diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
index 52eb92e5705..d62fc438cbb 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
@@ -710,18 +710,25 @@ public class DescriptorResolver {
         else {
             typeAliasDescriptor.initialize(
                     typeParameterDescriptors,
-                    storageManager.createLazyValue(new Function0<SimpleType>() {
-                        @Override
-                        public SimpleType invoke() {
-                            return typeResolver.resolveAbbreviatedType(scopeWithTypeParameters, typeReference, trace);
-                        }
-                    }),
-                    storageManager.createLazyValue(new Function0<SimpleType>() {
-                        @Override
-                        public SimpleType invoke() {
-                            return typeResolver.resolveExpandedTypeForTypeAlias(typeAliasDescriptor);
-                        }
-                    }));
+                    storageManager.createRecursionTolerantLazyValue(
+                            new Function0<SimpleType>() {
+                                @Override
+                                public SimpleType invoke() {
+                                    return typeResolver.resolveAbbreviatedType(scopeWithTypeParameters, typeReference, trace);
+                                }
+                            },
+                            ErrorUtils.createErrorType("Recursive type alias expansion for " + typeAliasDescriptor.getName().asString())
+                    ),
+                    storageManager.createRecursionTolerantLazyValue(
+                            new Function0<SimpleType>() {
+                                @Override
+                                public SimpleType invoke() {
+                                    return typeResolver.resolveExpandedTypeForTypeAlias(typeAliasDescriptor);
+                                }
+                            },
+                            ErrorUtils.createErrorType("Recursive type alias expansion for " + typeAliasDescriptor.getName().asString())
+                    )
+            );
         }
 
         trace.record(TYPE_ALIAS, typeAlias, typeAliasDescriptor);
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpansion.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpansion.kt
index 28cb6022b51..6c8799fad98 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpansion.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/TypeAliasExpansion.kt
@@ -48,7 +48,7 @@ class TypeAliasExpansion private constructor(
                 typeAliasDescriptor: TypeAliasDescriptor,
                 arguments: List<TypeProjection>
         ): TypeAliasExpansion {
-            val typeParameters = typeAliasDescriptor.typeConstructor.parameters.map { it.original as TypeParameterDescriptor }
+            val typeParameters = typeAliasDescriptor.typeConstructor.parameters.map { it.original }
             val mappedArguments = typeParameters.zip(arguments).toMap()
             return TypeAliasExpansion(parent, typeAliasDescriptor, arguments, mappedArguments)
         }
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyTypeAliasDescriptor.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyTypeAliasDescriptor.kt
index f4716156ab0..538db9ac813 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyTypeAliasDescriptor.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyTypeAliasDescriptor.kt
@@ -22,6 +22,7 @@ import org.jetbrains.kotlin.descriptors.impl.AbstractTypeAliasDescriptor
 import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.resolve.BindingTrace
 import org.jetbrains.kotlin.storage.NotNullLazyValue
+import org.jetbrains.kotlin.storage.NullableLazyValue
 import org.jetbrains.kotlin.storage.StorageManager
 import org.jetbrains.kotlin.types.SimpleType
 import org.jetbrains.kotlin.types.TypeSubstitutor
@@ -42,9 +43,11 @@ class LazyTypeAliasDescriptor(
     private lateinit var underlyingTypeImpl: NotNullLazyValue<SimpleType>
     private lateinit var expandedTypeImpl: NotNullLazyValue<SimpleType>
     private lateinit var defaultTypeImpl: NotNullLazyValue<SimpleType>
+    private lateinit var classDescriptorImpl: NullableLazyValue<ClassDescriptor>
 
     override val underlyingType: SimpleType get() = underlyingTypeImpl()
     override val expandedType: SimpleType get() = expandedTypeImpl()
+    override val classDescriptor: ClassDescriptor? get() = classDescriptorImpl()
     override fun getDefaultType(): SimpleType = defaultTypeImpl()
 
