diff --git a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/JavaSymbolProvider.kt b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/JavaSymbolProvider.kt
index 78fb7b74872..8251fc7d84b 100644
--- a/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/JavaSymbolProvider.kt
+++ b/compiler/fir/java/src/org/jetbrains/kotlin/fir/java/JavaSymbolProvider.kt
@@ -310,7 +310,7 @@ class JavaSymbolProvider(
         if (classIsAnnotation) {
             declarations +=
                 buildConstructorForAnnotationClass(
-                    classSource = (javaClass as? JavaElementImpl<*>)?.psi?.toFirPsiSourceElement(FirFakeSourceElementKind.ImplicitConstructor),
+                    classSource = (javaClass as? JavaElementImpl<*>)?.psi?.toFirPsiSourceElement(FirFakeSourceElementKind.ImplicitConstructor) as? FirFakeSourceElement,
                     constructorId = constructorId,
                     ownerClassBuilder = this,
                     valueParametersForAnnotationConstructor = valueParametersForAnnotationConstructor
@@ -511,7 +511,7 @@ class JavaSymbolProvider(
     }
 
     private fun buildConstructorForAnnotationClass(
-        classSource: FirSourceElement?,
+        classSource: FirFakeSourceElement<*>?,
         constructorId: CallableId,
         ownerClassBuilder: FirJavaClassBuilder,
         valueParametersForAnnotationConstructor: ValueParametersForAnnotationConstructor
diff --git a/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/HighlightingUtils.kt b/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/HighlightingUtils.kt
index d13e9d28dd7..0444d6a9176 100644
--- a/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/HighlightingUtils.kt
+++ b/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/HighlightingUtils.kt
@@ -49,6 +49,7 @@ internal fun textAttributesKeyForTypeDeclaration(declaration: PsiElement): TextA
     declaration is KtClass -> textAttributesForClass(declaration)
     declaration is PsiClass && declaration.isInterface && !declaration.isAnnotationType -> Colors.TRAIT
     declaration.isAnnotationClass() -> Colors.ANNOTATION
+    declaration is KtPrimaryConstructor && declaration.parent.isAnnotationClass() -> Colors.ANNOTATION
     declaration is KtObjectDeclaration -> Colors.OBJECT
     declaration is PsiEnumConstant -> Colors.ENUM_ENTRY
     declaration is PsiClass && declaration.hasModifier(JvmModifier.ABSTRACT) -> Colors.ABSTRACT_CLASS
diff --git a/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/TypeHighlightingVisitor.kt b/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/TypeHighlightingVisitor.kt
index a26c4da1fa7..864ad028088 100644
--- a/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/TypeHighlightingVisitor.kt
+++ b/idea/idea-fir/src/org/jetbrains/kotlin/idea/fir/highlighter/visitors/TypeHighlightingVisitor.kt
@@ -44,7 +44,8 @@ internal class TypeHighlightingVisitor(
     private fun computeHighlightingRangeForUsage(expression: KtSimpleNameExpression, target: PsiElement): TextRange {
         val expressionRange = expression.textRange
 
-        if (!target.isAnnotationClass()) return expressionRange
+        val isKotlinAnnotation = target is KtPrimaryConstructor && target.parent.isAnnotationClass()
+        if (!isKotlinAnnotation && !target.isAnnotationClass()) return expressionRange
 
         // include '@' symbol if the reference is the first segment of KtAnnotationEntry
         // if "Deprecated" is highlighted then '@' should be highlighted too in "@Deprecated"
diff --git a/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/KtAnalysisSession.kt b/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/KtAnalysisSession.kt
index 0427b25fe00..a768ed8d6d5 100644
--- a/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/KtAnalysisSession.kt
+++ b/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/KtAnalysisSession.kt
@@ -80,7 +80,7 @@ abstract class KtAnalysisSession(final override val token: ValidityToken) : Vali
 
     val builtinTypes: KtBuiltinTypes get() = typeProvider.builtinTypes
 
-    fun KtClassOrObjectSymbol.buildTypeForSymbol(): KtType = typeProvider.buildTypeForSymbol(this)
+    fun KtClassOrObjectSymbol.buildSelfClassType(): KtType = typeProvider.buildSelfClassType(this)
 
