diff --git a/compiler/psi/src/org/jetbrains/kotlin/parsing/KotlinParsing.java b/compiler/psi/src/org/jetbrains/kotlin/parsing/KotlinParsing.java
index 0ae41c29bd8..1e1a020a354 100644
--- a/compiler/psi/src/org/jetbrains/kotlin/parsing/KotlinParsing.java
+++ b/compiler/psi/src/org/jetbrains/kotlin/parsing/KotlinParsing.java
@@ -424,7 +424,12 @@ public class KotlinParsing extends AbstractKotlinParsing {
             declType = FUN;
         }
 
-        if (declType == null) {
+        if (declType == null && at(IMPORT_KEYWORD)) {
+            error("imports are only allowed in the beginning of file");
+            parseImportDirectives();
+            decl.drop();
+        }
+        else if (declType == null) {
             errorAndAdvance("Expecting a top level declaration");
             decl.drop();
         }
diff --git a/compiler/psi/src/org/jetbrains/kotlin/psi/KtFile.kt b/compiler/psi/src/org/jetbrains/kotlin/psi/KtFile.kt
index fde5e476148..726d4f273d5 100644
--- a/compiler/psi/src/org/jetbrains/kotlin/psi/KtFile.kt
+++ b/compiler/psi/src/org/jetbrains/kotlin/psi/KtFile.kt
@@ -22,6 +22,7 @@ import com.intellij.openapi.fileTypes.FileType
 import com.intellij.psi.*
 import com.intellij.psi.stubs.StubElement
 import com.intellij.psi.util.PsiTreeUtil
+import com.intellij.util.ArrayFactory
 import com.intellij.util.FileContentUtilCore
 import com.intellij.util.IncorrectOperationException
 import org.jetbrains.kotlin.KtNodeTypes
@@ -54,13 +55,16 @@ open class KtFile(viewProvider: FileViewProvider, val isCompiled: Boolean) :
     private var pathCached: String? = null
 
     val importList: KtImportList?
-        get() = findChildByTypeOrClass(KtStubElementTypes.IMPORT_LIST, KtImportList::class.java)
+        get() = importLists.firstOrNull()
+
+    private val importLists: Array<out KtImportList>
+        get() = findChildrenByTypeOrClass(KtStubElementTypes.IMPORT_LIST, KtImportList::class.java)
 
     val fileAnnotationList: KtFileAnnotationList?
         get() = findChildByTypeOrClass(KtStubElementTypes.FILE_ANNOTATION_LIST, KtFileAnnotationList::class.java)
 
     open val importDirectives: List<KtImportDirective>
-        get() = importList?.imports ?: emptyList()
+        get() = importLists.flatMap { it.imports }
 
     // scripts have no package directive, all other files must have package directives
     val packageDirective: KtPackageDirective?
@@ -154,6 +158,19 @@ open class KtFile(viewProvider: FileViewProvider, val isCompiled: Boolean) :
         return findChildByClass(elementClass)
     }
 
+    fun <T : KtElementImplStub<out StubElement<*>>> findChildrenByTypeOrClass(
+        elementType: KtPlaceHolderStubElementType<T>,
+        elementClass: Class<T>
+    ): Array<out T> {
+        val stub = stub
+        if (stub != null) {
+            val arrayFactory: ArrayFactory<T> = elementType.arrayFactory
+            return stub.getChildrenByType(elementType, arrayFactory)
+        }
+        return findChildrenByClass(elementClass)
+    }
+
+
     fun findImportByAlias(name: String): KtImportDirective? =
         importDirectives.firstOrNull { name == it.aliasName }
 
