diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/CompilerDeserializationConfiguration.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/CompilerDeserializationConfiguration.kt
index ff5a9315c9a..81e0b9667de 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/CompilerDeserializationConfiguration.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/CompilerDeserializationConfiguration.kt
@@ -16,7 +16,11 @@
 
 package org.jetbrains.kotlin.resolve
 
+import org.jetbrains.kotlin.config.LanguageFeature
 import org.jetbrains.kotlin.config.LanguageVersionSettings
 import org.jetbrains.kotlin.serialization.deserialization.DeserializationConfiguration
 
-class CompilerDeserializationConfiguration(private val languageVersionSettings: LanguageVersionSettings) : DeserializationConfiguration
+class CompilerDeserializationConfiguration(private val languageVersionSettings: LanguageVersionSettings) : DeserializationConfiguration {
+    override val typeAliasesAllowed: Boolean
+        get() = languageVersionSettings.supportsFeature(LanguageFeature.TypeAliases)
+}
diff --git a/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt b/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt
new file mode 100644
index 00000000000..d22cda1a673
--- /dev/null
+++ b/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt
@@ -0,0 +1,8 @@
+import test.*
+import test.Str
+
+fun use(
+        str: Str,
+        l: L<Str>,
+        nested: Klass.Nested
+) {}
diff --git a/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/output.txt b/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/output.txt
new file mode 100644
index 00000000000..220511ed980
--- /dev/null
+++ b/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/output.txt
@@ -0,0 +1,16 @@
+compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt:2:13: error: unresolved reference: Str
+import test.Str
+            ^
+compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt:5:14: error: unresolved reference: Str
+        str: Str,
+             ^
+compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt:6:12: error: unresolved reference: L
+        l: L<Str>,
+           ^
+compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt:6:14: error: unresolved reference: Str
+        l: L<Str>,
+             ^
+compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/main.kt:7:23: error: unresolved reference: Nested
+        nested: Klass.Nested
+                      ^
+COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/typeAliases.kt b/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/typeAliases.kt
new file mode 100644
index 00000000000..a2733f9cde4
--- /dev/null
+++ b/compiler/testData/compileKotlinAgainstCustomBinaries/typeAliasesAreInvisibleInCompatibilityMode/typeAliases.kt
@@ -0,0 +1,10 @@
+package test
+
+typealias Str = String
+typealias L<T> = List<T>
+
+class Klass {
+    typealias Nested = Z
+
+    class Z
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java
index dc3db0287ed..cfc2ce74a83 100644
--- a/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java
+++ b/compiler/tests/org/jetbrains/kotlin/jvm/compiler/CompileKotlinAgainstCustomBinariesTest.java
@@ -188,14 +188,14 @@ public class CompileKotlinAgainstCustomBinariesTest extends TestCaseWithTmpdir {
             @NotNull File output,
             @NotNull File... classpath
     ) {
-        return compileKotlin(fileName, output, false, classpath);
+        return compileKotlin(fileName, output, Collections.<String>emptyList(), classpath);
     }
 
     @NotNull
     private Pair<String, ExitCode> compileKotlin(
             @NotNull String fileName,
             @NotNull File output,
-            boolean jvm8Target,
+            List<String> additionalOptions,
             @NotNull File... classpath
     ) {
         List<String> args = new ArrayList<String>();
@@ -208,10 +208,7 @@ public class CompileKotlinAgainstCustomBinariesTest extends TestCaseWithTmpdir {
         }
         args.add("-d");
         args.add(output.getPath());
-        if (jvm8Target) {
-            args.add("-jvm-target");
-            args.add("1.8");
-        }
+        args.addAll(additionalOptions);
 
         return AbstractCliTest.executeCompilerGrabOutput(new K2JVMCompiler(), args);
     }
@@ -427,9 +424,17 @@ public class CompileKotlinAgainstCustomBinariesTest extends TestCaseWithTmpdir {
     private void target6Inheritance() {
         compileKotlin("target6.kt", tmpdir);
 
-        compileKotlin("main.kt", tmpdir, true, tmpdir);
+        Pair<String, ExitCode> outputMain = compileKotlin("main.kt", tmpdir, Arrays.asList("-jvm-target", "1.8"), tmpdir);
 
-        Pair<String, ExitCode> outputMain = compileKotlin("main.kt", tmpdir, true, tmpdir);
+        KotlinTestUtils.assertEqualsToFile(
+                new File(getTestDataDirectory(), "output.txt"), normalizeOutput(outputMain)
+        );
+    }
+
+    public void testTypeAliasesAreInvisibleInCompatibilityMode() {
+        compileKotlin("typeAliases.kt", tmpdir);
+
+        Pair<String, ExitCode> outputMain = compileKotlin("main.kt", tmpdir, Arrays.asList("-language-version", "1.0"), tmpdir);
 
         KotlinTestUtils.assertEqualsToFile(
                 new File(getTestDataDirectory(), "output.txt"), normalizeOutput(outputMain)
diff --git a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/DeserializationConfiguration.kt b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/DeserializationConfiguration.kt
index 1ecb077eb5e..28c81c9e74d 100644
--- a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/DeserializationConfiguration.kt
+++ b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/DeserializationConfiguration.kt
@@ -17,5 +17,8 @@
 package org.jetbrains.kotlin.serialization.deserialization
 
 interface DeserializationConfiguration {
+    val typeAliasesAllowed: Boolean
+        get() = true
+
     object Default : DeserializationConfiguration
 }
diff --git a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberScope.kt b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberScope.kt
index a5ee76d26b6..f3726e2a798 100644
--- a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberScope.kt
+++ b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedMemberScope.kt
@@ -51,7 +51,9 @@ abstract class DeserializedMemberScope protected constructor(
             }
     private val typeAliasProtos by
             c.storageManager.createLazyValue {
-                typeAliasList.groupByName { it.name }
+                if (c.components.configuration.typeAliasesAllowed)
+                    typeAliasList.groupByName { it.name }
+                else emptyMap()
             }
 
     private val functions =