diff --git a/generators/src/org/jetbrains/kotlin/generators/tests/GenerateTests.kt b/generators/src/org/jetbrains/kotlin/generators/tests/GenerateTests.kt
index 6527475eab3..4ea1e35e1cc 100755
--- a/generators/src/org/jetbrains/kotlin/generators/tests/GenerateTests.kt
+++ b/generators/src/org/jetbrains/kotlin/generators/tests/GenerateTests.kt
@@ -458,7 +458,7 @@ fun main(args: Array<String>) {
         }
 
         testClass<AbstractParameterInfoTest>() {
-            model("parameterInfo", recursive = true, excludeDirs = listOf("withLib/sharedLib"))
+            model("parameterInfo", recursive = true, excludeDirs = listOf("withLib1/sharedLib", "withLib2/sharedLib", "withLib3/sharedLib"))
         }
 
         testClass<AbstractKotlinGotoTest>() {
diff --git a/idea/src/org/jetbrains/kotlin/idea/parameterInfo/KotlinFunctionParameterInfoHandler.kt b/idea/src/org/jetbrains/kotlin/idea/parameterInfo/KotlinFunctionParameterInfoHandler.kt
index c66722ffd46..7918d3a756c 100644
--- a/idea/src/org/jetbrains/kotlin/idea/parameterInfo/KotlinFunctionParameterInfoHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/parameterInfo/KotlinFunctionParameterInfoHandler.kt
@@ -355,7 +355,12 @@ abstract class KotlinParameterInfoWithCallHandlerBase<TArgumentList : KtElement,
         }
 
         val candidates = callToUse.resolveCandidates(bindingContext, resolutionFacade)
-        val resolvedCall = candidates.firstOrNull { descriptorsEqual(it.resultingDescriptor, overload) } ?: return null
+        // First try to find strictly matching descriptor, then one with the same declaration.
+        // The second way is needed for the case when the descriptor was invalidated and new one has been built.
+        // See testLocalFunctionBug().
+        val resolvedCall = candidates.singleOrNull { it.resultingDescriptor.original == overload.original }
+                           ?: candidates.singleOrNull { descriptorsEqual(it.resultingDescriptor, overload) }
+                           ?: return null
         val resultingDescriptor = resolvedCall.resultingDescriptor
 
         fun argumentToParameter(argument: ValueArgument): ValueParameterDescriptor? {
diff --git a/idea/testData/parameterInfo/withLib/sharedLib/p/JavaClass.java b/idea/testData/parameterInfo/withLib1/sharedLib/p/JavaClass.java
similarity index 100%
rename from idea/testData/parameterInfo/withLib/sharedLib/p/JavaClass.java
rename to idea/testData/parameterInfo/withLib1/sharedLib/p/JavaClass.java
diff --git a/idea/testData/parameterInfo/withLib/useJavaFromLib.kt b/idea/testData/parameterInfo/withLib1/useJavaFromLib.kt
similarity index 100%
rename from idea/testData/parameterInfo/withLib/useJavaFromLib.kt
rename to idea/testData/parameterInfo/withLib1/useJavaFromLib.kt
diff --git a/idea/testData/parameterInfo/withLib2/sharedLib/p/JavaClass.java b/idea/testData/parameterInfo/withLib2/sharedLib/p/JavaClass.java
new file mode 100644
index 00000000000..d07505048cb
--- /dev/null
+++ b/idea/testData/parameterInfo/withLib2/sharedLib/p/JavaClass.java
@@ -0,0 +1,5 @@
+package p;
+
+public class JavaClass {
+    public static void takeSAM(JavaSAM sam){}
+}
\ No newline at end of file
diff --git a/idea/testData/parameterInfo/withLib2/sharedLib/p/JavaSAM.java b/idea/testData/parameterInfo/withLib2/sharedLib/p/JavaSAM.java
new file mode 100644
index 00000000000..9b4d72451f6
--- /dev/null
+++ b/idea/testData/parameterInfo/withLib2/sharedLib/p/JavaSAM.java
@@ -0,0 +1,5 @@
+package p;
+
+public interface JavaSAM {
+    public void foo(int number, String ss);
+}
\ No newline at end of file
diff --git a/idea/testData/parameterInfo/withLib2/useJavaSAMFromLib.kt b/idea/testData/parameterInfo/withLib2/useJavaSAMFromLib.kt
new file mode 100644
index 00000000000..7480e92b3d6
--- /dev/null
+++ b/idea/testData/parameterInfo/withLib2/useJavaSAMFromLib.kt
@@ -0,0 +1,10 @@
+package test
+
+
+fun main() {
+    p.JavaClass.takeSAM(<caret>)
+}
+
+/*
+Text: (<highlight>sam: ((number: Int, ss: String!) -> Unit)!</highlight>), Disabled: false, Strikeout: false, Green: false
+Text: (<highlight>sam: JavaSAM!</highlight>), Disabled: false, Strikeout: false, Green: false*/
diff --git a/idea/testData/parameterInfo/withLib3/sharedLib/p/JavaSAM.java b/idea/testData/parameterInfo/withLib3/sharedLib/p/JavaSAM.java
new file mode 100644
index 00000000000..9b4d72451f6
--- /dev/null
+++ b/idea/testData/parameterInfo/withLib3/sharedLib/p/JavaSAM.java
@@ -0,0 +1,5 @@
+package p;
+
+public interface JavaSAM {
+    public void foo(int number, String ss);
+}
\ No newline at end of file
diff --git a/idea/testData/parameterInfo/withLib3/useJavaSAMFromLib.kt b/idea/testData/parameterInfo/withLib3/useJavaSAMFromLib.kt
new file mode 100644
index 00000000000..2579368a36b
--- /dev/null
+++ b/idea/testData/parameterInfo/withLib3/useJavaSAMFromLib.kt
@@ -0,0 +1,10 @@
+package test
+
+
+fun main() {
+    p.JavaSAM(<caret>)
+}
+
+/*
+Text: (<highlight>function: (number: Int, ss: String!) -> Unit</highlight>), Disabled: false, Strikeout: false, Green: true
+*/
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/AbstractParameterInfoTest.kt b/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/AbstractParameterInfoTest.kt
index 58a49a4c232..8a03c0e7991 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/AbstractParameterInfoTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/AbstractParameterInfoTest.kt
@@ -32,13 +32,12 @@ import org.jetbrains.kotlin.psi.KtFile
 import org.jetbrains.kotlin.psi.psiUtil.allChildren
 import org.jetbrains.kotlin.test.InTextDirectivesUtils
 import org.jetbrains.kotlin.test.KotlinTestUtils
-import org.jetbrains.kotlin.test.TestMetadata
 import org.junit.Assert
 
