diff --git a/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetParsing.java b/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetParsing.java
index 17a2b207ee8..b9dec93f67a 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetParsing.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetParsing.java
@@ -2124,10 +2124,37 @@ public class JetParsing extends AbstractJetParsing {
     }
 
     public void parseModifierListWithUnescapedAnnotations(TokenSet lookFor, TokenSet stopAt) {
-        int lastId = findLastBefore(lookFor, stopAt, false);
+        int lastId = matchTokenStreamPredicate(new LastBefore(new AtSet(lookFor), new AnnotationTargetStop(stopAt, ANNOTATION_TARGETS), false));
         createTruncatedBuilder(lastId).parseModifierList(ALLOW_UNESCAPED_REGULAR_ANNOTATIONS);
     }
 
+    private class AnnotationTargetStop extends AbstractTokenStreamPredicate {
+        private final TokenSet stopAt;
+        private final TokenSet annotationTargets;
+
+        private IElementType previousToken;
+        private IElementType tokenBeforePrevious;
+
+        public AnnotationTargetStop(TokenSet stopAt, TokenSet annotationTargets) {
+            this.stopAt = stopAt;
+            this.annotationTargets = annotationTargets;
+        }
+
+        @Override
+        public boolean matching(boolean topLevel) {
+            if (atSet(stopAt)) return true;
+
+            if (at(COLON) && !(tokenBeforePrevious == AT && (previousToken == IDENTIFIER || annotationTargets.contains(previousToken)))) {
+                return true;
+            }
+
+            tokenBeforePrevious = previousToken;
+            previousToken = tt();
+
+            return false;
+        }
+    }
+
     /*
      * functionType
      *   : "(" (parameter | modifiers type){","}? ")" "->" type?
@@ -2223,7 +2250,7 @@ public class JetParsing extends AbstractJetParsing {
     private boolean parseValueParameter(boolean rollbackOnFailure, boolean typeRequired) {
         PsiBuilder.Marker parameter = mark();
 
-        parseModifierListWithUnescapedAnnotations(TokenSet.create(COMMA, RPAR, COLON));
+        parseModifierListWithUnescapedAnnotations(TokenSet.create(COMMA, RPAR));
 
         if (at(VAR_KEYWORD) || at(VAL_KEYWORD)) {
             advance(); // VAR_KEYWORD | VAL_KEYWORD