diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index 93fdebaa290..9acbcfdb981 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -162,6 +162,10 @@ public interface Errors {
     DiagnosticFactory0<KtParameter> REIFIED_TYPE_IN_CATCH_CLAUSE = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory0<KtParameter> TYPE_PARAMETER_IN_CATCH_CLAUSE = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory0<KtTypeParameterList> GENERIC_THROWABLE_SUBCLASS = DiagnosticFactory0.create(ERROR);
+    DiagnosticFactory0<KtClassOrObject> INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS =
+            DiagnosticFactory0.create(ERROR, DECLARATION_NAME);
+    DiagnosticFactory0<KtClassOrObject> INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING =
+            DiagnosticFactory0.create(WARNING, DECLARATION_NAME);
 
     DiagnosticFactory0<KtTypeAlias> TOPLEVEL_TYPEALIASES_ONLY = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory1<KtElement, ClassifierDescriptor> RECURSIVE_TYPEALIAS_EXPANSION = DiagnosticFactory1.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 3b82f8970ca..f9a3d1883e4 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -661,6 +661,8 @@ public class DefaultErrorMessages {
         MAP.put(REIFIED_TYPE_IN_CATCH_CLAUSE, "Reified type is forbidden for catch parameter");
         MAP.put(TYPE_PARAMETER_IN_CATCH_CLAUSE, "Type parameter is forbidden for catch parameter");
         MAP.put(GENERIC_THROWABLE_SUBCLASS, "Subclass of 'Throwable' may not have type parameters");
+        MAP.put(INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS, "Inner class of generic class extending 'Throwable' is prohibited");
+        MAP.put(INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING, "Inner class of generic class extending 'Throwable' is deprecated");
 
         MAP.put(TYPE_MISMATCH_IN_FOR_LOOP, "The loop iterates over values of type {0} but the parameter is declared to be {1}", RENDER_TYPE,
                 RENDER_TYPE);
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java
index 93696ab7927..d01f464d38b 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java
@@ -542,10 +542,21 @@ public class BodyResolver {
                         trace.report(DATA_CLASS_CANNOT_HAVE_CLASS_SUPERTYPES.on(typeReference));
                         addSupertype = false;
                     }
-                    else if (DescriptorUtils.isSubclass(classDescriptor, builtIns.getThrowable()) &&
-                             !supertypeOwner.getDeclaredTypeParameters().isEmpty()) {
-                        trace.report(GENERIC_THROWABLE_SUBCLASS.on(ktClassOrObject.getTypeParameterList()));
-                        addSupertype = false;
+                    else if (DescriptorUtils.isSubclass(classDescriptor, builtIns.getThrowable())) {
+                        if (!supertypeOwner.getDeclaredTypeParameters().isEmpty()) {
+                            trace.report(GENERIC_THROWABLE_SUBCLASS.on(ktClassOrObject.getTypeParameterList()));
+                            addSupertype = false;
+                        }
+                        else if (!supertypeOwner.getTypeConstructor().getParameters().isEmpty()) {
+                            if (languageVersionSettings
+                                    .supportsFeature(LanguageFeature.ProhibitInnerClassesOfGenericClassExtendingThrowable)) {
+                                trace.report(INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS.on(ktClassOrObject));
+                                addSupertype = false;
+                            }
+                            else {
+                                trace.report(INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING.on(ktClassOrObject));
+                            }
+                        }
                     }
 
