diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaPackageScope.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaPackageScope.java
index 8c82fd11367..098b8ec6bdf 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaPackageScope.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaPackageScope.java
@@ -77,6 +77,7 @@ public class JavaPackageScope extends JetScopeImpl {
             final PsiPackage javaPackage = semanticServices.getDescriptorResolver().findPackage(packageFQN);
 
             if (javaPackage != null) {
+                boolean isKotlinNamespace = semanticServices.getKotlinNamespaceDescriptor(javaPackage.getQualifiedName()) != null;
                 final JavaDescriptorResolver descriptorResolver = semanticServices.getDescriptorResolver();
 
                 for (PsiPackage psiSubPackage : javaPackage.getSubPackages()) {
@@ -84,6 +85,8 @@ public class JavaPackageScope extends JetScopeImpl {
                 }
 
                 for (PsiClass psiClass : javaPackage.getClasses()) {
+                    if (isKotlinNamespace && "namespace".equals(psiClass.getName())) continue;
+
                     // If this is a Kotlin class, we have already taken it through a containing namespace descriptor
                     ClassDescriptor kotlinClassDescriptor = semanticServices.getKotlinClassDescriptor(psiClass.getQualifiedName());
                     if (kotlinClassDescriptor != null) {
diff --git a/idea/testData/completion/basic/ExtendClassName.kt b/idea/testData/completion/basic/ExtendClassName.kt
index 47daf28eff9..e25d7e3528f 100644
--- a/idea/testData/completion/basic/ExtendClassName.kt
+++ b/idea/testData/completion/basic/ExtendClassName.kt
@@ -1,3 +1,5 @@
+namespace foo
+
 open class MySecondClass() {
 }
 
@@ -10,4 +12,4 @@ class A() : My<caret> {
     }
 }
 
-// EXIST: MySecondClass, MyFirstClass
\ No newline at end of file
+// EXIST: MySecondClass, MyFirstClass