     fun KtElement.getDiagnostics(): Collection<Diagnostic> = diagnosticProvider.getDiagnosticsForElement(this)
 
diff --git a/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/components/KtTypeProvider.kt b/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/components/KtTypeProvider.kt
index 4b46fd1cc68..38bcd0906d7 100644
--- a/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/components/KtTypeProvider.kt
+++ b/idea/idea-frontend-api/src/org/jetbrains/kotlin/idea/frontend/api/components/KtTypeProvider.kt
@@ -15,7 +15,7 @@ abstract class KtTypeProvider : KtAnalysisSessionComponent() {
 
     abstract val builtinTypes: KtBuiltinTypes
 
-    abstract fun buildTypeForSymbol(symbol: KtClassOrObjectSymbol): KtType
+    abstract fun buildSelfClassType(symbol: KtClassOrObjectSymbol): KtType
 }
 
 
diff --git a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/element/builder/FirElementBuilder.kt b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/element/builder/FirElementBuilder.kt
index 021415680d3..cdc1ae24ac0 100644
--- a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/element/builder/FirElementBuilder.kt
+++ b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/element/builder/FirElementBuilder.kt
@@ -6,7 +6,6 @@
 package org.jetbrains.kotlin.idea.fir.low.level.api.element.builder
 
 import com.intellij.psi.PsiElement
-import com.intellij.psi.util.parentsOfType
 import org.jetbrains.annotations.TestOnly
 import org.jetbrains.kotlin.fir.FirElement
 import org.jetbrains.kotlin.fir.declarations.FirFile
@@ -16,11 +15,12 @@ import org.jetbrains.kotlin.idea.fir.low.level.api.file.builder.FirFileBuilder
 import org.jetbrains.kotlin.idea.fir.low.level.api.file.builder.ModuleFileCache
 import org.jetbrains.kotlin.idea.fir.low.level.api.file.structure.FileStructureCache
 import org.jetbrains.kotlin.idea.fir.low.level.api.file.structure.FileStructureElement
+import org.jetbrains.kotlin.idea.fir.low.level.api.util.hasFqName
+import org.jetbrains.kotlin.idea.fir.low.level.api.util.isNonAnonymousClassOrObject
 import org.jetbrains.kotlin.idea.util.getElementTextInContext
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.containingClassOrObject
 import org.jetbrains.kotlin.psi.psiUtil.isAncestor
-import org.jetbrains.kotlin.psi.psiUtil.isObjectLiteral
 import org.jetbrains.kotlin.psi2ir.deparenthesize
 
 /**
@@ -123,14 +123,6 @@ internal inline fun PsiElement.getNonLocalContainingOrThisDeclaration(predicate:
     return null
 }
 
-private fun KtDeclaration.isNonAnonymousClassOrObject() =
-    this is KtClassOrObject
-            && !this.isObjectLiteral()
-
-
-private fun KtDeclaration.hasFqName(): Boolean =
-    parentsOfType<KtDeclaration>(withSelf = false).all { it.isNonAnonymousClassOrObject() }
-
 internal fun PsiElement.getNonLocalContainingInBodyDeclarationWith(): KtNamedDeclaration? =
     getNonLocalContainingOrThisDeclaration { declaration ->
         when (declaration) {
diff --git a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructure.kt b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructure.kt
index fe01b3a6557..f90e7e4746a 100644
--- a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructure.kt
+++ b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructure.kt
@@ -6,7 +6,8 @@
 package org.jetbrains.kotlin.idea.fir.low.level.api.file.structure
 
