diff --git a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/builder/LightClassDataProvider.kt b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/builder/LightClassDataProvider.kt
index 6d5d91a66cb..e11c044f12d 100644
--- a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/builder/LightClassDataProvider.kt
+++ b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/builder/LightClassDataProvider.kt
@@ -170,7 +170,7 @@ private class ClassFilterForClassOrObject(private val classOrObject: KtClassOrOb
         if (classOrObject === processingClassOrObject) return true
 
         // process all children
-        if (classOrObject.isAncestor(processingClassOrObject, true) || processingClassOrObject.isAncestor(classOrObject, true)) {
+        if (classOrObject.isAncestor(processingClassOrObject, true)) {
             return true
         }
 
@@ -196,8 +196,9 @@ private class ClassFilterForClassOrObject(private val classOrObject: KtClassOrOb
         return false
     }
 
-    override fun shouldGenerateClass(processingClassOrObject: KtClassOrObject) =
-        shouldGenerateClassMembers(processingClassOrObject)
+    override fun shouldGenerateClass(processingClassOrObject: KtClassOrObject)
+            // generate outer classes but not their members
+            = shouldGenerateClassMembers(processingClassOrObject) || processingClassOrObject.isAncestor(classOrObject, true)
 
     override fun shouldGenerateScript(script: KtScript) = PsiTreeUtil.isAncestor(script, classOrObject, false)
     override fun shouldGenerateCodeFragment(script: KtCodeFragment) = false
diff --git a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/duplicateJvmSignatureUtil.kt b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/duplicateJvmSignatureUtil.kt
index 8680b7253fd..f8278f4938e 100644
--- a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/duplicateJvmSignatureUtil.kt
+++ b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/duplicateJvmSignatureUtil.kt
@@ -23,6 +23,7 @@ import org.jetbrains.kotlin.asJava.builder.InvalidLightClassDataHolder
 import org.jetbrains.kotlin.asJava.builder.LightClassDataProviderForFileFacade
 import org.jetbrains.kotlin.asJava.classes.KtLightClassForFacade
 import org.jetbrains.kotlin.asJava.classes.KtLightClassForSourceDeclaration
+import org.jetbrains.kotlin.asJava.classes.getOutermostClassOrObject
 import org.jetbrains.kotlin.diagnostics.Diagnostic
 import org.jetbrains.kotlin.diagnostics.DiagnosticFactory
 import org.jetbrains.kotlin.diagnostics.DiagnosticFactory.cast
@@ -49,7 +50,8 @@ fun getJvmSignatureDiagnostics(element: PsiElement, otherDiagnostics: Diagnostic
     }
 
     fun getDiagnosticsForClass(ktClassOrObject: KtClassOrObject): Diagnostics {
-        val lightClassDataHolder = KtLightClassForSourceDeclaration.getLightClassDataHolder(ktClassOrObject)
+        val outermostClass = getOutermostClassOrObject(ktClassOrObject)
+        val lightClassDataHolder = KtLightClassForSourceDeclaration.getLightClassDataHolder(outermostClass)
         if (lightClassDataHolder is InvalidLightClassDataHolder) {
             return Diagnostics.EMPTY
         }