diff --git a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt
index 4c79c6a9a6e..a540f80d405 100644
--- a/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt
+++ b/compiler/ir/backend.jvm/src/org/jetbrains/kotlin/backend/jvm/codegen/ClassCodegen.kt
@@ -5,6 +5,7 @@
 
 package org.jetbrains.kotlin.backend.jvm.codegen
 
+import org.jetbrains.kotlin.backend.common.lower.ANNOTATION_IMPLEMENTATION
 import org.jetbrains.kotlin.backend.common.psi.PsiSourceManager
 import org.jetbrains.kotlin.backend.jvm.JvmBackendContext
 import org.jetbrains.kotlin.backend.jvm.JvmLoweredDeclarationOrigin
@@ -450,7 +451,7 @@ class ClassCodegen private constructor(
         for (klass in innerClasses) {
             val innerClass = typeMapper.classInternalName(klass)
             val outerClass =
-                if (klass.isSamWrapper || klass.attributeOwnerId in context.isEnclosedInConstructor)
+                if (klass.isSamWrapper || klass.isAnnotationImplementation || klass.attributeOwnerId in context.isEnclosedInConstructor)
                     null
                 else {
                     when (val parent = klass.parent) {
@@ -465,7 +466,7 @@ class ClassCodegen private constructor(
     }
 
     private val IrClass.isAnonymousInnerClass: Boolean
-        get() = isSamWrapper || name.isSpecial // NB '<Continuation>' is treated as anonymous inner class here
+        get() = isSamWrapper || name.isSpecial || isAnnotationImplementation // NB '<Continuation>' is treated as anonymous inner class here
 
     private val IrClass.isInlineSamWrapper: Boolean
         get() = isSamWrapper && visibility == DescriptorVisibilities.PUBLIC
@@ -473,6 +474,9 @@ class ClassCodegen private constructor(
     private val IrClass.isSamWrapper: Boolean
         get() = origin == IrDeclarationOrigin.GENERATED_SAM_IMPLEMENTATION
 
+    private val IrClass.isAnnotationImplementation: Boolean
+        get() = origin == ANNOTATION_IMPLEMENTATION
+
     override fun addInnerClassInfoFromAnnotation(innerClass: IrClass) {
         // It's necessary for proper recovering of classId by plain string JVM descriptor when loading annotations
         // See FileBasedKotlinClass.convertAnnotationVisitor
diff --git a/compiler/testData/codegen/bytecodeListing/annotations/annotationCtorCallGenerateSynthetic.txt b/compiler/testData/codegen/bytecodeListing/annotations/annotationCtorCallGenerateSynthetic.txt
index e3b5c4822ae..bb6e69031ca 100644
--- a/compiler/testData/codegen/bytecodeListing/annotations/annotationCtorCallGenerateSynthetic.txt
+++ b/compiler/testData/codegen/bytecodeListing/annotations/annotationCtorCallGenerateSynthetic.txt
@@ -1,21 +1,22 @@
 @kotlin.Metadata
 public synthetic final class AnnotationCtorCallGenerateSyntheticKt$annotationImpl$Foo$0 {
     // source: 'annotationCtorCallGenerateSynthetic.kt'
+    enclosing class AnnotationCtorCallGenerateSyntheticKt
     private synthetic final field int: int
+    inner (anonymous) class AnnotationCtorCallGenerateSyntheticKt$annotationImpl$Foo$0
     public method <init>(p0: int): void
     public synthetic final method annotationType(): java.lang.Class
     public final method equals(@org.jetbrains.annotations.Nullable p0: java.lang.Object): boolean
     public final method hashCode(): int
     public synthetic final method int(): int
     public final @org.jetbrains.annotations.NotNull method toString(): java.lang.String
-    public synthetic inner class AnnotationCtorCallGenerateSyntheticKt$annotationImpl$Foo$0
 }
 
 @kotlin.Metadata
 public final class AnnotationCtorCallGenerateSyntheticKt {
     // source: 'annotationCtorCallGenerateSynthetic.kt'
+    inner (anonymous) class AnnotationCtorCallGenerateSyntheticKt$annotationImpl$Foo$0
     public final static method box(): void
-    public synthetic inner class AnnotationCtorCallGenerateSyntheticKt$annotationImpl$Foo$0
 }
 
 @java.lang.annotation.Retention(value=RUNTIME)
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/BaseJvmAbiTest.kt b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/BaseJvmAbiTest.kt
index e24b28ec674..1cfe31af884 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/BaseJvmAbiTest.kt
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/BaseJvmAbiTest.kt
@@ -12,6 +12,7 @@ import org.jetbrains.kotlin.cli.jvm.K2JVMCompiler
 import org.jetbrains.kotlin.codegen.CodegenTestUtil
 import org.jetbrains.kotlin.codegen.forTestCompile.ForTestCompileRuntime
 import org.jetbrains.kotlin.config.Services
+import org.jetbrains.kotlin.test.InTextDirectivesUtils
 import org.jetbrains.kotlin.test.KotlinTestUtils
 import java.io.File
 import kotlin.io.path.ExperimentalPathApi
@@ -52,6 +53,9 @@ abstract class BaseJvmAbiTest : TestCase() {
         val javaDestinationDir: File
             get() = if (name == null) workingDir.resolve("javaOut") else workingDir.resolve("$name/javaOut")
 
