diff --git a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
index 0edb6b80eef..ce1d6ddf0cf 100644
--- a/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
+++ b/compiler/fir/analysis-tests/tests-gen/org/jetbrains/kotlin/fir/FirOldFrontendDiagnosticsTestGenerated.java
@@ -20768,6 +20768,11 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirOldFronte
             runTest("compiler/testData/diagnostics/tests/sealed/ExhaustiveWhenWithElse.kt");
         }
 
+        @TestMetadata("ExhaustiveWithFreedom.kt")
+        public void testExhaustiveWithFreedom() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.kt");
+        }
+
         @TestMetadata("Local.kt")
         public void testLocal() throws Exception {
             runTest("compiler/testData/diagnostics/tests/sealed/Local.kt");
@@ -20788,6 +20793,11 @@ public class FirOldFrontendDiagnosticsTestGenerated extends AbstractFirOldFronte
             runTest("compiler/testData/diagnostics/tests/sealed/NestedSealed.kt");
         }
 
+        @TestMetadata("NestedSealedWithoutRestrictions.kt")
+        public void testNestedSealedWithoutRestrictions() throws Exception {
+            runTest("compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.kt");
+        }
+
         @TestMetadata("NeverConstructed.kt")
         public void testNeverConstructed() throws Exception {
             runTest("compiler/testData/diagnostics/tests/sealed/NeverConstructed.kt");
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassDescriptor.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassDescriptor.java
index e0de663ae1d..02e41a83ad7 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassDescriptor.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/lazy/descriptors/LazyClassDescriptor.java
@@ -271,7 +271,8 @@ public class LazyClassDescriptor extends ClassDescriptorBase implements ClassDes
         );
 
         // TODO: only consider classes from the same file, not the whole package fragment
-        this.sealedSubclasses = storageManager.createLazyValue(() -> DescriptorUtilsKt.computeSealedSubclasses(this));
+        boolean freedomForSealedInterfacesSupported = c.getLanguageVersionSettings().supportsFeature(LanguageFeature.FreedomForSealedClasses);
+        this.sealedSubclasses = storageManager.createLazyValue(() -> DescriptorUtilsKt.computeSealedSubclasses(this, freedomForSealedInterfacesSupported));
     }
 
     private static boolean isIllegalInner(@NotNull DeclarationDescriptor descriptor) {
diff --git a/compiler/testData/codegen/box/sealed/multipleFiles_enabled.kt b/compiler/testData/codegen/box/sealed/multipleFiles_enabled.kt
index e975dbe9924..bdae46a7afe 100644
--- a/compiler/testData/codegen/box/sealed/multipleFiles_enabled.kt
+++ b/compiler/testData/codegen/box/sealed/multipleFiles_enabled.kt
@@ -2,23 +2,40 @@
 // IGNORE_BACKEND_FIR: JVM_IR
 // !LANGUAGE: +FreedomForSealedClasses
 
-// FILE: a.kt
+// FILE: Base.kt
 
 sealed class Base {
     class A : Base()
 }
 
-// FILE: b.kt
+// FILE: B.kt
 
 class B : Base()
 
-// FILE: c.kt
+// FILE: Container.kt
 
-fun getLetter(base: Base): String = when (base) {
-    is Base.A -> "O"
-    is B -> "K"
+class Containter {
+    class C : Base()
+
+    inner class D : Base()
+
+    val d = D()
+}
+
+// FILE: main.kt
+
+fun getValue(base: Base): Int = when (base) {
+    is Base.A -> 1
+    is B -> 2
+    is Containter.C -> 3
+    is Containter.D -> 4
 }
 
