diff --git a/core/descriptor.loader.java/src/org/jetbrains/jet/lang/resolve/kotlin/DeserializedDescriptorResolver.java b/core/descriptor.loader.java/src/org/jetbrains/jet/lang/resolve/kotlin/DeserializedDescriptorResolver.java
index 03ac9298361..35bdeec5a6d 100644
--- a/core/descriptor.loader.java/src/org/jetbrains/jet/lang/resolve/kotlin/DeserializedDescriptorResolver.java
+++ b/core/descriptor.loader.java/src/org/jetbrains/jet/lang/resolve/kotlin/DeserializedDescriptorResolver.java
@@ -54,7 +54,7 @@ public final class DeserializedDescriptorResolver {
     public ClassDescriptor resolveClass(@NotNull KotlinJvmBinaryClass kotlinClass) {
         String[] data = readData(kotlinClass, CLASS);
         if (data != null) {
-            return context.getClassDeserializer().deserializeClass(JavaProtoBufUtil.readClassDataFrom(data));
+            return context.getClassDeserializer().deserializeClass(kotlinClass.getClassId(), JavaProtoBufUtil.readClassDataFrom(data));
         }
         return null;
     }
@@ -64,13 +64,14 @@ public final class DeserializedDescriptorResolver {
         String[] data = readData(kotlinClass, PACKAGE_FACADE);
         if (data != null) {
             //all classes are included in java scope
-            return DescriptorsPackage.DeserializedPackageMemberScope(descriptor, JavaProtoBufUtil.readPackageDataFrom(data), context,
-                                                      new Function0<Collection<Name>>() {
-                @Override
-                public Collection<Name> invoke() {
-                    return Collections.emptyList();
-                }
-            });
+            return DescriptorsPackage.DeserializedPackageMemberScope(
+                    descriptor, JavaProtoBufUtil.readPackageDataFrom(data), context,
+                    new Function0<Collection<Name>>() {
+                        @Override
+                        public Collection<Name> invoke() {
+                            return Collections.emptyList();
+                        }
+                    });
         }
         return null;
     }
diff --git a/core/serialization/src/org/jetbrains/jet/descriptors/serialization/ClassDeserializer.kt b/core/serialization/src/org/jetbrains/jet/descriptors/serialization/ClassDeserializer.kt
index a6afda8e8a6..32dda547c35 100644
--- a/core/serialization/src/org/jetbrains/jet/descriptors/serialization/ClassDeserializer.kt
+++ b/core/serialization/src/org/jetbrains/jet/descriptors/serialization/ClassDeserializer.kt
@@ -24,35 +24,30 @@ import kotlin.properties.Delegates
 import org.jetbrains.jet.lang.resolve.name.ClassId
 
 public class ClassDeserializer(val storageManager: StorageManager, val classDataFinder: ClassDataFinder) {
-    private val classes = storageManager.createMemoizedFunctionWithNullableValues {
+    var globalContext: DeserializationGlobalContext by Delegates.notNull()
+
+    private val classes: (ClassKey) -> DeserializedClassDescriptor? = storageManager.createMemoizedFunctionWithNullableValues {
         (key: ClassKey) ->
-        val classData = key.classData ?: classDataFinder.findClassData(key.classId)
+        val classId = key.classId
+        val classData = key.classData ?: classDataFinder.findClassData(classId)
         if (classData != null) {
-            DeserializedClassDescriptor(context, classData)
+            val outerClassContext =
+                    if (classId.isTopLevelClass()) null
+                    else classes(ClassKey(classId.getOuterClassId(), null))?.context
+            val context = outerClassContext ?: globalContext
+            DeserializedClassDescriptor(context.withNameResolver(classData.getNameResolver()), classData.getClassProto())
         }
         else {
             null
         }
     }
 
-    var context: DeserializationGlobalContext by Delegates.notNull()
-
-    public fun deserializeClass(classId: ClassId): ClassDescriptor? = classes(ClassKey(classId, null))
-
-    //needed to avoid calling ClassDataFinder#findClassData() if it is already computed at call site
-    public fun deserializeClass(classData: ClassData): ClassDescriptor? = classes(ClassKey(classData.readId(), classData))
+    // Additional ClassData parameter is needed to avoid calling ClassDataFinder#findClassData() if it is already computed at call site
+    public fun deserializeClass(classId: ClassId, classData: ClassData? = null): ClassDescriptor? = classes(ClassKey(classId, classData))
 
