diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/FunctionDescriptorUtil.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/FunctionDescriptorUtil.java
index 2b00103cd5e..1f5af68ce05 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/FunctionDescriptorUtil.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/FunctionDescriptorUtil.java
@@ -53,15 +53,18 @@ public class FunctionDescriptorUtil {
     private FunctionDescriptorUtil() {
     }
 
-    public static Map<TypeConstructor, TypeProjection> createSubstitutionContext(@NotNull FunctionDescriptor functionDescriptor, List<JetType> typeArguments) {
+    public static Map<TypeConstructor, TypeProjection> createSubstitutionContext(
+            @NotNull FunctionDescriptor functionDescriptor,
+            @NotNull List<JetType> typeArguments
+    ) {
         if (functionDescriptor.getTypeParameters().isEmpty()) return Collections.emptyMap();
 
         Map<TypeConstructor, TypeProjection> result = new HashMap<TypeConstructor, TypeProjection>();
 
-        int typeArgumentsSize = typeArguments.size();
         List<TypeParameterDescriptor> typeParameters = functionDescriptor.getTypeParameters();
-        assert typeArgumentsSize == typeParameters.size();
-        for (int i = 0; i < typeArgumentsSize; i++) {
+        assert typeArguments.size() >= typeParameters.size() :
+                "Insufficient number of type arguments.\nType arguments: " + typeArguments + "\nType parameters: " + typeParameters;
+        for (int i = 0; i < typeParameters.size(); i++) {
             TypeParameterDescriptor typeParameterDescriptor = typeParameters.get(i);
             JetType typeArgument = typeArguments.get(i);
             result.put(typeParameterDescriptor.getTypeConstructor(), new TypeProjectionImpl(typeArgument));
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
index 829daade765..c08194d4244 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CandidateResolver.java
@@ -142,22 +142,25 @@ public class CandidateResolver {
                         projection.getTypeReference(), context.scope, context.trace, ErrorUtils.createErrorType("Star projection in a call")));
             }
             int expectedTypeArgumentCount = candidate.getTypeParameters().size();
-            if (expectedTypeArgumentCount == jetTypeArguments.size()) {
-
-                checkGenericBoundsInAFunctionCall(jetTypeArguments, typeArguments, candidate, context.trace);
-
-                Map<TypeConstructor, TypeProjection>
-                        substitutionContext = FunctionDescriptorUtil
-                        .createSubstitutionContext((FunctionDescriptor) candidate, typeArguments);
-                TypeSubstitutor substitutor = TypeSubstitutor.create(substitutionContext);
-                candidateCall.setResultingSubstitutor(substitutor);
-
-                candidateCall.addStatus(checkAllValueArguments(context, SHAPE_FUNCTION_ARGUMENTS).status);
+            for (int index = jetTypeArguments.size(); index < expectedTypeArgumentCount; index++) {
+                typeArguments.add(ErrorUtils.createErrorType(
+                        "Explicit type argument expected for " + candidate.getTypeParameters().get(index).getName()));
             }
-            else {
+            Map<TypeConstructor, TypeProjection> substitutionContext =
+                    FunctionDescriptorUtil.createSubstitutionContext((FunctionDescriptor) candidate, typeArguments);
+            TypeSubstitutor substitutor = TypeSubstitutor.create(substitutionContext);
+
+            if (expectedTypeArgumentCount != jetTypeArguments.size()) {
                 candidateCall.addStatus(OTHER_ERROR);
                 context.tracing.wrongNumberOfTypeArguments(context.trace, expectedTypeArgumentCount);
             }
+            else {
+                checkGenericBoundsInAFunctionCall(jetTypeArguments, typeArguments, candidate, substitutor, context.trace);
+            }
+
+            candidateCall.setResultingSubstitutor(substitutor);
+
+            candidateCall.addStatus(checkAllValueArguments(context, SHAPE_FUNCTION_ARGUMENTS).status);
         }
 
