diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinPsiChecker.kt b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinPsiChecker.kt
index 0404143e6cd..d098e0a51af 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinPsiChecker.kt
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/highlighter/KotlinPsiChecker.kt
@@ -30,6 +30,8 @@ import com.intellij.psi.MultiRangeReference
 import com.intellij.psi.PsiElement
 import com.intellij.psi.PsiFile
 import com.intellij.util.containers.MultiMap
+import org.jetbrains.kotlin.cli.common.arguments.K2JVMCompilerArguments
+import org.jetbrains.kotlin.config.KotlinFacetSettingsProvider
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
 import org.jetbrains.kotlin.diagnostics.Diagnostic
 import org.jetbrains.kotlin.diagnostics.DiagnosticFactory
@@ -41,10 +43,12 @@ import org.jetbrains.kotlin.idea.fir.firResolveState
 import org.jetbrains.kotlin.idea.fir.getOrBuildFirWithDiagnostics
 import org.jetbrains.kotlin.idea.quickfix.QuickFixes
 import org.jetbrains.kotlin.idea.references.mainReference
+import org.jetbrains.kotlin.idea.util.module
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.resolve.diagnostics.Diagnostics
 import org.jetbrains.kotlin.types.KotlinType
+import org.jetbrains.kotlin.utils.addToStdlib.safeAs
 import java.lang.reflect.*
 import java.util.*
 
@@ -236,6 +240,9 @@ private class ElementAnnotator(
         val diagnostic = diagnostics.first()
         val factory = diagnostic.factory
 
+        // hack till the root cause #KT-21246 is fixed
+        if (isIrCompileClassDiagnosticForModulesWithEnabledIR(diagnostic)) return
+
         assert(diagnostics.all { it.psiElement == element && it.factory == factory })
 
         val ranges = diagnostic.textRanges
@@ -314,6 +321,14 @@ private class ElementAnnotator(
         data.processDiagnostics(holder, diagnostics, fixesMap)
     }
 
+    private fun isIrCompileClassDiagnosticForModulesWithEnabledIR(diagnostic: Diagnostic): Boolean {
+        if (diagnostic.factory != Errors.IR_COMPILED_CLASS) return false
+        val module = element.module ?: return false
+        val moduleFacetSettings = KotlinFacetSettingsProvider.getInstance(element.project)?.getSettings(module) ?: return false
+        return moduleFacetSettings.isCompilerSettingPresent(K2JVMCompilerArguments::useIR)
+                || moduleFacetSettings.isCompilerSettingPresent(K2JVMCompilerArguments::allowJvmIrDependencies)
+    }
+
     companion object {
         val LOG = Logger.getInstance(ElementAnnotator::class.java)
     }
diff --git a/idea/idea-jps-common/src/org/jetbrains/kotlin/config/KotlinFacetSettings.kt b/idea/idea-jps-common/src/org/jetbrains/kotlin/config/KotlinFacetSettings.kt
index 93df5bc43ad..c11fbd99dfa 100644
--- a/idea/idea-jps-common/src/org/jetbrains/kotlin/config/KotlinFacetSettings.kt
+++ b/idea/idea-jps-common/src/org/jetbrains/kotlin/config/KotlinFacetSettings.kt
@@ -8,6 +8,7 @@ package org.jetbrains.kotlin.config
 import com.intellij.openapi.components.ServiceManager
 import com.intellij.openapi.module.Module
 import com.intellij.openapi.project.Project
+import org.jetbrains.kotlin.cli.common.arguments.Argument
 import org.jetbrains.kotlin.cli.common.arguments.CommonCompilerArguments
 import org.jetbrains.kotlin.cli.common.arguments.copyBean
 import org.jetbrains.kotlin.cli.common.arguments.parseCommandLineArguments
@@ -18,6 +19,9 @@ import org.jetbrains.kotlin.platform.compat.toIdePlatform
 import org.jetbrains.kotlin.platform.isCommon
 import org.jetbrains.kotlin.platform.jvm.JvmPlatforms
 import org.jetbrains.kotlin.utils.DescriptionAware
+import org.jetbrains.kotlin.utils.addToStdlib.safeAs
+import kotlin.reflect.KProperty1
+import kotlin.reflect.full.findAnnotation
 
 @Deprecated("Use IdePlatformKind instead.", level = DeprecationLevel.ERROR)
 sealed class TargetPlatformKind<out Version : TargetPlatformVersion>(
@@ -188,6 +192,20 @@ class KotlinFacetSettings {
             updateMergedArguments()
         }
 
+    /*
+    This function is needed as some setting values may not be present in compilerArguments
+    but present in additional arguments instead, so we have to check both cases manually
+     */
+    inline fun <reified A : CommonCompilerArguments> isCompilerSettingPresent(settingReference: KProperty1<A, Boolean>): Boolean {
+        val isEnabledByCompilerArgument = compilerArguments?.safeAs<A>()?.let(settingReference::get)
+        if (isEnabledByCompilerArgument == true) return true
+        val isEnabledByAdditionalSettings = run {
+            val stringArgumentName = settingReference.findAnnotation<Argument>()?.value ?: return@run null
+            compilerSettings?.additionalArguments?.contains(stringArgumentName, ignoreCase = true)
+        }
+        return isEnabledByAdditionalSettings ?: false
+    }
+
     var languageLevel: LanguageVersion?
         get() = compilerArguments?.languageVersion?.let { LanguageVersion.fromFullVersionString(it) }
         set(value) {