diff --git a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt
index 69a9082dbee..5a9d07249d7 100644
--- a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt
+++ b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/converter/DeclarationsConverter.kt
@@ -397,7 +397,7 @@ class DeclarationsConverter(
             withCapturedTypeParameters {
                 val status = FirDeclarationStatusImpl(
                     if (isLocal) Visibilities.Local else modifiers.getVisibility(),
-                    modifiers.getModality()
+                    modifiers.getModality(isClassOrObject = true)
                 ).apply {
                     isExpect = modifiers.hasExpect()
                     isActual = modifiers.hasActual()
@@ -1070,7 +1070,7 @@ class DeclarationsConverter(
 
                     fun defaultAccessorStatus() =
                         // Downward propagation of `inline` and `external` modifiers (from property to its accessors)
-                        FirDeclarationStatusImpl(propertyVisibility, modifiers.getModality()).apply {
+                        FirDeclarationStatusImpl(propertyVisibility, modifiers.getModality(isClassOrObject = false)).apply {
                             isInline = modifiers.hasInline()
                             isExternal = modifiers.hasExternal()
                         }
@@ -1097,7 +1097,7 @@ class DeclarationsConverter(
                     // Upward propagation of `inline` and `external` modifiers (from accessors to property)
                     // Note that, depending on `var` or `val`, checking setter's modifiers should be careful: for `val`, setter doesn't
                     // exist (null); for `var`, the retrieval of the specific modifier is supposed to be `true`
-                    status = FirDeclarationStatusImpl(propertyVisibility, modifiers.getModality()).apply {
+                    status = FirDeclarationStatusImpl(propertyVisibility, modifiers.getModality(isClassOrObject = false)).apply {
                         isExpect = modifiers.hasExpect() || classWrapper?.hasExpect() == true
                         isActual = modifiers.hasActual()
                         isOverride = modifiers.hasOverride()
@@ -1218,7 +1218,7 @@ class DeclarationsConverter(
         }
         val status =
             // Downward propagation of `inline` and `external` modifiers (from property to its accessors)
-            FirDeclarationStatusImpl(accessorVisibility, modifiers.getModality()).apply {
+            FirDeclarationStatusImpl(accessorVisibility, modifiers.getModality(isClassOrObject = false)).apply {
                 isInline = propertyModifiers.hasInline() || modifiers.hasInline()
                 isExternal = propertyModifiers.hasExternal() || modifiers.hasExternal()
             }
@@ -1388,7 +1388,7 @@ class DeclarationsConverter(
                 name = functionName
                 status = FirDeclarationStatusImpl(
                     if (isLocal) Visibilities.Local else modifiers.getVisibility(),
-                    modifiers.getModality()
+                    modifiers.getModality(isClassOrObject = false)
                 ).apply {
                     isExpect = modifiers.hasExpect() || classWrapper?.hasExpect() == true
                     isActual = modifiers.hasActual()
diff --git a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/ValueParameter.kt b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/ValueParameter.kt
index 32e42a8d68f..a609f5da606 100644
--- a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/ValueParameter.kt
+++ b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/ValueParameter.kt
@@ -66,7 +66,7 @@ class ValueParameter(
             symbol = FirPropertySymbol(callableId)
             dispatchReceiverType = currentDispatchReceiver
             isLocal = false
-            status = FirDeclarationStatusImpl(modifiers.getVisibility(), modifiers.getModality()).apply {
+            status = FirDeclarationStatusImpl(modifiers.getVisibility(), modifiers.getModality(isClassOrObject = false)).apply {
                 this.isExpect = isExpect
                 isActual = modifiers.hasActual()
                 isOverride = modifiers.hasOverride()
diff --git a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/modifier/Modifier.kt b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/modifier/Modifier.kt
index a2c883a32c2..24ae47162ec 100644
--- a/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/modifier/Modifier.kt
+++ b/compiler/fir/raw-fir/light-tree2fir/src/org/jetbrains/kotlin/fir/lightTree/fir/modifier/Modifier.kt
@@ -146,10 +146,10 @@ class Modifier(
         }
     }
 
-    fun getModality(): Modality? {
+    fun getModality(isClassOrObject: Boolean): Modality? {
         return when {
             inheritanceModifiers.contains(InheritanceModifier.FINAL) -> Modality.FINAL
-            inheritanceModifiers.contains(InheritanceModifier.SEALED) -> Modality.SEALED
+            inheritanceModifiers.contains(InheritanceModifier.SEALED) -> if (isClassOrObject) Modality.SEALED else null
             inheritanceModifiers.contains(InheritanceModifier.ABSTRACT) -> Modality.ABSTRACT
             inheritanceModifiers.contains(InheritanceModifier.OPEN) -> Modality.OPEN
             else -> null
diff --git a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
index 3594f8185bd..7feba2f2b9f 100644
--- a/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
+++ b/compiler/fir/raw-fir/psi2fir/src/org/jetbrains/kotlin/fir/builder/RawFirBuilder.kt
@@ -148,7 +148,7 @@ open class RawFirBuilder(
             when {
                 this == null -> null
                 hasModifier(FINAL_KEYWORD) -> Modality.FINAL
-                hasModifier(SEALED_KEYWORD) -> Modality.SEALED
+                hasModifier(SEALED_KEYWORD) -> if (this@modality is KtClassOrObject) Modality.SEALED else null
                 hasModifier(ABSTRACT_KEYWORD) -> Modality.ABSTRACT
                 else -> if (hasModifier(OPEN_KEYWORD)) Modality.OPEN else null
             }
diff --git a/compiler/testData/diagnostics/tests/declarationChecks/sealedOnMembers.fir.kt b/compiler/testData/diagnostics/tests/declarationChecks/sealedOnMembers.fir.kt
index c9061508727..fd7e97ebe76 100644
--- a/compiler/testData/diagnostics/tests/declarationChecks/sealedOnMembers.fir.kt
+++ b/compiler/testData/diagnostics/tests/declarationChecks/sealedOnMembers.fir.kt
@@ -8,7 +8,7 @@ interface B {
     abstract var bar: Unit
 }
 
-<!MANY_INTERFACES_MEMBER_NOT_IMPLEMENTED!>interface C<!> : A, B
+interface C : A, B
 
 abstract class D(sealed var x: Int) {
     abstract var y: Unit