diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
index 79e15f0c502..339452f6775 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/Errors.java
@@ -131,6 +131,7 @@ public interface Errors {
     DiagnosticFactory0<JetExpression> ANNOTATION_PARAMETER_MUST_BE_KCLASS_LITERAL = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory0<JetExpression> ANNOTATION_PARAMETER_MUST_BE_ENUM_CONST = DiagnosticFactory0.create(ERROR);
     DiagnosticFactory0<JetAnnotation> DEPRECATED_ANNOTATION_SYNTAX = DiagnosticFactory0.create(WARNING);
+    DiagnosticFactory0<JetExpression> ANNOTATION_PARAMETER_DEFAULT_VALUE_MUST_BE_CONSTANT = DiagnosticFactory0.create(ERROR);
 
     // Classes and traits
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
index 5c6649b122a..54ae7f2bf7c 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/diagnostics/rendering/DefaultErrorMessages.java
@@ -567,6 +567,7 @@ public class DefaultErrorMessages {
         MAP.put(ANNOTATION_PARAMETER_MUST_BE_CLASS_LITERAL, "An annotation parameter must be a `javaClass<T>()` call");
         MAP.put(ANNOTATION_PARAMETER_MUST_BE_KCLASS_LITERAL, "An annotation parameter must be a class literal (T::class)");
         MAP.put(DEPRECATED_ANNOTATION_SYNTAX, "This syntax for annotations is deprecated. Use '@' before annotation identifier instead");
+        MAP.put(ANNOTATION_PARAMETER_DEFAULT_VALUE_MUST_BE_CONSTANT, "Default value of annotation parameter must be a compile-time constant");
 
         MAP.put(DEFAULT_VALUE_NOT_ALLOWED_IN_OVERRIDE, "An overriding function is not allowed to specify default values for its parameters");
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ValueParameterResolver.kt b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ValueParameterResolver.kt
index 1ab4ded8b9f..bae1179f575 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ValueParameterResolver.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/ValueParameterResolver.kt
@@ -17,6 +17,7 @@
 package org.jetbrains.kotlin.types.expressions
 
 import org.jetbrains.kotlin.descriptors.ValueParameterDescriptor
+import org.jetbrains.kotlin.diagnostics.Errors
 import org.jetbrains.kotlin.psi.JetParameter
 import org.jetbrains.kotlin.resolve.*
 import org.jetbrains.kotlin.resolve.calls.smartcasts.DataFlowInfo
@@ -65,6 +66,7 @@ public class ValueParameterResolver(
         expressionTypingServices.getTypeInfo(defaultValue, context.replaceExpectedType(valueParameterDescriptor.getType()))
         if (DescriptorUtils.isAnnotationClass(DescriptorResolver.getContainingClass(context.scope))) {
             ConstantExpressionEvaluator.evaluate(defaultValue, context.trace, valueParameterDescriptor.getType())
+            ?: context.trace.report(Errors.ANNOTATION_PARAMETER_DEFAULT_VALUE_MUST_BE_CONSTANT.on(defaultValue))
         }
     }
 }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.kt b/compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.kt
new file mode 100644
index 00000000000..81d235a213c
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.kt
@@ -0,0 +1,22 @@
+import kotlin.reflect.KClass
+
+val CONST = 1
+fun foo() = 1
+val nonConst = foo()
+
+annotation class ValidAnn(
+    val p1: Int = 1 + CONST,
+    val p2: String = "",
+    val p3: KClass<*> = String::class,
+    val p4: IntArray = intArrayOf(1, 2, 3),
+    val p5: Array<String> = arrayOf("abc"),
+    val p6: Array<KClass<*>> = arrayOf(Int::class)
+)
+
+val nonConstKClass = String::class
+
+annotation class InvalidAnn(
+    val p1: Int = <!ANNOTATION_PARAMETER_DEFAULT_VALUE_MUST_BE_CONSTANT!>foo()<!>,
+    val p2: Int = <!ANNOTATION_PARAMETER_DEFAULT_VALUE_MUST_BE_CONSTANT!>nonConst<!>,
+    val p3: KClass<*> = <!ANNOTATION_PARAMETER_DEFAULT_VALUE_MUST_BE_CONSTANT!>nonConstKClass<!>
+)
diff --git a/compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.txt b/compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.txt
new file mode 100644
index 00000000000..811b3654351
--- /dev/null
+++ b/compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.txt
@@ -0,0 +1,29 @@
+package
+
+internal val CONST: kotlin.Int = 1
+internal val nonConst: kotlin.Int
+internal val nonConstKClass: kotlin.reflect.KClass<kotlin.String>
+internal fun foo(): kotlin.Int
+
+internal final annotation class InvalidAnn : kotlin.Annotation {
+    public constructor InvalidAnn(/*0*/ p1: kotlin.Int = ..., /*1*/ p2: kotlin.Int = ..., /*2*/ p3: kotlin.reflect.KClass<*> = ...)
+    internal final val p1: kotlin.Int
+    internal final val p2: kotlin.Int
+    internal final val p3: kotlin.reflect.KClass<*>
+    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
+}
+
+internal final annotation class ValidAnn : kotlin.Annotation {
+    public constructor ValidAnn(/*0*/ p1: kotlin.Int = ..., /*1*/ p2: kotlin.String = ..., /*2*/ p3: kotlin.reflect.KClass<*> = ..., /*3*/ p4: kotlin.IntArray = ..., /*4*/ p5: kotlin.Array<kotlin.String> = ..., /*5*/ p6: kotlin.Array<kotlin.reflect.KClass<*>> = ...)
+    internal final val p1: kotlin.Int
+    internal final val p2: kotlin.String
+    internal final val p3: kotlin.reflect.KClass<*>
+    internal final val p4: kotlin.IntArray
+    internal final val p5: kotlin.Array<kotlin.String>
+    internal final val p6: kotlin.Array<kotlin.reflect.KClass<*>>
+    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/JetDiagnosticsTestWithStdLibGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestWithStdLibGenerated.java
index 4f15c68981a..a4f75d0b9e1 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestWithStdLibGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestWithStdLibGenerated.java
@@ -61,6 +61,12 @@ public class JetDiagnosticsTestWithStdLibGenerated extends AbstractJetDiagnostic
             doTest(fileName);
         }
 
+        @TestMetadata("defaultValueMustBeConstant.kt")
+        public void testDefaultValueMustBeConstant() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/testsWithStdLib/annotations/defaultValueMustBeConstant.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("qualifiedCallValue.kt")
         public void testQualifiedCallValue() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/testsWithStdLib/annotations/qualifiedCallValue.kt");