diff --git a/compiler/testData/diagnostics/tests/imports/twoImportLists.kt b/compiler/testData/diagnostics/tests/imports/twoImportLists.kt
new file mode 100644
index 00000000000..83f36c6a5fc
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/imports/twoImportLists.kt
@@ -0,0 +1,105 @@
+// !WITH_NEW_INFERENCE
+// FILE:a.kt
+package a
+
+<!OI;SYNTAX!><<!><!OI;SYNTAX!><<!><!OI;SYNTAX!><<!> <!OI;SYNTAX!>FOOO<!><!OI;SYNTAX!><!>
+import b.B        //class
+import b.foo      //function
+import b.ext      //extension function
+import b.value    //property
+import b.C.Companion.bar    //function from companion object
+import b.C.Companion.cValue //property from companion object
+import b.<!UNRESOLVED_REFERENCE!>constant<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>fff<!>     //function from val
+import b.<!UNRESOLVED_REFERENCE!>constant<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>dValue<!>  //property from val
+import <!UNRESOLVED_REFERENCE!>smth<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>illegal<!>
+import b.C.<!UNRESOLVED_REFERENCE!>smth<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>illegal<!>
+
+<!OI;SYNTAX!><<!><!OI;SYNTAX!><<!><!OI;SYNTAX!><<!><!OI;SYNTAX!>HEAD<!><!OI;SYNTAX!><!>
+import b.<!UNRESOLVED_REFERENCE!>bar<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>smth<!>
+import b.<!UNRESOLVED_REFERENCE!>bar<!>.*
+import b.<!UNRESOLVED_REFERENCE!>unr<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>unr<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>unr<!>
+import <!UNRESOLVED_REFERENCE!>unr<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>unr<!>.<!DEBUG_INFO_MISSING_UNRESOLVED!>unr<!>
+import b.constant
+import b.E.Companion.f      //val from companion object
+
+fun test(arg: B) {
+    foo(value)
+    arg.ext()
+
+    bar()
+    foo(cValue)
+
+    <!UNRESOLVED_REFERENCE!>fff<!>(<!UNRESOLVED_REFERENCE!>dValue<!>)
+
+    constant.fff(constant.dValue)
+
+    f.f()
+}
+
+// FILE:b.kt
+package b
+
+class B() {}
+
+fun foo(i: Int) = i
+
+fun B.ext() {}
+
+val value = 0
+
+class C() {
+    companion object {
+        fun bar() {}
+        val cValue = 1
+    }
+}
+
+class D() {
+    fun fff(s: String) = s
+    val dValue = "w"
+}
+
+val constant = D()
+
+class E() {
+    companion object {
+        val f = F()
+    }
+}
+
+class F() {
+    fun f() {}
+}
+
+fun bar() {}
+
+//FILE:c.kt
+package c
+
+import c.<!CANNOT_ALL_UNDER_IMPORT_FROM_SINGLETON!>C<!>.*
+
+object C {
+    fun f() {
+    }
+    val i = 348
+}
+
+fun foo() {
+    if (<!UNRESOLVED_REFERENCE!>i<!> <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>==<!> 3) <!UNRESOLVED_REFERENCE!>f<!>()
+}
+
+//FILE:d.kt
+package d
+
+import d.A.Companion.B
+import d.A.Companion.C
+
+val b : B = B()
+val c : B = C
+
+class A() {
+    companion object {
+        open class B() {}
+        object C : B() {}
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/imports/twoImportLists.txt b/compiler/testData/diagnostics/tests/imports/twoImportLists.txt
new file mode 100644
index 00000000000..c875a83e7e5
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/imports/twoImportLists.txt
@@ -0,0 +1,114 @@
+package
+
+package a {
+    public fun test(/*0*/ arg: b.B): kotlin.Unit
+}
+
+package b {
+    public val constant: b.D
+    public val value: kotlin.Int = 0
+    public fun bar(): kotlin.Unit
+    public fun foo(/*0*/ i: kotlin.Int): kotlin.Int
+    public fun b.B.ext(): kotlin.Unit
+
+    public final class B {
+        public constructor B()
+        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 final val cValue: kotlin.Int = 1
+            public final fun bar(): kotlin.Unit
+            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 D {
+        public constructor D()
+        public final val dValue: kotlin.String = "w"
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public final fun fff(/*0*/ s: kotlin.String): kotlin.String
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+
+    public final class E {
+        public constructor E()
+        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 final val f: b.F
+            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 F {
+        public constructor F()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public final fun f(): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
+
+package c {
+    public fun foo(): kotlin.Unit
+
+    public object C {
+        private constructor C()
+        public final val i: kotlin.Int = 348
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public final fun f(): kotlin.Unit
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
+
+package d {
+    public val b: d.A.Companion.B
+    public val c: d.A.Companion.B
+
+    public final class A {
+        public constructor A()
