diff --git a/.idea/inspectionProfiles/idea_default.xml b/.idea/inspectionProfiles/idea_default.xml
index 572ebbc570f..e3a59d2243d 100644
--- a/.idea/inspectionProfiles/idea_default.xml
+++ b/.idea/inspectionProfiles/idea_default.xml
@@ -402,7 +402,6 @@
       </scope>
       <option name="m_ignoreJavadoc" value="true" />
     </inspection_tool>
-    <inspection_tool class="UnnecessaryInterfaceModifier" enabled="true" level="WARNING" enabled_by_default="true" />
     <inspection_tool class="UnnecessaryLabelOnBreakStatement" enabled="false" level="WARNING" enabled_by_default="false" />
     <inspection_tool class="UnnecessaryLabelOnContinueStatement" enabled="false" level="WARNING" enabled_by_default="false" />
     <inspection_tool class="UnnecessaryQualifierForThis" enabled="true" level="WARNING" enabled_by_default="true" />
diff --git a/idea/src/org/jetbrains/kotlin/idea/actions/JetAddImportAction.kt b/idea/src/org/jetbrains/kotlin/idea/actions/JetAddImportAction.kt
index 6a8233283b4..b603e919b11 100644
--- a/idea/src/org/jetbrains/kotlin/idea/actions/JetAddImportAction.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/actions/JetAddImportAction.kt
@@ -34,7 +34,16 @@ import org.jetbrains.kotlin.idea.util.ImportInsertHelper
 import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.psi.JetFile
 import org.jetbrains.kotlin.psi.JetSimpleNameExpression
-import org.jetbrains.kotlin.resolve.ImportPath
+import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
+import com.intellij.openapi.module.ModuleUtilCore
+import org.jetbrains.kotlin.idea.util.ProjectRootsUtil
+import org.jetbrains.kotlin.idea.codeInsight.DescriptorToDeclarationUtil
+import org.jetbrains.kotlin.resolve.DescriptorUtils
+import org.jetbrains.kotlin.descriptors.ClassDescriptor
+import org.jetbrains.kotlin.descriptors.PackageViewDescriptor
+import org.jetbrains.kotlin.idea.imports.importableFqNameSafe
+import org.jetbrains.kotlin.idea.util.ShortenReferences
+import org.jetbrains.kotlin.idea.references.JetSimpleNameReference
 
 /**
  * Automatically adds import directive to the file for resolving reference.
@@ -44,32 +53,72 @@ public class JetAddImportAction(
         private val project: Project,
         private val editor: Editor,
         private val element: JetSimpleNameExpression,
-        imports: Iterable<FqName>
+        candidates: Collection<DeclarationDescriptor>
 ) : QuestionAction {
-    private val possibleImports = imports.toList()
+
+    private val module = ModuleUtilCore.findModuleForPsiElement(element)
+
+    private enum class Priority {
+        MODULE
+        PROJECT
+        OTHER
+    }
+
+    private fun detectPriority(descriptor: DeclarationDescriptor): Priority {
+        val declaration = DescriptorToDeclarationUtil.getDeclaration(element.getContainingJetFile(), descriptor)
+        return when {
+            declaration == null -> Priority.OTHER
+            ModuleUtilCore.findModuleForPsiElement(declaration) == module -> Priority.MODULE
+            ProjectRootsUtil.isInProjectSource(declaration) -> Priority.PROJECT
+            else -> Priority.OTHER
+        }
+    }
+
+    private inner class Variant(
+            val fqName: FqName,
+            val descriptors: Collection<DeclarationDescriptor>
+    ) {
+        val priority = descriptors.map { detectPriority(it) }.min()!!
+
+        val descriptorToImport: DeclarationDescriptor
+            get() {
+                if (descriptors.size() == 1) return descriptors.single()
+                return descriptors.sortBy {
+                    when (it) {
+                        is ClassDescriptor -> 0
+                        is PackageViewDescriptor -> 1
+                        else -> 2
+                    }
+                }.first()
+            }
+    }
+
+    private val variants = candidates
+            .groupBy { DescriptorUtils.getFqNameSafe(it) }
+            .map { Variant(it.key, it.value) }
+            .sortBy { it.priority }
 
     override fun execute(): Boolean {
         PsiDocumentManager.getInstance(project).commitAllDocuments()
-
         if (!element.isValid()) return false
 
