diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/AlternativeMethodSignatureData.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/AlternativeMethodSignatureData.java
index 3c11d45344c..e74d6f6aa84 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/AlternativeMethodSignatureData.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/kotlinSignature/AlternativeMethodSignatureData.java
@@ -116,10 +116,10 @@ public class AlternativeMethodSignatureData extends ElementAlternativeSignatureD
         for (TypeParameterDescriptor parameter : methodTypeParameters) {
             int index = parameter.getIndex();
 
-            JetType substituted = substitutor.substitute(altTypeParameters.get(index).getUpperBoundsAsType(), Variance.INVARIANT);
+            JetType substituted = substitutor.substitute(parameter.getUpperBoundsAsType(), Variance.INVARIANT);
             assert substituted != null;
 
-            if (!TypeUtils.equalTypes(substituted, parameter.getUpperBoundsAsType())) {
+            if (!TypeUtils.equalTypes(substituted, altTypeParameters.get(index).getUpperBoundsAsType())) {
                 throw new AlternativeSignatureMismatchException(
                         "Type parameter's upper bound changed for method which overrides another: "
                         + altTypeParameters.get(index).getUpperBoundsAsType() + ", was: " + parameter.getUpperBoundsAsType());
diff --git a/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.java b/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.java
new file mode 100644
index 00000000000..9e924ea14aa
--- /dev/null
+++ b/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.java
@@ -0,0 +1,18 @@
+package test;
+
+import java.util.List;
+import org.jetbrains.annotations.NotNull;
+import jet.runtime.typeinfo.KotlinSignature;
+
+public interface UseParameterInUpperBoundWithKotlinSignature {
+
+    public interface Super {
+        @KotlinSignature("fun <A, B: List<A>> foo(a: A, b: B)")
+        <A, B extends List<A>> void foo(A a, B b);
+    }
+
+    public interface Sub extends Super {
+        @KotlinSignature("fun <B, A: List<B>> foo(b: B, a: A)")
+        <B, A extends List<B>> void foo(B b, A a);
+    }
+}
diff --git a/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.kt b/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.kt
new file mode 100644
index 00000000000..dfaeab913a8
--- /dev/null
+++ b/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.kt
@@ -0,0 +1,12 @@
+package test
+
+public trait UseParameterInUpperBoundWithKotlinSignature: Object {
+
+    public trait Super: Object {
+        public fun <A, B: List<A>> foo(p0: A, p1: B)
+    }
+
+    public trait Sub: Super {
+        override fun <B, A: List<B>> foo(p0: B, p1: A)
+    }
+}
diff --git a/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.txt b/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.txt
new file mode 100644
index 00000000000..22e397de7d7
--- /dev/null
+++ b/compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.txt
@@ -0,0 +1,10 @@
+namespace test
+
+public abstract trait test.UseParameterInUpperBoundWithKotlinSignature : java.lang.Object {
+    public abstract trait test.UseParameterInUpperBoundWithKotlinSignature.Sub : test.UseParameterInUpperBoundWithKotlinSignature.Super {
+        public abstract override /*1*/ fun </*0*/ B : jet.Any?, /*1*/ A : jet.List<B>>foo(/*0*/ p0: B, /*1*/ p1: A): jet.Tuple0
+    }
+    public abstract trait test.UseParameterInUpperBoundWithKotlinSignature.Super : java.lang.Object {
+        public abstract fun </*0*/ A : jet.Any?, /*1*/ B : jet.List<A>>foo(/*0*/ p0: A, /*1*/ p1: B): jet.Tuple0
+    }
+}
diff --git a/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java b/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java
index 30f37b6c0fc..ef696cc5ac0 100644
--- a/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadJavaTestGenerated.java
@@ -762,6 +762,11 @@ public class LoadJavaTestGenerated extends AbstractLoadJavaTest {
                     doTest("compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBound.java");
                 }
                 
+                @TestMetadata("UseParameterInUpperBoundWithKotlinSignature.java")
+                public void testUseParameterInUpperBoundWithKotlinSignature() throws Exception {
+                    doTest("compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.java");
+                }
+                
             }
             
             public static Test innerSuite() {
diff --git a/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java b/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
index 1d185bb4e9c..c0c16cc851a 100644
--- a/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
@@ -1652,6 +1652,11 @@ public class LazyResolveNamespaceComparingTestGenerated extends AbstractLazyReso
                         doTestSinglePackage("compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBound.kt");
                     }
                     
+                    @TestMetadata("UseParameterInUpperBoundWithKotlinSignature.kt")
+                    public void testUseParameterInUpperBoundWithKotlinSignature() throws Exception {
+                        doTestSinglePackage("compiler/testData/loadJava/kotlinSignature/propagation/typeParameter/UseParameterInUpperBoundWithKotlinSignature.kt");
+                    }
+                    
                 }
                 
                 public static Test innerSuite() {