 abstract class AbstractParameterInfoTest : LightCodeInsightFixtureTestCase() {
     override fun getProjectDescriptor(): LightProjectDescriptor {
         val root = KotlinTestUtils.getTestsRoot(this.javaClass)
-        if (root.endsWith("Lib")) {
+        if (root.contains("Lib")) {
             return JdkAndMockLibraryProjectDescriptor(
                     "$root/sharedLib", true, true, false, false
             )
diff --git a/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/ParameterInfoTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/ParameterInfoTestGenerated.java
index 301202c6c2b..3baed2aecff 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/ParameterInfoTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/parameterInfo/ParameterInfoTestGenerated.java
@@ -32,7 +32,7 @@ import java.util.regex.Pattern;
 @RunWith(JUnit3RunnerWithInners.class)
 public class ParameterInfoTestGenerated extends AbstractParameterInfoTest {
     public void testAllFilesPresentInParameterInfo() throws Exception {
-        KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/parameterInfo"), Pattern.compile("^(.+)\\.kt$"), true, "withLib/sharedLib");
+        KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/parameterInfo"), Pattern.compile("^(.+)\\.kt$"), true, "withLib1/sharedLib", "withLib2/sharedLib", "withLib3/sharedLib");
     }
 
     @TestMetadata("idea/testData/parameterInfo/arrayAccess")
@@ -368,17 +368,47 @@ public class ParameterInfoTestGenerated extends AbstractParameterInfoTest {
         }
     }
 
-    @TestMetadata("idea/testData/parameterInfo/withLib")
+    @TestMetadata("idea/testData/parameterInfo/withLib1")
     @TestDataPath("$PROJECT_ROOT")
     @RunWith(JUnit3RunnerWithInners.class)
-    public static class WithLib extends AbstractParameterInfoTest {
-        public void testAllFilesPresentInWithLib() throws Exception {
-            KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/parameterInfo/withLib"), Pattern.compile("^(.+)\\.kt$"), true, "sharedLib");
+    public static class WithLib1 extends AbstractParameterInfoTest {
+        public void testAllFilesPresentInWithLib1() throws Exception {
+            KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/parameterInfo/withLib1"), Pattern.compile("^(.+)\\.kt$"), true, "sharedLib");
         }
 
         @TestMetadata("useJavaFromLib.kt")
         public void testUseJavaFromLib() throws Exception {
-            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/parameterInfo/withLib/useJavaFromLib.kt");
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/parameterInfo/withLib1/useJavaFromLib.kt");
+            doTest(fileName);
+        }
+    }
+
+    @TestMetadata("idea/testData/parameterInfo/withLib2")
+    @TestDataPath("$PROJECT_ROOT")
+    @RunWith(JUnit3RunnerWithInners.class)
+    public static class WithLib2 extends AbstractParameterInfoTest {
+        public void testAllFilesPresentInWithLib2() throws Exception {
+            KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/parameterInfo/withLib2"), Pattern.compile("^(.+)\\.kt$"), true, "sharedLib");
+        }
+
+        @TestMetadata("useJavaSAMFromLib.kt")
+        public void testUseJavaSAMFromLib() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/parameterInfo/withLib2/useJavaSAMFromLib.kt");
+            doTest(fileName);
+        }
+    }
+
+    @TestMetadata("idea/testData/parameterInfo/withLib3")
+    @TestDataPath("$PROJECT_ROOT")
+    @RunWith(JUnit3RunnerWithInners.class)
+    public static class WithLib3 extends AbstractParameterInfoTest {
+        public void testAllFilesPresentInWithLib3() throws Exception {
+            KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/parameterInfo/withLib3"), Pattern.compile("^(.+)\\.kt$"), true, "sharedLib");
+        }
+
+        @TestMetadata("useJavaSAMFromLib.kt")
+        public void testUseJavaSAMFromLib() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/parameterInfo/withLib3/useJavaSAMFromLib.kt");
             doTest(fileName);
         }
     }