                     if (classAppeared) {
diff --git a/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.kt b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.kt
new file mode 100644
index 00000000000..233dbb70cb3
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.kt
@@ -0,0 +1,40 @@
+// !LANGUAGE: +ProhibitInnerClassesOfGenericClassExtendingThrowable
+// !DIAGNOSTICS: -UNUSED_VARIABLE
+
+class OuterGeneric<T> {
+    inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class ErrorInnerExn<!> : Exception()
+
+    inner class InnerA {
+        inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class ErrorInnerExn2<!> : Exception()
+    }
+
+    class OkNestedExn : Exception()
+
+    val errorAnonymousObjectExn = <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>object<!> : Exception() {}
+
+    fun foo() {
+        <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class OkLocalExn<!> : Exception()
+
+        val errorAnonymousObjectExn = <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>object<!> : Exception() {}
+    }
+
+    fun <X> genericFoo() {
+        <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class OkLocalExn<!> : Exception()
+
+        class LocalGeneric<Y> {
+            inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class ErrorInnerExnOfLocalGeneric<!> : Exception()
+        }
+    }
+}
+
+class Outer {
+    inner class InnerGeneric<T> {
+        inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class ErrorInnerExn<!> : Exception()
+    }
+}
+
+fun <T> genericFoo() {
+    <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class ErrorLocalExnInGenericFun<!> : Exception()
+
+    val errorkAnonymousObjectExnInGenericFun = <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>object<!> : Exception() {}
+}
diff --git a/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.txt b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.txt
new file mode 100644
index 00000000000..7f61b416c9b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.txt
@@ -0,0 +1,110 @@
+package
+
+public fun </*0*/ T> genericFoo(): kotlin.Unit
+
+public final class Outer {
+    public constructor Outer()
+    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 inner class InnerGeneric</*0*/ T> {
+        public constructor InnerGeneric</*0*/ T>()
+        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 inner class ErrorInnerExn /*captured type parameters: /*0*/ T*/ : kotlin.Exception /* = java.lang.Exception */ {
+            public constructor ErrorInnerExn()
+            public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+            public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+            public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+            public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+            public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+    }
+}
+
+public final class OuterGeneric</*0*/ T> {
+    public constructor OuterGeneric</*0*/ T>()
+    public final val errorAnonymousObjectExn: kotlin.Exception /* = java.lang.Exception */
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final fun foo(): kotlin.Unit
+    public final fun </*0*/ X> genericFoo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final inner class ErrorInnerExn /*captured type parameters: /*0*/ T*/ : kotlin.Exception /* = java.lang.Exception */ {
+        public constructor ErrorInnerExn()
+        public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+        public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+        public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+        public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+        public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+
+    public final inner class InnerA /*captured type parameters: /*0*/ T*/ {
+        public constructor InnerA()
+        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 inner class ErrorInnerExn2 /*captured type parameters: /*0*/ T*/ : kotlin.Exception /* = java.lang.Exception */ {
+            public constructor ErrorInnerExn2()
+            public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+            public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+            public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+            public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+            public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+    }
+
+    public final class OkNestedExn : kotlin.Exception /* = java.lang.Exception */ {
+        public constructor OkNestedExn()
+        public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+        public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+        public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+        public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+        public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.kt b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.kt
new file mode 100644
index 00000000000..5d9386ed0f2
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.kt
@@ -0,0 +1,40 @@
+// !LANGUAGE: -ProhibitInnerClassesOfGenericClassExtendingThrowable
+// !DIAGNOSTICS: -UNUSED_VARIABLE
+
+class OuterGeneric<T> {
+    inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class ErrorInnerExn<!> : Exception()
+
+    inner class InnerA {
+        inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class ErrorInnerExn2<!> : Exception()
+    }
+
+    class OkNestedExn : Exception()
+
+    val errorAnonymousObjectExn = <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>object<!> : Exception() {}
+
+    fun foo() {
+        <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class OkLocalExn<!> : Exception()
+
+        val errorAnonymousObjectExn = <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>object<!> : Exception() {}
+    }
+
+    fun <X> genericFoo() {
+        <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class OkLocalExn<!> : Exception()
+
+        class LocalGeneric<Y> {
+            inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class ErrorInnerExnOfLocalGeneric<!> : Exception()
+        }
+    }
+}
+
+class Outer {
+    inner class InnerGeneric<T> {
+        inner <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class ErrorInnerExn<!> : Exception()
+    }
+}
+
+fun <T> genericFoo() {
+    <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>class ErrorLocalExnInGenericFun<!> : Exception()
+
+    val errorkAnonymousObjectExnInGenericFun = <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS_WARNING!>object<!> : Exception() {}
+}
diff --git a/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.txt b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.txt
new file mode 100644
index 00000000000..7f61b416c9b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.txt
@@ -0,0 +1,110 @@
+package
+
+public fun </*0*/ T> genericFoo(): kotlin.Unit
+
+public final class Outer {
+    public constructor Outer()
+    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 inner class InnerGeneric</*0*/ T> {
+        public constructor InnerGeneric</*0*/ T>()
+        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 inner class ErrorInnerExn /*captured type parameters: /*0*/ T*/ : kotlin.Exception /* = java.lang.Exception */ {
+            public constructor ErrorInnerExn()
+            public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+            public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+            public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+            public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+            public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+    }
+}
+
+public final class OuterGeneric</*0*/ T> {
+    public constructor OuterGeneric</*0*/ T>()
+    public final val errorAnonymousObjectExn: kotlin.Exception /* = java.lang.Exception */
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final fun foo(): kotlin.Unit
+    public final fun </*0*/ X> genericFoo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final inner class ErrorInnerExn /*captured type parameters: /*0*/ T*/ : kotlin.Exception /* = java.lang.Exception */ {
+        public constructor ErrorInnerExn()
+        public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+        public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+        public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+        public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+        public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+
+    public final inner class InnerA /*captured type parameters: /*0*/ T*/ {
+        public constructor InnerA()
+        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 inner class ErrorInnerExn2 /*captured type parameters: /*0*/ T*/ : kotlin.Exception /* = java.lang.Exception */ {
+            public constructor ErrorInnerExn2()
+            public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+            public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+            public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+            public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+            public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+    }
+
+    public final class OkNestedExn : kotlin.Exception /* = java.lang.Exception */ {
+        public constructor OkNestedExn()
+        public open override /*1*/ /*fake_override*/ val cause: kotlin.Throwable?
+        public open override /*1*/ /*fake_override*/ val message: kotlin.String?
+        public final override /*1*/ /*fake_override*/ fun addSuppressed(/*0*/ exception: kotlin.Throwable!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun fillInStackTrace(): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun getLocalizedMessage(): kotlin.String!
+        public open override /*1*/ /*fake_override*/ fun getStackTrace(): kotlin.Array<(out) java.lang.StackTraceElement!>!
+        public final override /*1*/ /*fake_override*/ fun getSuppressed(): kotlin.Array<(out) kotlin.Throwable!>!
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun initCause(/*0*/ cause: kotlin.Throwable!): kotlin.Throwable!
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintStream!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun printStackTrace(/*0*/ s: java.io.PrintWriter!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun setStackTrace(/*0*/ stackTrace: kotlin.Array<(out) java.lang.StackTraceElement!>!): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.kt b/compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.kt
new file mode 100644
index 00000000000..2663318fe40
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.kt
@@ -0,0 +1,27 @@
+// !LANGUAGE: +ProhibitInnerClassesOfGenericClassExtendingThrowable
+package test
+
+var global: Throwable? = null
+
+fun <T> foo(x: Throwable, z: T, b: (T) -> Unit) {
+    <!INNER_CLASS_OF_GENERIC_THROWABLE_SUBCLASS!>class A<!>(val y : T) : Exception()
+
+    try {
+        throw x
+    } catch (a: A) {
+        b(a.y)
+    } catch (e: Throwable) {
+        global = A(z)
+    }
+}
+
+fun main(args: Array<String>) {
+    foo(RuntimeException(), 1) { throw IllegalStateException() }
+    foo(global!!, "") { it.length } // (*)
+}
+
+// (*):
+//Exception in thread "main" java.lang.ClassCastException: java.lang.Integer cannot be cast to java.lang.String
+//  at test.TestKt$main$2.invoke(test.kt)
+//  at test.TestKt.foo(test.kt:12)
+//  at test.TestKt.main(test.kt:21)
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.txt b/compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.txt
new file mode 100644
index 00000000000..3fd82f3d0b2
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.txt
@@ -0,0 +1,7 @@
+package
+
+package test {
+    public var global: kotlin.Throwable?
+    public fun </*0*/ T> foo(/*0*/ x: kotlin.Throwable, /*1*/ z: T, /*2*/ b: (T) -> kotlin.Unit): kotlin.Unit
+    public fun main(/*0*/ args: kotlin.Array<kotlin.String>): kotlin.Unit
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index c85c0289ea4..d6c90d80df9 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -4498,12 +4498,30 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("catchInnerClassesOfGenerics.kt")
+            public void testCatchInnerClassesOfGenerics() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("catchInnerClassesOfGenerics_deprecation.kt")
+            public void testCatchInnerClassesOfGenerics_deprecation() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("catchWithDefault.kt")
             public void testCatchWithDefault() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchWithDefault.kt");
                 doTest(fileName);
             }
 
