diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/pipeline/compilerPipeline.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/pipeline/compilerPipeline.kt
index 1c55f24319c..9032cb8c70d 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/pipeline/compilerPipeline.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/pipeline/compilerPipeline.kt
@@ -518,6 +518,8 @@ fun createProjectEnvironment(
     project.registerService(MetadataFinderFactory::class.java, finderFactory)
     project.registerService(VirtualFileFinderFactory::class.java, finderFactory)
 
+    project.setupHighestLanguageLevel()
+
     return ProjectEnvironmentWithCoreEnvironmentEmulation(
         project,
         localFileSystem,
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxModernJdkCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxModernJdkCodegenTestGenerated.java
index a1479df5111..4bbdc26d773 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxModernJdkCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirLightTreeBlackBoxModernJdkCodegenTestGenerated.java
@@ -766,6 +766,12 @@ public class FirLightTreeBlackBoxModernJdkCodegenTestGenerated extends AbstractF
                 runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/javaSealedInterface.kt");
             }
 
+            @Test
+            @TestMetadata("kotlinExhaustiveWhenOnJavaSealedClass.kt")
+            public void testKotlinExhaustiveWhenOnJavaSealedClass() throws Exception {
+                runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/kotlinExhaustiveWhenOnJavaSealedClass.kt");
+            }
+
             @Test
             @TestMetadata("permittedSubclassesOfSealedKotlinClass.kt")
             public void testPermittedSubclassesOfSealedKotlinClass() throws Exception {
diff --git a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxModernJdkCodegenTestGenerated.java b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxModernJdkCodegenTestGenerated.java
index 2e949e0e489..7c3dd9f2943 100644
--- a/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxModernJdkCodegenTestGenerated.java
+++ b/compiler/fir/fir2ir/tests-gen/org/jetbrains/kotlin/test/runners/codegen/FirPsiBlackBoxModernJdkCodegenTestGenerated.java
@@ -340,6 +340,12 @@ public class FirPsiBlackBoxModernJdkCodegenTestGenerated extends AbstractFirPsiB
                 KtTestUtil.assertAllTestsPresentByMetadataWithExcluded(this.getClass(), new File("compiler/testData/codegen/boxModernJdk/testsWithJava17/records"), Pattern.compile("^(.+)\\.kt$"), null, TargetBackend.JVM_IR, true);
             }
 
+            @Test
+            @TestMetadata("binaryRecord.kt")
+            public void testBinaryRecord() throws Exception {
+                runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/records/binaryRecord.kt");
+            }
+
             @Test
             @TestMetadata("bytecodeShapeForJava.kt")
             public void testBytecodeShapeForJava() throws Exception {
@@ -760,6 +766,12 @@ public class FirPsiBlackBoxModernJdkCodegenTestGenerated extends AbstractFirPsiB
                 runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/javaSealedInterface.kt");
             }
 