+        val directives: File
+            get() = workingDir.resolve("directives.txt")
+
         override fun toString(): String =
             "compilation '$name'"
     }
@@ -77,6 +81,9 @@ abstract class BaseJvmAbiTest : TestCase() {
             ).toTypedArray()
             destination = compilation.destinationDir.canonicalPath
             useOldBackend = !useIrBackend
+            languageVersion = if (!compilation.directives.exists()) null else {
+                InTextDirectivesUtils.findStringWithPrefixes(compilation.directives.readText(), "// LANGUAGE_VERSION:")
+            }
         }
         val exitCode = compiler.exec(messageCollector, Services.EMPTY, args)
         if (exitCode != ExitCode.OK || messageCollector.errors.isNotEmpty()) {
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompileAgainstJvmAbiTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompileAgainstJvmAbiTestGenerated.java
index 766693321ec..768ce22a846 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompileAgainstJvmAbiTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/CompileAgainstJvmAbiTestGenerated.java
@@ -45,6 +45,11 @@ public class CompileAgainstJvmAbiTestGenerated extends AbstractCompileAgainstJvm
         runTest("plugins/jvm-abi-gen/testData/compile/clinit/");
     }
 
+    @TestMetadata("inlineAnnotationInstantiation")
+    public void testInlineAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/");
+    }
+
     @TestMetadata("inlineAnonymousObject")
     public void testInlineAnonymousObject() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/compile/inlineAnonymousObject/");
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrCompileAgainstJvmAbiTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrCompileAgainstJvmAbiTestGenerated.java
index 137f0319624..10018498a0d 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrCompileAgainstJvmAbiTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrCompileAgainstJvmAbiTestGenerated.java
@@ -45,6 +45,11 @@ public class IrCompileAgainstJvmAbiTestGenerated extends AbstractIrCompileAgains
         runTest("plugins/jvm-abi-gen/testData/compile/clinit/");
     }
 
+    @TestMetadata("inlineAnnotationInstantiation")
+    public void testInlineAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/");
+    }
+
     @TestMetadata("inlineAnonymousObject")
     public void testInlineAnonymousObject() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/compile/inlineAnonymousObject/");
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrJvmAbiContentTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrJvmAbiContentTestGenerated.java
index 78d2edd683f..b26bb65a8e3 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrJvmAbiContentTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/IrJvmAbiContentTestGenerated.java
@@ -35,6 +35,16 @@ public class IrJvmAbiContentTestGenerated extends AbstractIrJvmAbiContentTest {
         runTest("plugins/jvm-abi-gen/testData/content/annotation/");
     }
 
+    @TestMetadata("annotationInstantiation")
+    public void testAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/content/annotationInstantiation/");
+    }
+
+    @TestMetadata("anonymousAnnotationInstantiation")
+    public void testAnonymousAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/");
+    }
+
     @TestMetadata("anonymousWhenMapping")
     public void testAnonymousWhenMapping() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/content/anonymousWhenMapping/");
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/JvmAbiContentTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/JvmAbiContentTestGenerated.java
index c5c19bc8791..f675c05170c 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/JvmAbiContentTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/JvmAbiContentTestGenerated.java
@@ -35,6 +35,16 @@ public class JvmAbiContentTestGenerated extends AbstractJvmAbiContentTest {
         runTest("plugins/jvm-abi-gen/testData/content/annotation/");
     }
 
+    @TestMetadata("annotationInstantiation")
+    public void testAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/content/annotationInstantiation/");
+    }
+
+    @TestMetadata("anonymousAnnotationInstantiation")
+    public void testAnonymousAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/");
+    }
+
     @TestMetadata("anonymousWhenMapping")
     public void testAnonymousWhenMapping() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/content/anonymousWhenMapping/");
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyCompileAgainstJvmAbiTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyCompileAgainstJvmAbiTestGenerated.java
index afc3ccce6ee..8a75e923de8 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyCompileAgainstJvmAbiTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyCompileAgainstJvmAbiTestGenerated.java
@@ -45,6 +45,11 @@ public class LegacyCompileAgainstJvmAbiTestGenerated extends AbstractLegacyCompi
         runTest("plugins/jvm-abi-gen/testData/compile/clinit/");
     }
 
+    @TestMetadata("inlineAnnotationInstantiation")
+    public void testInlineAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/");
+    }
+
     @TestMetadata("inlineAnonymousObject")
     public void testInlineAnonymousObject() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/compile/inlineAnonymousObject/");
diff --git a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyJvmAbiContentTestGenerated.java b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyJvmAbiContentTestGenerated.java
index 401a3f514ac..968146c0de9 100644
--- a/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyJvmAbiContentTestGenerated.java
+++ b/plugins/jvm-abi-gen/test/org/jetbrains/kotlin/jvm/abi/LegacyJvmAbiContentTestGenerated.java
@@ -35,6 +35,16 @@ public class LegacyJvmAbiContentTestGenerated extends AbstractLegacyJvmAbiConten
         runTest("plugins/jvm-abi-gen/testData/content/annotation/");
     }
 
