diff --git a/compiler/frontend/src/org/jetbrains/jet/renderer/DescriptorRendererImpl.java b/compiler/frontend/src/org/jetbrains/jet/renderer/DescriptorRendererImpl.java
index df8cc4dd729..cded1a64f01 100644
--- a/compiler/frontend/src/org/jetbrains/jet/renderer/DescriptorRendererImpl.java
+++ b/compiler/frontend/src/org/jetbrains/jet/renderer/DescriptorRendererImpl.java
@@ -325,6 +325,13 @@ public class DescriptorRendererImpl implements DescriptorRenderer {
         builder.append(renderKeyword(keyword)).append(" ");
     }
 
+    private void renderInner(boolean isInner, @NotNull StringBuilder builder) {
+        if (!modifiers) return;
+        if (isInner) {
+            builder.append(renderKeyword("inner")).append(" ");
+        }
+    }
+
     private void renderModalityForCallable(@NotNull CallableMemberDescriptor callable, @NotNull StringBuilder builder) {
         if (!(callable.getContainingDeclaration() instanceof NamespaceDescriptor) || callable.getModality() != Modality.FINAL) {
             renderModality(callable.getModality(), builder);
@@ -572,6 +579,7 @@ public class DescriptorRendererImpl implements DescriptorRenderer {
                 || klass.getKind().isObject() && klass.getModality() == Modality.FINAL)) {
                 renderModality(klass.getModality(), builder);
             }
+            renderInner(klass.isInner(), builder);
             builder.append(renderKeyword(getClassKindPrefix(klass)));
         }
 
diff --git a/compiler/testData/javaDescriptorResolver/staticMembers/DeeplyInnerClass_non_static.txt b/compiler/testData/javaDescriptorResolver/staticMembers/DeeplyInnerClass_non_static.txt
index d2b0382ef98..fa2c8e7e93e 100644
--- a/compiler/testData/javaDescriptorResolver/staticMembers/DeeplyInnerClass_non_static.txt
+++ b/compiler/testData/javaDescriptorResolver/staticMembers/DeeplyInnerClass_non_static.txt
@@ -3,15 +3,15 @@ package test
 public open class DeeplyInnerClass : java.lang.Object {
     public constructor DeeplyInnerClass()
     
-    public/*package*/ open class A : java.lang.Object {
+    public/*package*/ open inner class A : java.lang.Object {
         public/*package*/ constructor A()
         public/*package*/ open fun a() : Unit
         
-        public/*package*/ open class B : java.lang.Object {
+        public/*package*/ open inner class B : java.lang.Object {
             public/*package*/ constructor B()
             public/*package*/ open fun b() : Unit
             
-            public/*package*/ open class C : java.lang.Object {
+            public/*package*/ open inner class C : java.lang.Object {
                 public/*package*/ constructor C()
                 public/*package*/ open fun c() : Unit
             }
diff --git a/compiler/testData/javaDescriptorResolver/staticMembers/Enum_non_static.txt b/compiler/testData/javaDescriptorResolver/staticMembers/Enum_non_static.txt
index a7c91076af9..e951197ad8d 100644
--- a/compiler/testData/javaDescriptorResolver/staticMembers/Enum_non_static.txt
+++ b/compiler/testData/javaDescriptorResolver/staticMembers/Enum_non_static.txt
@@ -19,7 +19,7 @@ public final enum class Enum : jet.Enum<test.Enum> {
         }
     }
     
-    public open class Inner : java.lang.Object {
+    public open inner class Inner : java.lang.Object {
         public constructor Inner()
         public/*package*/ open fun bar() : Unit
     }
diff --git a/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_non_static.txt b/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_non_static.txt
index 01812889955..02ef7302cdf 100644
--- a/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_non_static.txt
+++ b/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_non_static.txt
@@ -3,8 +3,13 @@ package test
 public open class InnerClass : java.lang.Object {
     public constructor InnerClass()
     
-    public open class Inner : java.lang.Object {
+    public open inner class Inner : java.lang.Object {
         public constructor Inner()
         public open fun foo() : Unit
     }
+    
+    public open class Nested : java.lang.Object {
+        public constructor Nested()
+        public open fun bar() : Unit
+    }
 }
diff --git a/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_static.txt b/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_static.txt
index 23ed4e13e06..918b5723957 100644
--- a/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_static.txt
+++ b/compiler/testData/javaDescriptorResolver/staticMembers/InnerClass_static.txt
@@ -1,6 +1,2 @@
 package InnerClass
 
