diff --git a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/KtLightClassForSourceDeclaration.kt b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/KtLightClassForSourceDeclaration.kt
index d51959a0849..0c936e36a43 100644
--- a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/KtLightClassForSourceDeclaration.kt
+++ b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/classes/KtLightClassForSourceDeclaration.kt
@@ -61,6 +61,7 @@ import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.debugText.getDebugText
 import org.jetbrains.kotlin.psi.psiUtil.getElementTextWithContext
 import org.jetbrains.kotlin.psi.psiUtil.hasExpectModifier
+import org.jetbrains.kotlin.psi.psiUtil.parentsWithSelf
 import org.jetbrains.kotlin.psi.stubs.KotlinClassOrObjectStub
 import org.jetbrains.kotlin.resolve.DescriptorUtils
 import java.util.*
@@ -340,7 +341,7 @@ abstract class KtLightClassForSourceDeclaration(protected val classOrObject: KtC
                 }
 
         fun createNoCache(classOrObject: KtClassOrObject): KtLightClassForSourceDeclaration? {
-            if (classOrObject.hasExpectModifier()) {
+            if (classOrObject.parentsWithSelf.filterIsInstance<KtClassOrObject>().any { it.hasExpectModifier() }) {
                 return null
             }
 
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.java b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.java
new file mode 100644
index 00000000000..a7ed8598c7c
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.java
@@ -0,0 +1 @@
+<not generated>
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.kt b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.kt
new file mode 100644
index 00000000000..eb57fed743c
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.kt
@@ -0,0 +1,4 @@
+// p.B
+package p
+
+expect class B
\ No newline at end of file
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.java b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.java
new file mode 100644
index 00000000000..c330f2fabf8
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.java
@@ -0,0 +1 @@
+<not generated>
\ No newline at end of file
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.kt b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.kt
new file mode 100644
index 00000000000..c55b87e1708
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.kt
@@ -0,0 +1,4 @@
+// p.B
+package p
+
+expect object B
\ No newline at end of file
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.java b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.java
new file mode 100644
index 00000000000..a7ed8598c7c
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.java
@@ -0,0 +1 @@
+<not generated>
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.kt b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.kt
new file mode 100644
index 00000000000..80349a316ce
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.kt
@@ -0,0 +1,6 @@
+// p.B.Nested
+package p
+
+expect class B {
+    class Nested {}
+}
\ No newline at end of file
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.java b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.java
new file mode 100644
index 00000000000..c330f2fabf8
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.java
@@ -0,0 +1 @@
+<not generated>
\ No newline at end of file
diff --git a/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.kt b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.kt
new file mode 100644
index 00000000000..384e25d66c4
--- /dev/null
+++ b/compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.kt
@@ -0,0 +1,6 @@
+// p.B.Nested
+package p
+
+expect object B {
+    class Nested {}
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/asJava/CompilerLightClassTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/asJava/CompilerLightClassTestGenerated.java
index 96582273fe4..000015b917e 100644
--- a/compiler/tests/org/jetbrains/kotlin/asJava/CompilerLightClassTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/asJava/CompilerLightClassTestGenerated.java
@@ -165,6 +165,30 @@ public class CompilerLightClassTestGenerated extends AbstractCompilerLightClassT
             doTest(fileName);
         }
 
+        @TestMetadata("ExpectClass.kt")
+        public void testExpectClass() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ExpectObject.kt")
+        public void testExpectObject() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ExpectedNestedClass.kt")
+        public void testExpectedNestedClass() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ExpectedNestedClassInObject.kt")
+        public void testExpectedNestedClassInObject() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("PrivateInTrait.kt")
         public void testPrivateInTrait() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/PrivateInTrait.kt");
diff --git a/idea/tests/org/jetbrains/kotlin/idea/caches/resolve/IdeLightClassTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/caches/resolve/IdeLightClassTestGenerated.java
index 3b2e67e6a59..769b8f955ea 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/caches/resolve/IdeLightClassTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/caches/resolve/IdeLightClassTestGenerated.java
@@ -165,6 +165,30 @@ public class IdeLightClassTestGenerated extends AbstractIdeLightClassTest {
             doTest(fileName);
         }
 
+        @TestMetadata("ExpectClass.kt")
+        public void testExpectClass() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectClass.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ExpectObject.kt")
+        public void testExpectObject() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectObject.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ExpectedNestedClass.kt")
+        public void testExpectedNestedClass() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClass.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ExpectedNestedClassInObject.kt")
+        public void testExpectedNestedClassInObject() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/ExpectedNestedClassInObject.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("PrivateInTrait.kt")
         public void testPrivateInTrait() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/asJava/lightClasses/compilationErrors/PrivateInTrait.kt");