diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirBlackBoxCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirBlackBoxCodegenTestGenerated.java
index f041d0db6f0..03c7afd57ff 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirBlackBoxCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirBlackBoxCodegenTestGenerated.java
@@ -6910,6 +6910,12 @@ public class FirBlackBoxCodegenTestGenerated extends AbstractFirBlackBoxCodegenT
             runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/interfaceDelegationAndBridgesProcessing.kt");
         }
 
+        @Test
+        @TestMetadata("internalLeakBug.kt")
+        public void testInternalLeakBug() throws Exception {
+            runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt");
+        }
+
         @Test
         @TestMetadata("internalSetterOverridden.kt")
         public void testInternalSetterOverridden() throws Exception {
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/LazyImportScope.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/LazyImportScope.kt
index 21e13c0be9b..838670a9725 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/LazyImportScope.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/LazyImportScope.kt
@@ -21,6 +21,7 @@ import com.google.common.collect.ImmutableListMultimap
 import com.google.common.collect.ListMultimap
 import gnu.trove.THashSet
 import org.jetbrains.kotlin.builtins.PlatformToKotlinClassMapper
+import org.jetbrains.kotlin.config.LanguageFeature
 import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.descriptors.DescriptorVisibilityUtils.isVisibleIgnoringReceiver
@@ -241,7 +242,15 @@ class LazyImportScope(
         val visibility = (descriptor as DeclarationDescriptorWithVisibility).visibility
         val includeVisible = filteringKind == FilteringKind.VISIBLE_CLASSES
         if (!visibility.mustCheckInImports()) return includeVisible
-        return isVisibleIgnoringReceiver(descriptor, components.moduleDescriptor, components.languageVersionSettings) == includeVisible
+        val fromDescriptor =
+            if (components.languageVersionSettings.supportsFeature(LanguageFeature.ProperInternalVisibilityCheckInImportingScope)) {
+                packageFragment ?: components.moduleDescriptor
+            } else {
+                components.moduleDescriptor
+            }
+        return isVisibleIgnoringReceiver(
+            descriptor, fromDescriptor, components.languageVersionSettings
+        ) == includeVisible
     }
 
     override fun getContributedClassifier(name: Name, location: LookupLocation): ClassifierDescriptor? {
diff --git a/compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt b/compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt
new file mode 100644
index 00000000000..56d5a9af905
--- /dev/null
+++ b/compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt
@@ -0,0 +1,25 @@
+// TARGET_BACKEND: JVM
+// !LANGUAGE: +ProperInternalVisibilityCheckInImportingScope
+// See also: KT-23727
+// WITH_STDLIB
+// MODULE: m1
+// FILE: Foo.kt
+
+package foo
+
+internal annotation class Volatile
+
+// MODULE: m2(m1)
+// FILE: Bar.kt
+
+import foo.*
+
+class Bar {
+    @Volatile
+    var v = 0
+}
+
+fun box(): String {
+    val bar = Bar()
+    return if (bar.v == 0) "OK" else "FAIL: ${bar.v}"
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
index a60948b58f0..fee7cc2c6d4 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/BlackBoxCodegenTestGenerated.java
@@ -6838,6 +6838,12 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
             runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/interfaceDelegationAndBridgesProcessing.kt");
         }
 
+        @Test
+        @TestMetadata("internalLeakBug.kt")
+        public void testInternalLeakBug() throws Exception {
+            runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt");
+        }
+
         @Test
         @TestMetadata("internalSetterOverridden.kt")
         public void testInternalSetterOverridden() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
index 69302e5b6cb..812d9df9bfd 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxCodegenTestGenerated.java
@@ -6910,6 +6910,12 @@ public class IrBlackBoxCodegenTestGenerated extends AbstractIrBlackBoxCodegenTes
             runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/interfaceDelegationAndBridgesProcessing.kt");
         }
 
+        @Test
+        @TestMetadata("internalLeakBug.kt")
+        public void testInternalLeakBug() throws Exception {
+            runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt");
+        }
+
         @Test
         @TestMetadata("internalSetterOverridden.kt")
         public void testInternalSetterOverridden() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmIrAgainstOldBoxTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmIrAgainstOldBoxTestGenerated.java
index 448986a6689..dd2273a13bc 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmIrAgainstOldBoxTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmIrAgainstOldBoxTestGenerated.java
@@ -187,6 +187,12 @@ public class JvmIrAgainstOldBoxTestGenerated extends AbstractJvmIrAgainstOldBoxT
         runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/interfaceDelegationAndBridgesProcessing.kt");
     }
 
+    @Test
+    @TestMetadata("internalLeakBug.kt")
+    public void testInternalLeakBug() throws Exception {
+        runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt");
+    }
+
     @Test
     @TestMetadata("internalSetterOverridden.kt")
     public void testInternalSetterOverridden() throws Exception {
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmOldAgainstIrBoxTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmOldAgainstIrBoxTestGenerated.java
index 0c93afd4694..1c0f520599a 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmOldAgainstIrBoxTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/JvmOldAgainstIrBoxTestGenerated.java
@@ -187,6 +187,12 @@ public class JvmOldAgainstIrBoxTestGenerated extends AbstractJvmOldAgainstIrBoxT
         runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/interfaceDelegationAndBridgesProcessing.kt");
     }
 
+    @Test
+    @TestMetadata("internalLeakBug.kt")
+    public void testInternalLeakBug() throws Exception {
+        runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt");
+    }
+
     @Test
     @TestMetadata("internalSetterOverridden.kt")
     public void testInternalSetterOverridden() throws Exception {
diff --git a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
index 033cc833719..613ca5ba81d 100644
--- a/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
+++ b/compiler/util/src/org/jetbrains/kotlin/config/LanguageVersionSettings.kt
@@ -242,6 +242,7 @@ enum class LanguageFeature(
     EliminateAmbiguitiesWithExternalTypeParameters(KOTLIN_1_7),
     EliminateAmbiguitiesOnInheritedSamInterfaces(KOTLIN_1_7),
     ConsiderExtensionReceiverFromConstrainsInLambda(KOTLIN_1_7, kind = BUG_FIX), // KT-49832
+    ProperInternalVisibilityCheckInImportingScope(KOTLIN_1_7, kind = BUG_FIX),
 
     // 1.8
 
diff --git a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/blackboxtest/NativeExtBlackBoxTestGenerated.java b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/blackboxtest/NativeExtBlackBoxTestGenerated.java
index 706c431e414..ae4aef197ae 100644
--- a/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/blackboxtest/NativeExtBlackBoxTestGenerated.java
+++ b/native/native.tests/tests-gen/org/jetbrains/kotlin/konan/blackboxtest/NativeExtBlackBoxTestGenerated.java
@@ -6987,6 +6987,12 @@ public class NativeExtBlackBoxTestGenerated extends AbstractNativeBlackBoxTest {
                 runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/interfaceDelegationAndBridgesProcessing.kt");
             }
 
+            @Test
+            @TestMetadata("internalLeakBug.kt")
+            public void testInternalLeakBug() throws Exception {
+                runTest("compiler/testData/codegen/box/compileKotlinAgainstKotlin/internalLeakBug.kt");
+            }
+
             @Test
             @TestMetadata("internalSetterOverridden.kt")
             public void testInternalSetterOverridden() throws Exception {