-public open class Nested : java.lang.Object {
-    public constructor Nested()
-    public open fun bar() : Unit
-}
diff --git a/compiler/testData/loadJava/InnerClass.kt b/compiler/testData/loadJava/InnerClass.kt
index e84b7cbb586..011c3c16d8e 100644
--- a/compiler/testData/loadJava/InnerClass.kt
+++ b/compiler/testData/loadJava/InnerClass.kt
@@ -1,5 +1,5 @@
 package test
 
 public open class InnerClass() : java.lang.Object() {
-    public open class Inner() : java.lang.Object()
+    public inner open class Inner() : java.lang.Object()
 }
diff --git a/compiler/testData/loadJava/InnerClass.txt b/compiler/testData/loadJava/InnerClass.txt
index 7c5dd3c0607..805d56912cb 100644
--- a/compiler/testData/loadJava/InnerClass.txt
+++ b/compiler/testData/loadJava/InnerClass.txt
@@ -3,7 +3,7 @@ package test
 public open class InnerClass : java.lang.Object {
     public constructor InnerClass()
     
-    public open class Inner : java.lang.Object {
+    public open inner class Inner : java.lang.Object {
         public constructor Inner()
     }
 }
diff --git a/compiler/testData/loadJava/InnerClassReferencesOuterTP.kt b/compiler/testData/loadJava/InnerClassReferencesOuterTP.kt
index 231ff1911d3..77ac37f6dbf 100644
--- a/compiler/testData/loadJava/InnerClassReferencesOuterTP.kt
+++ b/compiler/testData/loadJava/InnerClassReferencesOuterTP.kt
@@ -1,5 +1,5 @@
 package test
 
 public open class InnerClassReferencesOuterTP<P>() : java.lang.Object() {
-    public open class Inner<Q : P>() : java.lang.Object()
+    public open inner class Inner<Q : P>() : java.lang.Object()
 }
diff --git a/compiler/testData/loadJava/InnerClassReferencesOuterTP.txt b/compiler/testData/loadJava/InnerClassReferencesOuterTP.txt
index 0409a1d7140..b6468974d9c 100644
--- a/compiler/testData/loadJava/InnerClassReferencesOuterTP.txt
+++ b/compiler/testData/loadJava/InnerClassReferencesOuterTP.txt
@@ -3,7 +3,7 @@ package test
 public open class InnerClassReferencesOuterTP</*0*/ P> : java.lang.Object {
     public constructor InnerClassReferencesOuterTP</*0*/ P>()
     
-    public open class Inner</*0*/ Q : P> : java.lang.Object {
+    public open inner class Inner</*0*/ Q : P> : java.lang.Object {
         public constructor Inner</*0*/ Q : P>()
     }
 }
diff --git a/compiler/testData/loadJava/InnerClassesInGeneric.kt b/compiler/testData/loadJava/InnerClassesInGeneric.kt
index 3cf9685624a..28063029da9 100644
--- a/compiler/testData/loadJava/InnerClassesInGeneric.kt
+++ b/compiler/testData/loadJava/InnerClassesInGeneric.kt
@@ -1,10 +1,10 @@
 package test
 
 public open class InnerClassesInGeneric<P, Q>() : java.lang.Object() {
-    public open class Inner() : java.lang.Object() {
+    public open inner class Inner() : java.lang.Object() {
     }
     
-    public open class Inner2() : Inner() {
+    public open inner class Inner2() : Inner() {
         public open fun iterator() : jet.MutableIterator<P>? {
             throw UnsupportedOperationException()
         }
diff --git a/compiler/testData/loadJava/InnerClassesInGeneric.txt b/compiler/testData/loadJava/InnerClassesInGeneric.txt
index 56d5a9e8f10..6b8df6dfbf5 100644
--- a/compiler/testData/loadJava/InnerClassesInGeneric.txt
+++ b/compiler/testData/loadJava/InnerClassesInGeneric.txt
@@ -3,11 +3,11 @@ package test
 public open class InnerClassesInGeneric</*0*/ P, /*1*/ Q> : java.lang.Object {
     public constructor InnerClassesInGeneric</*0*/ P, /*1*/ Q>()
     
-    public open class Inner : java.lang.Object {
+    public open inner class Inner : java.lang.Object {
         public constructor Inner()
     }
     
