diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/InlineCallResolverExtension.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/InlineCallResolverExtension.java
index ab6e425943f..060f615831d 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/InlineCallResolverExtension.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/InlineCallResolverExtension.java
@@ -35,6 +35,7 @@ import org.jetbrains.jet.lang.resolve.scopes.receivers.ReceiverValue;
 import org.jetbrains.jet.lang.types.JetType;
 import org.jetbrains.jet.lang.types.lang.InlineUtil;
 import org.jetbrains.jet.lang.types.lang.KotlinBuiltIns;
+import org.jetbrains.jet.lexer.JetToken;
 import org.jetbrains.jet.lexer.JetTokens;
 
 import java.util.HashSet;
@@ -118,7 +119,8 @@ public class InlineCallResolverExtension implements CallResolverExtension {
                     }
                 }
                 else if (parent instanceof JetBinaryExpression) {
-                    if (JetPsiUtil.getOperationToken((JetOperationExpression) parent) == JetTokens.EQ) {
+                    JetToken token = JetPsiUtil.getOperationToken((JetOperationExpression) parent);
+                    if (token == JetTokens.EQ || token == JetTokens.ANDAND || token == JetTokens.OROR) {
                         //assignment
                         return false;
                     }
diff --git a/compiler/testData/diagnostics/tests/inline/binaryExpressions/andOr.kt b/compiler/testData/diagnostics/tests/inline/binaryExpressions/andOr.kt
new file mode 100644
index 00000000000..a8c42855f6f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/binaryExpressions/andOr.kt
@@ -0,0 +1,17 @@
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE -ASSIGNED_BUT_NEVER_ACCESSED_VARIABLE -UNUSED_VALUE -TYPE_MISMATCH
+
+inline fun inlineFunWithInvoke(s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {
+    <!USAGE_IS_NOT_INLINABLE!>s<!> && <!USAGE_IS_NOT_INLINABLE!>ext<!>
+    <!USAGE_IS_NOT_INLINABLE!>s<!> || <!USAGE_IS_NOT_INLINABLE!>s<!>
+}
+
+inline fun inlineFunWithInvokeNonInline(noinline s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {
+    s && <!USAGE_IS_NOT_INLINABLE!>ext<!>
+    s || s
+}
+
+inline fun Function1<Int, Unit>.inlineExt() {
+    invoke(11)
+    <!USAGE_IS_NOT_INLINABLE!>this<!> && <!USAGE_IS_NOT_INLINABLE!>this<!>
+    <!USAGE_IS_NOT_INLINABLE!>this<!> || <!USAGE_IS_NOT_INLINABLE!>this<!>
+}
\ 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 6b215ab9ee1..18acb1a1662 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -3858,6 +3858,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                     JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), "org.jetbrains.jet.generators.tests.GenerateTests", new File("compiler/testData/diagnostics/tests/inline/binaryExpressions"), Pattern.compile("^(.+)\\.kt$"), true);
                 }
                 
+                @TestMetadata("andOr.kt")
+                public void testAndOr() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/inline/binaryExpressions/andOr.kt");
+                }
+                
                 @TestMetadata("arrayAccess.kt")
                 public void testArrayAccess() throws Exception {
                     doTest("compiler/testData/diagnostics/tests/inline/binaryExpressions/arrayAccess.kt");