     fun initialize(
@@ -56,10 +59,21 @@ class LazyTypeAliasDescriptor(
         this.underlyingTypeImpl = lazyUnderlyingType
         this.expandedTypeImpl = lazyExpandedType
         this.defaultTypeImpl = storageManager.createLazyValue { computeDefaultType() }
+        this.classDescriptorImpl = storageManager.createRecursionTolerantNullableLazyValue({ computeClassDescriptor() }, null)
+    }
+
+    private fun computeClassDescriptor(): ClassDescriptor? {
+        if (underlyingType.isError) return null
+        val underlyingTypeDescriptor = underlyingType.constructor.declarationDescriptor
+        return when (underlyingTypeDescriptor) {
+            is ClassDescriptor -> underlyingTypeDescriptor
+            is TypeAliasDescriptor -> underlyingTypeDescriptor.classDescriptor
+            else -> null
+        }
     }
 
     private val lazyTypeConstructorParameters =
-            storageManager.createLazyValue { this.computeConstructorTypeParameters() }
+            storageManager.createRecursionTolerantLazyValue({ this.computeConstructorTypeParameters() }, emptyList())
 
     fun initialize(
             declaredTypeParameters: List<TypeParameterDescriptor>,
diff --git a/compiler/testData/diagnostics/tests/typealias/capturingTypeParametersFromOuterClass.txt b/compiler/testData/diagnostics/tests/typealias/capturingTypeParametersFromOuterClass.txt
index de6e804b5c0..7f0d07cf85e 100644
--- a/compiler/testData/diagnostics/tests/typealias/capturingTypeParametersFromOuterClass.txt
+++ b/compiler/testData/diagnostics/tests/typealias/capturingTypeParametersFromOuterClass.txt
@@ -21,10 +21,10 @@ public final class Outer</*0*/ TO> {
             public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
             public typealias LTI /*captured type parameters: /*0*/ TI, /*1*/ TN*/ = kotlin.collections.List<TI>
             public typealias LTN /*captured type parameters: /*0*/ TI, /*1*/ TN*/ = kotlin.collections.List<TN>
-            public typealias LTO /*captured type parameters: /*0*/ TI, /*1*/ TN*/ = kotlin.collections.List<[ERROR : TO]>
+            public typealias LTO = kotlin.collections.List<[ERROR : TO]>
         }
         public typealias LTN /*captured type parameters: /*0*/ TN*/ = kotlin.collections.List<TN>
-        public typealias LTO /*captured type parameters: /*0*/ TN*/ = kotlin.collections.List<[ERROR : TO]>
+        public typealias LTO = kotlin.collections.List<[ERROR : TO]>
     }
     public typealias LTO /*captured type parameters: /*0*/ TO*/ = kotlin.collections.List<TO>
 }
diff --git a/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.kt b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.kt
new file mode 100644
index 00000000000..a47821a691c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.kt
@@ -0,0 +1,32 @@
+class Outer<T> {
+    class Nested
+    class GenericNested<TT>
+    inner class Inner
+    inner class GenericInner<TT>
+
+    typealias NestedAlias = Nested
+    typealias GenericNestedAlias<TT> = GenericNested<TT>
+    typealias InnerAlias = Inner
+    typealias GenericInnerAlias<TT> = GenericInner<TT>
+
+    fun test1(x: NestedAlias) = x
+    fun test2(x: GenericNestedAlias<Int>) = x
+    fun <T> test3(x: GenericNestedAlias<T>) = x
+    fun test4(x: InnerAlias) = x
+    fun test5(x: GenericInnerAlias<Int>) = x
+    fun <T> test6(x: GenericInnerAlias<T>) = x
+}
+fun test1(x: Outer<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><Int><!>.NestedAlias) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun <T> test2(x: Outer<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><T><!>.NestedAlias) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun test3(x: Outer.NestedAlias) = x
+fun test4(x: Outer<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><Int><!>.GenericNestedAlias<Int>) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun <T> test5(x: Outer<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><T><!>.GenericNestedAlias<Int>) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun <T> test6(x: Outer<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><Int><!>.GenericNestedAlias<T>) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun test7(x: Outer.GenericNestedAlias<Int>) = x
+fun <T> test8(x: Outer.GenericNestedAlias<T>) = x
+fun test9(x: <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Outer<!>.InnerAlias) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun test10(x: Outer<Int>.InnerAlias) = x
+fun <T> test11(x: Outer<T>.InnerAlias) = x
