diff --git a/compiler/frontend/src/org/jetbrains/kotlin/parsing/KotlinExpressionParsing.java b/compiler/frontend/src/org/jetbrains/kotlin/parsing/KotlinExpressionParsing.java
index 603b3136344..6e9e4295c52 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/parsing/KotlinExpressionParsing.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/parsing/KotlinExpressionParsing.java
@@ -1040,7 +1040,7 @@ public class KotlinExpressionParsing extends AbstractKotlinParsing {
     /*
      * functionLiteral  // one can use "it" as a parameter name
      *   : "{" expressions "}"
-     *   : "{" (modifiers SimpleName){","} "->" statements "}"
+     *   : "{" (modifiers SimpleName (":" type)?){","} "->" statements "}"
      *   ;
      */
     private void parseFunctionLiteral() {
@@ -1134,7 +1134,7 @@ public class KotlinExpressionParsing extends AbstractKotlinParsing {
 
 
     /*
-     * SimpleName{,}
+     * (SimpleName (":" type)?){","}
      */
     private void parseFunctionLiteralShorthandParameterList() {
         PsiBuilder.Marker parameterList = mark();
diff --git a/grammar/src/expressions.grm b/grammar/src/expressions.grm
index 904202cb2b4..a9426c0f8d3 100644
--- a/grammar/src/expressions.grm
+++ b/grammar/src/expressions.grm
@@ -254,7 +254,7 @@ jump
 // one can use "it" as a parameter name
 functionLiteral
   : "{" statements "}"
-  : "{" (modifiers SimpleName){","} "->" statements "}"
+  : "{" (modifiers SimpleName (":" type)?){","} "->" statements "}"
   ;
 
 statements