diff --git a/idea/src/org/jetbrains/jet/lang/resolve/calls/OverloadingConflictResolver.java b/idea/src/org/jetbrains/jet/lang/resolve/calls/OverloadingConflictResolver.java
index f257099be7e..d2a824bf850 100644
--- a/idea/src/org/jetbrains/jet/lang/resolve/calls/OverloadingConflictResolver.java
+++ b/idea/src/org/jetbrains/jet/lang/resolve/calls/OverloadingConflictResolver.java
@@ -1,6 +1,7 @@
 package org.jetbrains.jet.lang.resolve.calls;
 
 import com.google.common.collect.Maps;
+import com.google.common.collect.Sets;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.JetSemanticServices;
@@ -111,7 +112,8 @@ import java.util.Set;
     }
 
     private <Descriptor extends CallableDescriptor> boolean overrides(@NotNull Descriptor f, @NotNull Descriptor g) {
-        Set<? extends CallableDescriptor> overriddenDescriptors = f.getOriginal().getOverriddenDescriptors();
+        Set<CallableDescriptor> overriddenDescriptors = Sets.newHashSet();
+        getAllOverriddenDescriptors(f.getOriginal(), overriddenDescriptors);
         CallableDescriptor originalG = g.getOriginal();
         for (CallableDescriptor overriddenFunction : overriddenDescriptors) {
             if (originalG.equals(overriddenFunction.getOriginal())) return true;
@@ -119,4 +121,12 @@ import java.util.Set;
         return false;
     }
 
+    private void getAllOverriddenDescriptors(@NotNull CallableDescriptor current, @NotNull Set<CallableDescriptor> overriddenDescriptors) {
+        if (overriddenDescriptors.contains(current)) return;
+        for (CallableDescriptor descriptor : current.getOriginal().getOverriddenDescriptors()) {
+            getAllOverriddenDescriptors(descriptor, overriddenDescriptors);
+            overriddenDescriptors.add(descriptor);
+        }
+    }
+
 }
diff --git a/idea/testData/checker/regression/OverrideResolution.jet b/idea/testData/checker/regression/OverrideResolution.jet
new file mode 100644
index 00000000000..05067248efe
--- /dev/null
+++ b/idea/testData/checker/regression/OverrideResolution.jet
@@ -0,0 +1,16 @@
+fun box() {
+    val a : C
+    a.foo()
+}
+
+open class A {
+    fun foo()
+}
+
+open class B : A {
+    fun foo()
+}
+
+open class C : B {
+    fun foo()
+}