         // TODO: Validate resolution variants. See AddImportAction.execute()
 
-        if (possibleImports.size() == 1 || ApplicationManager.getApplication().isUnitTestMode()) {
-            addImport(element, project, possibleImports[0])
+        if (variants.size() == 1 || ApplicationManager.getApplication().isUnitTestMode()) {
+            addImport(element, project, variants.first())
         }
         else {
-            chooseClassAndImport()
+            chooseCandidateAndImport()
         }
 
         return true
     }
 
-    protected fun getImportSelectionPopup(): BaseListPopupStep<FqName> {
-        return object : BaseListPopupStep<FqName>(JetBundle.message("imports.chooser.title"), possibleImports) {
+    protected fun getImportSelectionPopup(): BaseListPopupStep<Variant> {
+        return object : BaseListPopupStep<Variant>(JetBundle.message("imports.chooser.title"), variants) {
             override fun isAutoSelectionEnabled() = false
 
-            override fun onChosen(selectedValue: FqName?, finalChoice: Boolean): PopupStep<String>? {
+            override fun onChosen(selectedValue: Variant?, finalChoice: Boolean): PopupStep<String>? {
                 if (selectedValue == null) return null
 
                 if (finalChoice) {
@@ -77,7 +126,7 @@ public class JetAddImportAction(
                     return null
                 }
 
-                val toExclude = AddImportAction.getAllExcludableStrings(selectedValue.asString())
+                val toExclude = AddImportAction.getAllExcludableStrings(selectedValue.fqName.asString())
 
                 return object : BaseListPopupStep<String>(null, toExclude) {
                     override fun getTextFor(value: String): String {
@@ -93,29 +142,38 @@ public class JetAddImportAction(
                 }
             }
 
-            override fun hasSubstep(selectedValue: FqName?) = true
+            override fun hasSubstep(selectedValue: Variant?) = true
 
-            override fun getTextFor(value: FqName) = value.asString()
+            override fun getTextFor(value: Variant) = value.fqName.asString()
 
             // TODO: change icon
-            override fun getIconFor(aValue: FqName) = PlatformIcons.CLASS_ICON
+            override fun getIconFor(aValue: Variant) = PlatformIcons.CLASS_ICON
         }
     }
 
-    private fun chooseClassAndImport() {
+    private fun chooseCandidateAndImport() {
         JBPopupFactory.getInstance().createListPopup(getImportSelectionPopup()).showInBestPositionFor(editor)
     }
 
     class object {
 
-        protected fun addImport(element: PsiElement, project: Project, selectedImport: FqName) {
+        protected fun addImport(element: PsiElement, project: Project, selectedVariant: Variant) {
             PsiDocumentManager.getInstance(project).commitAllDocuments()
 
