diff --git a/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/evaluate/IrConstTransformer.kt b/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/evaluate/IrConstTransformer.kt
index 03411984be8..3d9bfa41112 100644
--- a/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/evaluate/IrConstTransformer.kt
+++ b/compiler/fir/fir2ir/src/org/jetbrains/kotlin/fir/backend/evaluate/IrConstTransformer.kt
@@ -61,12 +61,16 @@ class IrConstTransformer(irBuiltIns: IrBuiltIns) : IrElementTransformerVoid() {
 
     private fun transformAnnotations(annotationContainer: IrAnnotationContainer) {
         annotationContainer.annotations.forEach { annotation ->
-            for (i in 0 until annotation.valueArgumentsCount) {
-                val arg = annotation.getValueArgument(i) ?: continue
-                when (arg) {
-                    is IrVararg -> annotation.putValueArgument(i, arg.transformVarArg())
-                    else -> annotation.putValueArgument(i, arg.transformSingleArg(annotation.symbol.owner.valueParameters[i].type))
-                }
+            transformAnnotation(annotation)
+        }
+    }
+
+    private fun transformAnnotation(annotation: IrConstructorCall) {
+        for (i in 0 until annotation.valueArgumentsCount) {
+            val arg = annotation.getValueArgument(i) ?: continue
+            when (arg) {
+                is IrVararg -> annotation.putValueArgument(i, arg.transformVarArg())
+                else -> annotation.putValueArgument(i, arg.transformSingleArg(annotation.symbol.owner.valueParameters[i].type))
             }
         }
     }
@@ -92,6 +96,8 @@ class IrConstTransformer(irBuiltIns: IrBuiltIns) : IrElementTransformerVoid() {
         if (this.accept(IrCompileTimeChecker(mode = EvaluationMode.ONLY_BUILTINS), null)) {
             val const = interpreter.interpret(this).replaceIfError(this)
             return const.convertToConstIfPossible(expectedType)
+        } else if (this is IrConstructorCall) {
+            transformAnnotation(this)
         }
         return this
     }
diff --git a/compiler/fir/fir2ir/tests/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java b/compiler/fir/fir2ir/tests/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java
index 7248524446e..f226f6c6345 100644
--- a/compiler/fir/fir2ir/tests/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java
+++ b/compiler/fir/fir2ir/tests/org/jetbrains/kotlin/fir/Fir2IrTextTestGenerated.java
@@ -1717,6 +1717,11 @@ public class Fir2IrTextTestGenerated extends AbstractFir2IrTextTest {
             KotlinTestUtils.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/testData/ir/irText/firProblems"), Pattern.compile("^(.+)\\.kt$"), null, true);
         }
 
+        @TestMetadata("AnnotationInAnnotation.kt")
+        public void testAnnotationInAnnotation() throws Exception {
+            runTest("compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.kt");
+        }
+
         @TestMetadata("candidateSymbol.kt")
         public void testCandidateSymbol() throws Exception {
             runTest("compiler/testData/ir/irText/firProblems/candidateSymbol.kt");
diff --git a/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.fir.txt b/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.fir.txt
new file mode 100644
index 00000000000..5ee804ae50d
--- /dev/null
+++ b/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.fir.txt
@@ -0,0 +1,90 @@
+FILE fqName:<root> fileName:/AnnotationInAnnotation.kt
+  CLASS ANNOTATION_CLASS name:Storage modality:FINAL visibility:public superTypes:[kotlin.Annotation]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Storage
+    CONSTRUCTOR visibility:public <> (value:kotlin.String) returnType:<root>.Storage [primary]
+      VALUE_PARAMETER name:value index:0 type:kotlin.String
+    PROPERTY name:value visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:value type:kotlin.String visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'value: kotlin.String declared in <root>.Storage.<init>' type=kotlin.String origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-value> visibility:public modality:FINAL <> ($this:<root>.Storage) returnType:kotlin.String
+        correspondingProperty: PROPERTY name:value visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.Storage
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-value> (): kotlin.String declared in <root>.Storage'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:value type:kotlin.String visibility:private [final]' type=kotlin.String origin=null
+              receiver: GET_VAR '<this>: <root>.Storage declared in <root>.Storage.<get-value>' type=<root>.Storage origin=null
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  CLASS ANNOTATION_CLASS name:State modality:FINAL visibility:public superTypes:[kotlin.Annotation]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.State
+    CONSTRUCTOR visibility:public <> (name:kotlin.String, storages:kotlin.Array<<root>.Storage>) returnType:<root>.State [primary]
+      VALUE_PARAMETER name:name index:0 type:kotlin.String
