diff --git a/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/JvmAbiAnalysisHandlerExtension.kt b/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/JvmAbiAnalysisHandlerExtension.kt
index 4a107988bb1..ff4fc896914 100644
--- a/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/JvmAbiAnalysisHandlerExtension.kt
+++ b/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/JvmAbiAnalysisHandlerExtension.kt
@@ -16,7 +16,14 @@ import org.jetbrains.kotlin.config.CompilerConfiguration
 import org.jetbrains.kotlin.config.JVMConfigurationKeys
 import org.jetbrains.kotlin.descriptors.ModuleDescriptor
 import org.jetbrains.kotlin.diagnostics.Severity
+import org.jetbrains.kotlin.incremental.LocalFileKotlinClass
+import org.jetbrains.kotlin.incremental.isClassFile
 import org.jetbrains.kotlin.jvm.abi.asm.AbiClassBuilder
+import org.jetbrains.kotlin.jvm.abi.asm.FilterInnerClassesVisitor
+import org.jetbrains.kotlin.load.kotlin.header.KotlinClassHeader
+import org.jetbrains.kotlin.metadata.ProtoBuf
+import org.jetbrains.kotlin.metadata.deserialization.Flags
+import org.jetbrains.kotlin.metadata.jvm.deserialization.JvmProtoBufUtil
 import org.jetbrains.kotlin.modules.TargetId
 import org.jetbrains.kotlin.psi.KtFile
 import org.jetbrains.kotlin.resolve.BindingTrace
@@ -53,13 +60,43 @@ class JvmAbiAnalysisHandlerExtension(
         KotlinCodegenFacade.compileCorrectFiles(generationState, CompilationErrorHandler.THROW_EXCEPTION)
 
         val outputDir = compilerConfiguration.get(JVMConfigurationKeys.OUTPUT_DIRECTORY)!!
+        val outputFiles = arrayListOf<File>()
         generationState.factory.writeAll(
             outputDir,
             fun(file: OutputFile, sources: List<File>, output: File) {
                 // todo report
+                outputFiles.add(output)
             }
         )
 
+        val classFiles = HashSet<File>()
+        val removedClasses = HashSet<String>()
+        for (file in outputFiles) {
+            if (!file.isClassFile()) continue
+
+            classFiles.add(file)
+            val localFileKotlinClass = LocalFileKotlinClass.create(file) ?: continue
+            val header = localFileKotlinClass.classHeader
+            if (header.kind == KotlinClassHeader.Kind.CLASS) {
+                val (_, classProto) = JvmProtoBufUtil.readClassDataFrom(header.data!!, header.strings!!)
+
+                val visibility = Flags.VISIBILITY.get(classProto.flags)
+                if (visibility == ProtoBuf.Visibility.PRIVATE || visibility == ProtoBuf.Visibility.LOCAL) {
+                    file.delete()
+                    classFiles.remove(file)
+                    removedClasses.add(localFileKotlinClass.className.internalName)
+                }
+            }
+        }
+
+        for (file in classFiles) {
+            val reader = ClassReader(file.readBytes())
+            val writer = ClassWriter(reader, 0)
+            val visitor = FilterInnerClassesVisitor(removedClasses, Opcodes.ASM6, writer)
+            reader.accept(visitor, 0)
+            file.writeBytes(writer.toByteArray())
+        }
+
         return null
     }
 
diff --git a/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/asm/FilterInnerClassesVisitor.kt b/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/asm/FilterInnerClassesVisitor.kt
new file mode 100644
index 00000000000..4f6c283ca13
--- /dev/null
+++ b/plugins/jvm-abi-gen/src/org/jetbrains/kotlin/jvm/abi/asm/FilterInnerClassesVisitor.kt
@@ -0,0 +1,20 @@
+/*
+ * Copyright 2010-2018 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.jvm.abi.asm
+
+import org.jetbrains.org.objectweb.asm.ClassVisitor
+
+internal class FilterInnerClassesVisitor(
+    private val innerClassesToFilter: Set<String>,
+    api: Int,
+    cv: ClassVisitor
+) : ClassVisitor(api, cv) {
+    override fun visitInnerClass(name: String, outerName: String?, innerName: String?, access: Int) {
+        if (name in innerClassesToFilter) return
+
+        super.visitInnerClass(name, outerName, innerName, access)
+    }
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompareJvmAbiTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompareJvmAbiTestGenerated.java
index d9ecb4f9483..9c29e97e678 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompareJvmAbiTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompareJvmAbiTestGenerated.java
@@ -44,6 +44,16 @@ public class CompareJvmAbiTestGenerated extends AbstractCompareJvmAbiTest {
         runTest("plugins/jvm-abi-gen/testData/compare/inlineFunctionBody/");
     }
 
+    @TestMetadata("localClass")
+    public void testLocalClass() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/compare/localClass/");
+    }
+
+    @TestMetadata("privateClass")
+    public void testPrivateClass() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/compare/privateClass/");
+    }
+
     @TestMetadata("topLevelPrivateMembers")
     public void testTopLevelPrivateMembers() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/compare/topLevelPrivateMembers/");
diff --git a/plugins/jvm-abi-gen/testData/compare/localClass/base/Class.kt b/plugins/jvm-abi-gen/testData/compare/localClass/base/Class.kt
new file mode 100644
index 00000000000..57d7d8b89e7
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compare/localClass/base/Class.kt
@@ -0,0 +1,7 @@
+package test
+
+class Class {
+    fun method() {
+        class MethodLocalClass
+    }
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/compare/localClass/base/function.kt b/plugins/jvm-abi-gen/testData/compare/localClass/base/function.kt
new file mode 100644
index 00000000000..91e4a2c7fec
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compare/localClass/base/function.kt
@@ -0,0 +1,5 @@
+package test
+
+fun function() {
+    class FunctionLocalClass
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/compare/localClass/sameAbi/Class.kt b/plugins/jvm-abi-gen/testData/compare/localClass/sameAbi/Class.kt
new file mode 100644
index 00000000000..192676f9a79
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compare/localClass/sameAbi/Class.kt
@@ -0,0 +1,6 @@
+package test
+
+class Class {
+    fun method() {
+    }
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/compare/localClass/sameAbi/function.kt b/plugins/jvm-abi-gen/testData/compare/localClass/sameAbi/function.kt
new file mode 100644
index 00000000000..92f421c23ff
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compare/localClass/sameAbi/function.kt
@@ -0,0 +1,4 @@
+package test
+
+fun function() {
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/compare/privateClass/base/classes.kt b/plugins/jvm-abi-gen/testData/compare/privateClass/base/classes.kt
new file mode 100644
index 00000000000..c5b914f5538
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compare/privateClass/base/classes.kt
@@ -0,0 +1,5 @@
+package test
+
+class PublicClass
+internal class InternalClass
+private class PrivateClass
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/compare/privateClass/sameAbi/classes.kt b/plugins/jvm-abi-gen/testData/compare/privateClass/sameAbi/classes.kt
new file mode 100644
index 00000000000..ef3fc325d30
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compare/privateClass/sameAbi/classes.kt
@@ -0,0 +1,4 @@
+package test
+
+class PublicClass
+internal class InternalClass
\ No newline at end of file