diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java
index 5a7a280ec60..6d8b95f2418 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java
@@ -25,6 +25,7 @@ import com.intellij.util.ArrayUtil;
 import com.intellij.util.SmartList;
 import com.intellij.util.containers.ContainerUtil;
 import kotlin.jvm.functions.Function0;
+import kotlin.jvm.functions.Function1;
 import org.jetbrains.annotations.Mutable;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -248,7 +249,7 @@ public class PackageCodegen {
         }
 
         bindings.add(v.getSerializationBindings());
-        writeKotlinPackageAnnotationIfNeeded(JvmSerializationBindings.union(bindings));
+        writeKotlinPackageAnnotationIfNeeded(JvmSerializationBindings.union(bindings), tasks.keySet());
     }
 
     private void generateKotlinPackageReflectionField() {
@@ -260,7 +261,10 @@ public class PackageCodegen {
         FunctionCodegen.endVisit(mv, "package facade static initializer", null);
     }
 
-    private void writeKotlinPackageAnnotationIfNeeded(@NotNull JvmSerializationBindings bindings) {
+    private void writeKotlinPackageAnnotationIfNeeded(
+            @NotNull JvmSerializationBindings bindings,
+            @NotNull final Collection<CallableMemberDescriptor> relevantCallables
+    ) {
         if (state.getClassBuilderMode() != ClassBuilderMode.FULL) {
             return;
         }
@@ -274,7 +278,12 @@ public class PackageCodegen {
         Collection<PackageFragmentDescriptor> packageFragments = Lists.newArrayList();
         ContainerUtil.addIfNotNull(packageFragments, packageFragment);
         ContainerUtil.addIfNotNull(packageFragments, compiledPackageFragment);
-        ProtoBuf.Package packageProto = serializer.packageProto(packageFragments).build();
+        ProtoBuf.Package packageProto = serializer.packageProto(packageFragments, new Function1<DeclarationDescriptor, Boolean>() {
+            @Override
+            public Boolean invoke(DeclarationDescriptor descriptor) {
+                return !(descriptor instanceof CallableMemberDescriptor && relevantCallables.contains(descriptor));
+            }
+        }).build();
 
         if (packageProto.getMemberCount() == 0) return;
 
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
index 5b7d3b434ea..af9f1e8ce99 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
@@ -43,6 +43,12 @@ public class IncrementalJpsTestGenerated extends AbstractIncrementalJpsTest {
             doTest(fileName);
         }
 
+        @TestMetadata("circularDependencySamePackageUnchanged")
+        public void testCircularDependencySamePackageUnchanged() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/");
+            doTest(fileName);
+        }
+
         @TestMetadata("circularDependencyTopLevelFunctions")
         public void testCircularDependencyTopLevelFunctions() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("jps-plugin/testData/incremental/multiModule/circularDependencyTopLevelFunctions/");
diff --git a/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/build.log b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/build.log
new file mode 100644
index 00000000000..d51f6f61402
--- /dev/null
+++ b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/build.log
@@ -0,0 +1,7 @@
+Cleaning output files:
+out/production/module1/test/TestPackage$module1_a$*.class
+out/production/module1/test/TestPackage.class
+End of files
+Compiling files:
+module1/src/module1_a.kt
+End of files
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/dependencies.txt b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/dependencies.txt
new file mode 100644
index 00000000000..02d5c8ca1a7
--- /dev/null
+++ b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/dependencies.txt
@@ -0,0 +1,2 @@
+module1->module2
+module2->module1
diff --git a/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module1_a.kt b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module1_a.kt
new file mode 100644
index 00000000000..8311da66012
--- /dev/null
+++ b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module1_a.kt
@@ -0,0 +1,7 @@
+package test
+
+fun a() {
+
+}
+
+val a = ""
diff --git a/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module1_a.kt.new b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module1_a.kt.new
new file mode 100644
index 00000000000..8311da66012
--- /dev/null
+++ b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module1_a.kt.new
@@ -0,0 +1,7 @@
+package test
+
+fun a() {
+
+}
+
+val a = ""
diff --git a/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module2_b.kt b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module2_b.kt
new file mode 100644
index 00000000000..b04c387135d
--- /dev/null
+++ b/jps-plugin/testData/incremental/multiModule/circularDependencySamePackageUnchanged/module2_b.kt
@@ -0,0 +1,7 @@
+package test
+
+fun b() {
+
+}
+
+var b = b()