diff --git a/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/IncrementalCacheImpl.kt b/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/IncrementalCacheImpl.kt
index 22d975f5dc7..d300068fb41 100644
--- a/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/IncrementalCacheImpl.kt
+++ b/jps-plugin/src/org/jetbrains/kotlin/jps/incremental/IncrementalCacheImpl.kt
@@ -143,11 +143,15 @@ public class IncrementalCacheImpl(targetDataRoot: File) : StorageOwner, Incremen
                         inlinesChanged = false
                 )
             header.isCompatibleClassKind() ->
-                getRecompilationDecision(
-                        protoChanged = protoMap.put(className, BitEncoding.decodeBytes(header.annotationData)),
-                        constantsChanged = constantsMap.process(className, fileBytes),
-                        inlinesChanged = inlineFunctionsMap.process(className, fileBytes)
-                )
+                when (header.classKind!!) {
+                    JvmAnnotationNames.KotlinClass.Kind.CLASS -> getRecompilationDecision(
+                            protoChanged = protoMap.put(className, BitEncoding.decodeBytes(header.annotationData)),
+                            constantsChanged = constantsMap.process(className, fileBytes),
+                            inlinesChanged = inlineFunctionsMap.process(className, fileBytes)
+                    )
+
+                    JvmAnnotationNames.KotlinClass.Kind.LOCAL_CLASS, JvmAnnotationNames.KotlinClass.Kind.ANONYMOUS_OBJECT -> DO_NOTHING
+                }
             header.syntheticClassKind == JvmAnnotationNames.KotlinSyntheticClass.Kind.PACKAGE_PART -> {
                 assert(sourceFiles.size() == 1) { "Package part from several source files: $sourceFiles" }
 
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
index af9f1e8ce99..da0f6d5dd2c 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
@@ -287,6 +287,12 @@ public class IncrementalJpsTestGenerated extends AbstractIncrementalJpsTest {
             doTest(fileName);
         }
 
+        @TestMetadata("localClassChanged")
+        public void testLocalClassChanged() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/localClassChanged/");
+            doTest(fileName);
+        }
+
         @TestMetadata("moveClass")
         public void testMoveClass() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/moveClass/");
diff --git a/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/a.kt.new b/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/a.kt.new
index 6255f915194..37d68224ae2 100644
--- a/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/a.kt.new
+++ b/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/a.kt.new
@@ -1,6 +1,5 @@
 package a
 
-// Signatures in the class "...$main$1" have changed, thus we need to recompile the whole module
 fun foo() = object {
     fun baz() = ":)"
 }
diff --git a/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/build.log b/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/build.log
index d2598525c01..c56d69d0001 100644
--- a/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/build.log
+++ b/jps-plugin/testData/incremental/pureKotlin/anonymousObjectChanged/build.log
@@ -5,11 +5,4 @@ out/production/module/a/APackage.class
 End of files
 Compiling files:
 src/a.kt
-End of files
-Cleaning output files:
-out/production/module/usage/UsagePackage$usage$*.class
-out/production/module/usage/UsagePackage.class
-End of files
-Compiling files:
-src/usage.kt
 End of files
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/localClassChanged/a.kt b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/a.kt
new file mode 100644
index 00000000000..2924f1dad8b
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/a.kt
@@ -0,0 +1,9 @@
+package test
+
+fun foo() {
+    class X {
+        fun bar() = 111
+    }
+
+    X().bar()
+}
diff --git a/jps-plugin/testData/incremental/pureKotlin/localClassChanged/a.kt.new b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/a.kt.new
new file mode 100644
index 00000000000..c1209c13075
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/a.kt.new
@@ -0,0 +1,11 @@
+package test
+
+fun foo() {
+    class X {
+        fun bar() = 111
+        fun baz() = ":)"
+    }
+
+    X().bar()
+    X().baz()
+}
diff --git a/jps-plugin/testData/incremental/pureKotlin/localClassChanged/build.log b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/build.log
new file mode 100644
index 00000000000..38fe179639a
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/build.log
@@ -0,0 +1,8 @@
+Cleaning output files:
+out/production/module/test/TestPackage$a$*$foo$X.class
+out/production/module/test/TestPackage$a$*.class
+out/production/module/test/TestPackage.class
+End of files
+Compiling files:
+src/a.kt
+End of files
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/localClassChanged/unrelated.kt b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/unrelated.kt
new file mode 100644
index 00000000000..f9d3d65eecf
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/localClassChanged/unrelated.kt
@@ -0,0 +1,5 @@
+package unrelated
+
+fun main(args: Array<String>) {
+
+}
\ No newline at end of file