+            @TestMetadata("catchingLocalClassesCapturingTypeParameters.kt")
+            public void testCatchingLocalClassesCapturingTypeParameters() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("commonSupertypeOfT.kt")
             public void testCommonSupertypeOfT() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/commonSupertypeOfT.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 77099caf3b9..b270b0718dd 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -4498,12 +4498,30 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 doTest(fileName);
             }
 
+            @TestMetadata("catchInnerClassesOfGenerics.kt")
+            public void testCatchInnerClassesOfGenerics() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("catchInnerClassesOfGenerics_deprecation.kt")
+            public void testCatchInnerClassesOfGenerics_deprecation() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchInnerClassesOfGenerics_deprecation.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("catchWithDefault.kt")
             public void testCatchWithDefault() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchWithDefault.kt");
                 doTest(fileName);
             }
 
+            @TestMetadata("catchingLocalClassesCapturingTypeParameters.kt")
+            public void testCatchingLocalClassesCapturingTypeParameters() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/catchingLocalClassesCapturingTypeParameters.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("commonSupertypeOfT.kt")
             public void testCommonSupertypeOfT() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/controlStructures/commonSupertypeOfT.kt");
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index b47eb17ac67..f859963276a 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -69,6 +69,7 @@ enum class LanguageFeature(
     NestedClassesInEnumEntryShouldBeInner(KOTLIN_1_3),
     ProhibitDataClassesOverridingCopy(KOTLIN_1_3),
     RestrictionOfWrongAnnotationsWithUseSiteTargetsOnTypes(KOTLIN_1_3),
+    ProhibitInnerClassesOfGenericClassExtendingThrowable(KOTLIN_1_3),
 
     // Experimental features