diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index a91e1e92061..01bef0f8742 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -206,6 +206,7 @@ public interface Errors {
     DiagnosticFactory0<KtParameter> INLINE_SUSPEND_FUNCTION_TYPE_UNSUPPORTED = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory1<KtAnnotationEntry, String> WRONG_ANNOTATION_TARGET = DiagnosticFactory1.create(ERROR);
     DiagnosticFactory2<KtAnnotationEntry, String, String> WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET = DiagnosticFactory2.create(ERROR);
+    DiagnosticFactory1<KtAnnotationEntry, String> WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE = DiagnosticFactory1.create(WARNING);
     DiagnosticFactory0<KtAnnotationEntry> REPEATED_ANNOTATION = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory0<KtAnnotationEntry> NON_SOURCE_ANNOTATION_ON_INLINED_LAMBDA_EXPRESSION = DiagnosticFactory0.create(ERROR);
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
index d1d3f5c026a..a256f2afc3f 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -149,6 +149,8 @@ public class DefaultErrorMessages {
         MAP.put(INLINE_SUSPEND_FUNCTION_TYPE_UNSUPPORTED, "Inline lambda parameters of suspend function type are not fully supported. Add 'noinline' modifier.");
         MAP.put(WRONG_ANNOTATION_TARGET, "This annotation is not applicable to target ''{0}''", TO_STRING);
         MAP.put(WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET, "This annotation is not applicable to target ''{0}'' and use site target ''@{1}''", TO_STRING, TO_STRING);
+        MAP.put(WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE,
+                "Use of this annotation with target ''type'' and use site target ''@{0}'' is deprecated", TO_STRING);
         MAP.put(REPEATED_ANNOTATION, "This annotation is not repeatable");
         MAP.put(NON_SOURCE_ANNOTATION_ON_INLINED_LAMBDA_EXPRESSION, "The lambda expression here is an inlined argument so this annotation cannot be stored anywhere");
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
index 2fea37d0c3b..ee128781bae 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/AnnotationChecker.kt
@@ -17,6 +17,8 @@
 package org.jetbrains.kotlin.resolve
 
 import org.jetbrains.kotlin.builtins.KotlinBuiltIns
+import org.jetbrains.kotlin.config.LanguageFeature
+import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.descriptors.ClassDescriptor
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
 import org.jetbrains.kotlin.descriptors.PropertyDescriptor
@@ -38,7 +40,10 @@ import org.jetbrains.kotlin.types.KotlinType
 import org.jetbrains.kotlin.types.expressions.ExpressionTypingUtils
 import org.jetbrains.kotlin.types.isError
 
-class AnnotationChecker(private val additionalCheckers: Iterable<AdditionalAnnotationChecker>) {
+class AnnotationChecker(
+        private val additionalCheckers: Iterable<AdditionalAnnotationChecker>,
+        private val languageVersionSettings: LanguageVersionSettings
+) {
 
     fun check(annotated: KtAnnotated, trace: BindingTrace, descriptor: DeclarationDescriptor? = null) {
         val actualTargets = getActualTargetList(annotated, descriptor, trace)
@@ -144,15 +149,30 @@ class AnnotationChecker(private val additionalCheckers: Iterable<AdditionalAnnot
             }
         }
 
-        fun applicableWithUseSiteTarget() = useSiteTarget != null && actualTargets.onlyWithUseSiteTarget.any {
-            it in applicableTargets && KotlinTarget.USE_SITE_MAPPING[useSiteTarget] == it
+        fun checkWithUseSiteTargets(additionalTarget: KotlinTarget? = null, useDeprecatedTargets: Boolean = false): Boolean {
+            if (useSiteTarget == null) return false
+
+            val useSiteMapping = KotlinTarget.USE_SITE_MAPPING[useSiteTarget].let {
+                if (useDeprecatedTargets && it == RECEIVER) KotlinTarget.VALUE_PARAMETER else it
+            }
+
+            val allTargets = actualTargets.onlyWithUseSiteTarget + listOfNotNull(additionalTarget)
+            return allTargets.any { it in applicableTargets && it == useSiteMapping }
         }
 
-        if (check(actualTargets.defaultTargets) || check(actualTargets.canBeSubstituted) || applicableWithUseSiteTarget()) {
+        if (check(actualTargets.defaultTargets) || check(actualTargets.canBeSubstituted) || checkWithUseSiteTargets()) {
             checkUselessFunctionLiteralAnnotation()
             return
         }
 
+        if (!languageVersionSettings.supportsFeature(LanguageFeature.RestrictionOfWrongAnnotationsWithUseSiteTargetsOnTypes)) {
+            val isAnnotationOnType = TargetLists.T_TYPE_REFERENCE == actualTargets
+            if (isAnnotationOnType && checkWithUseSiteTargets(KotlinTarget.VALUE_PARAMETER, true)) {
+                trace.report(Errors.WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE.on(entry, useSiteTarget!!.renderName))
+                return
+            }
+        }
+
         if (useSiteTarget != null) {
             trace.report(Errors.WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET.on(
                     entry, actualTargets.defaultTargets.firstOrNull()?.description ?: "unidentified target", useSiteTarget.renderName))
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt
index c42fe12dcb6..c32ef8fa211 100644
--- a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt
@@ -1,15 +1,12 @@
 // !DIAGNOSTICS: -UNUSED_PARAMETER
 
