diff --git a/grammar/src/toplevel.grm b/grammar/src/toplevel.grm
index 14a90d2e5b0..ca6ee518d7c 100644
--- a/grammar/src/toplevel.grm
+++ b/grammar/src/toplevel.grm
@@ -11,7 +11,7 @@ preamble
   ;
 
 namespaceHeader
-  : "namespace" SimpleName{"."} SEMI?
+  : modifiers "namespace" SimpleName{"."} SEMI?
   ;
 
 import
diff --git a/idea/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java b/idea/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java
index 903ce544f36..8b15d831cc0 100644
--- a/idea/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java
+++ b/idea/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java
@@ -337,7 +337,7 @@ public class JetExpressionParsing extends AbstractJetParsing {
             parseFunctionLiteral();
         }
         else if (!parseLiteralConstant()) {
-            // TODO
+            // TODO: betters recovery if FIRST(expression) did not match
             errorAndAdvance("Expecting an expression");
         }
     }
diff --git a/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java b/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
index 7349144873d..ea80263059e 100644
--- a/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
+++ b/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
@@ -110,16 +110,21 @@ public class JetParsing extends AbstractJetParsing {
     private void parsePreamble() {
         /*
          * namespaceHeader
-         *   : "namespace" SimpleName{"."} SEMI?
+         *   : modifiers "namespace" SimpleName{"."} SEMI?
          *   ;
          */
+        PsiBuilder.Marker firstEntry = mark();
+        parseModifierList();
+
         if (at(NAMESPACE_KEYWORD)) {
-            // TODO: Modifiers
+            firstEntry.drop();
             advance(); // NAMESPACE_KEYWORD
 
             parseNamespaceName();
 
             consumeIf(SEMICOLON);
+        } else {
+            firstEntry.rollbackTo();
         }
 
         while (at(IMPORT_KEYWORD)) {
@@ -384,7 +389,6 @@ public class JetParsing extends AbstractJetParsing {
      *   ;
      */
     private JetNodeType parseNamespaceBlock() {
-        // TODO: Modifiers
         assert _at(NAMESPACE_KEYWORD);
         advance(); // NAMESPACE_KEYWORD
 
diff --git a/idea/testData/psi/NamespaceModifiers.jet b/idea/testData/psi/NamespaceModifiers.jet
new file mode 100644
index 00000000000..c842220ebe8
--- /dev/null
+++ b/idea/testData/psi/NamespaceModifiers.jet
@@ -0,0 +1,9 @@
+public [a] namespace name;
+
+[a] namespace a {
+  val foo
+
+  private namespace b {
+
+  }
+}
\ No newline at end of file
diff --git a/idea/testData/psi/NamespaceModifiers.txt b/idea/testData/psi/NamespaceModifiers.txt
new file mode 100644
index 00000000000..23cbae7711d
--- /dev/null
+++ b/idea/testData/psi/NamespaceModifiers.txt
@@ -0,0 +1,56 @@
+JetFile: NamespaceModifiers.jet
+  NAMESPACE
+    MODIFIER_LIST
+      PsiElement(public)('public')
+      PsiWhiteSpace(' ')
+      ATTRIBUTE_ANNOTATION
+        PsiElement(LBRACKET)('[')
+        ATTRIBUTE
+          USER_TYPE
+            PsiElement(IDENTIFIER)('a')
+        PsiElement(RBRACKET)(']')
+    PsiWhiteSpace(' ')
+    PsiElement(namespace)('namespace')
+    PsiWhiteSpace(' ')
+    NAMESPACE_NAME
+      PsiElement(IDENTIFIER)('name')
+    PsiElement(SEMICOLON)(';')
+    PsiWhiteSpace('\n\n')
+    NAMESPACE
+      MODIFIER_LIST
+        ATTRIBUTE_ANNOTATION
+          PsiElement(LBRACKET)('[')
+          ATTRIBUTE
+            USER_TYPE
+              PsiElement(IDENTIFIER)('a')
+          PsiElement(RBRACKET)(']')
+      PsiWhiteSpace(' ')
+      PsiElement(namespace)('namespace')
+      PsiWhiteSpace(' ')
+      NAMESPACE_NAME
+        PsiElement(IDENTIFIER)('a')
+      PsiWhiteSpace(' ')
+      PsiElement(LBRACE)('{')
+      PsiWhiteSpace('\n  ')
+      NAMESPACE_BODY
+        PROPERTY
+          PsiElement(val)('val')
+          PsiWhiteSpace(' ')
+          PsiElement(IDENTIFIER)('foo')
+        PsiWhiteSpace('\n\n  ')
+        NAMESPACE
+          MODIFIER_LIST
+            PsiElement(private)('private')
+          PsiWhiteSpace(' ')
+          PsiElement(namespace)('namespace')
+          PsiWhiteSpace(' ')
+          NAMESPACE_NAME
+            PsiElement(IDENTIFIER)('b')
+          PsiWhiteSpace(' ')
+          PsiElement(LBRACE)('{')
+          PsiWhiteSpace('\n\n  ')
+          NAMESPACE_BODY
+            <empty list>
+          PsiElement(RBRACE)('}')
+      PsiWhiteSpace('\n')
+      PsiElement(RBRACE)('}')
\ No newline at end of file