diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/VarianceChecker.kt b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/VarianceChecker.kt
index dd0aa8a26a0..e339e9e22d8 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/VarianceChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/VarianceChecker.kt
@@ -89,7 +89,7 @@ class VarianceChecker(private val trace: BindingTrace) {
 
     class object {
         platformStatic fun recordPrivateToThisIfNeeded(trace: BindingTrace, descriptor: CallableMemberDescriptor) {
-            if (descriptor.getVisibility() != Visibilities.PRIVATE) return
+            if (isIrrelevant(descriptor) || descriptor.getVisibility() != Visibilities.PRIVATE) return
 
             val psiElement = descriptor.getSource().getPsi()
             if (psiElement !is JetCallableDeclaration) return
@@ -99,7 +99,14 @@ class VarianceChecker(private val trace: BindingTrace) {
             }
         }
 
-        private fun recordPrivateToThis(descriptor: CallableDescriptor) {
+        private fun isIrrelevant(descriptor: CallableDescriptor): Boolean {
+            val containingClass = descriptor.getContainingDeclaration()
+            if (containingClass !is ClassDescriptor) return true
+
+            return containingClass.getTypeConstructor().getParameters().all { it.getVariance() == INVARIANT }
+        }
+
+        private fun recordPrivateToThis(descriptor: CallableMemberDescriptor) {
             if (descriptor is FunctionDescriptorImpl) {
                 descriptor.setVisibility(Visibilities.PRIVATE_TO_THIS);
             }
@@ -120,7 +127,7 @@ class VarianceChecker(private val trace: BindingTrace) {
                 descriptor: CallableDescriptor,
                 diagnosticSink: DiagnosticSink
         ): Boolean {
-            if (descriptor.getContainingDeclaration() !is ClassDescriptor) return true
+            if (isIrrelevant(descriptor)) return true
             var noError = true
 
             noError = noError and declaration.checkTypeParameters(trace, IN_VARIANCE, diagnosticSink)
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/LazyClassMemberScope.kt b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/LazyClassMemberScope.kt
index 99bb1ffc9b8..11a28ebbf6e 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/LazyClassMemberScope.kt
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/lazy/descriptors/LazyClassMemberScope.kt
@@ -185,7 +185,7 @@ public open class LazyClassMemberScope(resolveSession: ResolveSession,
             if (descriptor.getKind() != FAKE_OVERRIDE && descriptor.getKind() != DELEGATION) {
                 OverridingUtil.resolveUnknownVisibilityForMember(descriptor, OverrideResolver.createCannotInferVisibilityReporter(trace))
             }
-//            VarianceChecker.recordPrivateToThisIfNeeded(trace, descriptor); todo make visibility lazy and enable
+            VarianceChecker.recordPrivateToThisIfNeeded(trace, descriptor);
         }
     }
 