+    @TestMetadata("annotationInstantiation")
+    public void testAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/content/annotationInstantiation/");
+    }
+
+    @TestMetadata("anonymousAnnotationInstantiation")
+    public void testAnonymousAnnotationInstantiation() throws Exception {
+        runTest("plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/");
+    }
+
     @TestMetadata("anonymousWhenMapping")
     public void testAnonymousWhenMapping() throws Exception {
         runTest("plugins/jvm-abi-gen/testData/content/anonymousWhenMapping/");
diff --git a/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/app/app.kt b/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/app/app.kt
new file mode 100644
index 00000000000..b4ce58037db
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/app/app.kt
@@ -0,0 +1,7 @@
+package app
+
+import lib.*
+
+fun runAppAndReturnOk(): String {
+    return a().value
+}
diff --git a/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/directives.txt b/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/directives.txt
new file mode 100644
index 00000000000..993013a0dbc
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/directives.txt
@@ -0,0 +1,3 @@
+// LANGUAGE_VERSION: 1.6
+// IGNORE_BACKEND_LEGACY: JVM
+// IGNORE_BACKEND: JVM
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/lib/lib.kt b/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/lib/lib.kt
new file mode 100644
index 00000000000..320eb9db33e
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/compile/inlineAnnotationInstantiation/lib/lib.kt
@@ -0,0 +1,5 @@
+package lib
+
+annotation class A(val value: String)
+
+inline fun a() = A("OK")
diff --git a/plugins/jvm-abi-gen/testData/content/annotationInstantiation/directives.txt b/plugins/jvm-abi-gen/testData/content/annotationInstantiation/directives.txt
new file mode 100644
index 00000000000..993013a0dbc
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/content/annotationInstantiation/directives.txt
@@ -0,0 +1,3 @@
+// LANGUAGE_VERSION: 1.6
+// IGNORE_BACKEND_LEGACY: JVM
+// IGNORE_BACKEND: JVM
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/content/annotationInstantiation/signatures.txt b/plugins/jvm-abi-gen/testData/content/annotationInstantiation/signatures.txt
new file mode 100644
index 00000000000..cd02c52777a
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/content/annotationInstantiation/signatures.txt
@@ -0,0 +1,23 @@
+@java.lang.annotation.Retention(value=RUNTIME)
+@kotlin.Metadata
+public annotation class test/A {
+    // source: 'test.kt'
+}
+@kotlin.Metadata
+public synthetic final class test/Test$annotationImpl$test_A$0 {
+    // source: 'test.kt'
+    enclosing class test/Test
+    inner (anonymous) class test/Test$annotationImpl$test_A$0
+    public method <init>(): void
+    public synthetic final method annotationType(): java.lang.Class
+    public final method equals(@org.jetbrains.annotations.Nullable p0: java.lang.Object): boolean
+    public final method hashCode(): int
+    public final @org.jetbrains.annotations.NotNull method toString(): java.lang.String
+}
+@kotlin.Metadata
+public final class test/Test {
+    // source: 'test.kt'
+    inner (anonymous) class test/Test$annotationImpl$test_A$0
+    public method <init>(): void
+    public final @org.jetbrains.annotations.NotNull method annotationInstantiation(): test.A
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/content/annotationInstantiation/test.kt b/plugins/jvm-abi-gen/testData/content/annotationInstantiation/test.kt
new file mode 100644
index 00000000000..ff602d978b3
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/content/annotationInstantiation/test.kt
@@ -0,0 +1,7 @@
+package test
+
+annotation class A
+
+class Test {
+    inline fun annotationInstantiation() = A()
+}
diff --git a/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/directives.txt b/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/directives.txt
new file mode 100644
index 00000000000..e89ced03c66
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/directives.txt
@@ -0,0 +1 @@
+// LANGUAGE_VERSION: 1.6
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/signatures.txt b/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/signatures.txt
new file mode 100644
index 00000000000..133842f54f2
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/signatures.txt
@@ -0,0 +1,11 @@
+@java.lang.annotation.Retention(value=RUNTIME)
+@kotlin.Metadata
+public annotation class test/A {
+    // source: 'test.kt'
+}
+@kotlin.Metadata
+public final class test/Test {
+    // source: 'test.kt'
+    public method <init>(): void
+    public final @org.jetbrains.annotations.NotNull method anonymousAnnotationInstantiation(): test.A
+}
\ No newline at end of file
diff --git a/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/test.kt b/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/test.kt
new file mode 100644
index 00000000000..5eca5c3d375
--- /dev/null
+++ b/plugins/jvm-abi-gen/testData/content/anonymousAnnotationInstantiation/test.kt
@@ -0,0 +1,7 @@
+package test
+
+annotation class A
+
+class Test {
+    fun anonymousAnnotationInstantiation() = A()
+}