             CommandProcessor.getInstance().executeCommand(project, object : Runnable {
                 override fun run() {
                     ApplicationManager.getApplication().runWriteAction {
                         val file = element.getContainingFile() as JetFile
-                        ImportInsertHelper.getInstance(project).writeImportToFile(ImportPath(selectedImport, false), file)
+                        val descriptor = selectedVariant.descriptorToImport
+                        // for class or package we use ShortenReferences because we not necessary insert an import but may want to insert partly qualified name
+                        if (descriptor is ClassDescriptor || descriptor is PackageViewDescriptor) {
+                            val fqName = descriptor.importableFqNameSafe
+                            val reference = element.getReference() as JetSimpleNameReference
+                            reference.bindToFqName(fqName, JetSimpleNameReference.ShorteningMode.FORCED_SHORTENING)
+                        }
+                        else {
+                            ImportInsertHelper.getInstance(project).importDescriptor(file, descriptor)
+                        }
                     }
                 }
             }, QuickFixBundle.message("add.import"), null)
diff --git a/idea/src/org/jetbrains/kotlin/idea/completion/smart/TypeInstantiationItems.kt b/idea/src/org/jetbrains/kotlin/idea/completion/smart/TypeInstantiationItems.kt
index 7d09817db8c..4684ad2933a 100644
--- a/idea/src/org/jetbrains/kotlin/idea/completion/smart/TypeInstantiationItems.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/completion/smart/TypeInstantiationItems.kt
@@ -43,11 +43,8 @@ import org.jetbrains.kotlin.resolve.DescriptorToSourceUtils
 import com.intellij.psi.PsiClass
 import com.intellij.psi.search.GlobalSearchScope
 import com.intellij.psi.search.searches.ClassInheritorsSearch
-import org.jetbrains.kotlin.asJava.KotlinLightClass
 import org.jetbrains.kotlin.types.TypeProjection
 import org.jetbrains.kotlin.utils.addIfNotNull
-import org.jetbrains.kotlin.idea.caches.resolve.JavaResolveExtension
-import org.jetbrains.kotlin.load.java.structure.impl.JavaClassImpl
 import org.jetbrains.kotlin.asJava.LightClassUtil
 import org.jetbrains.kotlin.psi.JetClassOrObject
 import org.jetbrains.kotlin.resolve.PossiblyBareType
@@ -61,7 +58,7 @@ import org.jetbrains.kotlin.types.TypeProjectionImpl
 import org.jetbrains.kotlin.types.Variance
 import org.jetbrains.kotlin.psi.JetDeclaration
 import org.jetbrains.kotlin.types.typeUtil.isSubtypeOf
-import org.jetbrains.kotlin.idea.caches.resolve.KotlinLightClassForDecompiledDeclaration
+import org.jetbrains.kotlin.idea.util.psiClassToDescriptor.psiClassToDescriptor
 
 class TypeInstantiationItems(
         val resolutionFacade: ResolutionFacade,
@@ -285,14 +282,9 @@ class TypeInstantiationItems(
         override fun search(nameFilter: (String) -> Boolean, consumer: (LookupElement) -> Unit) {
             val parameters = ClassInheritorsSearch.SearchParameters(psiClass, inheritorSearchScope, true, true, false, nameFilter)
             for (inheritor in ClassInheritorsSearch.search(parameters)) {
-                val descriptor = if (inheritor is KotlinLightClass && inheritor !is KotlinLightClassForDecompiledDeclaration) {
-                    val origin = inheritor.getOrigin() ?: continue
-                    val declaration = toFromOriginalFileMapper.toSyntheticFile(origin) ?: continue
-                    resolutionFacade.resolveToDescriptor(declaration)
-                }
-                else {
-                    resolutionFacade.get(JavaResolveExtension)(inheritor).first.resolveClass(JavaClassImpl(inheritor))
-                }  as? ClassDescriptor ?: continue
+                val descriptor = resolutionFacade.psiClassToDescriptor(
+                        inheritor,
+                        { toFromOriginalFileMapper.toSyntheticFile(it) as JetClassOrObject? }) as? ClassDescriptor ?: continue
                 if (!visibilityFilter(descriptor)) continue
 