+        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
+
+            public open class B {
+                public constructor B()
+                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 object C : d.A.Companion.B {
+                private 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
+            }
+        }
+    }
+}
diff --git a/compiler/testData/psi/FileStart_ERR.txt b/compiler/testData/psi/FileStart_ERR.txt
index bc430fe2284..0e22e68e59b 100644
--- a/compiler/testData/psi/FileStart_ERR.txt
+++ b/compiler/testData/psi/FileStart_ERR.txt
@@ -14,9 +14,12 @@ KtFile: FileStart_ERR.kt
     PsiElement(DOT)('.')
   PsiErrorElement:Expecting a top level declaration
     PsiElement(IDENTIFIER)('bar')
+  PsiErrorElement:imports are only allowed in the beginning of file
+    <empty list>
   PsiWhiteSpace('\n')
-  PsiErrorElement:Expecting a top level declaration
-    PsiElement(IDENTIFIER)('import')
-  PsiWhiteSpace(' ')
-  PsiErrorElement:Expecting a top level declaration
-    PsiElement(IDENTIFIER)('foo')
\ No newline at end of file
+  IMPORT_LIST
+    IMPORT_DIRECTIVE
+      PsiElement(import)('import')
+      PsiWhiteSpace(' ')
+      REFERENCE_EXPRESSION
+        PsiElement(IDENTIFIER)('foo')
diff --git a/compiler/testData/psi/recovery/importsWithConflict.kt b/compiler/testData/psi/recovery/importsWithConflict.kt
new file mode 100644
index 00000000000..e0cdbf05e8a
--- /dev/null
+++ b/compiler/testData/psi/recovery/importsWithConflict.kt
@@ -0,0 +1,14 @@
+package a
+
+import a1
+<<<HEAD
+import a2
+import a3
+>>> BAR
+
+fun bar() {}
+
+import a2
+import a4.df
+
+fun foo() {}
diff --git a/compiler/testData/psi/recovery/importsWithConflict.txt b/compiler/testData/psi/recovery/importsWithConflict.txt
new file mode 100644
index 00000000000..09438ea05f7
--- /dev/null
+++ b/compiler/testData/psi/recovery/importsWithConflict.txt
@@ -0,0 +1,90 @@
+KtFile: importsWithConflict.kt
+  PACKAGE_DIRECTIVE
+    PsiElement(package)('package')
+    PsiWhiteSpace(' ')
+    REFERENCE_EXPRESSION
+      PsiElement(IDENTIFIER)('a')
+  PsiWhiteSpace('\n\n')
+  IMPORT_LIST
+    IMPORT_DIRECTIVE
+      PsiElement(import)('import')
+      PsiWhiteSpace(' ')
+      REFERENCE_EXPRESSION
+        PsiElement(IDENTIFIER)('a1')
+  PsiWhiteSpace('\n')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(LT)('<')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(LT)('<')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(LT)('<')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(IDENTIFIER)('HEAD')
+  PsiErrorElement:imports are only allowed in the beginning of file
+    <empty list>
+  PsiWhiteSpace('\n')
+  IMPORT_LIST
+    IMPORT_DIRECTIVE
+      PsiElement(import)('import')
+      PsiWhiteSpace(' ')
+      REFERENCE_EXPRESSION
+        PsiElement(IDENTIFIER)('a2')
+    PsiWhiteSpace('\n')
+    IMPORT_DIRECTIVE
+      PsiElement(import)('import')
+      PsiWhiteSpace(' ')
+      REFERENCE_EXPRESSION
+        PsiElement(IDENTIFIER)('a3')
+  PsiWhiteSpace('\n')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(GT)('>')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(GT)('>')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(GT)('>')
+  PsiWhiteSpace(' ')
+  PsiErrorElement:Expecting a top level declaration
+    PsiElement(IDENTIFIER)('BAR')
+  PsiWhiteSpace('\n\n')
+  FUN
+    PsiElement(fun)('fun')
+    PsiWhiteSpace(' ')
+    PsiElement(IDENTIFIER)('bar')
+    VALUE_PARAMETER_LIST
+      PsiElement(LPAR)('(')
+      PsiElement(RPAR)(')')
+    PsiWhiteSpace(' ')
+    BLOCK
+      PsiElement(LBRACE)('{')
+      PsiElement(RBRACE)('}')
+  PsiErrorElement:imports are only allowed in the beginning of file
+    <empty list>
+  PsiWhiteSpace('\n\n')
+  IMPORT_LIST
+    IMPORT_DIRECTIVE
+      PsiElement(import)('import')
+      PsiWhiteSpace(' ')
+      REFERENCE_EXPRESSION
+        PsiElement(IDENTIFIER)('a2')
+    PsiWhiteSpace('\n')
+    IMPORT_DIRECTIVE
+      PsiElement(import)('import')
+      PsiWhiteSpace(' ')
+      DOT_QUALIFIED_EXPRESSION
+        REFERENCE_EXPRESSION
+          PsiElement(IDENTIFIER)('a4')
+        PsiElement(DOT)('.')
+        REFERENCE_EXPRESSION
+          PsiElement(IDENTIFIER)('df')
+  PsiWhiteSpace('\n\n')
+  FUN
+    PsiElement(fun)('fun')
+    PsiWhiteSpace(' ')
+    PsiElement(IDENTIFIER)('foo')
+    VALUE_PARAMETER_LIST
+      PsiElement(LPAR)('(')
+      PsiElement(RPAR)(')')
+    PsiWhiteSpace(' ')
+    BLOCK
+      PsiElement(LBRACE)('{')
+      PsiElement(RBRACE)('}')
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index ef4805ff8ad..60d319da981 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -9071,6 +9071,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 runTest("compiler/testData/diagnostics/tests/imports/TopLevelClassVsPackage.kt");
             }
 
