diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/constants/evaluate/ConstantExpressionEvaluator.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/constants/evaluate/ConstantExpressionEvaluator.kt
index 0e1721dc905..a0e0458004d 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/constants/evaluate/ConstantExpressionEvaluator.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/constants/evaluate/ConstantExpressionEvaluator.kt
@@ -19,7 +19,6 @@ package org.jetbrains.kotlin.resolve.constants.evaluate
 import com.intellij.psi.tree.IElementType
 import com.intellij.psi.util.PsiTreeUtil
 import com.intellij.util.text.LiteralFormatUtil
-import org.jetbrains.kotlin.KtNodeType
 import org.jetbrains.kotlin.KtNodeTypes
 import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.descriptors.*
@@ -37,6 +36,7 @@ import org.jetbrains.kotlin.resolve.constants.*
 import org.jetbrains.kotlin.types.KotlinType
 import org.jetbrains.kotlin.types.TypeUtils
 import org.jetbrains.kotlin.types.checker.KotlinTypeChecker
+import org.jetbrains.kotlin.types.expressions.DoubleColonLHS
 import org.jetbrains.kotlin.types.expressions.OperatorConventions
 import org.jetbrains.kotlin.types.typeUtil.isSubtypeOf
 import org.jetbrains.kotlin.util.OperatorNameConventions
@@ -131,6 +131,17 @@ class ConstantExpressionEvaluator(
             if (constant.usesNonConstValAsConstant) {
                 trace.report(Errors.NON_CONST_VAL_USED_IN_CONSTANT_EXPRESSION.on(argumentExpression))
             }
+
+            if (argumentExpression is KtClassLiteralExpression) {
+                val lhsExpression = argumentExpression.receiverExpression
+                if (lhsExpression != null) {
+                    val doubleColonLhs = trace.bindingContext.get(BindingContext.DOUBLE_COLON_LHS, lhsExpression)
+                    if (doubleColonLhs is DoubleColonLHS.Expression && !doubleColonLhs.isObject) {
+                        trace.report(Errors.ANNOTATION_PARAMETER_MUST_BE_KCLASS_LITERAL.on(argumentExpression))
+                    }
+                }
+            }
+
             return
         }
 
diff --git a/compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.kt b/compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.kt
new file mode 100644
index 00000000000..cab2cbcc224
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.kt
@@ -0,0 +1,35 @@
+// WITH_REFLECT
+
+import kotlin.reflect.KClass
+
+annotation class Ann(val k: KClass<*>)
+annotation class AnnArray(val kk: Array<KClass<*>>)
+
+object AnObject
+
+class C {
+    companion object
+}
+
+fun foo() = "foo"
+
+@Ann(<!ANNOTATION_PARAMETER_MUST_BE_KCLASS_LITERAL!>"foo"::class<!>)
+fun test1() {}
+
+@Ann(String::class)
+fun test2() {}
+
+@Ann(AnObject::class)
+fun test4() {}
+
+@Ann(C::class)
+fun test5() {}
+
+@Ann(C.Companion::class)
+fun test6() {}
+
+@Ann(<!ANNOTATION_PARAMETER_MUST_BE_KCLASS_LITERAL!>foo()::class<!>)
+fun test7() {}
+
+@AnnArray(arrayOf(<!ANNOTATION_PARAMETER_MUST_BE_KCLASS_LITERAL!>""::class<!>, String::class, AnObject::class))
+fun test8() {}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.txt b/compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.txt
new file mode 100644
index 00000000000..44d2697e1c3
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.txt
@@ -0,0 +1,47 @@
+package
+
+public fun foo(): kotlin.String
+@Ann(k = kotlin.String::class) public fun test1(): kotlin.Unit
+@Ann(k = kotlin.String::class) public fun test2(): kotlin.Unit
+@Ann(k = AnObject::class) public fun test4(): kotlin.Unit
+@Ann(k = C::class) public fun test5(): kotlin.Unit
+@Ann(k = C.Companion::class) public fun test6(): kotlin.Unit
+@Ann(k = kotlin.String::class) public fun test7(): kotlin.Unit
+@AnnArray(kk = {kotlin.String::class, kotlin.String::class, AnObject::class}) public fun test8(): kotlin.Unit
+
+public object AnObject {
+    private constructor AnObject()
+    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 annotation class Ann : kotlin.Annotation {
+    public constructor Ann(/*0*/ k: kotlin.reflect.KClass<*>)
+    public final val k: kotlin.reflect.KClass<*>
+    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 annotation class AnnArray : kotlin.Annotation {
+    public constructor AnnArray(/*0*/ kk: kotlin.Array<kotlin.reflect.KClass<*>>)
+    public final val kk: kotlin.Array<kotlin.reflect.KClass<*>>
+    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 C {
+    public constructor C()
+    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 companion object Companion {
+        private constructor Companion()
+        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/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 0cb352da6fa..e1f74185ec5 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -2992,6 +2992,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("inAnnotationArguments.kt")
+            public void testInAnnotationArguments() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/classLiteral/inAnnotationArguments.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("integerValueType.kt")
             public void testIntegerValueType() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/classLiteral/integerValueType.kt");