                 val hasTypeArgs = descriptor.getTypeConstructor().getParameters().isNotEmpty()
diff --git a/idea/src/org/jetbrains/kotlin/idea/quickfix/AutoImportFix.kt b/idea/src/org/jetbrains/kotlin/idea/quickfix/AutoImportFix.kt
index 8528624073c..44ebcbe5cca 100644
--- a/idea/src/org/jetbrains/kotlin/idea/quickfix/AutoImportFix.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/quickfix/AutoImportFix.kt
@@ -33,8 +33,6 @@ import org.jetbrains.kotlin.psi.JetPsiUtil
 import org.jetbrains.kotlin.psi.JetSimpleNameExpression
 import org.jetbrains.kotlin.psi.psiUtil.*
 import org.jetbrains.kotlin.resolve.DescriptorUtils
-import org.jetbrains.kotlin.resolve.ImportPath
-import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.idea.JetBundle
 import org.jetbrains.kotlin.idea.actions.JetAddImportAction
 import org.jetbrains.kotlin.idea.caches.JetShortNamesCache
@@ -44,32 +42,27 @@ import org.jetbrains.kotlin.idea.project.ProjectStructureUtil
 import org.jetbrains.kotlin.idea.util.JetPsiHeuristicsUtil
 import java.util.ArrayList
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
-import com.intellij.psi.PsiElement
-import org.jetbrains.kotlin.idea.codeInsight.DescriptorToDeclarationUtil
-import com.intellij.openapi.module.ModuleUtilCore
-import org.jetbrains.kotlin.idea.util.ProjectRootsUtil
-import org.jetbrains.kotlin.asJava.unwrapped
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptorWithVisibility
 import org.jetbrains.kotlin.diagnostics.Errors
 import com.intellij.psi.util.PsiModificationTracker
 import org.jetbrains.kotlin.idea.completion.isVisible
 import org.jetbrains.kotlin.utils.CachedValueProperty
+import org.jetbrains.kotlin.idea.util.psiClassToDescriptor.psiClassToDescriptor
 
 /**
  * Check possibility and perform fix for unresolved references.
  */
 public class AutoImportFix(element: JetSimpleNameExpression) : JetHintAction<JetSimpleNameExpression>(element), HighPriorityAction {
-    private val module = ModuleUtilCore.findModuleForPsiElement(element)
     private val modificationCountOnCreate = PsiModificationTracker.SERVICE.getInstance(element.getProject()).getModificationCount()
 
     volatile private var anySuggestionFound: Boolean? = null
 
-    private val suggestions: Collection<FqName> by CachedValueProperty(
+    private val suggestions: Collection<DeclarationDescriptor> by CachedValueProperty(
             {
-                val fqNames = computeSuggestions(element)
-                anySuggestionFound = !fqNames.isEmpty()
-                fqNames
+                val descriptors = computeSuggestions(element)
+                anySuggestionFound = !descriptors.isEmpty()
+                descriptors
             },
             { PsiModificationTracker.SERVICE.getInstance(element.getProject()).getModificationCount() })
 
@@ -81,7 +74,7 @@ public class AutoImportFix(element: JetSimpleNameExpression) : JetHintAction<Jet
         if (suggestions.isEmpty()) return false
 
         if (!ApplicationManager.getApplication()!!.isUnitTestMode()) {
-            val hintText = ShowAutoImportPass.getMessage(suggestions.size() > 1, suggestions.first().asString())
+            val hintText = ShowAutoImportPass.getMessage(suggestions.size() > 1, DescriptorUtils.getFqNameSafe(suggestions.first()).asString())
 
             val project = editor.getProject() ?: return false
             HintManager.getInstance().showQuestionHint(editor, hintText, element.getTextOffset(), element.getTextRange()!!.getEndOffset(), createAction(project, editor))
@@ -109,7 +102,7 @@ public class AutoImportFix(element: JetSimpleNameExpression) : JetHintAction<Jet
 
     private fun createAction(project: Project, editor: Editor) = JetAddImportAction(project, editor, element, suggestions)
 
-    private fun computeSuggestions(element: JetSimpleNameExpression): Collection<FqName> {
+    private fun computeSuggestions(element: JetSimpleNameExpression): Collection<DeclarationDescriptor> {
         if (!element.isValid()) return listOf()
 
         val file = element.getContainingFile() as? JetFile ?: return listOf()
@@ -143,37 +136,32 @@ public class AutoImportFix(element: JetSimpleNameExpression) : JetHintAction<Jet
             return true
         }
 