+fun test12(x: <!WRONG_NUMBER_OF_TYPE_ARGUMENTS!>Outer<!>.GenericInnerAlias<Int>) = <!DEBUG_INFO_ELEMENT_WITH_ERROR_TYPE!>x<!>
+fun test13(x: Outer<Int>.GenericInnerAlias<Int>) = x
+fun <T> test14(x: Outer<T>.GenericInnerAlias<Int>) = x
diff --git a/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.txt b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.txt
new file mode 100644
index 00000000000..c7245958edc
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.txt
@@ -0,0 +1,61 @@
+package
+
+public fun test1(/*0*/ x: [ERROR : NestedAlias]<kotlin.Int>): [ERROR : NestedAlias]<kotlin.Int>
+public fun test10(/*0*/ x: Outer<kotlin.Int>.InnerAlias /* = Outer<kotlin.Int>.Inner */): Outer<kotlin.Int>.InnerAlias /* = Outer<kotlin.Int>.Inner */
+public fun </*0*/ T> test11(/*0*/ x: Outer<T>.InnerAlias /* = Outer<T>.Inner */): Outer<T>.InnerAlias /* = Outer<T>.Inner */
+public fun test12(/*0*/ x: [ERROR : GenericInnerAlias]<kotlin.Int>): [ERROR : GenericInnerAlias]<kotlin.Int>
+public fun test13(/*0*/ x: Outer<kotlin.Int>.GenericInnerAlias<kotlin.Int> /* = Outer<kotlin.Int>.GenericInner<kotlin.Int> */): Outer<kotlin.Int>.GenericInnerAlias<kotlin.Int> /* = Outer<kotlin.Int>.GenericInner<kotlin.Int> */
+public fun </*0*/ T> test14(/*0*/ x: Outer<T>.GenericInnerAlias<kotlin.Int> /* = Outer<T>.GenericInner<kotlin.Int> */): Outer<T>.GenericInnerAlias<kotlin.Int> /* = Outer<T>.GenericInner<kotlin.Int> */
+public fun </*0*/ T> test2(/*0*/ x: [ERROR : NestedAlias]<T>): [ERROR : NestedAlias]<T>
+public fun test3(/*0*/ x: Outer.NestedAlias /* = Outer.Nested */): Outer.NestedAlias /* = Outer.Nested */
+public fun test4(/*0*/ x: [ERROR : GenericNestedAlias]<kotlin.Int, kotlin.Int>): [ERROR : GenericNestedAlias]<kotlin.Int, kotlin.Int>
+public fun </*0*/ T> test5(/*0*/ x: [ERROR : GenericNestedAlias]<T, kotlin.Int>): [ERROR : GenericNestedAlias]<T, kotlin.Int>
+public fun </*0*/ T> test6(/*0*/ x: [ERROR : GenericNestedAlias]<kotlin.Int, T>): [ERROR : GenericNestedAlias]<kotlin.Int, T>
+public fun test7(/*0*/ x: Outer.GenericNestedAlias<kotlin.Int> /* = Outer.GenericNested<kotlin.Int> */): Outer.GenericNestedAlias<kotlin.Int> /* = Outer.GenericNested<kotlin.Int> */
+public fun </*0*/ T> test8(/*0*/ x: Outer.GenericNestedAlias<T> /* = Outer.GenericNested<T> */): Outer.GenericNestedAlias<T> /* = Outer.GenericNested<T> */
+public fun test9(/*0*/ x: [ERROR : InnerAlias]): [ERROR : InnerAlias]
+
+public final class Outer</*0*/ T> {
+    public constructor Outer</*0*/ T>()
+    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 final fun test1(/*0*/ x: Outer.NestedAlias /* = Outer.Nested */): Outer.NestedAlias /* = Outer.Nested */
+    public final fun test2(/*0*/ x: Outer.GenericNestedAlias<kotlin.Int> /* = Outer.GenericNested<kotlin.Int> */): Outer.GenericNestedAlias<kotlin.Int> /* = Outer.GenericNested<kotlin.Int> */
+    public final fun </*0*/ T> test3(/*0*/ x: Outer.GenericNestedAlias<T> /* = Outer.GenericNested<T> */): Outer.GenericNestedAlias<T> /* = Outer.GenericNested<T> */
+    public final fun test4(/*0*/ x: Outer<T>.InnerAlias /* = Outer<T>.Inner */): Outer<T>.InnerAlias /* = Outer<T>.Inner */
+    public final fun test5(/*0*/ x: Outer<T>.GenericInnerAlias<kotlin.Int> /* = Outer<T>.GenericInner<kotlin.Int> */): Outer<T>.GenericInnerAlias<kotlin.Int> /* = Outer<T>.GenericInner<kotlin.Int> */
+    public final fun </*0*/ T> test6(/*0*/ x: Outer<T>.GenericInnerAlias<T> /* = Outer<T>.GenericInner<T> */): Outer<T>.GenericInnerAlias<T> /* = Outer<T>.GenericInner<T> */
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final inner class GenericInner</*0*/ TT> /*captured type parameters: /*1*/ T*/ {
+        public constructor GenericInner</*0*/ TT>()
+        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 GenericNested</*0*/ TT> {
+        public constructor GenericNested</*0*/ TT>()
+        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 inner class Inner /*captured type parameters: /*0*/ T*/ {
+        public constructor Inner()
+        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 Nested {
+        public constructor Nested()
+        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 typealias GenericInnerAlias</*0*/ TT>  /*captured type parameters: /*1*/ T*/ = Outer<T>.GenericInner<TT>
+    public typealias GenericNestedAlias</*0*/ TT>  = Outer.GenericNested<TT>
+    public typealias InnerAlias /*captured type parameters: /*0*/ T*/ = Outer<T>.Inner
+    public typealias NestedAlias = Outer.Nested
+}
