diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java
index 617ba2511c9..fc8fa859040 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/ExperimentalIncrementalJpsTestGenerated.java
@@ -1039,6 +1039,12 @@ public class ExperimentalIncrementalJpsTestGenerated extends AbstractExperimenta
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("jps-plugin/testData/incremental/classHierarchyAffected"), Pattern.compile("^([^\\.]+)$"), true);
         }
 
+        @TestMetadata("annotationFlagRemoved")
+        public void testAnnotationFlagRemoved() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/");
+            doTest(fileName);
+        }
+
         @TestMetadata("annotationListChanged")
         public void testAnnotationListChanged() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("jps-plugin/testData/incremental/classHierarchyAffected/annotationListChanged/");
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt
new file mode 100644
index 00000000000..700be2ad7e4
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt
@@ -0,0 +1 @@
+annotation class Ann1
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt.new.1 b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt.new.1
new file mode 100644
index 00000000000..d01ba85a9bf
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt.new.1
@@ -0,0 +1 @@
+class Ann1
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt.new.2 b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt.new.2
new file mode 100644
index 00000000000..700be2ad7e4
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann1.kt.new.2
@@ -0,0 +1 @@
+annotation class Ann1
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann2.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann2.kt
new file mode 100644
index 00000000000..42dfdb1c4fa
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/Ann2.kt
@@ -0,0 +1 @@
+annotation class Ann2
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/UseAnn1Class.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/UseAnn1Class.kt
new file mode 100644
index 00000000000..ad3f6f5ef00
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/UseAnn1Class.kt
@@ -0,0 +1,2 @@
+@Ann1
+class UseAnn1
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/UseAnn2Class.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/UseAnn2Class.kt
new file mode 100644
index 00000000000..2536f9af76c
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/UseAnn2Class.kt
@@ -0,0 +1,2 @@
+@Ann2
+class UseAnn2
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/build.log b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/build.log
new file mode 100644
index 00000000000..f72a87fbfa2
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/build.log
@@ -0,0 +1,32 @@
+Cleaning output files:
+out/production/module/Ann1.class
+End of files
+Compiling files:
+src/Ann1.kt
+End of files
+Cleaning output files:
+out/production/module/META-INF/module.kotlin_module
+out/production/module/UseAnn1.class
+out/production/module/UseAnn1FunKt.class
+out/production/module/UseAnn1ValKt.class
+End of files
+Compiling files:
+src/UseAnn1Class.kt
+src/useAnn1Fun.kt
+src/useAnn1Val.kt
+End of files
+COMPILATION FAILED
+'Ann1' is not an annotation class
+'Ann1' is not an annotation class
+'Ann1' is not an annotation class
+
+
+Cleaning output files:
+out/production/module/Ann1.class
+End of files
+Compiling files:
+src/Ann1.kt
+src/UseAnn1Class.kt
+src/useAnn1Fun.kt
+src/useAnn1Val.kt
+End of files
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn1Fun.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn1Fun.kt
new file mode 100644
index 00000000000..901f70ec8fa
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn1Fun.kt
@@ -0,0 +1,2 @@
+@Ann1
+fun useAnn1() {}
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn1Val.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn1Val.kt
new file mode 100644
index 00000000000..dcc6a8d732d
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn1Val.kt
@@ -0,0 +1,2 @@
+@Ann1
+val useAnn1Val = 0
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn2Fun.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn2Fun.kt
new file mode 100644
index 00000000000..733627858aa
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn2Fun.kt
@@ -0,0 +1,2 @@
+@Ann2
+fun useAnn2() {}
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn2Val.kt b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn2Val.kt
new file mode 100644
index 00000000000..8e10342e1aa
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/annotationFlagRemoved/useAnn2Val.kt
@@ -0,0 +1,2 @@
+@Ann2
+val useAnn2Val = 0
\ No newline at end of file