diff --git a/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt b/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt
index 75044a267fe..21ba0c2bfbd 100644
--- a/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/util/ImportInsertHelperImpl.kt
@@ -184,8 +184,19 @@ public class ImportInsertHelperImpl(private val project: Project) : ImportInsert
             else
                 file.getImportDirectives()
 
-            //TODO: is that correct? What if function is imported and we need to import class?
-            if (imports.any { it.getImportedName() == name.asString() }) return ImportDescriptorResult.FAIL
+            // check there is an explicit import of a class/package with the same name already
+            val conflict = when (target) {
+                is ClassDescriptor -> topLevelScope.getClassifier(name)
+                is PackageViewDescriptor -> topLevelScope.getPackage(name)
+                else -> null
+            }
+            if (conflict != null && imports.any {
+                !it.isAllUnder()
+                && it.getImportPath()?.fqnPart() == conflict.importableFqNameSafe
+                && it.getImportPath()?.getImportedName() == name
+            }) {
+                return ImportDescriptorResult.FAIL
+            }
 
             val fqName = target.importableFqNameSafe
             val packageFqName = fqName.parent()
@@ -368,11 +379,8 @@ public class ImportInsertHelperImpl(private val project: Project) : ImportInsert
             return result
         }
 
-        private fun JetImportDirective.getImportedName(): String? = if (isAllUnder()) null else JetPsiUtil.getAliasName(this)?.getIdentifier()
-
         private fun targetFqName(ref: JetReferenceExpression): FqName? {
             return ref.resolveTargets().map { it.importableFqName }.toSet().singleOrNull()
-
         }
 