-        val result = ArrayList<PrioritizedFqName>()
+        val result = ArrayList<DeclarationDescriptor>()
 
         val moduleDescriptor = resolutionFacade.findModuleDescriptor(element)
         val indicesHelper = KotlinIndicesHelper(file.getProject(), resolutionFacade, bindingContext, searchScope, moduleDescriptor, ::isVisible)
 
         if (!element.isImportDirectiveExpression() && !JetPsiUtil.isSelectorInQualified(element)) {
-            result.addAll(getClassNames(referenceName, file, searchScope))
+            result.addAll(getClasses(referenceName, file, searchScope))
             result.addAll(getTopLevelCallables(referenceName, element, indicesHelper))
         }
 
         result.addAll(getExtensions(referenceName, element, indicesHelper))
 
         return result
-                .sortBy { it.priority }
-                .map { it.fqName }
     }
 
-    private fun getTopLevelCallables(name: String, context: JetExpression, indicesHelper: KotlinIndicesHelper): Collection<PrioritizedFqName>
+    private fun getTopLevelCallables(name: String, context: JetExpression, indicesHelper: KotlinIndicesHelper): Collection<DeclarationDescriptor>
             = indicesHelper.getTopLevelCallablesByName(name, context)
-            .map { PrioritizedFqName(it) }
-            .toSet()
 
-    private fun getExtensions(name: String, expression: JetSimpleNameExpression, indicesHelper: KotlinIndicesHelper): Collection<PrioritizedFqName>
+    private fun getExtensions(name: String, expression: JetSimpleNameExpression, indicesHelper: KotlinIndicesHelper): Collection<DeclarationDescriptor>
             = indicesHelper.getCallableExtensions({ it == name }, expression)
-            .map { PrioritizedFqName(it) }
-            .toSet()
 
-    private fun getClassNames(name: String, file: JetFile, searchScope: GlobalSearchScope): Collection<PrioritizedFqName>
+    private fun getClasses(name: String, file: JetFile, searchScope: GlobalSearchScope): Collection<DeclarationDescriptor>
             = getShortNamesCache(file).getClassesByName(name, searchScope)
             .filter { JetPsiHeuristicsUtil.isAccessible(it, file) }
-            .map { PrioritizedFqName(it.unwrapped, FqName(it.getQualifiedName()!!)) }
+            .map { element.getResolutionFacade().psiClassToDescriptor(it) }
+            .filterNotNull()
             .toSet()
 
     private fun getShortNamesCache(jetFile: JetFile): PsiShortNamesCache {
@@ -184,31 +172,6 @@ public class AutoImportFix(element: JetSimpleNameExpression) : JetHintAction<Jet
             PsiShortNamesCache.getInstance(jetFile.getProject())
     }
 
