diff --git a/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.kt b/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.kt
index 501471682a1..7e1a8ebb0b5 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.kt
+++ b/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.kt
@@ -2,7 +2,9 @@
 package foo
 
 @JsModule("A")
-external class <!NESTED_JS_MODULE_PROHIBITED!>A<!>
+external class <!NESTED_JS_MODULE_PROHIBITED!>A<!> {
+    class Nested
+}
 
 @JsModule("B")
 external <!NESTED_JS_MODULE_PROHIBITED!>object B<!>
diff --git a/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.txt b/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.txt
index 11dee24c214..262752e9ba9 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.txt
+++ b/compiler/testData/diagnostics/testsWithJsStdLib/module/nestedProhibited.txt
@@ -10,6 +10,13 @@ package foo {
         public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
         public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
         public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+        public final class Nested {
+            public constructor Nested()
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
     }
 
     @kotlin.js.JsModule(import = "B") public external object B {
diff --git a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.kt b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.kt
index fc7ae91932c..2755a055c97 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.kt
+++ b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.kt
@@ -14,6 +14,8 @@ external object A {
 @JsModule("B")
 external open class B {
     fun foo(): Int
+
+    class Nested
 }
 
 @JsModule("bar")
@@ -37,6 +39,8 @@ fun box() {
     <!CALL_TO_JS_MODULE_WITHOUT_MODULE_SYSTEM!>B<!>()
     <!CALL_TO_JS_MODULE_WITHOUT_MODULE_SYSTEM!>bar<!>()
     <!CALL_TO_JS_MODULE_WITHOUT_MODULE_SYSTEM!>baz<!>()
+
+    B.<!CALL_TO_JS_MODULE_WITHOUT_MODULE_SYSTEM!>Nested<!>()
 }
 
 external class DerivedB : <!CALL_TO_JS_MODULE_WITHOUT_MODULE_SYSTEM!>B<!>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.txt b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.txt
index 9db3570a9f2..a776193f8de 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.txt
+++ b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToModule.txt
@@ -19,6 +19,13 @@ package foo {
         public final fun foo(): kotlin.Int
         public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
         public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+        public final class Nested {
+            public constructor Nested()
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
     }
 }
 
diff --git a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.kt b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.kt
index 355c5f32598..4a3e7f3aeb4 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.kt
+++ b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.kt
@@ -14,6 +14,8 @@ external object A {
 @JsNonModule
 external open class B {
     fun foo(): Int
+
+    class Nested
 }
 
 @JsNonModule
@@ -31,6 +33,7 @@ fun box() {
     A.<!CALL_TO_JS_NON_MODULE_WITH_MODULE_SYSTEM!>f<!>()+A.<!CALL_TO_JS_NON_MODULE_WITH_MODULE_SYSTEM!>g<!>
     <!CALL_TO_JS_NON_MODULE_WITH_MODULE_SYSTEM!>B<!>()
     <!CALL_TO_JS_NON_MODULE_WITH_MODULE_SYSTEM!>bar<!>()
+    B.<!CALL_TO_JS_NON_MODULE_WITH_MODULE_SYSTEM!>Nested<!>()
 }
 
 external class DerivedB : <!CALL_TO_JS_NON_MODULE_WITH_MODULE_SYSTEM!>B<!>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.txt b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.txt
index 697330909bc..0c451fcdb39 100644
--- a/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.txt
+++ b/compiler/testData/diagnostics/testsWithJsStdLib/module/wrongCallToNonModule.txt
@@ -30,5 +30,12 @@ package foo {
         public final fun foo(): kotlin.Int
         public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
         public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+        public final class Nested {
+            public constructor Nested()
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
     }
 }
diff --git a/js/js.frontend/src/org/jetbrains/kotlin/js/resolve/diagnostics/JsModuleChecker.kt b/js/js.frontend/src/org/jetbrains/kotlin/js/resolve/diagnostics/JsModuleChecker.kt
index de39a0025b1..1daa1106919 100644
--- a/js/js.frontend/src/org/jetbrains/kotlin/js/resolve/diagnostics/JsModuleChecker.kt
+++ b/js/js.frontend/src/org/jetbrains/kotlin/js/resolve/diagnostics/JsModuleChecker.kt
@@ -24,6 +24,7 @@ import org.jetbrains.kotlin.js.translate.utils.AnnotationsUtils
 import org.jetbrains.kotlin.psi.KtClassOrObject
 import org.jetbrains.kotlin.psi.KtDeclaration
 import org.jetbrains.kotlin.resolve.BindingContext
+import org.jetbrains.kotlin.resolve.DescriptorUtils
 import org.jetbrains.kotlin.resolve.checkers.SimpleDeclarationChecker
 import org.jetbrains.kotlin.resolve.descriptorUtil.getSuperClassNotAny
 
@@ -45,10 +46,12 @@ object JsModuleChecker : SimpleDeclarationChecker {
             diagnosticHolder.report(ErrorsJs.JS_MODULE_PROHIBITED_ON_NON_NATIVE.on(declaration))
         }
 
