diff --git a/compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.java b/compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.java
new file mode 100644
index 00000000000..f3f3a967e49
--- /dev/null
+++ b/compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.java
@@ -0,0 +1,21 @@
+package test;
+
+// SKIP_IN_RUNTIME_TEST
+
+import java.lang.annotation.ElementType;
+import java.lang.annotation.Retention;
+import java.lang.annotation.RetentionPolicy;
+import java.lang.annotation.Target;
+
+public class InnerClassTypeAnnotation {
+
+    public class Inner {
+        public Inner(@Foo String foo) {
+        }
+    }
+
+    @Retention(RetentionPolicy.CLASS)
+    @Target({ElementType.TYPE_USE})
+    public @interface Foo {}
+
+}
diff --git a/compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.txt b/compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.txt
new file mode 100644
index 00000000000..0a331d40030
--- /dev/null
+++ b/compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.txt
@@ -0,0 +1,13 @@
+package test
+
+public open class InnerClassTypeAnnotation {
+    public constructor InnerClassTypeAnnotation()
+
+    @kotlin.annotation.Retention(value = AnnotationRetention.BINARY) @kotlin.annotation.Target(allowedTargets = {AnnotationTarget.TYPE}) public final annotation class Foo : kotlin.Annotation {
+        public constructor Foo()
+    }
+
+    public open inner class Inner {
+        public constructor Inner(/*0*/ @test.InnerClassTypeAnnotation.Foo p0: @test.InnerClassTypeAnnotation.Foo kotlin.String!)
+    }
+}
diff --git a/compiler/tests-common/org/jetbrains/kotlin/jvm/runtime/AbstractJvmRuntimeDescriptorLoaderTest.kt b/compiler/tests-common/org/jetbrains/kotlin/jvm/runtime/AbstractJvmRuntimeDescriptorLoaderTest.kt
index 04d634269ba..290a726d0b9 100644
--- a/compiler/tests-common/org/jetbrains/kotlin/jvm/runtime/AbstractJvmRuntimeDescriptorLoaderTest.kt
+++ b/compiler/tests-common/org/jetbrains/kotlin/jvm/runtime/AbstractJvmRuntimeDescriptorLoaderTest.kt
@@ -186,10 +186,14 @@ abstract class AbstractJvmRuntimeDescriptorLoaderTest : TestCaseWithTmpdir() {
 
     private fun adaptJavaSource(text: String): String {
         val typeAnnotations = arrayOf("NotNull", "Nullable", "ReadOnly", "Mutable")
-        return typeAnnotations.fold(text) { text, annotation -> text.replace("@$annotation", "") }.replace(
-                "@interface",
-                "@java.lang.annotation.Retention(java.lang.annotation.RetentionPolicy.RUNTIME) @interface"
-        )
+        val adaptedSource = typeAnnotations.fold(text) { text, annotation -> text.replace("@$annotation", "") }
+        if ("@Retention" !in adaptedSource) {
+            return adaptedSource.replace(
+                    "@interface",
+                    "@java.lang.annotation.Retention(java.lang.annotation.RetentionPolicy.RUNTIME) @interface"
+            )
+        }
+        return adaptedSource
     }
 
     private class SyntheticPackageViewForTest(override val module: ModuleDescriptor,
diff --git a/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/compiler/LoadJava8TestGenerated.java b/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/compiler/LoadJava8TestGenerated.java
index 48afe0720e8..ea6361582ab 100644
--- a/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/compiler/LoadJava8TestGenerated.java
+++ b/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/compiler/LoadJava8TestGenerated.java
@@ -38,6 +38,12 @@ public class LoadJava8TestGenerated extends AbstractLoadJava8Test {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/loadJava8/compiledJava"), Pattern.compile("^(.+)\\.java$"), TargetBackend.ANY, true);
         }
 
+        @TestMetadata("InnerClassTypeAnnotation.java")
+        public void testInnerClassTypeAnnotation() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.java");
+            doTestCompiledJava(fileName);
+        }
+
         @TestMetadata("MapRemove.java")
         public void testMapRemove() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/loadJava8/compiledJava/MapRemove.java");
diff --git a/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/runtime/Jvm8RuntimeDescriptorLoaderTestGenerated.java b/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/runtime/Jvm8RuntimeDescriptorLoaderTestGenerated.java
index c817f9abb0b..baf9e80e441 100644
--- a/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/runtime/Jvm8RuntimeDescriptorLoaderTestGenerated.java
+++ b/compiler/tests-java8/tests/org/jetbrains/kotlin/jvm/runtime/Jvm8RuntimeDescriptorLoaderTestGenerated.java
@@ -36,6 +36,12 @@ public class Jvm8RuntimeDescriptorLoaderTestGenerated extends AbstractJvm8Runtim
         KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("compiler/testData/loadJava8/compiledJava"), Pattern.compile("^(.+)\\.java$"), TargetBackend.ANY, true, "sam", "kotlinSignature/propagation");
     }
 
+    @TestMetadata("InnerClassTypeAnnotation.java")
+    public void testInnerClassTypeAnnotation() throws Exception {
+        String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/loadJava8/compiledJava/InnerClassTypeAnnotation.java");
+        doTest(fileName);
+    }
+
     @TestMetadata("MapRemove.java")
     public void testMapRemove() throws Exception {
         String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/loadJava8/compiledJava/MapRemove.java");