diff --git a/build-common/src/org/jetbrains/kotlin/incremental/IncrementalCacheCommon.kt b/build-common/src/org/jetbrains/kotlin/incremental/IncrementalCacheCommon.kt
index 80327f0c197..3e6f7ed3b3f 100644
--- a/build-common/src/org/jetbrains/kotlin/incremental/IncrementalCacheCommon.kt
+++ b/build-common/src/org/jetbrains/kotlin/incremental/IncrementalCacheCommon.kt
@@ -88,11 +88,17 @@ abstract class IncrementalCacheCommon<ClassName>(workingDir: File) : BasicMapsOw
 
     abstract fun clearCacheForRemovedClasses(changesCollector: ChangesCollector)
 
-    protected fun removeAllFromClassStorage(removedClasses: Collection<FqName>) {
+    protected fun removeAllFromClassStorage(removedClasses: Collection<FqName>, changesCollector: ChangesCollector) {
         if (removedClasses.isEmpty()) return
 
         val removedFqNames = removedClasses.toSet()
 
+        for (removedClass in removedFqNames) {
+            for (affectedClass in withSubtypes(removedClass, thisWithDependentCaches)) {
+                changesCollector.collectSignature(affectedClass, areSubclassesAffected = false)
+            }
+        }
+
         for (cache in thisWithDependentCaches) {
             val parentsFqNames = hashSetOf<FqName>()
             val childrenFqNames = hashSetOf<FqName>()
diff --git a/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJsCache.kt b/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJsCache.kt
index 0864dd78d0f..a75bd4ac7a3 100644
--- a/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJsCache.kt
+++ b/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJsCache.kt
@@ -100,7 +100,7 @@ open class IncrementalJsCache(cachesDir: File) : IncrementalCacheCommon<FqName>(
             translationResults.remove(it, changesCollector)
             inlineFunctions.remove(it)
         }
-        removeAllFromClassStorage(dirtyOutputClassesMap.getDirtyOutputClasses())
+        removeAllFromClassStorage(dirtyOutputClassesMap.getDirtyOutputClasses(), changesCollector)
         dirtySources.clear()
         dirtyOutputClassesMap.clean()
     }
diff --git a/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJvmCache.kt b/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJvmCache.kt
index 6d0a8fedf87..b3a400ba2da 100644
--- a/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJvmCache.kt
+++ b/build-common/src/org/jetbrains/kotlin/incremental/IncrementalJvmCache.kt
@@ -223,7 +223,7 @@ open class IncrementalJvmCache(
             javaSourcesProtoMap.remove(it, changesCollector)
         }
 
-        removeAllFromClassStorage(dirtyClasses.map { it.fqNameForClassNameWithoutDollars })
+        removeAllFromClassStorage(dirtyClasses.map { it.fqNameForClassNameWithoutDollars }, changesCollector)
         dirtyOutputClassesMap.clean()
     }
 
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/classRemoved/gradle-build.log b/jps-plugin/testData/incremental/classHierarchyAffected/classRemoved/gradle-build.log
new file mode 100644
index 00000000000..c6ed1e50299
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/classRemoved/gradle-build.log
@@ -0,0 +1,33 @@
+================ Step #1 =================
+
+Compiling files:
+  src/B.kt
+  src/C.kt
+  src/createA.kt
+  src/createB.kt
+  src/createC.kt
+  src/useAfoo.kt
+  src/useBbar.kt
+  src/useCbaz.kt
+End of files
+Exit code: ABORT
+------------------------------------------
+COMPILATION FAILED
+Unresolved reference: A
+Unresolved reference: A
+
+================ Step #2 =================
+
+Compiling files:
+  src/B.kt
+  src/C.kt
+  src/createA.kt
+  src/createB.kt
+  src/createC.kt
+  src/funA.kt
+  src/useAfoo.kt
+  src/useBbar.kt
+  src/useCbaz.kt
+End of files
+Exit code: OK
+
diff --git a/jps-plugin/testData/incremental/classHierarchyAffected/classRemovedAndRestored/gradle-build.log b/jps-plugin/testData/incremental/classHierarchyAffected/classRemovedAndRestored/gradle-build.log
new file mode 100644
index 00000000000..d84bd394fbd
--- /dev/null
+++ b/jps-plugin/testData/incremental/classHierarchyAffected/classRemovedAndRestored/gradle-build.log
@@ -0,0 +1,36 @@
+================ Step #1 =================
+
+Compiling files:
+  src/B.kt
+  src/createA.kt
+  src/createB.kt
+  src/useAfoo.kt
+  src/useBbar.kt
+End of files
+Exit code: ABORT
+------------------------------------------
+COMPILATION FAILED
+Unresolved reference: A
+Unresolved reference: A
+
+================ Step #2 =================
+
+Compiling files:
+  src/A.kt
+  src/B.kt
+  src/createA.kt
+  src/createB.kt
+  src/useAfoo.kt
+  src/useBbar.kt
+End of files
+Exit code: OK
+
+================ Step #3 =================
+
+Compiling files:
+  src/failCompilation.kt
+End of files
+Exit code: ABORT
+------------------------------------------
+COMPILATION FAILED
+Expecting a top level declaration
diff --git a/jps-plugin/testData/incremental/multiModule/classRemoved/build.log b/jps-plugin/testData/incremental/multiModule/classRemoved/build.log
index 4a1d1fc30bd..9b620ddd4fc 100644
--- a/jps-plugin/testData/incremental/multiModule/classRemoved/build.log
+++ b/jps-plugin/testData/incremental/multiModule/classRemoved/build.log
@@ -34,6 +34,20 @@ Compiling files:
   module2/src/createA.kt
   module2/src/useAfoo.kt
 End of files
+Marked as dirty by Kotlin:
+  module2/src/createB.kt
+  module2/src/useBbar.kt
+Exit code: ADDITIONAL_PASS_REQUIRED
+------------------------------------------
+Cleaning output files:
+  out/production/module2/META-INF/module2.kotlin_module
+  out/production/module2/use/CreateBKt.class
+  out/production/module2/use/UseBbarKt.class
+End of files
+Compiling files:
+  module2/src/createB.kt
+  module2/src/useBbar.kt
+End of files
 Exit code: OK
 ------------------------------------------