diff --git a/idea/src/org/jetbrains/kotlin/idea/inspections/SortModifiersInspection.kt b/idea/src/org/jetbrains/kotlin/idea/inspections/SortModifiersInspection.kt
index 2aac7e41c4e..433b410c2ce 100644
--- a/idea/src/org/jetbrains/kotlin/idea/inspections/SortModifiersInspection.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/inspections/SortModifiersInspection.kt
@@ -1,17 +1,6 @@
 /*
- * Copyright 2010-2017 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
+ * Copyright 2000-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
+ * that can be found in the license/LICENSE.txt file.
  */
 
 package org.jetbrains.kotlin.idea.inspections
@@ -20,9 +9,7 @@ import com.intellij.codeInspection.*
 import com.intellij.openapi.project.Project
 import com.intellij.psi.PsiElementVisitor
 import org.jetbrains.kotlin.lexer.KtModifierKeywordToken
-import org.jetbrains.kotlin.psi.KtModifierList
-import org.jetbrains.kotlin.psi.KtModifierListOwner
-import org.jetbrains.kotlin.psi.KtVisitorVoid
+import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.addRemoveModifier.sortModifiers
 import org.jetbrains.kotlin.psi.psiUtil.allChildren
 
@@ -33,16 +20,32 @@ class SortModifiersInspection : AbstractKotlinInspection(), CleanupLocalInspecti
             override fun visitModifierList(list: KtModifierList) {
                 super.visitModifierList(list)
 
-                val modifiers = list.allChildren.toList().mapNotNull { it.node.elementType as? KtModifierKeywordToken }.toList()
+                val modifierElements = list.allChildren.toList()
+                var modifiersBeforeAnnotations = false
+                var seenModifiers = false
+                for (modifierElement in modifierElements) {
+                    if (modifierElement.node.elementType is KtModifierKeywordToken) {
+                        seenModifiers = true
+                    } else if (seenModifiers && (modifierElement is KtAnnotationEntry || modifierElement is KtAnnotation)) {
+                        modifiersBeforeAnnotations = true
+                    }
+                }
+
+                val modifiers = modifierElements.mapNotNull { it.node.elementType as? KtModifierKeywordToken }.toList()
                 if (modifiers.isEmpty()) return
 
                 val sortedModifiers = sortModifiers(modifiers)
-                if (modifiers == sortedModifiers) return
+                if (modifiers == sortedModifiers && !modifiersBeforeAnnotations) return
 
-                holder.registerProblem(list,
-                                       "Non-canonical modifiers order",
-                                       ProblemHighlightType.WEAK_WARNING,
-                                       SortModifiersFix(sortedModifiers)
+                val message = if (modifiersBeforeAnnotations)
+                    "Modifiers should follow annotations"
+                else
+                    "Non-canonical modifiers order"
+                holder.registerProblem(
+                    list,
+                    message,
+                    ProblemHighlightType.WEAK_WARNING,
+                    SortModifiersFix(sortedModifiers)
                 )
             }
         }
diff --git a/idea/testData/inspectionsLocal/sortModifiers/annotation.kt b/idea/testData/inspectionsLocal/sortModifiers/annotation.kt
new file mode 100644
index 00000000000..1e3b1adac7e
--- /dev/null
+++ b/idea/testData/inspectionsLocal/sortModifiers/annotation.kt
@@ -0,0 +1,3 @@
+annotation class Test
+
+<caret>public @Test /* this is a test */ class MyTest
diff --git a/idea/testData/inspectionsLocal/sortModifiers/annotation.kt.after b/idea/testData/inspectionsLocal/sortModifiers/annotation.kt.after
new file mode 100644
index 00000000000..78aaed93693
--- /dev/null
+++ b/idea/testData/inspectionsLocal/sortModifiers/annotation.kt.after
@@ -0,0 +1,4 @@
+annotation class Test
+
+@Test
+public /* this is a test */ class MyTest
diff --git a/idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt b/idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt
new file mode 100644
index 00000000000..f80a6931cd6
--- /dev/null
+++ b/idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt
@@ -0,0 +1,6 @@
+annotation class Inject
+annotation class VisibleForTesting
+
+class Example {
+    <caret>public @set:[Inject VisibleForTesting] var x: String = ""
+}
diff --git a/idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt.after b/idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt.after
new file mode 100644
index 00000000000..410a211af90
--- /dev/null
+++ b/idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt.after
@@ -0,0 +1,7 @@
+annotation class Inject
+annotation class VisibleForTesting
+
+class Example {
+    <caret>@set:[Inject VisibleForTesting]
+    public var x: String = ""
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
index ead270650bf..580287ddf09 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/inspections/LocalInspectionTestGenerated.java
@@ -1,17 +1,6 @@
 /*
- * Copyright 2010-2017 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
+ * Copyright 2000-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
+ * that can be found in the license/LICENSE.txt file.
  */
 
 package org.jetbrains.kotlin.idea.inspections;
@@ -3830,6 +3819,18 @@ public class LocalInspectionTestGenerated extends AbstractLocalInspectionTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/inspectionsLocal/sortModifiers"), Pattern.compile("^([\\w\\-_]+)\\.(kt|kts)$"), TargetBackend.ANY, true);
         }
 
+        @TestMetadata("annotation.kt")
+        public void testAnnotation() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/inspectionsLocal/sortModifiers/annotation.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("annotationGroup.kt")
+        public void testAnnotationGroup() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/inspectionsLocal/sortModifiers/annotationGroup.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("simple.kt")
         public void testSimple() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/inspectionsLocal/sortModifiers/simple.kt");