 import org.jetbrains.kotlin.diagnostics.Diagnostic
-import org.jetbrains.kotlin.fir.declarations.*
+import org.jetbrains.kotlin.fir.declarations.FirFile
+import org.jetbrains.kotlin.fir.declarations.FirResolvePhase
 import org.jetbrains.kotlin.idea.fir.low.level.api.element.builder.FirTowerDataContextCollector
 import org.jetbrains.kotlin.idea.fir.low.level.api.element.builder.getNonLocalContainingOrThisDeclaration
 import org.jetbrains.kotlin.idea.fir.low.level.api.file.builder.FirFileBuilder
@@ -15,8 +16,10 @@ import org.jetbrains.kotlin.idea.fir.low.level.api.lazy.resolve.FirLazyDeclarati
 import org.jetbrains.kotlin.idea.fir.low.level.api.providers.firIdeProvider
 import org.jetbrains.kotlin.idea.fir.low.level.api.util.findSourceNonLocalFirDeclaration
 import org.jetbrains.kotlin.idea.util.getElementTextInContext
-import org.jetbrains.kotlin.psi.*
-import org.jetbrains.kotlin.psi.psiUtil.forEachDescendantOfType
+import org.jetbrains.kotlin.psi.KtAnnotated
+import org.jetbrains.kotlin.psi.KtDeclaration
+import org.jetbrains.kotlin.psi.KtElement
+import org.jetbrains.kotlin.psi.KtFile
 import java.util.concurrent.ConcurrentHashMap
 
 
@@ -89,6 +92,7 @@ internal class FileStructure(
             val firFile = firFileBuilder.getFirFileResolvedToPhaseWithCaching(
                 container,
                 moduleFileCache,
+                //TODO: Make resolve whole file into TYPES only for top level declarations or annotations with `file` site
                 FirResolvePhase.TYPES,
                 checkPCE = true
             )
diff --git a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructureElement.kt b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructureElement.kt
index 80aae13852a..d5e36707d4e 100644
--- a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructureElement.kt
+++ b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/file/structure/FileStructureElement.kt
@@ -8,10 +8,8 @@ package org.jetbrains.kotlin.idea.fir.low.level.api.file.structure
 import org.jetbrains.kotlin.diagnostics.Diagnostic
 import org.jetbrains.kotlin.fir.FirElement
 import org.jetbrains.kotlin.fir.analysis.collectors.DiagnosticCollectorDeclarationAction
-import org.jetbrains.kotlin.fir.containingClass
 import org.jetbrains.kotlin.fir.declarations.*
 import org.jetbrains.kotlin.fir.psi
-import org.jetbrains.kotlin.fir.resolve.toSymbol
 import org.jetbrains.kotlin.fir.symbols.AbstractFirBasedSymbol
 import org.jetbrains.kotlin.fir.symbols.impl.FirFunctionSymbol
 import org.jetbrains.kotlin.fir.symbols.impl.FirPropertySymbol
@@ -19,9 +17,9 @@ import org.jetbrains.kotlin.idea.fir.low.level.api.diagnostics.FirIdeStructureEl
 import org.jetbrains.kotlin.idea.fir.low.level.api.file.builder.ModuleFileCache
 import org.jetbrains.kotlin.idea.fir.low.level.api.lazy.resolve.FirLazyDeclarationResolver
 import org.jetbrains.kotlin.idea.fir.low.level.api.providers.FirIdeProvider
+import org.jetbrains.kotlin.idea.fir.low.level.api.util.hasFqName
 import org.jetbrains.kotlin.idea.fir.low.level.api.util.isGeneratedDeclaration
 import org.jetbrains.kotlin.idea.fir.low.level.api.util.ktDeclaration
-import org.jetbrains.kotlin.idea.fir.low.level.api.util.replaceFirst
 import org.jetbrains.kotlin.psi.*
 
 internal class FileStructureElementDiagnostics(
@@ -183,14 +181,14 @@ internal class NonReanalyzableDeclarationStructureElement(
         private val recorder = object : FirElementsRecorder() {
             override fun visitProperty(property: FirProperty, data: MutableMap<KtElement, FirElement>) {
                 val psi = property.psi as? KtProperty ?: return super.visitProperty(property, data)
-                if (!FileElementFactory.isReanalyzableContainer(psi) || KtPsiUtil.isLocal(psi)) {
+                if (!FileElementFactory.isReanalyzableContainer(psi) || !psi.hasFqName()) {
                     super.visitProperty(property, data)
                 }
             }
 
