diff --git a/idea/idea-analysis/src/org/jetbrains/jet/plugin/decompiler/navigation/DecompiledNavigationUtils.java b/idea/idea-analysis/src/org/jetbrains/jet/plugin/decompiler/navigation/DecompiledNavigationUtils.java
index d2b2dc54fdf..405951a201c 100644
--- a/idea/idea-analysis/src/org/jetbrains/jet/plugin/decompiler/navigation/DecompiledNavigationUtils.java
+++ b/idea/idea-analysis/src/org/jetbrains/jet/plugin/decompiler/navigation/DecompiledNavigationUtils.java
@@ -66,14 +66,8 @@ public final class DecompiledNavigationUtils {
         if (!(psiFile instanceof JetClsFile)) {
             return null;
         }
-        JetDeclaration jetDeclaration = ((JetClsFile) psiFile).getDeclarationForDescriptor(effectiveReferencedDescriptor);
-        if (jetDeclaration != null) {
-            return jetDeclaration;
-        }
-        else {
-            LOG.warn("Could not find an element to navigate to for descriptor " + getFqName(effectiveReferencedDescriptor));
-        }
-        return null;
+
+        return ((JetClsFile) psiFile).getDeclarationForDescriptor(effectiveReferencedDescriptor);
     }
 
     //TODO: should be done via some generic mechanism
diff --git a/idea/testData/resolve/referenceInLib/inLibrarySource/funParameter.kt b/idea/testData/resolve/referenceInLib/inLibrarySource/funParameter.kt
new file mode 100644
index 00000000000..d399141a89a
--- /dev/null
+++ b/idea/testData/resolve/referenceInLib/inLibrarySource/funParameter.kt
@@ -0,0 +1,7 @@
+package inlibrary.test
+
+public class FunParameter {
+    fun test(p: Int) {
+        val a = p
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/resolve/referenceInLib/inLibrarySource/localFun.kt b/idea/testData/resolve/referenceInLib/inLibrarySource/localFun.kt
new file mode 100644
index 00000000000..7adeb2af111
--- /dev/null
+++ b/idea/testData/resolve/referenceInLib/inLibrarySource/localFun.kt
@@ -0,0 +1,9 @@
+package inlibrary.test
+
+public fun topLevel(): Int {
+    fun local(): Int {
+        return 1
+    }
+
+    return local()
+}
\ No newline at end of file
diff --git a/idea/testData/resolve/referenceInLib/toFunParameter.kt b/idea/testData/resolve/referenceInLib/toFunParameter.kt
new file mode 100644
index 00000000000..f4f33bd78ac
--- /dev/null
+++ b/idea/testData/resolve/referenceInLib/toFunParameter.kt
@@ -0,0 +1,8 @@
+import inlibrary.test.*
+
+val a: <caret>FunParameter? = null
+
+// CONTEXT: val a = <ref-caret>p
+// WITH_LIBRARY: /resolve/referenceInLib/inLibrarySource
+
+// REF: p
\ No newline at end of file
diff --git a/idea/testData/resolve/referenceInLib/toLocalFun.kt b/idea/testData/resolve/referenceInLib/toLocalFun.kt
new file mode 100644
index 00000000000..95854d827ba
--- /dev/null
+++ b/idea/testData/resolve/referenceInLib/toLocalFun.kt
@@ -0,0 +1,8 @@
+import inlibrary.test.*
+
+val tl = <caret>topLevel()
+
+// CONTEXT: return <ref-caret>local()
+// WITH_LIBRARY: /resolve/referenceInLib/inLibrarySource
+
+// REF: .local()
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveInLibrarySourcesTestGenerated.java b/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveInLibrarySourcesTestGenerated.java
index 79331dfd3e0..5971d902766 100644
--- a/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveInLibrarySourcesTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveInLibrarySourcesTestGenerated.java
@@ -47,4 +47,16 @@ public class ReferenceResolveInLibrarySourcesTestGenerated extends AbstractRefer
         String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/referenceInLib/inLibrarySource.kt");
         doTest(fileName);
     }
+
+    @TestMetadata("toFunParameter.kt")
+    public void testToFunParameter() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/referenceInLib/toFunParameter.kt");
+        doTest(fileName);
+    }
+
+    @TestMetadata("toLocalFun.kt")
+    public void testToLocalFun() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/resolve/referenceInLib/toLocalFun.kt");
+        doTest(fileName);
+    }
 }