diff --git a/compiler/cli/cli-common/resources/META-INF/extensions/compiler.xml.as42 b/compiler/cli/cli-common/resources/META-INF/extensions/compiler.xml.as42
index 86ede9124a3..9beed2476e6 100644
--- a/compiler/cli/cli-common/resources/META-INF/extensions/compiler.xml.as42
+++ b/compiler/cli/cli-common/resources/META-INF/extensions/compiler.xml.as42
@@ -3,9 +3,6 @@
     <version>1.2</version>
 
     <extensionPoints>
-        <extensionPoint qualifiedName="com.intellij.psi.classFileDecompiler"
-                        interface="com.intellij.psi.compiled.ClassFileDecompilers$Decompiler"
-                        dynamic="true"/>
         <extensionPoint qualifiedName="org.jetbrains.kotlin.analyzeCompleteHandlerExtension"
                         interface="org.jetbrains.kotlin.resolve.jvm.extensions.AnalysisHandlerExtension"
                         area="IDEA_PROJECT"/>
diff --git a/compiler/cli/cli-common/resources/META-INF/extensions/core.xml.as42 b/compiler/cli/cli-common/resources/META-INF/extensions/core.xml.as42
new file mode 100644
index 00000000000..da66522edb3
--- /dev/null
+++ b/compiler/cli/cli-common/resources/META-INF/extensions/core.xml.as42
@@ -0,0 +1,10 @@
+<idea-plugin>
+    <id>org.jetbrains.kotlin</id>
+    <version>1.2</version>
+
+    <extensionPoints>
+        <extensionPoint qualifiedName="com.intellij.psi.classFileDecompiler"
+                        interface="com.intellij.psi.compiled.ClassFileDecompilers$Decompiler"
+                        dynamic="true"/>
+    </extensionPoints>
+</idea-plugin>
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinCoreEnvironment.kt.as42 b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinCoreEnvironment.kt.as42
index 552e275cf16..c8683ba6162 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinCoreEnvironment.kt.as42
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinCoreEnvironment.kt.as42
@@ -504,6 +504,7 @@ class KotlinCoreEnvironment private constructor(
             val applicationEnvironment = KotlinCoreApplicationEnvironment.create(parentDisposable, unitTestMode)
 
             registerApplicationExtensionPointsAndExtensionsFrom(configuration, "extensions/compiler.xml")
+            registerApplicationExtensionPointsAndExtensionsFrom(configuration, "extensions/core.xml")
 