         task.performAdvancedChecks(candidate, context.trace, context.tracing);
@@ -648,17 +651,11 @@ public class CandidateResolver {
             @NotNull List<JetTypeProjection> jetTypeArguments,
             @NotNull List<JetType> typeArguments,
             @NotNull CallableDescriptor functionDescriptor,
-            @NotNull BindingTrace trace) {
-        Map<TypeConstructor, TypeProjection> context = Maps.newHashMap();
-
-        List<TypeParameterDescriptor> typeParameters = functionDescriptor.getOriginal().getTypeParameters();
-        for (int i = 0, typeParametersSize = typeParameters.size(); i < typeParametersSize; i++) {
-            TypeParameterDescriptor typeParameter = typeParameters.get(i);
-            JetType typeArgument = typeArguments.get(i);
-            context.put(typeParameter.getTypeConstructor(), new TypeProjectionImpl(typeArgument));
-        }
-        TypeSubstitutor substitutor = TypeSubstitutor.create(context);
-        for (int i = 0, typeParametersSize = typeParameters.size(); i < typeParametersSize; i++) {
+            @NotNull TypeSubstitutor substitutor,
+            @NotNull BindingTrace trace
+    ) {
+        List<TypeParameterDescriptor> typeParameters = functionDescriptor.getTypeParameters();
+        for (int i = 0; i < typeParameters.size(); i++) {
             TypeParameterDescriptor typeParameterDescriptor = typeParameters.get(i);
             JetType typeArgument = typeArguments.get(i);
             JetTypeReference typeReference = jetTypeArguments.get(i).getTypeReference();
diff --git a/compiler/testData/diagnostics/tests/resolve/wrongNumberOfTypeArguments.kt b/compiler/testData/diagnostics/tests/resolve/wrongNumberOfTypeArguments.kt
new file mode 100644
index 00000000000..b41383e9f25
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/wrongNumberOfTypeArguments.kt
@@ -0,0 +1,14 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun <T> foo(t: T) = t
+
+fun test1() {
+    foo<!WRONG_NUMBER_OF_TYPE_ARGUMENTS!><Int, String><!>(<!TYPE_MISMATCH!>""<!>)
+}
+
+
+fun <T, R> bar(t: T, r: R) {}
+
+fun test2() {
+    bar<!WRONG_NUMBER_OF_TYPE_ARGUMENTS!><Int><!>(<!TYPE_MISMATCH!>""<!>, "")
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index efaf773507c..d9a5dd82151 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -7048,6 +7048,11 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest("compiler/testData/diagnostics/tests/resolve/resolveWithoutGenerics.kt");
             }
             
+            @TestMetadata("wrongNumberOfTypeArguments.kt")
+            public void testWrongNumberOfTypeArguments() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/resolve/wrongNumberOfTypeArguments.kt");
+            }
+            
             @TestMetadata("compiler/testData/diagnostics/tests/resolve/invoke")
             @InnerTestClasses({Invoke.Errors.class})
             public static class Invoke extends AbstractJetDiagnosticsTest {
diff --git a/idea/testData/completion/smart/WrongNumberOfTypeArguments.kt b/idea/testData/completion/smart/WrongNumberOfTypeArguments.kt
new file mode 100644
index 00000000000..3676d1ab913
--- /dev/null
+++ b/idea/testData/completion/smart/WrongNumberOfTypeArguments.kt
@@ -0,0 +1,9 @@
+package aaaa
+
+fun <T> foo(s: String, t: T) {}
+
+fun test(s: String) {
+    foo<Int, String>(<caret>)
+}
+
+// EXIST: s
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/completion/JvmSmartCompletionTestGenerated.java b/idea/tests/org/jetbrains/jet/completion/JvmSmartCompletionTestGenerated.java
index bd0f9f02c0d..f51b640401c 100644
--- a/idea/tests/org/jetbrains/jet/completion/JvmSmartCompletionTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/completion/JvmSmartCompletionTestGenerated.java
@@ -578,4 +578,9 @@ public class JvmSmartCompletionTestGenerated extends AbstractJvmSmartCompletionT
         doTest("idea/testData/completion/smart/WithQualifier.kt");
     }
     
+    @TestMetadata("WrongNumberOfTypeArguments.kt")
+    public void testWrongNumberOfTypeArguments() throws Exception {
+        doTest("idea/testData/completion/smart/WrongNumberOfTypeArguments.kt");
+    }
+    
 }