diff --git a/idea/src/org/jetbrains/jet/plugin/project/ResolveElementCache.java b/idea/src/org/jetbrains/jet/plugin/project/ResolveElementCache.java
index ceb51aa6b22..e2172b39dab 100644
--- a/idea/src/org/jetbrains/jet/plugin/project/ResolveElementCache.java
+++ b/idea/src/org/jetbrains/jet/plugin/project/ResolveElementCache.java
@@ -102,6 +102,12 @@ public class ResolveElementCache {
             return additionalResolveCache.getValue().fun(elementOfAdditionalResolve);
         }
 
+        JetParameter parameter = PsiTreeUtil.getTopmostParentOfType(jetElement, JetParameter.class);
+        if (parameter != null) {
+            // Parameters for function literal could be met inside other parameters. We can't make resolveToDescriptors for internal elements.
+            jetElement = parameter;
+        }
+
         JetDeclaration declaration = PsiTreeUtil.getParentOfType(jetElement, JetDeclaration.class, false);
         if (declaration != null) {
             // Activate descriptor resolution
diff --git a/idea/testData/resolve/references/TypeParameterInFunctionLiteral.kt b/idea/testData/resolve/references/TypeParameterInFunctionLiteral.kt
new file mode 100644
index 00000000000..f2da342ce30
--- /dev/null
+++ b/idea/testData/resolve/references/TypeParameterInFunctionLiteral.kt
@@ -0,0 +1,5 @@
+package testing
+
+class TestClass(val test: (<caret>String) -> Int)
+
+// REF: (jet).String
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveTestGenerated.java b/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveTestGenerated.java
index cb91d3797e7..ee1d9125b24 100644
--- a/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/resolve/ReferenceResolveTestGenerated.java
@@ -166,4 +166,9 @@ public class ReferenceResolveTestGenerated extends AbstractResolveBaseTest {
         doTest("idea/testData/resolve/references/SeveralOverrides.kt");
     }
     
+    @TestMetadata("TypeParameterInFunctionLiteral.kt")
+    public void testTypeParameterInFunctionLiteral() throws Exception {
+        doTest("idea/testData/resolve/references/TypeParameterInFunctionLiteral.kt");
+    }
+    
 }