             override fun visitSimpleFunction(simpleFunction: FirSimpleFunction, data: MutableMap<KtElement, FirElement>) {
                 val psi = simpleFunction.psi as? KtNamedFunction ?: return super.visitSimpleFunction(simpleFunction, data)
-                if (!FileElementFactory.isReanalyzableContainer(psi) || KtPsiUtil.isLocal(psi)) {
+                if (!FileElementFactory.isReanalyzableContainer(psi) || !psi.hasFqName()) {
                     super.visitSimpleFunction(simpleFunction, data)
                 }
             }
diff --git a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/util/utils.kt b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/util/utils.kt
index b364ea19056..a01ee03a91d 100644
--- a/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/util/utils.kt
+++ b/idea/idea-frontend-fir/idea-fir-low-level-api/src/org/jetbrains/kotlin/idea/fir/low/level/api/util/utils.kt
@@ -7,6 +7,7 @@ package org.jetbrains.kotlin.idea.fir.low.level.api.util
 
 import com.intellij.openapi.progress.ProcessCanceledException
 import com.intellij.openapi.progress.ProgressManager
+import com.intellij.psi.util.parentsOfType
 import org.jetbrains.kotlin.fir.FirElement
 import org.jetbrains.kotlin.fir.declarations.FirDeclaration
 import org.jetbrains.kotlin.fir.diagnostics.FirDiagnosticHolder
@@ -14,10 +15,8 @@ import org.jetbrains.kotlin.fir.psi
 import org.jetbrains.kotlin.fir.render
 import org.jetbrains.kotlin.idea.caches.project.IdeaModuleInfo
 import org.jetbrains.kotlin.idea.util.getElementTextInContext
-import org.jetbrains.kotlin.psi.KtDeclaration
-import org.jetbrains.kotlin.psi.KtElement
-import org.jetbrains.kotlin.psi.KtFile
-import org.jetbrains.kotlin.psi.KtObjectLiteralExpression
+import org.jetbrains.kotlin.psi.*
+import org.jetbrains.kotlin.psi.psiUtil.isObjectLiteral
 import java.util.concurrent.TimeUnit
 import java.util.concurrent.locks.Lock
 
@@ -91,4 +90,11 @@ internal fun IdeaModuleInfo.collectTransitiveDependenciesWithSelf(): List<IdeaMo
     }
     collect(this)
     return result.toList()
-}
\ No newline at end of file
+}
+
+internal fun KtDeclaration.hasFqName(): Boolean =
+    parentsOfType<KtDeclaration>(withSelf = false).all { it.isNonAnonymousClassOrObject() }
+
+internal fun KtDeclaration.isNonAnonymousClassOrObject() =
+    this is KtClassOrObject
+            && !this.isObjectLiteral()
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/classes/firLightClassUtils.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/classes/firLightClassUtils.kt
index 38ddfbea1ed..6506d34c3c3 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/classes/firLightClassUtils.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/classes/firLightClassUtils.kt
@@ -337,10 +337,10 @@ internal fun KtClassOrObject.checkIsInheritor(baseClassOrigin: KtClassOrObject,
 
         if (thisSymbol == baseSymbol) return@analyze false
 
-        val baseType = baseSymbol.buildTypeForSymbol()
+        val baseType = baseSymbol.buildSelfClassType()
 
         if (checkDeep) {
-            thisSymbol.buildTypeForSymbol().isSubTypeOf(baseType)
+            thisSymbol.buildSelfClassType().isSubTypeOf(baseType)
         } else {
             thisSymbol.superTypes.any { baseType.isEqualTo(it.type) }
         }
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/firLightUtils.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/firLightUtils.kt
index cd4fb1772f1..ed58a6588f2 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/firLightUtils.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/asJava/firLightUtils.kt
@@ -66,7 +66,7 @@ internal fun KtClassOrObjectSymbol.typeForClassSymbol(psiElement: PsiElement): P
     require(this is KtFirClassOrObjectSymbol)
 
     val types = analyzeWithSymbolAsContext(this) {
-        this@typeForClassSymbol.buildTypeForSymbol()
+        this@typeForClassSymbol.buildSelfClassType()
     }
     require(types is KtFirType)
 
