diff --git a/compiler/testData/diagnostics/tests/override/FakeOverrideModality1.kt b/compiler/testData/diagnostics/tests/override/FakeOverrideModality1.kt
new file mode 100644
index 00000000000..294e0f4971e
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/FakeOverrideModality1.kt
@@ -0,0 +1,14 @@
+interface A {
+    fun foo() {}
+}
+
+interface B : A {
+    abstract override fun foo()
+}
+
+interface C {
+    abstract fun foo()
+}
+
+// Fake override Z#foo should be abstract
+<!ABSTRACT_MEMBER_NOT_IMPLEMENTED!>class Z<!> : B, C
diff --git a/compiler/testData/diagnostics/tests/override/FakeOverrideModality1.txt b/compiler/testData/diagnostics/tests/override/FakeOverrideModality1.txt
new file mode 100644
index 00000000000..6cdbb62af39
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/FakeOverrideModality1.txt
@@ -0,0 +1,30 @@
+package
+
+public interface A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface B : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*1*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface C {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Z : B, C {
+    public constructor Z()
+    public open override /*2*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*2*/ /*fake_override*/ fun foo(): kotlin.Unit
+    public open override /*2*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*2*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/testData/diagnostics/tests/override/FakeOverrideModality2.kt b/compiler/testData/diagnostics/tests/override/FakeOverrideModality2.kt
new file mode 100644
index 00000000000..77d7303a742
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/FakeOverrideModality2.kt
@@ -0,0 +1,18 @@
+interface A {
+    fun foo() {}
+}
+
+interface B : A {
+    abstract override fun foo()
+}
+
+interface C : A {
+    abstract override fun foo()
+}
+
+interface D : A {
+    override fun foo() = super.foo()
+}
+
+// Fake override Z#foo should be open
+<!MANY_INTERFACES_MEMBER_NOT_IMPLEMENTED!>class Z<!> : B, C, D
diff --git a/compiler/testData/diagnostics/tests/override/FakeOverrideModality2.txt b/compiler/testData/diagnostics/tests/override/FakeOverrideModality2.txt
new file mode 100644
index 00000000000..c3d749325e0
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/FakeOverrideModality2.txt
@@ -0,0 +1,37 @@
+package
+
+public interface A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface B : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*1*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface C : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*1*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface D : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Z : B, C, D {
+    public constructor Z()
+    public open override /*3*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*3*/ /*fake_override*/ fun foo(): kotlin.Unit
+    public open override /*3*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*3*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/testData/diagnostics/tests/override/FakeOverrideModality3.kt b/compiler/testData/diagnostics/tests/override/FakeOverrideModality3.kt
new file mode 100644
index 00000000000..485981df58d
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/FakeOverrideModality3.kt
@@ -0,0 +1,16 @@
+interface A {
+    fun foo() {}
+}
+
+interface B : A {
+    abstract override fun foo()
+}
+
+interface C : A {
+    abstract override fun foo()
+}
+
+interface D : A
+
+// Fake override Z#foo should be abstract
+<!ABSTRACT_MEMBER_NOT_IMPLEMENTED!>class Z<!> : B, C, D
diff --git a/compiler/testData/diagnostics/tests/override/FakeOverrideModality3.txt b/compiler/testData/diagnostics/tests/override/FakeOverrideModality3.txt
new file mode 100644
index 00000000000..d244b2f4dc1
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/FakeOverrideModality3.txt
@@ -0,0 +1,37 @@
+package
+
+public interface A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface B : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*1*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface C : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*1*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface D : A {
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun foo(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class Z : B, C, D {
+    public constructor Z()
+    public open override /*3*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public abstract override /*3*/ /*fake_override*/ fun foo(): kotlin.Unit
+    public open override /*3*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*3*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/testData/diagnostics/tests/override/kt12358.kt b/compiler/testData/diagnostics/tests/override/kt12358.kt
index 8cd9370c5f1..3b815e8408f 100644
--- a/compiler/testData/diagnostics/tests/override/kt12358.kt
+++ b/compiler/testData/diagnostics/tests/override/kt12358.kt
@@ -6,4 +6,4 @@ interface B
 
 abstract class C : A(), B
 
-<!ABSTRACT_MEMBER_NOT_IMPLEMENTED!>class Test<!> : C()
+<!ABSTRACT_CLASS_MEMBER_NOT_IMPLEMENTED!>class Test<!> : C()
diff --git a/compiler/testData/diagnostics/tests/override/kt12358.txt b/compiler/testData/diagnostics/tests/override/kt12358.txt
index 9f617cafbf3..52bc687c530 100644
--- a/compiler/testData/diagnostics/tests/override/kt12358.txt
+++ b/compiler/testData/diagnostics/tests/override/kt12358.txt
@@ -17,12 +17,12 @@ public abstract class C : A, B {
     public constructor C()
     public open override /*2*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
     public open override /*2*/ /*fake_override*/ fun hashCode(): kotlin.Int
-    public open override /*2*/ /*fake_override*/ fun toString(): kotlin.String
+    public abstract override /*2*/ /*fake_override*/ fun toString(): kotlin.String
 }
 
