diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
index ffa29b37acb..5586a5e7cb9 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/DescriptorResolver.java
@@ -574,6 +574,10 @@ public class DescriptorResolver {
             BindingTrace trace
     ) {
         if (!TypeUtils.canHaveSubtypes(JetTypeChecker.DEFAULT, upperBoundType)) {
+            ClassifierDescriptor descriptor = upperBoundType.getConstructor().getDeclarationDescriptor();
+            if (descriptor instanceof ClassDescriptor) {
+                if (((ClassDescriptor) descriptor).getModality() == Modality.SEALED) return;
+            }
             trace.report(FINAL_UPPER_BOUND.on(upperBound, upperBoundType));
         }
         if (TypesPackage.isDynamic(upperBoundType)) {
diff --git a/compiler/testData/diagnostics/tests/sealed/NotFinal.kt b/compiler/testData/diagnostics/tests/sealed/NotFinal.kt
new file mode 100644
index 00000000000..0cf7cf13a5b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/NotFinal.kt
@@ -0,0 +1,10 @@
+// See KT-9244
+
+sealed class Foo {
+  class Bar : Foo()
+  class Baz : Foo()
+}
+
+// The following warning seems incorrect here
+// "Foo is a final type, and thus a value of the type parameter is predetermined"
+fun <T : Foo> doit(arg: T): T = arg
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/sealed/NotFinal.txt b/compiler/testData/diagnostics/tests/sealed/NotFinal.txt
new file mode 100644
index 00000000000..3d5953b9dfc
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/NotFinal.txt
@@ -0,0 +1,24 @@
+package
+
+public fun </*0*/ T : Foo> doit(/*0*/ arg: T): T
+
+public sealed class Foo {
+    private constructor Foo()
+    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 Bar : Foo {
+        public constructor Bar()
+        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 Baz : Foo {
+        public constructor Baz()
+        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/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index 981c60b020a..1825181c122 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -13263,6 +13263,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("NotFinal.kt")
+            public void testNotFinal() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/sealed/NotFinal.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("OperationWhen.kt")
             public void testOperationWhen() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/sealed/OperationWhen.kt");