diff --git a/src/org/jetbrains/jet/j2k/Converter.java b/src/org/jetbrains/jet/j2k/Converter.java
index 6e50656bedd..42a2d844b1f 100644
--- a/src/org/jetbrains/jet/j2k/Converter.java
+++ b/src/org/jetbrains/jet/j2k/Converter.java
@@ -18,6 +18,13 @@ import java.util.*;
  * @author ignatov
  */
 public class Converter {
+  private final static Set<String> NOT_NULL_ANNOTATIONS = new HashSet<String>() {
+    {
+     add("org.jetbrains.annotations.NotNull");
+     add("com.sun.istack.internal.NotNull");
+     add("javax.annotation.Nonnull");
+    }
+  } ;
   private static Set<String> ourClassIdentifiers = new HashSet<String>();
 
   public static void setClassIdentifiers(Set<String> identifiers) {
@@ -288,7 +295,7 @@ public class Converter {
   @NotNull
   private static Function methodToFunction(@NotNull PsiMethod method, boolean notEmpty) {
     final IdentifierImpl identifier = new IdentifierImpl(method.getName());
-    final Type returnType = typeToType(method.getReturnType());
+    final Type returnType = typeToType(method.getReturnType(), isNotNull(method.getModifierList()));
     final Block body = blockToBlock(method.getBody(), notEmpty);
     final Element params = elementToElement(method.getParameterList());
     final List<Element> typeParameters = elementsToElementList(method.getTypeParameters());
@@ -408,6 +415,13 @@ public class Converter {
     return result;
   }
 
+  public static Type typeToType(PsiType type, boolean notNull) {
+    Type result = typeToType(type);
+    if (notNull)
+      result.convertToNotNull();
+    return result;
+  }
+
   @NotNull
   private static List<Type> typesToNotNullableTypeList(@NotNull PsiType[] types) {
     List<Type> result = new LinkedList<Type>(typesToTypeList(types));
@@ -441,11 +455,23 @@ public class Converter {
   public static Parameter parameterToParameter(@NotNull PsiParameter parameter) {
     return new Parameter(
       new IdentifierImpl(parameter.getName()), // TODO: remove
-      typeToType(parameter.getType()),
+      typeToType(parameter.getType(), isNotNull(parameter.getModifierList())),
       isReadOnly(parameter)
     );
   }
 
+  public static boolean isNotNull(@Nullable PsiModifierList modifierList) {
+    if (modifierList != null) {
+      PsiAnnotation[] annotations = modifierList.getAnnotations();
+      for (PsiAnnotation a : annotations) {
+        String qualifiedName = a.getQualifiedName();
+        if (qualifiedName != null && NOT_NULL_ANNOTATIONS.contains(qualifiedName))
+          return true;
+      }
+    }
+    return false;
+  }
+
   private static boolean isReadOnly(PsiParameter parameter) {
     for (PsiReference r : (ReferencesSearch.search(parameter))) {
         if (r instanceof PsiExpression && PsiUtil.isAccessedForWriting((PsiExpression) r)) {
diff --git a/src/org/jetbrains/jet/j2k/visitors/ElementVisitor.java b/src/org/jetbrains/jet/j2k/visitors/ElementVisitor.java
index 4c92c1fa183..f18a5f03d43 100644
--- a/src/org/jetbrains/jet/j2k/visitors/ElementVisitor.java
+++ b/src/org/jetbrains/jet/j2k/visitors/ElementVisitor.java
@@ -2,6 +2,7 @@ package org.jetbrains.jet.j2k.visitors;
 
 import com.intellij.psi.*;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.j2k.Converter;
 import org.jetbrains.jet.j2k.ast.*;
 
 import java.util.List;
@@ -26,7 +27,7 @@ public class ElementVisitor extends JavaElementVisitor {
     myResult = new LocalVariable(
       new IdentifierImpl(variable.getName()), // TODO
       modifiersListToModifiersSet(variable.getModifierList()),
-      typeToType(variable.getType()),
+      typeToType(variable.getType(), Converter.isNotNull(variable.getModifierList())),
       expressionToExpression(variable.getInitializer())
     );
   }
diff --git a/testData/ast/annotations/file/jetbrainsNotNull.jav b/testData/ast/annotations/file/jetbrainsNotNull.jav
new file mode 100644
index 00000000000..92c511d88a0
--- /dev/null
+++ b/testData/ast/annotations/file/jetbrainsNotNull.jav
@@ -0,0 +1,29 @@
+package test;
+
+import org.jetbrains.annotations.NotNull;
+
+public class Test {
+  @NotNull String myStr = "String2";
+
+  public Test(@NotNull String str) {
+    myStr = str;
+  }
+
+  public void sout(@NotNull String str) {
+    System.out.println(str);
+  }
+
+  @NotNull
+  public String dummy(@NotNull String str) {
+    return str;
+  }
+
+  public void test() {
+    sout("String");
+    @NotNull String test = "String2";
+    sout(test);
+    sout(dummy(test));
+
+    new Test(test);
+  }
+}
\ No newline at end of file
diff --git a/testData/ast/annotations/file/jetbrainsNotNull.kt b/testData/ast/annotations/file/jetbrainsNotNull.kt
new file mode 100644
index 00000000000..2b0b40a701f
--- /dev/null
+++ b/testData/ast/annotations/file/jetbrainsNotNull.kt
@@ -0,0 +1,21 @@
+namespace test
+import org.jetbrains.annotations.NotNull
+public open class Test(str : String) {
+{
+$myStr = str
+}
+var myStr : String? = "String2"
+open public fun sout(str : String) : Unit {
+System.out?.println(str)
+}
+open public fun dummy(str : String) : String {
+return str
+}
+open public fun test() : Unit {
+sout("String")
+var test : String = "String2"
+sout(test)
+sout(dummy(test))
+Test(test)
+}
+}
\ No newline at end of file