diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java b/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
index 317a3617090..c24348c86c8 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/JetPsiUtil.java
@@ -142,6 +142,9 @@ public class JetPsiUtil {
             }
             return expression;
         }
+        else if (expression instanceof JetAnnotatedExpression) {
+            return ((JetAnnotatedExpression) expression).getBaseExpression();
+        }
         else if (expression instanceof JetLabeledExpression) {
             return ((JetLabeledExpression) expression).getBaseExpression();
         }
diff --git a/compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.kt b/compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.kt
new file mode 100644
index 00000000000..99b6d0f6f58
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.kt
@@ -0,0 +1,9 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+annotation class Ann
+
+fun <T> bar(block: (T) -> Int) {}
+
+fun foo() {
+    bar<Int> @Ann [Ann] { x -> x }
+    bar<Int> @Ann [Ann] label@{ x -> x }
+}
diff --git a/compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.txt b/compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.txt
new file mode 100644
index 00000000000..07a4482db96
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.txt
@@ -0,0 +1,11 @@
+package
+
+internal fun </*0*/ T> bar(/*0*/ block: (T) -> kotlin.Int): kotlin.Unit
+internal fun foo(): kotlin.Unit
+
+internal final annotation class Ann : kotlin.Annotation {
+    public constructor Ann()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index d574ad5e6b5..e1189fe8455 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -10038,6 +10038,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("resolveAnnotatedLambdaArgument.kt")
+            public void testResolveAnnotatedLambdaArgument() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/resolve/resolveAnnotatedLambdaArgument.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("resolveWithFunctionLiteralWithId.kt")
             public void testResolveWithFunctionLiteralWithId() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/resolve/resolveWithFunctionLiteralWithId.kt");