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/components/KtFirTypeProvider.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/components/KtFirTypeProvider.kt
index 5bb0135b9ce..1bf05a63ae6 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/components/KtFirTypeProvider.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/frontend/api/fir/components/KtFirTypeProvider.kt
@@ -31,7 +31,7 @@ internal class KtFirTypeProvider(
     override val builtinTypes: KtBuiltinTypes =
         KtFirBuiltInTypes(analysisSession.firResolveState.rootModuleSession.builtinTypes, analysisSession.firSymbolBuilder, token)
 
-    override fun buildTypeForSymbol(symbol: KtClassOrObjectSymbol): KtType {
+    override fun buildSelfClassType(symbol: KtClassOrObjectSymbol): KtType {
         require(symbol is KtFirClassOrObjectSymbol)
         val type = symbol.firRef.withFir(FirResolvePhase.TYPES) { firClass ->
             ConeClassLikeTypeImpl(
diff --git a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/references/FirSimpleNameReference.kt b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/references/FirSimpleNameReference.kt
index 48c020c1936..479a71a5696 100644
--- a/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/references/FirSimpleNameReference.kt
+++ b/idea/idea-frontend-fir/src/org/jetbrains/kotlin/idea/references/FirSimpleNameReference.kt
@@ -18,14 +18,16 @@ internal class KtFirSimpleNameReference(
     expression: KtSimpleNameExpression
 ) : KtSimpleNameReference(expression), KtFirReference {
 
-    private fun KtAnalysisSession.fixUpAnnotationCallResolveToCtor(resultsToFix: Collection<KtSymbol>): Collection<KtSymbol> {
-        if (resultsToFix.isEmpty()) return resultsToFix
+    private val isAnnotationCall: Boolean
+        get() {
+            val ktUserType = expression.parent as? KtUserType ?: return false
+            val ktTypeReference = ktUserType.parent as? KtTypeReference ?: return false
+            val ktConstructorCalleeExpression = ktTypeReference.parent as? KtConstructorCalleeExpression ?: return false
+            return ktConstructorCalleeExpression.parent is KtAnnotationEntry
+        }
 
-        val isAnnotationCall = (((expression.parent as? KtUserType)
-            ?.parent as? KtTypeReference)
-            ?.parent as? KtConstructorCalleeExpression)
-            ?.parent is KtAnnotationEntry
-        if (!isAnnotationCall) return resultsToFix
+    private fun KtAnalysisSession.fixUpAnnotationCallResolveToCtor(resultsToFix: Collection<KtSymbol>): Collection<KtSymbol> {
+        if (resultsToFix.isEmpty() || !isAnnotationCall) return resultsToFix
 
         return resultsToFix.map { targetSymbol ->
             if (targetSymbol is KtFirClassOrObjectSymbol && targetSymbol.classKind == KtClassKind.ANNOTATION_CLASS) {
@@ -37,6 +39,7 @@ internal class KtFirSimpleNameReference(
     override fun KtAnalysisSession.resolveToSymbols(): Collection<KtSymbol> {
         check(this is KtFirAnalysisSession)
         val results = FirReferenceResolveHelper.resolveSimpleNameReference(this@KtFirSimpleNameReference, this)
+        //This fix-up needed to resolve annotation call into annotation constructor (but not into the annotation type)
         return fixUpAnnotationCallResolveToCtor(results)
     }
 
diff --git a/idea/testData/highlighter/NamedArguments.kt b/idea/testData/highlighter/NamedArguments.kt
index ac55f360951..1cdf62e521c 100644
--- a/idea/testData/highlighter/NamedArguments.kt
+++ b/idea/testData/highlighter/NamedArguments.kt
@@ -5,6 +5,4 @@ fun <info descr="null" textAttributesKey="KOTLIN_FUNCTION_DECLARATION">foo</info
 
 fun <info descr="null" textAttributesKey="KOTLIN_FUNCTION_DECLARATION">bar</info>() {
     <info descr="null" textAttributesKey="KOTLIN_PACKAGE_FUNCTION_CALL">foo</info>(1, <info descr="null" textAttributesKey="KOTLIN_NAMED_ARGUMENT">p2 =</info> "")
-}
-
-// IGNORE_FIR
\ No newline at end of file
+}
\ No newline at end of file