diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
index 2e31c6e9d0c..1e37f347da2 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
@@ -93,7 +93,10 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
         for (ValueParameterDescriptor parameter : functionDescriptor.getValueParameters()) {
             if (parameter.hasDefaultValue()) {
                 JetParameter jetParameter = jetParameters.get(index);
-                trace.report(Errors.NOT_YET_SUPPORTED_IN_INLINE.on(jetParameter, jetParameter, functionDescriptor));
+                //report not supported default only on inlinable lambda and on parameter with inherited dafault (there is some problems to inline it)
+                if (checkInlinableParameter(parameter, jetParameter, functionDescriptor, null) || !parameter.declaresDefaultValue()) {
+                    trace.report(Errors.NOT_YET_SUPPORTED_IN_INLINE.on(jetParameter, jetParameter, functionDescriptor));
+                }
             }
             index++;
         }
diff --git a/compiler/testData/diagnostics/tests/inline/default.kt b/compiler/testData/diagnostics/tests/inline/default.kt
new file mode 100644
index 00000000000..6a0b5067607
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/default.kt
@@ -0,0 +1,15 @@
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
+
+inline fun default(s : Int = 10) {
+
+}
+
+inline fun default2(p: Int, s : String = "OK") {
+
+}
+
+open class Base {
+    inline final fun foo(a: Int = 1) {}
+
+    inline final fun foo2(a: Int = 1, s: String = "OK") {}
+}
diff --git a/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt b/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
index 3cb86a2fbe4..c564b001b72 100644
--- a/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
+++ b/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
@@ -17,7 +17,7 @@ inline fun unsupported() {
     }<!>
 }
 
-inline fun unsupportedDefault(<!NOT_YET_SUPPORTED_IN_INLINE!>s : Int = 10<!>) {
+inline fun unsupportedDefault(<!NOT_YET_SUPPORTED_IN_INLINE!>s : ()->Unit = {}<!>) {
 
 }
 
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index d814507641f..d412a22b57f 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -3973,6 +3973,11 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest("compiler/testData/diagnostics/tests/inline/constructor.kt");
             }
             
+            @TestMetadata("default.kt")
+            public void testDefault() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/inline/default.kt");
+            }
+            
             @TestMetadata("extensionOnFunction.kt")
             public void testExtensionOnFunction() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/inline/extensionOnFunction.kt");