diff --git a/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.kt b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.kt
new file mode 100644
index 00000000000..e51653d15ef
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.kt
@@ -0,0 +1,22 @@
+class C<T> {
+    inner class D
+
+    typealias DA = D
+    typealias SDA = C<Int>.D
+    typealias TSDA = C<T>.D
+    typealias TC = C<T>
+    typealias SSDA = C<*>.D
+    typealias SSC = C<*>
+}
+
+fun test1(x: C<Int>.DA) = x
+fun test2(x: C.SDA) = x
+fun test3(x: C<Int>.TSDA) = x
+fun test4(x: C<Int>.TC) = x
+
+fun test5(x: C<*>.DA) = x
+fun test6(x: C<*>.TSDA) = x
+fun test7(x: C<*>.TC) = x
+
+fun test8(x: C.SSDA) = x
+fun test9(x: C.SSC) = x
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.txt b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.txt
new file mode 100644
index 00000000000..5d7d94a83b5
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.txt
@@ -0,0 +1,31 @@
+package
+
+public fun test1(/*0*/ x: C<kotlin.Int>.DA /* = C<kotlin.Int>.D */): C<kotlin.Int>.DA /* = C<kotlin.Int>.D */
+public fun test2(/*0*/ x: C.SDA /* = C<kotlin.Int>.D */): C.SDA /* = C<kotlin.Int>.D */
+public fun test3(/*0*/ x: C<kotlin.Int>.TSDA /* = C<kotlin.Int>.D */): C<kotlin.Int>.TSDA /* = C<kotlin.Int>.D */
+public fun test4(/*0*/ x: C<kotlin.Int>.TC /* = C<kotlin.Int> */): C<kotlin.Int>.TC /* = C<kotlin.Int> */
+public fun test5(/*0*/ x: C<*>.DA /* = C<*>.D */): C<*>.DA /* = C<*>.D */
+public fun test6(/*0*/ x: C<*>.TSDA /* = C<*>.D */): C<*>.TSDA /* = C<*>.D */
+public fun test7(/*0*/ x: C<*>.TC /* = C<*> */): C<*>.TC /* = C<*> */
+public fun test8(/*0*/ x: C.SSDA /* = C<*>.D */): C.SSDA /* = C<*>.D */
+public fun test9(/*0*/ x: C.SSC /* = C<*> */): C.SSC /* = C<*> */
+
+public final class C</*0*/ T> {
+    public constructor C</*0*/ T>()
+    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 inner class D /*captured type parameters: /*0*/ T*/ {
+        public constructor D()
+        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 typealias DA /*captured type parameters: /*0*/ T*/ = C<T>.D
+    public typealias SDA = C<kotlin.Int>.D
+    public typealias SSC = C<*>
+    public typealias SSDA = C<*>.D
+    public typealias TC /*captured type parameters: /*0*/ T*/ = C<T>
+    public typealias TSDA /*captured type parameters: /*0*/ T*/ = C<T>.D
+}
diff --git a/compiler/testData/diagnostics/tests/typealias/kt14518.kt b/compiler/testData/diagnostics/tests/typealias/kt14518.kt
new file mode 100644
index 00000000000..df4b929eaa7
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/kt14518.kt
@@ -0,0 +1,8 @@
+class OuterClass<T1> {
+    class NestedClass<T2>
+    typealias NestedType<T> = NestedClass<T>
+}
+
+typealias ON1<T1, T2> = OuterClass<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><T1><!>.NestedClass<T2>
+typealias ON2<T1, T2> = OuterClass<!TYPE_ARGUMENTS_FOR_OUTER_CLASS_WHEN_NESTED_REFERENCED!><T1><!>.NestedType<T2>
+typealias ON3<T2> = OuterClass.NestedType<T2>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/typealias/kt14518.txt b/compiler/testData/diagnostics/tests/typealias/kt14518.txt
new file mode 100644
index 00000000000..d3fa98db44c
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/typealias/kt14518.txt
@@ -0,0 +1,19 @@
+package
+
+public final class OuterClass</*0*/ T1> {
+    public constructor OuterClass</*0*/ T1>()
+    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 NestedClass</*0*/ T2> {
+        public constructor NestedClass</*0*/ T2>()
+        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 typealias NestedType</*0*/ T>  = OuterClass.NestedClass<T>
+}
+public typealias ON1</*0*/ T1, /*1*/ T2>  = [ERROR : NestedClass]<T1, T2>
+public typealias ON2</*0*/ T1, /*1*/ T2>  = [ERROR : NestedType]<T1, T2>
+public typealias ON3</*0*/ T2>  = OuterClass.NestedType<T2>
diff --git a/compiler/testData/diagnostics/tests/typealias/typeAliasAsSuperQualifier.txt b/compiler/testData/diagnostics/tests/typealias/typeAliasAsSuperQualifier.txt
index fe224e521fd..f87cefb1876 100644
--- a/compiler/testData/diagnostics/tests/typealias/typeAliasAsSuperQualifier.txt
+++ b/compiler/testData/diagnostics/tests/typealias/typeAliasAsSuperQualifier.txt
@@ -32,7 +32,7 @@ public final class TestSuperForGenericBase</*0*/ T> : GB<T> /* = GenericBase<T>
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
     public typealias MyBase /*captured type parameters: /*0*/ T*/ = GB<T>
-    public typealias MyBaseInt /*captured type parameters: /*0*/ T*/ = GB<kotlin.Int>
+    public typealias MyBaseInt = GB<kotlin.Int>
 }
 