-    public open class Inner2 : test.InnerClassesInGeneric.Inner {
+    public open inner class Inner2 : test.InnerClassesInGeneric.Inner {
         public constructor Inner2()
         public open fun iterator() : jet.MutableIterator<P>?
     }
diff --git a/compiler/testData/loadJava/MethodReferencesOuterClassTP.kt b/compiler/testData/loadJava/MethodReferencesOuterClassTP.kt
index 1bd15647227..6d86a53b695 100644
--- a/compiler/testData/loadJava/MethodReferencesOuterClassTP.kt
+++ b/compiler/testData/loadJava/MethodReferencesOuterClassTP.kt
@@ -1,7 +1,7 @@
 package test
 
 public class MethodReferencesOuterClassTP<P>() : java.lang.Object() {
-    public class Inner() : java.lang.Object() {
+    public inner class Inner() : java.lang.Object() {
         public fun f<Q : P>() {}
     }
 }
diff --git a/compiler/testData/loadJava/MethodReferencesOuterClassTP.txt b/compiler/testData/loadJava/MethodReferencesOuterClassTP.txt
index bf996683b37..bc462400a3e 100644
--- a/compiler/testData/loadJava/MethodReferencesOuterClassTP.txt
+++ b/compiler/testData/loadJava/MethodReferencesOuterClassTP.txt
@@ -3,7 +3,7 @@ package test
 public final class MethodReferencesOuterClassTP</*0*/ P> : java.lang.Object {
     public constructor MethodReferencesOuterClassTP</*0*/ P>()
     
-    public final class Inner : java.lang.Object {
+    public final inner class Inner : java.lang.Object {
         public constructor Inner()
         public final fun </*0*/ Q : P> f() : Unit
     }
diff --git a/compiler/testData/loadJavaCustom/rawSuperType/RawSuperType.txt b/compiler/testData/loadJavaCustom/rawSuperType/RawSuperType.txt
index 944cf324b32..eec7ebbeef2 100644
--- a/compiler/testData/loadJavaCustom/rawSuperType/RawSuperType.txt
+++ b/compiler/testData/loadJavaCustom/rawSuperType/RawSuperType.txt
@@ -3,7 +3,7 @@ package test
 public open class RawSuperType : java.lang.Object {
     public constructor RawSuperType()
     
-    public open class Derived : test.RawSuperType.Super<jet.Any?> {
+    public open inner class Derived : test.RawSuperType.Super<jet.Any?> {
         public constructor Derived()
         public open override /*1*/ fun foo(/*0*/ p0 : jet.Any?) : Unit
     }
diff --git a/compiler/testData/loadKotlin/class/ClassInnerClass.kt b/compiler/testData/loadKotlin/class/ClassInnerClass.kt
index 8cb974151c7..9408cfc977d 100644
--- a/compiler/testData/loadKotlin/class/ClassInnerClass.kt
+++ b/compiler/testData/loadKotlin/class/ClassInnerClass.kt
@@ -1,6 +1,6 @@
 package test
 
 class Outer {
-    class Inner {
+    inner class Inner {
     }
 }
diff --git a/compiler/testData/loadKotlin/class/ClassInnerClass.txt b/compiler/testData/loadKotlin/class/ClassInnerClass.txt
index 73ddb14a52d..071ed61671b 100644
--- a/compiler/testData/loadKotlin/class/ClassInnerClass.txt
+++ b/compiler/testData/loadKotlin/class/ClassInnerClass.txt
@@ -3,7 +3,7 @@ package test
 internal final class Outer {
     /*primary*/ public constructor Outer()
     
-    internal final class Inner {
+    internal final inner class Inner {
         /*primary*/ public constructor Inner()
     }
 }
diff --git a/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.kt b/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.kt
index 85a4f6c29cc..29e42fc8533 100644
--- a/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.kt
+++ b/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.kt
@@ -1,7 +1,7 @@
 package test
 
 class Outer() {
-    open class Inner1()
+    open inner class Inner1()
     
-    class Inner2() : Inner1()
+    inner class Inner2() : Inner1()
 }
diff --git a/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.txt b/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.txt
index 4fd949bd863..9bdbcaa2a25 100644
--- a/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.txt
+++ b/compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.txt
@@ -3,11 +3,11 @@ package test
 internal final class Outer {
     /*primary*/ public constructor Outer()
     
-    internal open class Inner1 {
+    internal open inner class Inner1 {
         /*primary*/ public constructor Inner1()
     }
     
