diff --git a/ChangeLog.md b/ChangeLog.md
index 34db7efc6e7..3ab3ac0ebab 100644
--- a/ChangeLog.md
+++ b/ChangeLog.md
@@ -103,6 +103,7 @@ These artifacts include extensions for the types available in the latter JDKs, s
- [`KT-9285`](https://youtrack.jetbrains.com/issue/KT-9285) Rename: Optimize search of private class members
- [`KT-13589`](https://youtrack.jetbrains.com/issue/KT-13589) Use TODO() consistently in implementation stubs
- [`KT-13630`](https://youtrack.jetbrains.com/issue/KT-13630) Do not show Change Signature dialog when applying "Remove parameter" quick-fix
+- Re-highlight only single function after local modifications
#### Intention actions, inspections and quickfixes
diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinChangeLocalityDetector.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinChangeLocalityDetector.kt
new file mode 100644
index 00000000000..adede6ab4d4
--- /dev/null
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinChangeLocalityDetector.kt
@@ -0,0 +1,37 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.highlighter
+
+import com.intellij.codeInsight.daemon.ChangeLocalityDetector
+import com.intellij.psi.PsiElement
+import org.jetbrains.kotlin.psi.*
+import org.jetbrains.kotlin.psi.psiUtil.parents
+
+class KotlinChangeLocalityDetector : ChangeLocalityDetector {
+ override fun getChangeHighlightingDirtyScopeFor(element: PsiElement): PsiElement? {
+ val parent = element.parent
+ if (element is KtBlockExpression && parent is KtNamedFunction && parent.name != null) {
+ // Do nothing for local functions because of at least WRAPPED_INTO_REF highlighting
+
+ if (parent.parents.all { it is KtClassBody || it is KtClassOrObject || it is KtFile || it is KtScript }) {
+ return parent
+ }
+ }
+
+ return null
+ }
+}
\ No newline at end of file
diff --git a/idea/src/META-INF/plugin.xml b/idea/src/META-INF/plugin.xml
index 776e855e40b..28924441a8f 100644
--- a/idea/src/META-INF/plugin.xml
+++ b/idea/src/META-INF/plugin.xml
@@ -495,6 +495,7 @@
+