diff --git a/compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.kt b/compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.kt
new file mode 100644
index 00000000000..9af533b28df
--- /dev/null
+++ b/compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.kt
@@ -0,0 +1,12 @@
+// ALLOW_AST_ACCESS
+package test
+
+enum class E { ENTRY }
+
+annotation class StringOptions(vararg val option: String)
+annotation class EnumOption(val option: E)
+
+annotation class OptionGroups(val o1: StringOptions, val o2: EnumOption)
+
+OptionGroups(StringOptions("abc", "d", "ef"), EnumOption(E.ENTRY))
+public class AnnotationInAnnotationArguments
diff --git a/compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.txt b/compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.txt
new file mode 100644
index 00000000000..1687bc3e4dc
--- /dev/null
+++ b/compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.txt
@@ -0,0 +1,43 @@
+package test
+
+test.OptionGroups(o1 = test.StringOptions(option = {"abc", "d", "ef"}: kotlin.Array<out kotlin.String>): test.StringOptions, o2 = test.EnumOption(option = E.ENTRY: test.E): test.EnumOption) public final class AnnotationInAnnotationArguments {
+    /*primary*/ public constructor AnnotationInAnnotationArguments()
+}
+
+internal final enum class E : kotlin.Enum<test.E> {
+    public enum entry ENTRY : test.E {
+        /*primary*/ private constructor ENTRY()
+        public final override /*1*/ /*fake_override*/ fun compareTo(/*0*/ other: test.E): kotlin.Int
+        public final override /*1*/ /*fake_override*/ fun name(): kotlin.String
+        public final override /*1*/ /*fake_override*/ fun ordinal(): kotlin.Int
+    }
+
+    /*primary*/ private constructor E()
+    public final override /*1*/ /*fake_override*/ fun compareTo(/*0*/ other: test.E): kotlin.Int
+    public final override /*1*/ /*fake_override*/ fun name(): kotlin.String
+    public final override /*1*/ /*fake_override*/ fun ordinal(): kotlin.Int
+
+    // Static members
+    public final /*synthesized*/ fun valueOf(/*0*/ value: kotlin.String): test.E
+    public final /*synthesized*/ fun values(): kotlin.Array<test.E>
+}
+
+internal final annotation class EnumOption : kotlin.Annotation {
+    /*primary*/ public constructor EnumOption(/*0*/ option: test.E)
+    internal final val option: test.E
+        internal final fun <get-option>(): test.E
+}
+
+internal final annotation class OptionGroups : kotlin.Annotation {
+    /*primary*/ public constructor OptionGroups(/*0*/ o1: test.StringOptions, /*1*/ o2: test.EnumOption)
+    internal final val o1: test.StringOptions
+        internal final fun <get-o1>(): test.StringOptions
+    internal final val o2: test.EnumOption
+        internal final fun <get-o2>(): test.EnumOption
+}
+
+internal final annotation class StringOptions : kotlin.Annotation {
+    /*primary*/ public constructor StringOptions(/*0*/ vararg option: kotlin.String /*kotlin.Array<out kotlin.String>*/)
+    internal final val option: kotlin.Array<out kotlin.String>
+        internal final fun <get-option>(): kotlin.Array<out kotlin.String>
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/LoadJavaTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/LoadJavaTestGenerated.java
index 38318e901ed..33bfdde1adb 100644
--- a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/LoadJavaTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/LoadJavaTestGenerated.java
@@ -1900,6 +1900,12 @@ public class LoadJavaTestGenerated extends AbstractLoadJavaTest {
                 doTestCompiledKotlin(fileName);
             }
 
+            @TestMetadata("AnnotationInAnnotationArguments.kt")
+            public void testAnnotationInAnnotationArguments() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.kt");
+                doTestCompiledKotlin(fileName);
+            }
+
             @TestMetadata("EnumArgumentWithCustomToString.kt")
             public void testEnumArgumentWithCustomToString() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/loadJava/compiledKotlin/annotations/EnumArgumentWithCustomToString.kt");
diff --git a/compiler/tests/org/jetbrains/kotlin/jvm/runtime/JvmRuntimeDescriptorLoaderTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/jvm/runtime/JvmRuntimeDescriptorLoaderTestGenerated.java
index 1ab40610ef3..14267cfa3c1 100644
--- a/compiler/tests/org/jetbrains/kotlin/jvm/runtime/JvmRuntimeDescriptorLoaderTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/jvm/runtime/JvmRuntimeDescriptorLoaderTestGenerated.java
@@ -57,6 +57,12 @@ public class JvmRuntimeDescriptorLoaderTestGenerated extends AbstractJvmRuntimeD
                 doTest(fileName);
             }
 