diff --git a/compiler/testData/diagnostics/tests/RecursiveResolve.kt b/compiler/testData/diagnostics/tests/RecursiveResolve.kt
index 119c3075eeb..e8a9c181957 100644
--- a/compiler/testData/diagnostics/tests/RecursiveResolve.kt
+++ b/compiler/testData/diagnostics/tests/RecursiveResolve.kt
@@ -11,4 +11,65 @@ class Test(foo: Any?, bar: Any?) {
     fun bar(<!UNUSED_PARAMETER!>i<!>: Int) = 2
     private fun bar2() = bar2(1)
     private fun bar2(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+}
+
+// KT-6413 Typechecker recursive problem when class have non-invariant generic parameters
+class Test2<A, B, C>(foo: Any?, bar: Any?) {
+    val foo = foo ?: this
+    private val bar = bar ?: this
+    private val bas = bas()
+    val bas2 = bas2()
+
+    private fun bas(): Int = null!!
+    private fun bas2(): Int = null!!
+
+    fun bar() = bar(1)
+    fun bar(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+    private fun bar2() = bar2(1)
+    private fun bar2(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+}
+
+class Test3<in A, B, C>(foo: Any?, bar: Any?) {
+    val foo = foo ?: this
+    private val bar = bar ?: this
+    private val bas = <!TYPECHECKER_HAS_RUN_INTO_RECURSIVE_PROBLEM!><!DEBUG_INFO_MISSING_UNRESOLVED!>bas<!>()<!>
+    val bas2 = bas2()
+
+    private fun bas(): Int = null!!
+    private fun bas2(): Int = null!!
+
+    fun bar() = bar(1)
+    fun bar(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+    private fun bar2() = <!TYPECHECKER_HAS_RUN_INTO_RECURSIVE_PROBLEM!><!DEBUG_INFO_MISSING_UNRESOLVED!>bar2<!>(1)<!>
+    private fun bar2(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+}
+
+class Test4<A, out B, C>(foo: Any?, bar: Any?) {
+    val foo = foo ?: this
+    private val bar = bar ?: this
+    private val bas = <!TYPECHECKER_HAS_RUN_INTO_RECURSIVE_PROBLEM!><!DEBUG_INFO_MISSING_UNRESOLVED!>bas<!>()<!>
+    val bas2 = bas2()
+
+    private fun bas(): Int = null!!
+    private fun bas2(): Int = null!!
+
+    fun bar() = bar(1)
+    fun bar(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+    private fun bar2() = <!TYPECHECKER_HAS_RUN_INTO_RECURSIVE_PROBLEM!><!DEBUG_INFO_MISSING_UNRESOLVED!>bar2<!>(1)<!>
+    private fun bar2(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+}
+
+class Test5<A, out B, C>(foo: Any?, bar: Any?) {
+    val foo = foo ?: this
+    private val bar = bar ?: this
+    private val bas: Int = bas()
+    val bas2 = bas2()
+
+    private fun bas(): Int = null!!
+    private fun bas2(): Int = null!!
+
+    fun bar() = bar(1)
+    fun bar(<!UNUSED_PARAMETER!>i<!>: Int) = 2
+    private fun bar2(): Int = bar2(1)
+    private fun bar2(<!UNUSED_PARAMETER!>i<!>: Int) = 2
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/RecursiveResolve.txt b/compiler/testData/diagnostics/tests/RecursiveResolve.txt
index 0aba2a88654..5724383da44 100644
--- a/compiler/testData/diagnostics/tests/RecursiveResolve.txt
+++ b/compiler/testData/diagnostics/tests/RecursiveResolve.txt
@@ -16,3 +16,71 @@ internal final class Test {
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
+
+internal final class Test2</*0*/ A, /*1*/ B, /*2*/ C> {
+    public constructor Test2</*0*/ A, /*1*/ B, /*2*/ C>(/*0*/ foo: kotlin.Any?, /*1*/ bar: kotlin.Any?)
+    private final val bar: kotlin.Any
+    private final val bas: kotlin.Int
+    internal final val bas2: kotlin.Int
+    internal final val foo: kotlin.Any
+    internal final fun bar(): kotlin.Int
+    internal final fun bar(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bar2(): kotlin.Int
+    private final fun bar2(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bas(): kotlin.Int
+    private final fun bas2(): kotlin.Int
+    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
+}
+
+internal final class Test3</*0*/ in A, /*1*/ B, /*2*/ C> {
+    public constructor Test3</*0*/ in A, /*1*/ B, /*2*/ C>(/*0*/ foo: kotlin.Any?, /*1*/ bar: kotlin.Any?)
+    private final val bar: kotlin.Any
+    private final val bas: [ERROR : Type for bas()]
+    internal final val bas2: kotlin.Int
+    internal final val foo: kotlin.Any
+    internal final fun bar(): kotlin.Int
+    internal final fun bar(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bar2(): [ERROR : Error function type]
+    private final fun bar2(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bas(): kotlin.Int
+    private final fun bas2(): kotlin.Int
+    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
+}
+
+internal final class Test4</*0*/ A, /*1*/ out B, /*2*/ C> {
+    public constructor Test4</*0*/ A, /*1*/ out B, /*2*/ C>(/*0*/ foo: kotlin.Any?, /*1*/ bar: kotlin.Any?)
+    private final val bar: kotlin.Any
+    private final val bas: [ERROR : Type for bas()]
+    internal final val bas2: kotlin.Int
+    internal final val foo: kotlin.Any
+    internal final fun bar(): kotlin.Int
+    internal final fun bar(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bar2(): [ERROR : Error function type]
+    private final fun bar2(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bas(): kotlin.Int
+    private final fun bas2(): kotlin.Int
+    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
+}
+
+internal final class Test5</*0*/ A, /*1*/ out B, /*2*/ C> {
+    public constructor Test5</*0*/ A, /*1*/ out B, /*2*/ C>(/*0*/ foo: kotlin.Any?, /*1*/ bar: kotlin.Any?)
+    private final val bar: kotlin.Any
+    private final val bas: kotlin.Int
+    internal final val bas2: kotlin.Int
+    internal final val foo: kotlin.Any
+    internal final fun bar(): kotlin.Int
+    internal final fun bar(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bar2(): kotlin.Int
+    private final fun bar2(/*0*/ i: kotlin.Int): kotlin.Int
+    private final fun bas(): kotlin.Int
+    private final fun bas2(): kotlin.Int
+    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/testData/diagnostics/tests/regressions/Jet81.kt b/compiler/testData/diagnostics/tests/regressions/Jet81.kt
index f57756e51fc..dfb6a09746b 100644
--- a/compiler/testData/diagnostics/tests/regressions/Jet81.kt
+++ b/compiler/testData/diagnostics/tests/regressions/Jet81.kt
@@ -18,10 +18,10 @@ class Test2 {
     {
       <!UNINITIALIZED_VARIABLE, DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>b<!> <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>+<!> 1
     }
-    val x = <!TYPECHECKER_HAS_RUN_INTO_RECURSIVE_PROBLEM, UNINITIALIZED_VARIABLE!>b<!>
+    val x = <!UNINITIALIZED_VARIABLE, DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>b<!>
     val y = 1
   }
 
-  val b = a.<!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+  val b = <!TYPECHECKER_HAS_RUN_INTO_RECURSIVE_PROBLEM!>a<!>.<!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
   val c = a.y
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/regressions/Jet81.txt b/compiler/testData/diagnostics/tests/regressions/Jet81.txt
index 57e6307b95d..246f7d7c101 100644
--- a/compiler/testData/diagnostics/tests/regressions/Jet81.txt
+++ b/compiler/testData/diagnostics/tests/regressions/Jet81.txt
@@ -28,7 +28,7 @@ internal final class Test {
 internal final class Test2 {
     public constructor Test2()
     private final val a: Test2.<init>.<no name provided>
-    internal final val b: [ERROR : Type for b]
+    internal final val b: [ERROR : <ERROR PROPERTY TYPE>]
     internal final val c: kotlin.Int = 1
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int