 public final class Unrelated {
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 86b6c3f5e0b..dd1a0465973 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -20926,6 +20926,18 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("innerTypeAliasAsType.kt")
+            public void testInnerTypeAliasAsType() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("innerTypeAliasAsType2.kt")
+            public void testInnerTypeAliasAsType2() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/innerTypeAliasAsType2.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("isAsWithTypeAlias.kt")
             public void testIsAsWithTypeAlias() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/isAsWithTypeAlias.kt");
@@ -20950,6 +20962,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt14518.kt")
+            public void testKt14518() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/kt14518.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt14641.kt")
             public void testKt14641() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/typealias/kt14641.kt");
diff --git a/core/descriptors/src/org/jetbrains/kotlin/descriptors/impl/AbstractTypeAliasDescriptor.kt b/core/descriptors/src/org/jetbrains/kotlin/descriptors/impl/AbstractTypeAliasDescriptor.kt
index 2077cab9937..cdf855d8a99 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/descriptors/impl/AbstractTypeAliasDescriptor.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/descriptors/impl/AbstractTypeAliasDescriptor.kt
@@ -47,14 +47,20 @@ abstract class AbstractTypeAliasDescriptor(
             visitor.visitTypeAliasDescriptor(this, data)
 
     override fun isInner(): Boolean =
-            containingDeclaration !is PackageFragmentDescriptor
+            // NB: it's ok to use underlyingType here, since referenced inner type aliases also capture type parameters.
+            // Using expandedType looks "proper", but in fact will cause a recursion in expandedType resolution,
+            // which will silently produce wrong result.
+            TypeUtils.contains(underlyingType) {
+                !it.isError && run {
+                    val constructorDescriptor = it.constructor.declarationDescriptor
+                    constructorDescriptor is TypeParameterDescriptor &&
+                    constructorDescriptor.containingDeclaration != this@AbstractTypeAliasDescriptor
+                }
+            }
 
