf58bad4fd..cb83964d342 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -1402,6 +1402,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                     doTest("compiler/testData/diagnostics/tests/inference/regressions/kt2324.kt");
                 }
                 
+                @TestMetadata("kt2407.kt")
+                public void testKt2407() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/inference/regressions/kt2407.kt");
+                }
+                
                 @TestMetadata("kt2445.kt")
                 public void testKt2445() throws Exception {
                     doTest("compiler/testData/diagnostics/tests/inference/regressions/kt2445.kt");