 fun box(): String {
-    return getLetter(Base.A()) + getLetter(B())
+    var res = 0
+    res += getValue(Base.A())
+    res += getValue(B())
+    res += getValue(Containter.C())
+    res += getValue(Containter().d)
+    return if (res == 10) "OK" else "Fail"
 }
diff --git a/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.fir.kt b/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.fir.kt
new file mode 100644
index 00000000000..171f5f2e107
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.fir.kt
@@ -0,0 +1,64 @@
+// ISSUE: KT-13495
+// !DIAGNOSTICS: -UNUSED_VARIABLE
+// !LANGUAGE: +FreedomForSealedClasses
+
+// FILE: Base.kt
+
+sealed class Base {
+    class A : Base()
+}
+
+// FILE: B.kt
+
+class B : <!HIDDEN!>Base<!>()
+
+// FILE: Container.kt
+
+class Containter {
+    class C : <!HIDDEN, SEALED_SUPERTYPE!>Base<!>()
+
+    inner class D : <!HIDDEN, SEALED_SUPERTYPE!>Base<!>()
+}
+
+// FILE: main.kt
+
+fun test_OK(base: Base) {
+    val x = when (base) {
+        is Base.A -> 1
+        is B -> 2
+        is Containter.C -> 3
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_1(base: Base) {
+    val x = when (base) {
+        is B -> 2
+        is Containter.C -> 3
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_2(base: Base) {
+    val x = when (base) {
+        is Base.A -> 1
+        is Containter.C -> 3
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_3(base: Base) {
+    val x = when (base) {
+        is Base.A -> 1
+        is B -> 2
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_4(base: Base) {
+    val x = when (base) {
+        is Base.A -> 1
+        is B -> 2
+        is Containter.C -> 3
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.kt b/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.kt
new file mode 100644
index 00000000000..fc58d0236cc
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.kt
@@ -0,0 +1,64 @@
+// ISSUE: KT-13495
+// !DIAGNOSTICS: -UNUSED_VARIABLE
+// !LANGUAGE: +FreedomForSealedClasses
+
+// FILE: Base.kt
+
+sealed class Base {
+    class A : Base()
+}
+
+// FILE: B.kt
+
+class B : Base()
+
+// FILE: Container.kt
+
+class Containter {
+    class C : Base()
+
+    inner class D : Base()
+}
+
+// FILE: main.kt
+
+fun test_OK(base: Base) {
+    val x = when (base) {
+        is Base.A -> 1
+        is B -> 2
+        is Containter.C -> 3
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_1(base: Base) {
+    val x = <!NO_ELSE_IN_WHEN!>when<!> (base) {
+        is B -> 2
+        is Containter.C -> 3
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_2(base: Base) {
+    val x = <!NO_ELSE_IN_WHEN!>when<!> (base) {
+        is Base.A -> 1
+        is Containter.C -> 3
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_3(base: Base) {
+    val x = <!NO_ELSE_IN_WHEN!>when<!> (base) {
+        is Base.A -> 1
+        is B -> 2
+        is Containter.D -> 4
+    }
+}
+
+fun test_error_4(base: Base) {
+    val x = <!NO_ELSE_IN_WHEN!>when<!> (base) {
+        is Base.A -> 1
+        is B -> 2
+        is Containter.C -> 3
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.txt b/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.txt
new file mode 100644
index 00000000000..ca2a9591379
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.txt
@@ -0,0 +1,49 @@
+package
+
+public fun test_OK(/*0*/ base: Base): kotlin.Unit
+public fun test_error_1(/*0*/ base: Base): kotlin.Unit
+public fun test_error_2(/*0*/ base: Base): kotlin.Unit
+public fun test_error_3(/*0*/ base: Base): kotlin.Unit
+public fun test_error_4(/*0*/ base: Base): kotlin.Unit
+
+public final class B : Base {
+    public constructor B()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public sealed class Base {
+    internal constructor Base()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final class A : Base {
+        public constructor A()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
+
+public final class Containter {
+    public constructor Containter()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+    public final class C : Base {
+        public constructor C()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+
+    public final inner class D : Base {
+        public constructor D()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.fir.kt b/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.fir.kt
index a490bda54c5..fb520120ea8 100644
--- a/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.fir.kt
+++ b/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.fir.kt
@@ -1,5 +1,4 @@
 // ISSUE: KT-13495
-// !DIAGNOSTICS: -UNUSED_VARIABLE
 // !LANGUAGE: +FreedomForSealedClasses
 
 // FILE: a.kt
@@ -25,14 +24,3 @@ class Container {
         class LocalClass : <!HIDDEN, SEALED_SUPERTYPE_IN_LOCAL_CLASS!>Base<!>() {} // Should be an error
     }
 }
-
-// FILE: d.kt
-
-fun test(base: Base) {
-    val x = when (base) {
-        is Base.A -> 1
-        is B -> 2
-        is Container.C -> 3
-        is Container.D -> 4
-    }
-}
diff --git a/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.kt b/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.kt
index 267ac83315a..b54b8f82f2c 100644
--- a/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.kt
+++ b/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.kt
@@ -1,5 +1,4 @@
 // ISSUE: KT-13495
-// !DIAGNOSTICS: -UNUSED_VARIABLE
 // !LANGUAGE: +FreedomForSealedClasses
 
 // FILE: a.kt
@@ -25,14 +24,3 @@ class Container {
         class LocalClass : <!SEALED_SUPERTYPE!>Base<!>() {} // Should be an error
     }
 }
-
-// FILE: d.kt
-
-fun test(base: Base) {
-    val x = when (base) {
-        is Base.A -> 1
-        is B -> 2
-        is Container.C -> 3
-        is Container.D -> 4
-    }
-}
diff --git a/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.txt b/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.txt
index 0a71f3f94b6..51fcecaca3b 100644
--- a/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.txt
+++ b/compiler/testData/diagnostics/tests/sealed/MultipleFiles_enabled.txt
@@ -1,7 +1,5 @@
 package
 