-    private enum class Priority {
-        MODULE
-        PROJECT
-        OTHER
-    }
-    private data class PrioritizedFqName(val fqName: FqName, val priority: Priority)
-
-    private fun PrioritizedFqName(declaration: PsiElement?, fqName: FqName): PrioritizedFqName {
-        val priority = when {
-            declaration == null -> Priority.OTHER
-            ModuleUtilCore.findModuleForPsiElement(declaration) == module -> Priority.MODULE
-            ProjectRootsUtil.isInProjectSource(declaration) -> Priority.PROJECT
-            else -> Priority.OTHER
-        }
-
-        return PrioritizedFqName(fqName, priority)
-    }
-
-    private fun PrioritizedFqName(descriptor: DeclarationDescriptor): PrioritizedFqName {
-        return PrioritizedFqName(
-                DescriptorToDeclarationUtil.getDeclaration(element.getContainingJetFile(), descriptor),
-                DescriptorUtils.getFqNameSafe(descriptor)
-        )
-    }
-
     class object {
         private val ERRORS = setOf(Errors.UNRESOLVED_REFERENCE, Errors.UNRESOLVED_REFERENCE_WRONG_RECEIVER)
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/util/psiClassToDescriptor.kt b/idea/src/org/jetbrains/kotlin/idea/util/psiClassToDescriptor.kt
new file mode 100644
index 00000000000..6c5df79fd32
--- /dev/null
+++ b/idea/src/org/jetbrains/kotlin/idea/util/psiClassToDescriptor.kt
@@ -0,0 +1,40 @@
+/*
+ * Copyright 2010-2015 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.util.psiClassToDescriptor
+
+import org.jetbrains.kotlin.idea.caches.resolve.ResolutionFacade
+import com.intellij.psi.PsiClass
+import org.jetbrains.kotlin.psi.JetClassOrObject
+import org.jetbrains.kotlin.asJava.KotlinLightClass
+import org.jetbrains.kotlin.idea.caches.resolve.KotlinLightClassForDecompiledDeclaration
+import org.jetbrains.kotlin.idea.caches.resolve.JavaResolveExtension
+import org.jetbrains.kotlin.load.java.structure.impl.JavaClassImpl
+import org.jetbrains.kotlin.descriptors.ClassDescriptor
+import org.jetbrains.kotlin.descriptors.ClassifierDescriptor
+
+public fun ResolutionFacade.psiClassToDescriptor(
+        psiClass: PsiClass,
+        declarationTranslator: (JetClassOrObject) -> JetClassOrObject? = { it }
+): ClassifierDescriptor? {
+    return if (psiClass is KotlinLightClass && psiClass !is KotlinLightClassForDecompiledDeclaration) {
+        val origin = psiClass.getOrigin ()?: return null
+        val declaration = declarationTranslator(origin) ?: return null
+        resolveToDescriptor(declaration)
+    } else {
+        get(JavaResolveExtension)(psiClass).first.resolveClass(JavaClassImpl(psiClass))
+    }  as? ClassifierDescriptor
+}
\ No newline at end of file
diff --git a/idea/testData/quickfix/autoImports/nestedClass.after.kt b/idea/testData/quickfix/autoImports/nestedClass.after.kt
new file mode 100644
index 00000000000..bf4250525d2
--- /dev/null
+++ b/idea/testData/quickfix/autoImports/nestedClass.after.kt
@@ -0,0 +1,6 @@
+// "Import" "true"
+// ERROR: Unresolved reference: Nested
+
+import test.Test
+
+val a = <caret>Test.Nested
diff --git a/idea/testData/quickfix/autoImports/nestedClass.before.Main.kt b/idea/testData/quickfix/autoImports/nestedClass.before.Main.kt
new file mode 100644
index 00000000000..e4d6cfad927
--- /dev/null
+++ b/idea/testData/quickfix/autoImports/nestedClass.before.Main.kt
@@ -0,0 +1,4 @@
+// "Import" "true"
+// ERROR: Unresolved reference: Nested
+
+val a = <caret>Nested
diff --git a/idea/testData/quickfix/autoImports/nestedClass.before.data.Sample.kt b/idea/testData/quickfix/autoImports/nestedClass.before.data.Sample.kt
new file mode 100644
index 00000000000..73cb69ff065
--- /dev/null
+++ b/idea/testData/quickfix/autoImports/nestedClass.before.data.Sample.kt
@@ -0,0 +1,5 @@
+package test
+
+class Test {
+    class Nested
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/quickfix/QuickFixMultiFileTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/quickfix/QuickFixMultiFileTestGenerated.java
index 9b9cf6e4b01..93e7e8d6658 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/quickfix/QuickFixMultiFileTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/quickfix/QuickFixMultiFileTestGenerated.java
@@ -134,6 +134,12 @@ public class QuickFixMultiFileTestGenerated extends AbstractQuickFixMultiFileTes
             doTestWithExtraFile(fileName);
         }
 
+        @TestMetadata("nestedClass.before.Main.kt")
+        public void testNestedClass() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/quickfix/autoImports/nestedClass.before.Main.kt");
+            doTestWithExtraFile(fileName);
+        }
+
         @TestMetadata("noImportForFunInQualifiedNotFirst.before.Main.kt")
         public void testNoImportForFunInQualifiedNotFirst() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/quickfix/autoImports/noImportForFunInQualifiedNotFirst.before.Main.kt");