diff --git a/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt b/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt
index b1fb60ad1fe..6ac3c13bf55 100644
--- a/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/debugger/stepping/KotlinBasicStepMethodFilter.kt
@@ -19,11 +19,15 @@ package org.jetbrains.kotlin.idea.debugger.stepping
 import com.intellij.debugger.SourcePosition
 import com.intellij.debugger.engine.DebugProcessImpl
 import com.intellij.debugger.engine.NamedMethodFilter
+import com.intellij.debugger.impl.DebuggerUtilsEx
 import com.intellij.util.Range
 import com.sun.jdi.Location
 import org.jetbrains.kotlin.idea.util.application.runReadAction
 import org.jetbrains.kotlin.load.java.JvmAbi
-import org.jetbrains.kotlin.psi.*
+import org.jetbrains.kotlin.psi.KtAnonymousInitializer
+import org.jetbrains.kotlin.psi.KtConstructor
+import org.jetbrains.kotlin.psi.KtElement
+import org.jetbrains.kotlin.psi.KtPropertyAccessor
 
 class KotlinBasicStepMethodFilter(
         val resolvedElement: KtElement,
@@ -53,6 +57,8 @@ class KotlinBasicStepMethodFilter(
 
         val classes = positionManager.getAllClasses(sourcePosition)
 
-        return classes.contains(location.declaringType())
+        return classes.any {
+            it == location.declaringType() || DebuggerUtilsEx.isAssignableFrom(it.name(), location.declaringType())
+        }
     }
 }
\ No newline at end of file
diff --git a/idea/testData/debugger/tinyApp/outs/smartStepIntoSubClass.out b/idea/testData/debugger/tinyApp/outs/smartStepIntoSubClass.out
new file mode 100644
index 00000000000..1fb02f9b2ab
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/outs/smartStepIntoSubClass.out
@@ -0,0 +1,8 @@
+LineBreakpoint created at smartStepIntoSubClass.kt:7
+!JDK_HOME!\bin\java -agentlib:jdwp=transport=dt_socket,address=!HOST_NAME!:!HOST_PORT!,suspend=y,server=n -Dfile.encoding=!FILE_ENCODING! -classpath !OUTPUT_PATH!;!KOTLIN_RUNTIME!;!CUSTOM_LIBRARY!;!RT_JAR! smartStepIntoSubClass.SmartStepIntoSubClassKt
+Connected to the target VM, address: '!HOST_NAME!:PORT_NAME!', transport: 'socket'
+smartStepIntoSubClass.kt:7
+smartStepIntoSubClass.kt:18
+Disconnected from the target VM, address: '!HOST_NAME!:PORT_NAME!', transport: 'socket'
+
+Process finished with exit code 0
diff --git a/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoSubClass.kt b/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoSubClass.kt
new file mode 100644
index 00000000000..7b8f8366659
--- /dev/null
+++ b/idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoSubClass.kt
@@ -0,0 +1,20 @@
+package smartStepIntoSubClass
+
+fun main(args: Array<String>) {
+    val x: Base = Impl()
+    // SMART_STEP_INTO_BY_INDEX: 1
+    //Breakpoint!
+    x.foo(args.toString())
+}
+
+open class Base {
+    open fun foo(s: String) {
+        val a = 1
+    }
+}
+
+class Impl: Base() {
+    override fun foo(s: String) {
+        val b = 1
+    }
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
index 13c8fbc85dd..85b3e20798f 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/debugger/KotlinSteppingTestGenerated.java
@@ -619,6 +619,12 @@ public class KotlinSteppingTestGenerated extends AbstractKotlinSteppingTest {
             doCustomTest(fileName);
         }
 
+        @TestMetadata("smartStepIntoSubClass.kt")
+        public void testSmartStepIntoSubClass() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/smartStepIntoSubClass.kt");
+            doCustomTest(fileName);
+        }
+
         @TestMetadata("stepIntoStdlibInlineFun2step.kt")
         public void testStepIntoStdlibInlineFun2step() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/debugger/tinyApp/src/stepping/custom/stepIntoStdlibInlineFun2step.kt");