+      VALUE_PARAMETER name:storages index:1 type:kotlin.Array<<root>.Storage>
+    PROPERTY name:name visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:name type:kotlin.String visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'name: kotlin.String declared in <root>.State.<init>' type=kotlin.String origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-name> visibility:public modality:FINAL <> ($this:<root>.State) returnType:kotlin.String
+        correspondingProperty: PROPERTY name:name visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.State
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-name> (): kotlin.String declared in <root>.State'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:name type:kotlin.String visibility:private [final]' type=kotlin.String origin=null
+              receiver: GET_VAR '<this>: <root>.State declared in <root>.State.<get-name>' type=<root>.State origin=null
+    PROPERTY name:storages visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:storages type:kotlin.Array<<root>.Storage> visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'storages: kotlin.Array<<root>.Storage> declared in <root>.State.<init>' type=kotlin.Array<<root>.Storage> origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-storages> visibility:public modality:FINAL <> ($this:<root>.State) returnType:kotlin.Array<<root>.Storage>
+        correspondingProperty: PROPERTY name:storages visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.State
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-storages> (): kotlin.Array<<root>.Storage> declared in <root>.State'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:storages type:kotlin.Array<<root>.Storage> visibility:private [final]' type=kotlin.Array<<root>.Storage> origin=null
+              receiver: GET_VAR '<this>: <root>.State declared in <root>.State.<get-storages>' type=<root>.State origin=null
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  CLASS CLASS name:Test modality:FINAL visibility:public superTypes:[kotlin.Any]
+    annotations:
+      State(name = '1', storages = [Storage(value = 'HELLO')])
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Test
+    CONSTRUCTOR visibility:public <> () returnType:<root>.Test [primary]
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () [primary] declared in kotlin.Any'
+        INSTANCE_INITIALIZER_CALL classDescriptor='CLASS CLASS name:Test modality:FINAL visibility:public superTypes:[kotlin.Any]'
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
diff --git a/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.kt b/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.kt
new file mode 100644
index 00000000000..c7b07c1b040
--- /dev/null
+++ b/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.kt
@@ -0,0 +1,17 @@
+// FILE: Some.java
+
+public class Some {
+    public static final String HELLO = "HELLO";
+}
+
+// FILE: AnnotationInAnnotation.kt
+
+annotation class Storage(val value: String)
+
+annotation class State(val name: String, val storages: Array<Storage>)
+
+@State(
+    name = "1",
+    storages = [Storage(value = Some.HELLO)]
+)
+class Test
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.txt b/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.txt
new file mode 100644
index 00000000000..171c725e01f
--- /dev/null
+++ b/compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.txt
@@ -0,0 +1,90 @@
+FILE fqName:<root> fileName:/AnnotationInAnnotation.kt
+  CLASS ANNOTATION_CLASS name:Storage modality:FINAL visibility:public superTypes:[kotlin.Annotation]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Storage
+    CONSTRUCTOR visibility:public <> (value:kotlin.String) returnType:<root>.Storage [primary]
+      VALUE_PARAMETER name:value index:0 type:kotlin.String
+    PROPERTY name:value visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:value type:kotlin.String visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'value: kotlin.String declared in <root>.Storage.<init>' type=kotlin.String origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-value> visibility:public modality:FINAL <> ($this:<root>.Storage) returnType:kotlin.String
+        correspondingProperty: PROPERTY name:value visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.Storage
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-value> (): kotlin.String declared in <root>.Storage'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:value type:kotlin.String visibility:private [final]' type=kotlin.String origin=null
+              receiver: GET_VAR '<this>: <root>.Storage declared in <root>.Storage.<get-value>' type=<root>.Storage origin=null
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [fake_override,operator] declared in kotlin.Annotation
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int [fake_override] declared in kotlin.Annotation
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String [fake_override] declared in kotlin.Annotation