         private fun JetReferenceExpression.resolveTargets(): Collection<DeclarationDescriptor> {
diff --git a/idea/testData/addImport/CannotImportClass3.kt.after b/idea/testData/addImport/CannotImportClass3.kt.after
deleted file mode 100644
index cfc992d7406..00000000000
--- a/idea/testData/addImport/CannotImportClass3.kt.after
+++ /dev/null
@@ -1 +0,0 @@
-Failed to add import
\ No newline at end of file
diff --git a/idea/testData/addImport/ImportClassWhenFunctionImported.dependency.kt b/idea/testData/addImport/ImportClassWhenFunctionImported.dependency.kt
new file mode 100644
index 00000000000..f6e0a597b5e
--- /dev/null
+++ b/idea/testData/addImport/ImportClassWhenFunctionImported.dependency.kt
@@ -0,0 +1,3 @@
+package pack1
+
+fun ArrayList(){}
\ No newline at end of file
diff --git a/idea/testData/addImport/ImportClassWhenFunctionImported.kt b/idea/testData/addImport/ImportClassWhenFunctionImported.kt
new file mode 100644
index 00000000000..7684775c9a8
--- /dev/null
+++ b/idea/testData/addImport/ImportClassWhenFunctionImported.kt
@@ -0,0 +1,7 @@
+// IMPORT: java.util.ArrayList
+import pack1.ArrayList
+
+fun foo() {
+    ArrayList()
+    ArrayList<String>()
+}
\ No newline at end of file
diff --git a/idea/testData/addImport/ImportClassWhenFunctionImported.kt.after b/idea/testData/addImport/ImportClassWhenFunctionImported.kt.after
new file mode 100644
index 00000000000..36203f014ca
--- /dev/null
+++ b/idea/testData/addImport/ImportClassWhenFunctionImported.kt.after
@@ -0,0 +1,8 @@
+// IMPORT: java.util.ArrayList
+import pack1.ArrayList
+import java.util.*
+
+fun foo() {
+    ArrayList()
+    ArrayList<String>()
+}
\ No newline at end of file
diff --git a/idea/testData/addImport/ImportSecondFunction.dependency.kt b/idea/testData/addImport/ImportSecondFunction.dependency.kt
new file mode 100644
index 00000000000..c57399eb747
--- /dev/null
+++ b/idea/testData/addImport/ImportSecondFunction.dependency.kt
@@ -0,0 +1,3 @@
+package dependency
+
+fun div(char c1, char c2){}
\ No newline at end of file
diff --git a/idea/testData/addImport/ImportSecondFunction.kt b/idea/testData/addImport/ImportSecondFunction.kt
new file mode 100644
index 00000000000..894a2939910
--- /dev/null
+++ b/idea/testData/addImport/ImportSecondFunction.kt
@@ -0,0 +1,7 @@
+// IMPORT: dependency.div
+import java.math.BigDecimal
+import kotlin.math.div
+
+fun foo(d1: BigDecimal, d2: BigDecimal) {
+    val d = d1 / d2
+}
\ No newline at end of file
diff --git a/idea/testData/addImport/ImportSecondFunction.kt.after b/idea/testData/addImport/ImportSecondFunction.kt.after
new file mode 100644
index 00000000000..39e29728337
--- /dev/null
+++ b/idea/testData/addImport/ImportSecondFunction.kt.after
@@ -0,0 +1,8 @@
+// IMPORT: dependency.div
+import dependency.*
+import java.math.BigDecimal
+import kotlin.math.div
+
+fun foo(d1: BigDecimal, d2: BigDecimal) {
+    val d = d1 / d2
+}
\ No newline at end of file
diff --git a/idea/testData/addImport/CannotImportClass3.kt b/idea/testData/addImport/PackageDoesNotConflictWithClass.kt
similarity index 100%
rename from idea/testData/addImport/CannotImportClass3.kt
rename to idea/testData/addImport/PackageDoesNotConflictWithClass.kt
diff --git a/idea/testData/addImport/PackageDoesNotConflictWithClass.kt.after b/idea/testData/addImport/PackageDoesNotConflictWithClass.kt.after
new file mode 100644
index 00000000000..dfdffa602e1
--- /dev/null
+++ b/idea/testData/addImport/PackageDoesNotConflictWithClass.kt.after
@@ -0,0 +1,5 @@
+// IMPORT: java.sql.Date
+import java.sql.*
+import java.util as Date
+
+val d: Date.Date = Date.Date()
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/addImport/AddImportTestGenerated.java b/idea/tests/org/jetbrains/kotlin/addImport/AddImportTestGenerated.java
index 9e4fcd00415..23e6fd1f7ef 100644
--- a/idea/tests/org/jetbrains/kotlin/addImport/AddImportTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/addImport/AddImportTestGenerated.java
@@ -48,12 +48,6 @@ public class AddImportTestGenerated extends AbstractAddImportTest {
         doTest(fileName);
     }
 
-    @TestMetadata("CannotImportClass3.kt")
-    public void testCannotImportClass3() throws Exception {
-        String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/CannotImportClass3.kt");
-        doTest(fileName);
-    }
-
     @TestMetadata("ClassAlreadyImported1.kt")
     public void testClassAlreadyImported1() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/ClassAlreadyImported1.kt");
@@ -180,6 +174,12 @@ public class AddImportTestGenerated extends AbstractAddImportTest {
         doTest(fileName);
     }
 
+    @TestMetadata("ImportClassWhenFunctionImported.kt")
+    public void testImportClassWhenFunctionImported() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/ImportClassWhenFunctionImported.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("ImportFunctionBug.kt")
     public void testImportFunctionBug() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/ImportFunctionBug.kt");
@@ -192,6 +192,12 @@ public class AddImportTestGenerated extends AbstractAddImportTest {
         doTest(fileName);
     }
 
+    @TestMetadata("ImportSecondFunction.kt")
+    public void testImportSecondFunction() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/ImportSecondFunction.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("KeywordNames.kt")
     public void testKeywordNames() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/KeywordNames.kt");
@@ -234,6 +240,12 @@ public class AddImportTestGenerated extends AbstractAddImportTest {
         doTest(fileName);
     }
 
+    @TestMetadata("PackageDoesNotConflictWithClass.kt")
+    public void testPackageDoesNotConflictWithClass() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/PackageDoesNotConflictWithClass.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("PropertyAlreadyImported1.kt")
     public void testPropertyAlreadyImported1() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/testData/addImport/PropertyAlreadyImported1.kt");