+            @TestMetadata("AnnotationInAnnotationArguments.kt")
+            public void testAnnotationInAnnotationArguments() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("EnumArgumentWithCustomToString.kt")
             public void testEnumArgumentWithCustomToString() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/loadJava/compiledKotlin/annotations/EnumArgumentWithCustomToString.kt");
diff --git a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/kotlin/KotlinJvmBinaryClass.java b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/kotlin/KotlinJvmBinaryClass.java
index c5d452be9e5..6b15e0d6501 100644
--- a/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/kotlin/KotlinJvmBinaryClass.java
+++ b/core/descriptor.loader.java/src/org/jetbrains/kotlin/load/kotlin/KotlinJvmBinaryClass.java
@@ -62,7 +62,7 @@ public interface KotlinJvmBinaryClass {
     }
 
     interface AnnotationArgumentVisitor {
-        // TODO: annotations, java.lang.Class
+        // TODO: class literals
         void visit(@Nullable Name name, @Nullable Object value);
 
         void visitEnum(@NotNull Name name, @NotNull ClassId enumClassId, @NotNull Name enumEntryName);
diff --git a/core/descriptors.runtime/src/org/jetbrains/kotlin/load/kotlin/reflect/ReflectKotlinClass.kt b/core/descriptors.runtime/src/org/jetbrains/kotlin/load/kotlin/reflect/ReflectKotlinClass.kt
index 8f5d7fb4bc7..a648ee33cda 100644
--- a/core/descriptors.runtime/src/org/jetbrains/kotlin/load/kotlin/reflect/ReflectKotlinClass.kt
+++ b/core/descriptors.runtime/src/org/jetbrains/kotlin/load/kotlin/reflect/ReflectKotlinClass.kt
@@ -182,25 +182,26 @@ private object ReflectClassStructure {
                 val classId = (if (clazz.isEnum()) clazz else clazz.getEnclosingClass()).classId
                 visitor.visitEnum(name, classId, Name.identifier((value as Enum<*>).name()))
             }
-            clazz.isAnnotation() -> {
-                // TODO: support values of annotation types
-                throw UnsupportedOperationException("Values of annotation types are not yet supported in Kotlin reflection: $value")
+            javaClass<Annotation>().isAssignableFrom(clazz) -> {
+                val annotationClass = clazz.getInterfaces().single()
+                val v = visitor.visitAnnotation(name, annotationClass.classId) ?: return
+                processAnnotationArguments(v, value as Annotation, annotationClass)
             }
             clazz.isArray() -> {
-                val elementVisitor = visitor.visitArray(name) ?: return
+                val v = visitor.visitArray(name) ?: return
                 val componentType = clazz.getComponentType()
                 if (componentType.isEnum()) {
                     val enumClassId = componentType.classId
                     for (element in value as Array<*>) {
-                        elementVisitor.visitEnum(enumClassId, Name.identifier((element as Enum<*>).name()))
+                        v.visitEnum(enumClassId, Name.identifier((element as Enum<*>).name()))
                     }
                 }
                 else {
                     for (element in value as Array<*>) {
-                        elementVisitor.visit(element)
+                        v.visit(element)
                     }
                 }
-                elementVisitor.visitEnd()
+                v.visitEnd()
             }
             else -> {
                 throw UnsupportedOperationException("Unsupported annotation argument value ($clazz): $value")
diff --git a/idea/tests/org/jetbrains/kotlin/idea/stubs/ResolveByStubTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/stubs/ResolveByStubTestGenerated.java
index bc65a783377..cceda1b65f6 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/stubs/ResolveByStubTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/stubs/ResolveByStubTestGenerated.java
@@ -55,6 +55,12 @@ public class ResolveByStubTestGenerated extends AbstractResolveByStubTest {
             doTest(fileName);
         }
 
+        @TestMetadata("AnnotationInAnnotationArguments.kt")
+        public void testAnnotationInAnnotationArguments() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/loadJava/compiledKotlin/annotations/AnnotationInAnnotationArguments.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("EnumArgumentWithCustomToString.kt")
         public void testEnumArgumentWithCustomToString() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/loadJava/compiledKotlin/annotations/EnumArgumentWithCustomToString.kt");