-fun test1(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) {}
-fun test2(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@param:Suppress<!> Int) {}
-fun test3(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Suppress<!> Int) {}
-fun test4(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@field:Suppress<!> Int) {}
-fun test5(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@set:Suppress<!> Int) {}
+fun test1(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@setparam:Suppress<!> Int) {}
+fun test2(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@param:Suppress<!> Int) {}
+fun test3(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@receiver:Suppress<!> Int) {}
 
-fun test6(): <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int = TODO()
-fun test7(i: (<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit) {}
+fun test4(): <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@setparam:Suppress<!> Int = TODO()
+fun test5(i: (<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@setparam:Suppress<!> Int) -> Unit) {}
 
-fun <!INAPPLICABLE_TARGET_ON_PROPERTY, WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int.test8() {}
-fun ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit).test9() {}
+fun ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@setparam:Suppress<!> Int) -> Unit).test6() {}
 
-fun test10(): ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit) = TODO()
\ No newline at end of file
+fun test7(): ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET_ON_TYPE!>@setparam:Suppress<!> Int) -> Unit) = TODO()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt
index 628c159de21..7f4539dbea7 100644
--- a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.txt
@@ -1,12 +1,9 @@
 package
 
 public fun test1(/*0*/ i: @setparam:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
-public fun test10(): (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit
 public fun test2(/*0*/ i: @param:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
 public fun test3(/*0*/ i: @receiver:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
-public fun test4(/*0*/ i: @field:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
-public fun test5(/*0*/ i: @set:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
-public fun test6(): @setparam:kotlin.Suppress(names = {}) kotlin.Int
-public fun test7(/*0*/ i: (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit): kotlin.Unit
-public fun @setparam:kotlin.Suppress(names = {}) kotlin.Int.test8(): kotlin.Unit
-public fun ((@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit).test9(): kotlin.Unit
+public fun test4(): @setparam:kotlin.Suppress(names = {}) kotlin.Int
+public fun test5(/*0*/ i: (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit): kotlin.Unit
+public fun test7(): (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit
+public fun ((@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit).test6(): kotlin.Unit
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.kt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.kt
new file mode 100644
index 00000000000..41ee053c1e4
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.kt
@@ -0,0 +1,13 @@
+// !LANGUAGE: +RestrictionOfWrongAnnotationsWithUseSiteTargetsOnTypes
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+
+fun test1(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) {}
+fun test2(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@param:Suppress<!> Int) {}
+fun test3(i: <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@receiver:Suppress<!> Int) {}
+
+fun test4(): <!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int = TODO()
+fun test5(i: (<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit) {}
+
+fun ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit).test6() {}
+
+fun test7(): ((<!WRONG_ANNOTATION_TARGET_WITH_USE_SITE_TARGET!>@setparam:Suppress<!> Int) -> Unit) = TODO()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.txt b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.txt
new file mode 100644
index 00000000000..7f4539dbea7
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.txt
@@ -0,0 +1,9 @@
+package
+
+public fun test1(/*0*/ i: @setparam:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test2(/*0*/ i: @param:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test3(/*0*/ i: @receiver:kotlin.Suppress(names = {}) kotlin.Int): kotlin.Unit
+public fun test4(): @setparam:kotlin.Suppress(names = {}) kotlin.Int
+public fun test5(/*0*/ i: (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit): kotlin.Unit
+public fun test7(): (@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit
+public fun ((@setparam:kotlin.Suppress(names = {}) kotlin.Int) -> kotlin.Unit).test6(): kotlin.Unit
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 61ebe5e9f50..0b56da52ba0 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -1688,6 +1688,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                     String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt");
                     doTest(fileName);
                 }
+
+                @TestMetadata("wrongParamAnnotationsOnTypesError.kt")
+                public void testWrongParamAnnotationsOnTypesError() throws Exception {
+                    String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.kt");
+                    doTest(fileName);
+                }
             }
         }
 
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index c8002830643..cdb2b2dcfde 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -1688,6 +1688,12 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                     String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypes.kt");
                     doTest(fileName);
                 }
+
+                @TestMetadata("wrongParamAnnotationsOnTypesError.kt")
+                public void testWrongParamAnnotationsOnTypesError() throws Exception {
+                    String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/annotations/withUseSiteTarget/wrongParamAnnotationsOnTypesError.kt");
+                    doTest(fileName);
+                }
             }
         }
 
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index 6cbde0485ce..9ed153229f3 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -64,6 +64,7 @@ enum class LanguageFeature(
 
     RestrictionOfValReassignmentViaBackingField(KOTLIN_1_3),
     NestedClassesInEnumEntryShouldBeInner(KOTLIN_1_3),
+    RestrictionOfWrongAnnotationsWithUseSiteTargetsOnTypes(KOTLIN_1_3),
 
     // Experimental features