 public final class Test : C {
     public constructor Test()
     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 abstract override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
diff --git a/compiler/testData/diagnostics/tests/override/kt12467.kt b/compiler/testData/diagnostics/tests/override/kt12467.kt
new file mode 100644
index 00000000000..0e1e026b3d2
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/kt12467.kt
@@ -0,0 +1,14 @@
+interface A {
+    fun test() {
+    }
+}
+
+interface B : A {
+    override fun test()
+}
+
+interface C : A
+
+interface D : C, B
+
+<!ABSTRACT_MEMBER_NOT_IMPLEMENTED!>class K<!> : D
diff --git a/compiler/testData/diagnostics/tests/override/kt12467.txt b/compiler/testData/diagnostics/tests/override/kt12467.txt
new file mode 100644
index 00000000000..a4d3eeed6e4
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/override/kt12467.txt
@@ -0,0 +1,37 @@
+package
+
+public interface A {
+    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 fun test(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface B : A {
+    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 abstract override /*1*/ fun test(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface C : A {
+    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 test(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public interface D : C, B {
+    public open override /*2*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*2*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public abstract override /*2*/ /*fake_override*/ fun test(): kotlin.Unit
+    public open override /*2*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class K : D {
+    public constructor K()
+    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 abstract override /*1*/ /*fake_override*/ fun test(): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 44930ab48fb..28b45bf4d52 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -12807,6 +12807,24 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("FakeOverrideModality1.kt")
+            public void testFakeOverrideModality1() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/override/FakeOverrideModality1.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("FakeOverrideModality2.kt")
+            public void testFakeOverrideModality2() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/override/FakeOverrideModality2.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("FakeOverrideModality3.kt")
+            public void testFakeOverrideModality3() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/override/FakeOverrideModality3.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("Generics.kt")
             public void testGenerics() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/override/Generics.kt");
@@ -12825,6 +12843,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("kt12467.kt")
+            public void testKt12467() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/override/kt12467.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("kt12482.kt")
             public void testKt12482() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/override/kt12482.kt");
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/OverridingUtil.java b/core/descriptors/src/org/jetbrains/kotlin/resolve/OverridingUtil.java
index ca6cea6e1bb..c96d2e20cbc 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/OverridingUtil.java
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/OverridingUtil.java
@@ -612,6 +612,9 @@ public class OverridingUtil {
         boolean allInvisible = visibleOverridables.isEmpty();
         Collection<CallableMemberDescriptor> effectiveOverridden = allInvisible ? overridables : visibleOverridables;
 
+        Modality modality = determineModality(effectiveOverridden);
+        Visibility visibility = allInvisible ? Visibilities.INVISIBLE_FAKE : Visibilities.INHERITED;
+
         // FIXME doesn't work as expected for flexible types: should create a refined signature.
         // Current algorithm produces bad results in presence of annotated Java signatures such as:
         //      J: foo(s: String!): String -- @NotNull String foo(String s);
@@ -619,8 +622,6 @@ public class OverridingUtil {
         //  --> 'foo(s: String!): String' as an inherited signature with most specific return type.
         // This is bad because it can be overridden by 'foo(s: String?): String', which is not override-equivalent with K::foo above.
         // Should be 'foo(s: String): String'.
-        Modality modality = getMinimalModality(effectiveOverridden);
-        Visibility visibility = allInvisible ? Visibilities.INVISIBLE_FAKE : Visibilities.INHERITED;
         CallableMemberDescriptor mostSpecific =
                 selectMostSpecificMember(effectiveOverridden,
                                          new Function1<CallableMemberDescriptor, CallableDescriptor>() {
@@ -637,6 +638,36 @@ public class OverridingUtil {
         strategy.addFakeOverride(fakeOverride);
     }
 
+    @NotNull
+    private static Modality determineModality(@NotNull Collection<CallableMemberDescriptor> descriptors) {
+        // Optimization: avoid creating hash sets in frequent cases when modality can be computed trivially
+        boolean hasOpen = false;
+        boolean hasAbstract = false;
+        for (CallableMemberDescriptor descriptor : descriptors) {
+            switch (descriptor.getModality()) {
+                case FINAL:
+                    return Modality.FINAL;
+                case SEALED:
+                    throw new IllegalStateException("Member cannot have SEALED modality: " + descriptor);
+                case OPEN:
+                    hasOpen = true;
+                    break;
+                case ABSTRACT:
+                    hasAbstract = true;
+                    break;
+            }
+        }
+
+        if (hasOpen && !hasAbstract) return Modality.OPEN;
+        if (!hasOpen && hasAbstract) return Modality.ABSTRACT;
+
+        Set<CallableMemberDescriptor> allOverriddenDeclarations = new HashSet<CallableMemberDescriptor>();
+        for (CallableMemberDescriptor descriptor : descriptors) {
+            allOverriddenDeclarations.addAll(getOverriddenDeclarations(descriptor));
+        }
+        return getMinimalModality(filterOutOverridden(allOverriddenDeclarations));
+    }
+
     @NotNull
     private static Modality getMinimalModality(@NotNull Collection<CallableMemberDescriptor> descriptors) {
         Modality modality = Modality.ABSTRACT;