             registerApplicationServicesForCLI(applicationEnvironment)
             registerApplicationServices(applicationEnvironment)
diff --git a/compiler/tests-common/tests/org/jetbrains/kotlin/test/JUnit3RunnerWithInnersForJPS.java.as42 b/compiler/tests-common/tests/org/jetbrains/kotlin/test/JUnit3RunnerWithInnersForJPS.java.as42
new file mode 100644
index 00000000000..dff5a8871a8
--- /dev/null
+++ b/compiler/tests-common/tests/org/jetbrains/kotlin/test/JUnit3RunnerWithInnersForJPS.java.as42
@@ -0,0 +1,184 @@
+/*
+ * Copyright 2010-2015 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.test;
+
+import junit.framework.Test;
+import junit.framework.TestCase;
+import junit.framework.TestSuite;
+import org.junit.internal.MethodSorter;
+import org.junit.internal.runners.JUnit38ClassRunner;
+import org.junit.runner.Description;
+import org.junit.runner.Runner;
+import org.junit.runner.manipulation.*;
+import org.junit.runner.notification.RunNotifier;
+
+import java.io.IOException;
+import java.lang.reflect.Method;
+import java.nio.file.Files;
+import java.nio.file.Path;
+import java.nio.file.Paths;
+import java.util.*;
+
+import static java.nio.file.StandardCopyOption.REPLACE_EXISTING;
+import static org.jetbrains.kotlin.test.JUnit3RunnerWithInners.isTestMethod;
+
+/**
+ * This runner runs class with all inners test classes, but monitors situation when those classes are planned to be executed
+ * with IDEA package test runner.
+ */
+public class JUnit3RunnerWithInnersForJPS extends Runner implements Filterable, Sortable {
+    private static final Set<Class> requestedRunners = new HashSet<>();
+
+    private JUnit38ClassRunner delegateRunner;
+    private final Class<?> klass;
+    private boolean isFakeTest = false;
+
+    public JUnit3RunnerWithInnersForJPS(Class<?> klass) {
+        this.klass = klass;
+        requestedRunners.add(klass);
+        ensureCompilerExtensionFilesExists();
+    }
+
+    @Override
+    public void run(RunNotifier notifier) {
+        initialize();
+        delegateRunner.run(notifier);
+    }
+
+    @Override
+    public Description getDescription() {
+        initialize();
+        return isFakeTest ? Description.EMPTY : delegateRunner.getDescription();
+    }
+
+    @Override
+    public void filter(Filter filter) throws NoTestsRemainException {
+        initialize();
+        delegateRunner.filter(filter);
+    }
+
+    @Override
+    public void sort(Sorter sorter) {
+        initialize();
+        delegateRunner.sort(sorter);
+    }
+
+    protected void initialize() {
+        if (delegateRunner != null) return;
+        delegateRunner = new JUnit38ClassRunner(getCollectedTests());
+    }
+
+    /**
+     * compiler.xml needs to be in both compiler & ide module for tests execution.
+     * To avoid file duplication copy it to the out dir idea module before test execution.
+     */
+    private static void ensureCompilerExtensionFilesExists() {
+        copyCompilerResourceFile("compiler.xml");
+        copyCompilerResourceFile("core.xml");
+    }
+
+    private static void copyCompilerResourceFile(String fileName) {
+        String compilerXmlSourcePath = "compiler/cli/cli-common/resources/META-INF/extensions/" + fileName;
+
+        String jpsTargetDirectory = "out/production/kotlin.idea.main";
+        String pillTargetDirectory = "out/production/idea.main";
+
+        String baseDir = Files.exists(Paths.get(jpsTargetDirectory)) ? jpsTargetDirectory : pillTargetDirectory;
+        String compilerXmlTargetPath = baseDir + "/META-INF/extensions/" + fileName;
+
+        try {
+            Path targetPath = Paths.get(compilerXmlTargetPath);
+            Files.createDirectories(targetPath.getParent());
+            Files.copy(Paths.get(compilerXmlSourcePath),targetPath, REPLACE_EXISTING);
+        }
+        catch (IOException e) {
+            throw new RuntimeException(e);
+        }
+    }
+
+    private Test getCollectedTests() {
+        List<Class> innerClasses = collectDeclaredClasses(klass, false);
+        Set<Class> unprocessedInnerClasses = unprocessedClasses(innerClasses);
+
+        if (unprocessedInnerClasses.isEmpty()) {
+            if (!innerClasses.isEmpty() && !hasTestMethods(klass)) {
+                isFakeTest = true;
+                return new JUnit3RunnerWithInners.FakeEmptyClassTest(klass);
+            }
+            else {
+                return new TestSuite(klass.asSubclass(TestCase.class));
+            }
+        }
+        else if (unprocessedInnerClasses.size() == innerClasses.size()) {
+            return createTreeTestSuite(klass);
+        }
+        else {
+            return new TestSuite(klass.asSubclass(TestCase.class));
+        }
+    }
+
+    private static Test createTreeTestSuite(Class root) {
+        Set<Class> classes = new LinkedHashSet<>(collectDeclaredClasses(root, true));
+        Map<Class, TestSuite> classSuites = new HashMap<>();
+
+        for (Class aClass : classes) {
+            classSuites.put(aClass, hasTestMethods(aClass) ? new TestSuite(aClass) : new TestSuite(aClass.getCanonicalName()));
+        }
+
+        for (Class aClass : classes) {
+            if (aClass.getEnclosingClass() != null && classes.contains(aClass.getEnclosingClass())) {
+                classSuites.get(aClass.getEnclosingClass()).addTest(classSuites.get(aClass));
+            }
+        }
+
+        return classSuites.get(root);
+    }
+
+    private static Set<Class> unprocessedClasses(Collection<Class> classes) {
+        Set<Class> result = new LinkedHashSet<>();
+        for (Class aClass : classes) {
+            if (!requestedRunners.contains(aClass)) {
+                result.add(aClass);
+            }
+        }
+
+        return result;
+    }
+
+    private static List<Class> collectDeclaredClasses(Class klass, boolean withItself) {
+        List<Class> result = new ArrayList<>();
+        if (withItself) {
+            result.add(klass);
+        }
+
+        for (Class aClass : klass.getDeclaredClasses()) {
+            result.addAll(collectDeclaredClasses(aClass, true));
+        }
+
+        return result;
+    }
+
+    private static boolean hasTestMethods(Class klass) {
+        for (Class currentClass = klass; Test.class.isAssignableFrom(currentClass); currentClass = currentClass.getSuperclass()) {
+            for (Method each : MethodSorter.getDeclaredMethods(currentClass)) {
+                if (isTestMethod(each)) return true;
+            }
+        }
+
+        return false;
+    }
+}
\ No newline at end of file