+            @Test
+            @TestMetadata("kotlinExhaustiveWhenOnJavaSealedClass.kt")
+            public void testKotlinExhaustiveWhenOnJavaSealedClass() throws Exception {
+                runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/kotlinExhaustiveWhenOnJavaSealedClass.kt");
+            }
+
             @Test
             @TestMetadata("permittedSubclassesOfSealedKotlinClass.kt")
             public void testPermittedSubclassesOfSealedKotlinClass() throws Exception {
diff --git a/compiler/testData/cli/jvm/javaSealedClass.args b/compiler/testData/cli/jvm/javaSealedClass.args
new file mode 100644
index 00000000000..b9ed06bb5f6
--- /dev/null
+++ b/compiler/testData/cli/jvm/javaSealedClass.args
@@ -0,0 +1,8 @@
+$TESTDATA_DIR$/javaSealedClass/SealedJava.java
+$TESTDATA_DIR$/javaSealedClass/SubSealedAJava.java
+$TESTDATA_DIR$/javaSealedClass/SubSealedBJava.java
+$TESTDATA_DIR$/javaSealedClass/javaSealedClass.kt
+-d
+$TEMP_DIR$
+-language-version
+2.0
diff --git a/compiler/testData/cli/jvm/javaSealedClass.out b/compiler/testData/cli/jvm/javaSealedClass.out
new file mode 100644
index 00000000000..86ca0241885
--- /dev/null
+++ b/compiler/testData/cli/jvm/javaSealedClass.out
@@ -0,0 +1,2 @@
+warning: language version 2.0 is experimental, there are no backwards compatibility guarantees for new language and library features
+OK
diff --git a/compiler/testData/cli/jvm/javaSealedClass/SealedJava.java b/compiler/testData/cli/jvm/javaSealedClass/SealedJava.java
new file mode 100644
index 00000000000..fa0c180eea8
--- /dev/null
+++ b/compiler/testData/cli/jvm/javaSealedClass/SealedJava.java
@@ -0,0 +1 @@
+public abstract sealed class SealedJava permits SubSealedAJava, SubSealedBJava {}
diff --git a/compiler/testData/cli/jvm/javaSealedClass/SubSealedAJava.java b/compiler/testData/cli/jvm/javaSealedClass/SubSealedAJava.java
new file mode 100644
index 00000000000..c489a0beab9
--- /dev/null
+++ b/compiler/testData/cli/jvm/javaSealedClass/SubSealedAJava.java
@@ -0,0 +1 @@
+public final class SubSealedAJava extends SealedJava {}
diff --git a/compiler/testData/cli/jvm/javaSealedClass/SubSealedBJava.java b/compiler/testData/cli/jvm/javaSealedClass/SubSealedBJava.java
new file mode 100644
index 00000000000..878ed769144
--- /dev/null
+++ b/compiler/testData/cli/jvm/javaSealedClass/SubSealedBJava.java
@@ -0,0 +1 @@
+public non-sealed class SubSealedBJava extends SealedJava {}
diff --git a/compiler/testData/cli/jvm/javaSealedClass/javaSealedClass.kt b/compiler/testData/cli/jvm/javaSealedClass/javaSealedClass.kt
new file mode 100644
index 00000000000..60dba881e4a
--- /dev/null
+++ b/compiler/testData/cli/jvm/javaSealedClass/javaSealedClass.kt
@@ -0,0 +1,4 @@
+fun test(sj: SealedJava) = when (sj) {
+    is SubSealedAJava -> "O"
+    is SubSealedBJava -> "K"
+}
diff --git a/compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/kotlinExhaustiveWhenOnJavaSealedClass.kt b/compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/kotlinExhaustiveWhenOnJavaSealedClass.kt
new file mode 100644
index 00000000000..432f051d8e7
--- /dev/null
+++ b/compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/kotlinExhaustiveWhenOnJavaSealedClass.kt
@@ -0,0 +1,21 @@
+// TARGET_BACKEND: JVM_IR
+// ISSUE: KT-56549
+
+// FILE: SealedJava.java
+public abstract sealed class SealedJava permits SubSealedAJava, SubSealedBJava {}
+
+// FILE: SubSealedAJava.java
+public final class SubSealedAJava extends SealedJava {}
+
+// FILE: SubSealedBJava.java
+public non-sealed class SubSealedBJava extends SealedJava {}
+
+// FILE: main.kt
+fun test(sj: SealedJava) = when (sj) {
+    is SubSealedAJava -> "O"
+    is SubSealedBJava -> "K"
+}
+
+fun box(): String {
+    return test(SubSealedAJava()) + test(SubSealedBJava())
+}
diff --git a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxModernJdkCodegenTestGenerated.java b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxModernJdkCodegenTestGenerated.java
index 777192d914a..e1a96081b7b 100644
--- a/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxModernJdkCodegenTestGenerated.java
+++ b/compiler/tests-common-new/tests-gen/org/jetbrains/kotlin/test/runners/codegen/IrBlackBoxModernJdkCodegenTestGenerated.java
@@ -766,6 +766,12 @@ public class IrBlackBoxModernJdkCodegenTestGenerated extends AbstractIrBlackBoxC
                 runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/javaSealedInterface.kt");
             }
 
+            @Test
+            @TestMetadata("kotlinExhaustiveWhenOnJavaSealedClass.kt")
+            public void testKotlinExhaustiveWhenOnJavaSealedClass() throws Exception {
+                runTest("compiler/testData/codegen/boxModernJdk/testsWithJava17/sealed/kotlinExhaustiveWhenOnJavaSealedClass.kt");
+            }
+
             @Test
             @TestMetadata("permittedSubclassesOfSealedKotlinClass.kt")
             public void testPermittedSubclassesOfSealedKotlinClass() throws Exception {
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/cli/CliTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/cli/CliTestGenerated.java
index 35a2d2955db..8d56689db2c 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/cli/CliTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/cli/CliTestGenerated.java
@@ -680,6 +680,11 @@ public class CliTestGenerated extends AbstractCliTest {
             runTest("compiler/testData/cli/jvm/irSupported.args");
         }
 
+        @TestMetadata("javaSealedClass.args")
+        public void testJavaSealedClass() throws Exception {
+            runTest("compiler/testData/cli/jvm/javaSealedClass.args");
+        }
+
         @TestMetadata("javaSrcWrongPackage.args")
         public void testJavaSrcWrongPackage() throws Exception {
             runTest("compiler/testData/cli/jvm/javaSrcWrongPackage.args");