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 401b5587d55..93f67e61090 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
@@ -22,6 +22,8 @@ import org.jetbrains.jet.lang.diagnostics.Errors;
 import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.lang.resolve.BindingTrace;
 import org.jetbrains.jet.lang.resolve.FunctionAnalyzerExtension;
+import org.jetbrains.jet.lang.types.lang.InlineUtil;
+import org.jetbrains.jet.lang.types.lang.KotlinBuiltIns;
 
 import java.util.List;
 
@@ -42,6 +44,7 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
 
         checkDefaults(descriptor, function, trace);
         checkModality(descriptor, function, trace);
+        checkHashInlinable(descriptor, function, trace);
 
         JetVisitorVoid visitor = new JetVisitorVoid() {
 
@@ -102,4 +105,29 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
 
         trace.report(Errors.DECLARATION_CANT_BE_INLINED.on(function));
     }
+
+    private void checkHashInlinable(
+            @NotNull FunctionDescriptor functionDescriptor,
+            @NotNull JetFunction function,
+            @NotNull BindingTrace trace
+    ) {
+        List<ValueParameterDescriptor> parameters = functionDescriptor.getValueParameters();
+        for (ValueParameterDescriptor parameter : parameters) {
+            KotlinBuiltIns builtIns = KotlinBuiltIns.getInstance();
+            if (builtIns.isExactFunctionOrExtensionFunctionType(parameter.getType())) {
+                if (!InlineUtil.hasNoinlineAnnotation(parameter)) {
+                    return;
+                }
+            }
+        }
+        ReceiverParameterDescriptor receiverParameter = functionDescriptor.getReceiverParameter();
+        if (receiverParameter != null) {
+            if (KotlinBuiltIns.getInstance().isExactFunctionOrExtensionFunctionType(receiverParameter.getType())) {
+                //or extension on inlinable function
+                return;
+            }
+        }
+
+        trace.report(Errors.NOTHING_TO_INLINE.on(function, functionDescriptor));
+    }
 }
diff --git a/compiler/testData/diagnostics/tests/inline/capture.kt b/compiler/testData/diagnostics/tests/inline/capture.kt
index 1915a8c8d85..5b821c1407c 100644
--- a/compiler/testData/diagnostics/tests/inline/capture.kt
+++ b/compiler/testData/diagnostics/tests/inline/capture.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
 
 fun Function1<Int, Unit>.noInlineExt(p: Int) {}
 
@@ -48,4 +48,4 @@ inline fun inlineFunWrongExtension(s: (p: Int) -> Unit) {
     {
         <!USAGE_IS_NOT_INLINABLE!>s<!>.noInlineExt(11)
     } ()
-}
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inline/extensionOnFunction.kt b/compiler/testData/diagnostics/tests/inline/extensionOnFunction.kt
index 429d33a3ac8..58f71163cae 100644
--- a/compiler/testData/diagnostics/tests/inline/extensionOnFunction.kt
+++ b/compiler/testData/diagnostics/tests/inline/extensionOnFunction.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
 
 fun Function1<Int, Unit>.noInlineExt(p: Int) {}
 
diff --git a/compiler/testData/diagnostics/tests/inline/invoke.kt b/compiler/testData/diagnostics/tests/inline/invoke.kt
index d706fd56e0f..80db51f666c 100644
--- a/compiler/testData/diagnostics/tests/inline/invoke.kt
+++ b/compiler/testData/diagnostics/tests/inline/invoke.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
 
 inline fun inlineFunWithInvoke(s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {
     s(11)
diff --git a/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt b/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt
index b18966960f5..4a2765e39a7 100644
--- a/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt
+++ b/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt
@@ -1,3 +1,5 @@
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
+
 inline private fun a() {}
 
 inline fun b() {}
diff --git a/compiler/testData/diagnostics/tests/inline/nothingToInline.kt b/compiler/testData/diagnostics/tests/inline/nothingToInline.kt
new file mode 100644
index 00000000000..a9bd8a8294d
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/nothingToInline.kt
@@ -0,0 +1,29 @@
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NULLABLE_INLINE_PARAMETER
+
+<!NOTHING_TO_INLINE!>inline fun test() {
+
+}<!>
+
+inline fun test2(s : (Int) -> Int) {
+
+}
+
+<!NOTHING_TO_INLINE!>inline fun test3(noinline s : (Int) -> Int) {
+
+}<!>
+
+<!NOTHING_TO_INLINE!>inline fun test4(noinline s : Int.() -> Int) {
+
+}<!>
+
+<!NOTHING_TO_INLINE!>inline fun Function1<Int, Int>?.test5() {
+
+}<!>
+
+<!NOTHING_TO_INLINE!>inline fun Function1<Int, Int>?.test6() {
+
+}<!>
+
+<!NOTHING_TO_INLINE!>inline fun test2(s : ((Int) -> Int)?) {
+
+}<!>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/inline/propagation.kt b/compiler/testData/diagnostics/tests/inline/propagation.kt
index 239172d8043..658dede57d4 100644
--- a/compiler/testData/diagnostics/tests/inline/propagation.kt
+++ b/compiler/testData/diagnostics/tests/inline/propagation.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
 
 inline fun inlineFunWithInvoke(s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {
     subInline(s, ext)
@@ -34,4 +34,4 @@ inline fun Function1<Int, Unit>.inlineExtWithClosure(ext: Int.(p: Int) -> Unit)
 
 inline fun subInline(s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {}
 
-fun subNoInline(s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {}
\ No newline at end of file
+fun subNoInline(s: (p: Int) -> Unit, ext: Int.(p: Int) -> Unit) {}
diff --git a/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt b/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
index a886b09c8f3..3e3b3277637 100644
--- a/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
+++ b/compiler/testData/diagnostics/tests/inline/unsupportedConstruction.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
 
 inline fun unsupported() {
 
diff --git a/compiler/testData/diagnostics/tests/inline/vararg.kt b/compiler/testData/diagnostics/tests/inline/vararg.kt
index 014b20f1635..9a9116b67fd 100644
--- a/compiler/testData/diagnostics/tests/inline/vararg.kt
+++ b/compiler/testData/diagnostics/tests/inline/vararg.kt
@@ -1,4 +1,4 @@
-// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE
+// !DIAGNOSTICS: -UNUSED_EXPRESSION -UNUSED_PARAMETER -UNUSED_VARIABLE -NOTHING_TO_INLINE
 
 inline fun inlineFun(s: (p: Int) -> Unit, noinline b: (p: Int) -> Unit) {
     subInline(<!USAGE_IS_NOT_INLINABLE!>s<!>, b)
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 959fa1dd328..86f54331042 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -3787,6 +3787,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                 doTest("compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt");
             }
             
+            @TestMetadata("nothingToInline.kt")
+            public void testNothingToInline() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/inline/nothingToInline.kt");
+            }
+            
             @TestMetadata("propagation.kt")
             public void testPropagation() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/inline/propagation.kt");