-    internal final class Inner2 : test.Outer.Inner1 {
+    internal final inner class Inner2 : test.Outer.Inner1 {
         /*primary*/ public constructor Inner2()
     }
 }
diff --git a/compiler/testData/loadKotlin/class/InnerClass.kt b/compiler/testData/loadKotlin/class/NestedClass.kt
similarity index 62%
rename from compiler/testData/loadKotlin/class/InnerClass.kt
rename to compiler/testData/loadKotlin/class/NestedClass.kt
index 7f039188a28..93d3cd67de7 100644
--- a/compiler/testData/loadKotlin/class/InnerClass.kt
+++ b/compiler/testData/loadKotlin/class/NestedClass.kt
@@ -1,5 +1,5 @@
 package test
 
 class Outer() {
-    class Inner()
+    class Nested()
 }
diff --git a/compiler/testData/loadKotlin/class/InnerClass.txt b/compiler/testData/loadKotlin/class/NestedClass.txt
similarity index 54%
rename from compiler/testData/loadKotlin/class/InnerClass.txt
rename to compiler/testData/loadKotlin/class/NestedClass.txt
index 73ddb14a52d..2249b2dd38c 100644
--- a/compiler/testData/loadKotlin/class/InnerClass.txt
+++ b/compiler/testData/loadKotlin/class/NestedClass.txt
@@ -3,7 +3,7 @@ package test
 internal final class Outer {
     /*primary*/ public constructor Outer()
     
-    internal final class Inner {
-        /*primary*/ public constructor Inner()
+    internal final class Nested {
+        /*primary*/ public constructor Nested()
     }
 }
diff --git a/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadCompiledKotlinTestGenerated.java b/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadCompiledKotlinTestGenerated.java
index 18498c26c6d..91d7f401d38 100644
--- a/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadCompiledKotlinTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/jvm/compiler/LoadCompiledKotlinTestGenerated.java
@@ -130,11 +130,6 @@ public class LoadCompiledKotlinTestGenerated extends AbstractLoadCompiledKotlinT
             doTest("compiler/testData/loadKotlin/class/InheritTraitWithParam.kt");
         }
         
-        @TestMetadata("InnerClass.kt")
-        public void testInnerClass() throws Exception {
-            doTest("compiler/testData/loadKotlin/class/InnerClass.kt");
-        }
-        
         @TestMetadata("InnerClassExtendInnerClass.kt")
         public void testInnerClassExtendInnerClass() throws Exception {
             doTest("compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.kt");
@@ -160,6 +155,11 @@ public class LoadCompiledKotlinTestGenerated extends AbstractLoadCompiledKotlinT
             doTest("compiler/testData/loadKotlin/class/NamedObjectWithAnotherTopLevelProperty.kt");
         }
         
+        @TestMetadata("NestedClass.kt")
+        public void testNestedClass() throws Exception {
+            doTest("compiler/testData/loadKotlin/class/NestedClass.kt");
+        }
+        
         @TestMetadata("Trait.kt")
         public void testTrait() throws Exception {
             doTest("compiler/testData/loadKotlin/class/Trait.kt");
diff --git a/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java b/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
index 43f45c029c3..c5d365dae39 100644
--- a/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/lang/resolve/lazy/LazyResolveNamespaceComparingTestGenerated.java
@@ -132,11 +132,6 @@ public class LazyResolveNamespaceComparingTestGenerated extends AbstractLazyReso
                 doTestCheckingPrimaryConstructors("compiler/testData/loadKotlin/class/InheritTraitWithParam.kt");
             }
             
-            @TestMetadata("InnerClass.kt")
-            public void testInnerClass() throws Exception {
-                doTestCheckingPrimaryConstructors("compiler/testData/loadKotlin/class/InnerClass.kt");
-            }
-            
             @TestMetadata("InnerClassExtendInnerClass.kt")
             public void testInnerClassExtendInnerClass() throws Exception {
                 doTestCheckingPrimaryConstructors("compiler/testData/loadKotlin/class/InnerClassExtendInnerClass.kt");
@@ -162,6 +157,11 @@ public class LazyResolveNamespaceComparingTestGenerated extends AbstractLazyReso
                 doTestCheckingPrimaryConstructors("compiler/testData/loadKotlin/class/NamedObjectWithAnotherTopLevelProperty.kt");
             }
             
+            @TestMetadata("NestedClass.kt")
+            public void testNestedClass() throws Exception {
+                doTestCheckingPrimaryConstructors("compiler/testData/loadKotlin/class/NestedClass.kt");
+            }
+            
             @TestMetadata("Trait.kt")
             public void testTrait() throws Exception {
                 doTestCheckingPrimaryConstructors("compiler/testData/loadKotlin/class/Trait.kt");