-public fun test(/*0*/ base: Base): kotlin.Unit
-
 public final class B : Base {
     public constructor B()
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
diff --git a/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.fir.kt b/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.fir.kt
new file mode 100644
index 00000000000..444fb416c12
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.fir.kt
@@ -0,0 +1,39 @@
+// ISSUE: KT-13495
+// !LANGUAGE: +FreedomForSealedClasses
+// !DIAGNOSTICS: -UNUSED_VARIABLE
+
+// FILE: base.kt
+
+package foo
+
+class Container {
+    sealed class Base
+}
+
+// FILE: a.kt
+
+package foo
+
+class A : <!HIDDEN, SEALED_SUPERTYPE!>Container.Base<!>()
+
+// FILE: b.kt
+
+package foo
+
+class BContainer {
+    class B : <!HIDDEN, SEALED_SUPERTYPE!>Container.Base<!>()
+
+    inner class C : <!HIDDEN, SEALED_SUPERTYPE!>Container.Base<!>()
+}
+
+// FILE: test.kt
+
+package foo
+
+fun test(base: Container.Base) {
+    val x = when (base) {
+        is A -> 1
+        is BContainer.B -> 2
+        is BContainer.C -> 3
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.kt b/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.kt
new file mode 100644
index 00000000000..fdd2bdcb6a8
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.kt
@@ -0,0 +1,39 @@
+// ISSUE: KT-13495
+// !LANGUAGE: +FreedomForSealedClasses
+// !DIAGNOSTICS: -UNUSED_VARIABLE
+
+// FILE: base.kt
+
+package foo
+
+class Container {
+    sealed class Base
+}
+
+// FILE: a.kt
+
+package foo
+
+class A : Container.Base()
+
+// FILE: b.kt
+
+package foo
+
+class BContainer {
+    class B : Container.Base()
+
+    inner class C : Container.Base()
+}
+
+// FILE: test.kt
+
+package foo
+
+fun test(base: Container.Base) {
+    val x = when (base) {
+        is A -> 1
+        is BContainer.B -> 2
+        is BContainer.C -> 3
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.txt b/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.txt
new file mode 100644
index 00000000000..319749dd71b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.txt
@@ -0,0 +1,47 @@
+package
+
+package foo {
+    public fun test(/*0*/ base: foo.Container.Base): kotlin.Unit
+
+    public final class A : foo.Container.Base {
+        public constructor A()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+    }
+
+    public final class BContainer {
+        public constructor BContainer()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+        public final class B : foo.Container.Base {
+            public constructor B()
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+
+        public final inner class C : foo.Container.Base {
+            public constructor C()
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+    }
+
+    public final class Container {
+        public constructor Container()
+        public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+        public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+        public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+
+        public sealed class Base {
+            internal constructor Base()
+            public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+            public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+            public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+        }
+    }
+}
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 111cc4e95a3..5c1521aa986 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -20845,6 +20845,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTestWithFirVali
                 runTest("compiler/testData/diagnostics/tests/sealed/ExhaustiveWhenWithElse.kt");
             }
 
+            @TestMetadata("ExhaustiveWithFreedom.kt")
+            public void testExhaustiveWithFreedom() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.kt");
+            }
+
             @TestMetadata("Local.kt")
             public void testLocal() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/sealed/Local.kt");
@@ -20865,6 +20870,11 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTestWithFirVali
                 runTest("compiler/testData/diagnostics/tests/sealed/NestedSealed.kt");
             }
 
+            @TestMetadata("NestedSealedWithoutRestrictions.kt")
+            public void testNestedSealedWithoutRestrictions() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.kt");
+            }
+
             @TestMetadata("NeverConstructed.kt")
             public void testNeverConstructed() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/sealed/NeverConstructed.kt");
diff --git a/compiler/tests-gen/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java b/compiler/tests-gen/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
index 7be16516432..6b56a052b0f 100644
--- a/compiler/tests-gen/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
+++ b/compiler/tests-gen/org/jetbrains/kotlin/checkers/javac/DiagnosticsUsingJavacTestGenerated.java
@@ -20770,6 +20770,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/sealed/ExhaustiveWhenWithElse.kt");
             }
 
+            @TestMetadata("ExhaustiveWithFreedom.kt")
+            public void testExhaustiveWithFreedom() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/sealed/ExhaustiveWithFreedom.kt");
+            }
+
             @TestMetadata("Local.kt")
             public void testLocal() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/sealed/Local.kt");
@@ -20790,6 +20795,11 @@ public class DiagnosticsUsingJavacTestGenerated extends AbstractDiagnosticsUsing
                 runTest("compiler/testData/diagnostics/tests/sealed/NestedSealed.kt");
             }
 