     private inner class ClassKey(val classId: ClassId, val classData: ClassData?) {
-        override fun equals(other: Any?): Boolean {
-            return other is ClassKey && classId == other.classId
-        }
-
-        override fun hashCode(): Int {
-            return classId.hashCode()
-        }
+        override fun equals(other: Any?): Boolean = other is ClassKey && classId == other.classId
+        override fun hashCode(): Int = classId.hashCode()
+        override fun toString(): String = classId.toString()
     }
-
-    private fun ClassData.readId(): ClassId {
-        return getNameResolver().getClassId(getClassProto().getFqName())
-    }
-}
\ No newline at end of file
+}
diff --git a/core/serialization/src/org/jetbrains/jet/descriptors/serialization/context/context.kt b/core/serialization/src/org/jetbrains/jet/descriptors/serialization/context/context.kt
index 3f85fb5f24c..fbb002306ac 100644
--- a/core/serialization/src/org/jetbrains/jet/descriptors/serialization/context/context.kt
+++ b/core/serialization/src/org/jetbrains/jet/descriptors/serialization/context/context.kt
@@ -45,7 +45,7 @@ public open class DeserializationGlobalContext(
         public val classDeserializer: ClassDeserializer = ClassDeserializer(storageManager, classDataFinder)
 ) {
     {
-        classDeserializer.context = this
+        classDeserializer.globalContext = this
     }
 
     public fun withNameResolver(nameResolver: NameResolver): DeserializationContext {
diff --git a/core/serialization/src/org/jetbrains/jet/descriptors/serialization/descriptors/DeserializedClassDescriptor.kt b/core/serialization/src/org/jetbrains/jet/descriptors/serialization/descriptors/DeserializedClassDescriptor.kt
index 63110beca93..5a735b39924 100644
--- a/core/serialization/src/org/jetbrains/jet/descriptors/serialization/descriptors/DeserializedClassDescriptor.kt
+++ b/core/serialization/src/org/jetbrains/jet/descriptors/serialization/descriptors/DeserializedClassDescriptor.kt
@@ -16,7 +16,6 @@
 
 package org.jetbrains.jet.descriptors.serialization.descriptors
 
-import org.jetbrains.jet.descriptors.serialization.ClassData
 import org.jetbrains.jet.descriptors.serialization.Flags
 import org.jetbrains.jet.descriptors.serialization.ProtoBuf
 import org.jetbrains.jet.descriptors.serialization.context.*
@@ -31,23 +30,21 @@ import org.jetbrains.jet.lang.resolve.scopes.StaticScopeForKotlinClass
 import org.jetbrains.jet.lang.types.AbstractClassTypeConstructor
 import org.jetbrains.jet.lang.types.ErrorUtils
 import org.jetbrains.jet.lang.types.JetType
-import org.jetbrains.jet.storage.MemoizedFunctionToNullable
-
-import java.util.*
-
 import org.jetbrains.jet.descriptors.serialization
 import org.jetbrains.jet.lang.resolve.name.SpecialNames.getClassObjectName
 import org.jetbrains.jet.descriptors.serialization.classKind
 import org.jetbrains.jet.utils.addIfNotNull
 import org.jetbrains.jet.lang.resolve.scopes.JetScope
 import org.jetbrains.jet.lang.resolve.scopes.DescriptorKindFilter
+import java.util.*
 
-public fun DeserializedClassDescriptor(globalContext: DeserializationGlobalContext, classData: ClassData): DeserializedClassDescriptor
-        = DeserializedClassDescriptor(globalContext.withNameResolver(classData.getNameResolver()), classData.getClassProto())
-
-public class DeserializedClassDescriptor(outerContext: DeserializationContext, private val classProto: ProtoBuf.Class)
-: AbstractClassDescriptor(outerContext.storageManager, outerContext.nameResolver.getClassId(classProto.getFqName()).getRelativeClassName().shortName()), ClassDescriptor {
-
+public class DeserializedClassDescriptor(
+        outerContext: DeserializationContext,
+        private val classProto: ProtoBuf.Class
+) : ClassDescriptor, AbstractClassDescriptor(
+        outerContext.storageManager,
+        outerContext.nameResolver.getClassId(classProto.getFqName()).getRelativeClassName().shortName()
+) {
     private val modality = serialization.modality(Flags.MODALITY.get(classProto.getFlags()))
     private val visibility = serialization.visibility(Flags.VISIBILITY.get(classProto.getFlags()))
     private val kind = classKind(Flags.CLASS_KIND.get(classProto.getFlags()))
@@ -55,7 +52,7 @@ public class DeserializedClassDescriptor(outerContext: DeserializationContext, p
 
     private val classId = outerContext.nameResolver.getClassId(classProto.getFqName())
     private val typeParameters = ArrayList<TypeParameterDescriptor>(classProto.getTypeParameterCount())
-    private val context = outerContext.withTypes(this).childContext(this, classProto.getTypeParameterList(), typeParameters)
+    val context = outerContext.withTypes(this).childContext(this, classProto.getTypeParameterList(), typeParameters)
 
     private val staticScope = StaticScopeForKotlinClass(this)
     private val typeConstructor = DeserializedClassTypeConstructor(typeParameters)