-        val isFileModuleOrNonModule = AnnotationsUtils.getFileModuleName(bindingContext, descriptor) != null ||
-                                      AnnotationsUtils.isFromNonModuleFile(bindingContext, descriptor)
-        if (isFileModuleOrNonModule) {
-            diagnosticHolder.report(ErrorsJs.NESTED_JS_MODULE_PROHIBITED.on(declaration))
+        if (DescriptorUtils.isTopLevelDeclaration(descriptor)) {
+            val isFileModuleOrNonModule = AnnotationsUtils.getFileModuleName(bindingContext, descriptor) != null ||
+                                          AnnotationsUtils.isFromNonModuleFile(bindingContext, descriptor)
+            if (isFileModuleOrNonModule) {
+                diagnosticHolder.report(ErrorsJs.NESTED_JS_MODULE_PROHIBITED.on(declaration))
+            }
         }
     }
 
diff --git a/js/js.translator/src/org/jetbrains/kotlin/js/translate/context/StaticContext.java b/js/js.translator/src/org/jetbrains/kotlin/js/translate/context/StaticContext.java
index 31bdeeca544..27bb5840ef5 100644
--- a/js/js.translator/src/org/jetbrains/kotlin/js/translate/context/StaticContext.java
+++ b/js/js.translator/src/org/jetbrains/kotlin/js/translate/context/StaticContext.java
@@ -279,7 +279,7 @@ public final class StaticContext {
             expression = getQualifiedExpression(suggested.getScope());
         }
 
-        if (isNativeObject(suggested.getDescriptor())) {
+        if (isNativeObject(suggested.getDescriptor()) && DescriptorUtils.isTopLevelDeclaration(suggested.getDescriptor())) {
             String fileModuleName = AnnotationsUtils.getFileModuleName(getBindingContext(), suggested.getDescriptor());
             if (fileModuleName != null) {
                 JsName moduleJsName = getImportedModule(fileModuleName, null).internalName;
diff --git a/js/js.translator/testData/box/jsModule/externalPackage.js b/js/js.translator/testData/box/jsModule/externalPackage.js
index f166d9d531e..369c328b641 100644
--- a/js/js.translator/testData/box/jsModule/externalPackage.js
+++ b/js/js.translator/testData/box/jsModule/externalPackage.js
@@ -6,6 +6,11 @@ define("lib", [], function() {
         return this.x + y;
     };
 
+    function Nested() {
+        this.y = 55;
+    }
+    A.Nested = Nested;
+
     B = {
         x: 123,
         foo: function(y) {
diff --git a/js/js.translator/testData/box/jsModule/externalPackage.kt b/js/js.translator/testData/box/jsModule/externalPackage.kt
index af67305206e..02b7f95a2e0 100644
--- a/js/js.translator/testData/box/jsModule/externalPackage.kt
+++ b/js/js.translator/testData/box/jsModule/externalPackage.kt
@@ -2,10 +2,14 @@
 @file:JsModule("lib")
 package foo
 
-external class A(@native x: Int = noImpl) {
+external class A(x: Int) {
     val x: Int
 
     fun foo(y: Int): Int = noImpl
+
+    class Nested {
+        val y: Int
+    }
 }
 
 external object B {
@@ -25,6 +29,9 @@ fun box(): String {
     assertEquals(23, a.x)
     assertEquals(65, a.foo(42))
 
+    val nested = A.Nested()
+    assertEquals(55, nested.y)
+
     assertEquals(123, B.x)
     assertEquals(265, B.foo(142))
 
diff --git a/js/js.translator/testData/box/jsModule/externalPackagePlain.js b/js/js.translator/testData/box/jsModule/externalPackagePlain.js
index 4437093dbac..4abca3beafb 100644
--- a/js/js.translator/testData/box/jsModule/externalPackagePlain.js
+++ b/js/js.translator/testData/box/jsModule/externalPackagePlain.js
@@ -6,6 +6,11 @@ var lib = function() {
         return this.x + y;
     };
 
+    function Nested() {
+        this.y = 55;
+    }
+    A.Nested = Nested;
+
     B = {
         x: 123,
         foo: function(y) {
diff --git a/js/js.translator/testData/box/jsModule/externalPackagePlain.kt b/js/js.translator/testData/box/jsModule/externalPackagePlain.kt
index c1480c5d48c..6203f715cfe 100644
--- a/js/js.translator/testData/box/jsModule/externalPackagePlain.kt
+++ b/js/js.translator/testData/box/jsModule/externalPackagePlain.kt
@@ -6,6 +6,10 @@ external class A(x: Int = noImpl) {
     val x: Int
 
     fun foo(y: Int): Int = noImpl
+
+    class Nested {
+        val y: Int
+    }
 }
 
 external object B {
@@ -25,6 +29,9 @@ fun box(): String {
     assertEquals(23, a.x)
     assertEquals(65, a.foo(42))
 
+    val nested = A.Nested()
+    assertEquals(55, nested.y)
+
     assertEquals(123, B.x)
     assertEquals(265, B.foo(142))