+            @TestMetadata("NestedSealedWithoutRestrictions.kt")
+            public void testNestedSealedWithoutRestrictions() throws Exception {
+                runTest("compiler/testData/diagnostics/tests/sealed/NestedSealedWithoutRestrictions.kt");
+            }
+
             @TestMetadata("NeverConstructed.kt")
             public void testNeverConstructed() throws Exception {
                 runTest("compiler/testData/diagnostics/tests/sealed/NeverConstructed.kt");
diff --git a/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt b/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt
index d88800d8032..7577fcf601f 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/resolve/DescriptorUtils.kt
@@ -377,7 +377,7 @@ fun ClassifierDescriptor.getAllSuperClassifiers(): Sequence<ClassifierDescriptor
 // Note this is a generic and slow implementation which would work almost for any subclass of ClassDescriptor.
 // Please avoid using it in new code.
 // TODO: do something more clever instead at call sites of this function
-fun computeSealedSubclasses(sealedClass: ClassDescriptor): Collection<ClassDescriptor> {
+fun computeSealedSubclasses(sealedClass: ClassDescriptor, freedomForSealedInterfacesSupported: Boolean): Collection<ClassDescriptor> {
     if (sealedClass.modality != Modality.SEALED) return emptyList()
 
     val result = linkedSetOf<ClassDescriptor>()
@@ -396,9 +396,16 @@ fun computeSealedSubclasses(sealedClass: ClassDescriptor): Collection<ClassDescr
         }
     }
 
-    val container = sealedClass.containingDeclaration
+    val container = if (!freedomForSealedInterfacesSupported) {
+        sealedClass.containingDeclaration
+    } else {
+        sealedClass.parents.firstOrNull { it is PackageFragmentDescriptor }
+    }
     if (container is PackageFragmentDescriptor) {
-        collectSubclasses(container.getMemberScope(), collectNested = false)
+        collectSubclasses(
+            container.getMemberScope(),
+            collectNested = freedomForSealedInterfacesSupported
+        )
     }
     collectSubclasses(sealedClass.unsubstitutedInnerClassesScope, collectNested = true)
     return result
diff --git a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedClassDescriptor.kt b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedClassDescriptor.kt
index f74ab63e0b8..d43626fb3c2 100644
--- a/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedClassDescriptor.kt
+++ b/core/deserialization/src/org/jetbrains/kotlin/serialization/deserialization/descriptors/DeserializedClassDescriptor.kt
@@ -165,7 +165,7 @@ class DeserializedClassDescriptor(
         }
 
         // This is needed because classes compiled with Kotlin 1.0 did not contain the sealed_subclass_fq_name field
-        return computeSealedSubclasses(this)
+        return computeSealedSubclasses(this, freedomForSealedInterfacesSupported = false)
     }
 
     override fun getSealedSubclasses() = sealedSubclasses()
diff --git a/native/commonizer/src/org/jetbrains/kotlin/descriptors/commonizer/builder/CommonizedClassDescriptor.kt b/native/commonizer/src/org/jetbrains/kotlin/descriptors/commonizer/builder/CommonizedClassDescriptor.kt
index 3f67f514d36..3d1c40f4c69 100644
--- a/native/commonizer/src/org/jetbrains/kotlin/descriptors/commonizer/builder/CommonizedClassDescriptor.kt
+++ b/native/commonizer/src/org/jetbrains/kotlin/descriptors/commonizer/builder/CommonizedClassDescriptor.kt
@@ -5,6 +5,7 @@
 
 package org.jetbrains.kotlin.descriptors.commonizer.builder
 
+import org.jetbrains.kotlin.config.LanguageVersionSettingsImpl
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.descriptors.annotations.Annotations
 import org.jetbrains.kotlin.descriptors.commonizer.cir.CirType
@@ -51,7 +52,10 @@ class CommonizedClassDescriptor(
         MemberScope.Empty
 
     private val typeConstructor = CommonizedClassTypeConstructor(targetComponents, cirSupertypes)
-    private val sealedSubclasses = targetComponents.storageManager.createLazyValue { computeSealedSubclasses(this) }
+    private val sealedSubclasses = targetComponents.storageManager.createLazyValue {
+        // TODO: pass proper language version settings
+        computeSealedSubclasses(this, freedomForSealedInterfacesSupported = false)
+    }
 
     private val declaredTypeParametersAndTypeParameterResolver = targetComponents.storageManager.createLazyValue {
         val parent = if (isInner) (containingDeclaration as? ClassDescriptor)?.getTypeParameterResolver() else null