diff --git a/build-common/src/org/jetbrains/kotlin/incremental/AbstractIncrementalCache.kt b/build-common/src/org/jetbrains/kotlin/incremental/AbstractIncrementalCache.kt
index 9da80f7ce23..6bea2078cd3 100644
--- a/build-common/src/org/jetbrains/kotlin/incremental/AbstractIncrementalCache.kt
+++ b/build-common/src/org/jetbrains/kotlin/incremental/AbstractIncrementalCache.kt
@@ -26,6 +26,7 @@ import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.serialization.deserialization.getClassId
 import java.io.File
 import java.util.*
+import kotlin.collections.HashSet
 
 /**
  * Incremental cache common for JVM and JS, ClassName type aware
@@ -203,12 +204,34 @@ abstract class AbstractIncrementalCache<ClassName>(
     override fun getComplementaryFilesRecursive(dirtyFiles: Collection<File>): Collection<File> {
         val complementaryFiles = HashSet<File>()
         val filesQueue = ArrayDeque(dirtyFiles)
+
+        val processedClasses = HashSet<FqName>()
+        val processedFiles = HashSet<File>()
+
         while (filesQueue.isNotEmpty()) {
             val file = filesQueue.pollFirst()
-            complementaryFilesMap[file].forEach {
-                if (complementaryFiles.add(it)) filesQueue.add(it)
+            if (processedFiles.contains(file)) {
+                continue
             }
+            processedFiles.add(file)
+            complementaryFilesMap[file].forEach {
+                if (complementaryFiles.add(it) && !processedFiles.contains(it)) filesQueue.add(it)
+            }
+            val classes2recompile = sourceToClassesMap.getFqNames(file)
+            classes2recompile.filter { !processedClasses.contains(it) }.forEach {class2recompile ->
+                processedClasses.add(class2recompile)
+                val sealedClasses = findSealedSupertypes(class2recompile, listOf(this))
+                val allSubtypes = sealedClasses.flatMap { withSubtypes(it, listOf(this)) }.also {
+                    // there could be only one sealed class in hierarchy
+                    processedClasses.addAll(it)
+                }
+                val files2add = allSubtypes.mapNotNull { classFqNameToSourceMap[it] }.filter { !processedFiles.contains(it) }
+                filesQueue.addAll(files2add)
+            }
+
+
         }
+        complementaryFiles.addAll(processedFiles)
         complementaryFiles.removeAll(dirtyFiles)
         return complementaryFiles
     }
diff --git a/build-common/src/org/jetbrains/kotlin/incremental/buildUtil.kt b/build-common/src/org/jetbrains/kotlin/incremental/buildUtil.kt
index 87d45ab7bd4..90b1f5c0e7d 100644
--- a/build-common/src/org/jetbrains/kotlin/incremental/buildUtil.kt
+++ b/build-common/src/org/jetbrains/kotlin/incremental/buildUtil.kt
@@ -149,8 +149,7 @@ fun ChangesCollector.getDirtyData(
     val dirtyLookupSymbols = HashSet<LookupSymbol>()
     val dirtyClassesFqNames = HashSet<FqName>()
 
-    val sealedParents = HashMap<FqName, MutableSet<FqName>>()
-    val notSealedParents = HashSet<FqName>()
+    val sealedParents = HashSet<FqName>()
 
     for (change in changes()) {
         reporter.reportVerbose { "Process $change" }
@@ -177,34 +176,12 @@ fun ChangesCollector.getDirtyData(
 
             fqNames.mapTo(dirtyLookupSymbols) { LookupSymbol(SAM_LOOKUP_NAME.asString(), it.asString()) }
         } else if (change is ChangeInfo.ParentsChanged) {
-            fun FqName.isSealed(): Boolean {
-                if (notSealedParents.contains(this)) return false
-                if (sealedParents.containsKey(this)) return true
-                return isSealed(this, caches).also { sealed ->
-                    if (sealed) {
-                        sealedParents[this] = HashSet()
-                    } else {
-                        notSealedParents.add(this)
-                    }
-                }
-            }
             change.parentsChanged.forEach { parent ->
-                if (parent.isSealed()) {
-                    sealedParents.getOrPut(parent) { HashSet() }.add(change.fqName)
-                }
+                sealedParents.addAll(findSealedSupertypes(parent, caches))
             }
         }
     }
-
-    val forceRecompile = HashSet<FqName>().apply {
-        addAll(sealedParents.keys)
-        //we should recompile all inheritors with parent sealed class: add known subtypes
-        addAll(sealedParents.keys.flatMap { withSubtypes(it, caches) })
-        //we should recompile all inheritors with parent sealed class: add new subtypes
-        addAll(sealedParents.values.flatten())
-    }
-
-    return DirtyData(dirtyLookupSymbols, dirtyClassesFqNames, forceRecompile)
+    return DirtyData(dirtyLookupSymbols, dirtyClassesFqNames, sealedParents)
 }
 
 fun mapLookupSymbolsToFiles(
@@ -251,7 +228,22 @@ fun mapClassesFqNamesToFiles(
 fun isSealed(
     fqName: FqName,
     caches: Iterable<IncrementalCacheCommon>
-): Boolean = caches.any { it.isSealed(fqName) ?: false }
+): Boolean = caches.any { cache -> cache.isSealed(fqName) ?: false }
+
+/**
+ * Finds sealed supertypes of class in same module.
+ * This method should be used for processing freedomOsSealedClasses feature, because
+ * mutually declared list of sealed subclasses could be declared only in the same module.
+ */
+fun findSealedSupertypes(
+    fqName: FqName,
+    caches: Iterable<IncrementalCacheCommon>
+): Collection<FqName> {
+    if (isSealed(fqName, caches)) {
+        return listOf(fqName)
+    }
+    return caches.flatMap { cache -> cache.getSupertypesOf(fqName).filter { cache.isSealed(it) ?: false }}
+}
 
 fun withSubtypes(
     typeFqName: FqName,
diff --git a/compiler/incremental-compilation-impl/src/org/jetbrains/kotlin/incremental/classpathDiff/ClasspathChangesComputer.kt b/compiler/incremental-compilation-impl/src/org/jetbrains/kotlin/incremental/classpathDiff/ClasspathChangesComputer.kt
index b7bbfde003f..361a78744b2 100644
--- a/compiler/incremental-compilation-impl/src/org/jetbrains/kotlin/incremental/classpathDiff/ClasspathChangesComputer.kt
+++ b/compiler/incremental-compilation-impl/src/org/jetbrains/kotlin/incremental/classpathDiff/ClasspathChangesComputer.kt
@@ -281,7 +281,7 @@ object ClasspathChangesComputer {
         val unmatchedLookupSymbols = dirtyData.dirtyLookupSymbols.toMutableSet().also {
             it.removeAll(changes.lookupSymbols.toSet())
         }
-        val unmatchedFqNames = (dirtyData.dirtyClassesFqNames + dirtyData.dirtyClassesFqNamesForceRecompile).toMutableSet().also {
+        val unmatchedFqNames = (dirtyData.dirtyClassesFqNames).toMutableSet().also {
             it.removeAll(changes.fqNames.toSet())
         }