     override fun getDeclaredTypeParameters(): List<TypeParameterDescriptor> =
             declaredTypeParametersImpl
 
-    override val classDescriptor: ClassDescriptor?
-        get() = if (expandedType.isError) null else expandedType.constructor.declarationDescriptor as? ClassDescriptor
-
     override fun getModality() = Modality.FINAL
 
     override fun getVisibility() = visibilityImpl
diff --git a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/NotFoundClasses.kt b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/NotFoundClasses.kt
index 8025a05c5b4..27a633626ed 100644
--- a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/NotFoundClasses.kt
+++ b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/NotFoundClasses.kt
@@ -133,6 +133,8 @@ class NotFoundClasses(private val storageManager: StorageManager, private val mo
             get() = builtIns.nullableAnyType
         override fun getDefaultType(): SimpleType =
                 builtIns.nullableAnyType
+        override val classDescriptor: ClassDescriptor?
+            get() = expandedType.constructor.declarationDescriptor as? ClassDescriptor
 
         override fun substitute(substitutor: TypeSubstitutor) = this
 
diff --git a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberDescriptor.kt b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberDescriptor.kt
index 28284b9cc25..99aa970ff7b 100644
--- a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberDescriptor.kt
+++ b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberDescriptor.kt
@@ -169,6 +169,9 @@ class DeserializedTypeAliasDescriptor(
         defaultTypeImpl = computeDefaultType()
     }
 
+    override val classDescriptor: ClassDescriptor?
+        get() = if (expandedType.isError) null else expandedType.constructor.declarationDescriptor as? ClassDescriptor
+
     override fun getDefaultType(): SimpleType =
             defaultTypeImpl
 
diff --git a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
index 957bc6b4f67..87413d17bf8 100644
--- a/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
+++ b/js/js.tests/test/org/jetbrains/kotlin/js/test/semantics/JsCodegenBoxTestGenerated.java
@@ -7366,12 +7366,6 @@ public class JsCodegenBoxTestGenerated extends AbstractJsCodegenBoxTest {
                 doTest(fileName);
             }
 
-            @TestMetadata("kt13557.kt")
-            public void testKt13557() throws Exception {
-                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/delegatedProperty/local/kt13557.kt");
-                doTest(fileName);
-            }
-
             @TestMetadata("localVal.kt")
             public void testLocalVal() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/delegatedProperty/local/localVal.kt");