+            @TestMetadata("twoImportLists.kt")
+            public void testTwoImportLists() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/imports/twoImportLists.kt");
+            }
+
             @TestMetadata("WrongImport.kt")
             public void testWrongImport() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/imports/WrongImport.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 057156e64e5..d8621ff8a48 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -9071,6 +9071,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/imports/TopLevelClassVsPackage.kt");
             }
 
+            @TestMetadata("twoImportLists.kt")
+            public void testTwoImportLists() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/imports/twoImportLists.kt");
+            }
+
             @TestMetadata("WrongImport.kt")
             public void testWrongImport() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/imports/WrongImport.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/parsing/ParsingTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/parsing/ParsingTestGenerated.java
index f24b758e123..810af25a327 100644
--- a/compiler/tests/org/jetbrains/kotlin/parsing/ParsingTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/parsing/ParsingTestGenerated.java
@@ -2013,6 +2013,11 @@ public class ParsingTestGenerated extends AbstractParsingTest {
                 runTest("compiler/testData/psi/recovery/ImportRecovery.kt");
             }
 
+            @TestMetadata("importsWithConflict.kt")
+            public void testImportsWithConflict() throws Exception {
+                runTest("compiler/testData/psi/recovery/importsWithConflict.kt");
+            }
+
             @TestMetadata("IncompleteAccessor1.kt")
             public void testIncompleteAccessor1() throws Exception {
                 runTest("compiler/testData/psi/recovery/IncompleteAccessor1.kt");