diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
index b225cf81b40..7cc5d1b55b8 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
@@ -76,6 +76,7 @@ import org.jetbrains.jet.lang.psi.JetPsiUtil;
 import org.jetbrains.jet.lang.resolve.BindingContext;
 import org.jetbrains.jet.lang.resolve.BindingContextUtils;
 import org.jetbrains.jet.lang.resolve.BindingTrace;
+import org.jetbrains.jet.lang.resolve.BindingTraceContext;
 import org.jetbrains.jet.lang.resolve.DescriptorUtils;
 import org.jetbrains.jet.lang.resolve.FqName;
 import org.jetbrains.jet.lang.resolve.NamespaceFactory;
@@ -92,6 +93,7 @@ import org.jetbrains.jet.lang.resolve.constants.NullValue;
 import org.jetbrains.jet.lang.resolve.constants.ShortValue;
 import org.jetbrains.jet.lang.resolve.constants.StringValue;
 import org.jetbrains.jet.lang.resolve.java.kt.JetClassAnnotation;
+import org.jetbrains.jet.lang.types.DeferredType;
 import org.jetbrains.jet.lang.types.ErrorUtils;
 import org.jetbrains.jet.lang.types.JetType;
 import org.jetbrains.jet.lang.types.TypeSubstitutor;
@@ -103,6 +105,7 @@ import org.jetbrains.jet.rt.signature.JetSignatureAdapter;
 import org.jetbrains.jet.rt.signature.JetSignatureExceptionsAdapter;
 import org.jetbrains.jet.rt.signature.JetSignatureReader;
 import org.jetbrains.jet.rt.signature.JetSignatureVisitor;
+import org.jetbrains.jet.util.lazy.LazyValue;
 
 import javax.inject.Inject;
 import java.util.ArrayList;
@@ -1618,11 +1621,18 @@ public class JavaDescriptorResolver {
             return null;
         }
 
-        ClassDescriptor clazz = resolveClass(new FqName(psiAnnotation.getQualifiedName()), DescriptorSearchRule.INCLUDE_KOTLIN);
+        final ClassDescriptor clazz = resolveClass(new FqName(psiAnnotation.getQualifiedName()), DescriptorSearchRule.INCLUDE_KOTLIN);
         if (clazz == null) {
             return null;
         }
-        annotation.setAnnotationType(clazz.getDefaultType());
+        // TODO: no lazy types
+        //annotation.setAnnotationType(clazz.getDefaultType());
+        annotation.setAnnotationType(DeferredType.create(new BindingTraceContext(), new LazyValue<JetType>() {
+            @Override
+            protected JetType compute() {
+                return clazz.getDefaultType();
+            }
+        }));
         ArrayList<CompileTimeConstant<?>> valueArguments = new ArrayList<CompileTimeConstant<?>>();
 
         PsiAnnotationParameterList parameterList = psiAnnotation.getParameterList();
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/annotations/AnnotationDescriptor.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/annotations/AnnotationDescriptor.java
index be09c9892c4..53c807cc18c 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/annotations/AnnotationDescriptor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/annotations/AnnotationDescriptor.java
@@ -42,7 +42,7 @@ public class AnnotationDescriptor {
     }
 
     public void setAnnotationType(@NotNull JetType annotationType) {
-        if (!(annotationType.getConstructor().getDeclarationDescriptor() instanceof ClassDescriptor)) {
+        if (false && !(annotationType.getConstructor().getDeclarationDescriptor() instanceof ClassDescriptor)) {
             throw new IllegalStateException();
         }
         this.annotationType = annotationType;
diff --git a/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.java b/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.java
new file mode 100644
index 00000000000..066f2fc29bf
--- /dev/null
+++ b/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.java
@@ -0,0 +1,6 @@
+package test;
+
+@java.lang.annotation.Retention(java.lang.annotation.RetentionPolicy.CLASS)
+@AnnotatedAnnotation
+@interface AnnotatedAnnotation {
+}
diff --git a/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.kt b/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.kt
new file mode 100644
index 00000000000..99dc9324970
--- /dev/null
+++ b/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.kt
@@ -0,0 +1,4 @@
+package test
+
+[AnnotatedAnnotation]
+annotation class AnnotatedAnnotation
diff --git a/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.txt b/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.txt
new file mode 100644
index 00000000000..4d95c1d5fd0
--- /dev/null
+++ b/compiler/testData/readJavaBinaryClass/annotation/AnnotatedAnnotation.txt
@@ -0,0 +1,5 @@
+namespace test
+
+test.AnnotatedAnnotation() final annotation class test.AnnotatedAnnotation : jet.Any {
+    final /*constructor*/ fun <init>(): test.AnnotatedAnnotation
+}