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  CLASS ANNOTATION_CLASS name:State modality:FINAL visibility:public superTypes:[kotlin.Annotation]
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.State
+    CONSTRUCTOR visibility:public <> (name:kotlin.String, storages:kotlin.Array<<root>.Storage>) returnType:<root>.State [primary]
+      VALUE_PARAMETER name:name index:0 type:kotlin.String
+      VALUE_PARAMETER name:storages index:1 type:kotlin.Array<<root>.Storage>
+    PROPERTY name:name visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:name type:kotlin.String visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'name: kotlin.String declared in <root>.State.<init>' type=kotlin.String origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-name> visibility:public modality:FINAL <> ($this:<root>.State) returnType:kotlin.String
+        correspondingProperty: PROPERTY name:name visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.State
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-name> (): kotlin.String declared in <root>.State'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:name type:kotlin.String visibility:private [final]' type=kotlin.String origin=null
+              receiver: GET_VAR '<this>: <root>.State declared in <root>.State.<get-name>' type=<root>.State origin=null
+    PROPERTY name:storages visibility:public modality:FINAL [val]
+      FIELD PROPERTY_BACKING_FIELD name:storages type:kotlin.Array<<root>.Storage> visibility:private [final]
+        EXPRESSION_BODY
+          GET_VAR 'storages: kotlin.Array<<root>.Storage> declared in <root>.State.<init>' type=kotlin.Array<<root>.Storage> origin=INITIALIZE_PROPERTY_FROM_PARAMETER
+      FUN DEFAULT_PROPERTY_ACCESSOR name:<get-storages> visibility:public modality:FINAL <> ($this:<root>.State) returnType:kotlin.Array<<root>.Storage>
+        correspondingProperty: PROPERTY name:storages visibility:public modality:FINAL [val]
+        $this: VALUE_PARAMETER name:<this> type:<root>.State
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='public final fun <get-storages> (): kotlin.Array<<root>.Storage> declared in <root>.State'
+            GET_FIELD 'FIELD PROPERTY_BACKING_FIELD name:storages type:kotlin.Array<<root>.Storage> visibility:private [final]' type=kotlin.Array<<root>.Storage> origin=null
+              receiver: GET_VAR '<this>: <root>.State declared in <root>.State.<get-storages>' type=<root>.State origin=null
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [fake_override,operator] declared in kotlin.Annotation
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int [fake_override] declared in kotlin.Annotation
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String [fake_override] declared in kotlin.Annotation
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+  CLASS CLASS name:Test modality:FINAL visibility:public superTypes:[kotlin.Any]
+    annotations:
+      State(name = '1', storages = [Storage(value = 'HELLO')])
+    $this: VALUE_PARAMETER INSTANCE_RECEIVER name:<this> type:<root>.Test
+    CONSTRUCTOR visibility:public <> () returnType:<root>.Test [primary]
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'public constructor <init> () [primary] declared in kotlin.Any'
+        INSTANCE_INITIALIZER_CALL classDescriptor='CLASS CLASS name:Test modality:FINAL visibility:public superTypes:[kotlin.Any]'
+    FUN FAKE_OVERRIDE name:equals visibility:public modality:OPEN <> ($this:kotlin.Any, other:kotlin.Any?) returnType:kotlin.Boolean [fake_override,operator]
+      overridden:
+        public open fun equals (other: kotlin.Any?): kotlin.Boolean [operator] declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+      VALUE_PARAMETER name:other index:0 type:kotlin.Any?
+    FUN FAKE_OVERRIDE name:hashCode visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.Int [fake_override]
+      overridden:
+        public open fun hashCode (): kotlin.Int declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
+    FUN FAKE_OVERRIDE name:toString visibility:public modality:OPEN <> ($this:kotlin.Any) returnType:kotlin.String [fake_override]
+      overridden:
+        public open fun toString (): kotlin.String declared in kotlin.Any
+      $this: VALUE_PARAMETER name:<this> type:kotlin.Any
diff --git a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
index 9a29d5dd9d8..4e7e08e9157 100644
--- a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
@@ -1716,6 +1716,11 @@ public class IrTextTestCaseGenerated extends AbstractIrTextTestCase {
             KotlinTestUtils.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/testData/ir/irText/firProblems"), Pattern.compile("^(.+)\\.kt$"), null, true);
         }
 
+        @TestMetadata("AnnotationInAnnotation.kt")
+        public void testAnnotationInAnnotation() throws Exception {
+            runTest("compiler/testData/ir/irText/firProblems/AnnotationInAnnotation.kt");
+        }
+
         @TestMetadata("candidateSymbol.kt")
         public void testCandidateSymbol() throws Exception {
             runTest("compiler/testData/ir/irText/firProblems/candidateSymbol.kt");