diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
index b5ed78db47b..13ad53d7747 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
@@ -18,11 +18,15 @@ package org.jetbrains.jet.lang.resolve.extension;
 
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
+import org.jetbrains.jet.lang.descriptors.SimpleFunctionDescriptor;
+import org.jetbrains.jet.lang.descriptors.ValueParameterDescriptor;
 import org.jetbrains.jet.lang.diagnostics.Errors;
 import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.lang.resolve.BindingTrace;
 import org.jetbrains.jet.lang.resolve.FunctionAnalyzerExtension;
 
+import java.util.List;
+
 public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.AnalyzerExtension {
 
     public static final InlineAnalyzerExtension INSTANCE = new InlineAnalyzerExtension();
@@ -35,6 +39,10 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
     public void process(
             @NotNull final FunctionDescriptor descriptor, @NotNull JetNamedFunction function, @NotNull final BindingTrace trace
     ) {
+        assert descriptor instanceof SimpleFunctionDescriptor && ((SimpleFunctionDescriptor) descriptor).isInline() :
+                "This method should be invoced on inline function: " + descriptor;
+
+        checkDefaults(descriptor, function, trace);
 
         JetVisitorVoid visitor = new JetVisitorVoid() {
 
@@ -62,4 +70,20 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
 
         function.acceptChildren(visitor);
     }
+
+    private static void checkDefaults(
+            @NotNull FunctionDescriptor functionDescriptor,
+            @NotNull JetFunction function,
+            @NotNull BindingTrace trace
+    ) {
+        int index = 0;
+        List<JetParameter> jetParameters = function.getValueParameters();
+        for (ValueParameterDescriptor parameter : functionDescriptor.getValueParameters()) {
+            if (parameter.hasDefaultValue()) {
+                JetParameter jetParameter = jetParameters.get(index);
+                trace.report(Errors.NOT_YET_SUPPORTED_IN_INLINE.on(jetParameter, jetParameter, functionDescriptor));
+            }
+            index++;
+        }
+    }
 }
diff --git a/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt b/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
index 37ba68a8a38..a886b09c8f3 100644
--- a/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
+++ b/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
@@ -23,4 +23,18 @@ inline fun unsupported() {
     <!NOT_YET_SUPPORTED_IN_INLINE!>fun local() {
         fun localInner() {}
     }<!>
+}
+
+inline fun unsupportedDefault(<!NOT_YET_SUPPORTED_IN_INLINE!>s : Int = 10<!>) {
+
+}
+
+open class Base {
+    open fun foo(a: Int = 1) {}
+}
+
+class Derived: Base() {
+    inline final override fun foo(<!NOT_YET_SUPPORTED_IN_INLINE!>a: Int<!>) {
+
+    }
 }
\ No newline at end of file