diff --git a/build.xml b/build.xml
index 38f751c6dd1..daf8f2c64a7 100644
--- a/build.xml
+++ b/build.xml
@@ -750,6 +750,7 @@
                 <arg value="${toString:classpath.path}"/>
                 <arg value="-module-name"/>
                 <arg value="@{moduleName}"/>
+                <arg value="-Xallow-kotlin-package"/>
             </java>
 
             <javac2 srcdir="${toString:src.dirset}" destdir="@{output}" debug="true" debuglevel="lines,vars,source"
diff --git a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java
index 191df7eec40..0cbdef3a8fe 100644
--- a/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java
+++ b/compiler/cli/cli-common/src/org/jetbrains/kotlin/cli/common/arguments/K2JVMCompilerArguments.java
@@ -67,6 +67,9 @@ public class K2JVMCompilerArguments extends CommonCompilerArguments {
     @Argument(value = "Xmultifile-facades-open", description = "Compile multifile facade classes as open")
     public boolean multifileFacadesOpen;
 
+    @Argument(value = "Xallow-kotlin-package", description = "Allow compiling code in package 'kotlin'")
+    public boolean allowKotlinPackage;
+
     // Paths to output directories for friend modules.
     public String[] friendPaths;
 
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLIConfigurationKeys.java b/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLIConfigurationKeys.java
index e47210fabe1..a64b55f6a02 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLIConfigurationKeys.java
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/common/CLIConfigurationKeys.java
@@ -26,6 +26,8 @@ public class CLIConfigurationKeys {
             CompilerConfigurationKey.create("message collector");
     public static final CompilerConfigurationKey<List<CompilerPlugin>> COMPILER_PLUGINS =
             CompilerConfigurationKey.create("compiler plugins");
+    public static final CompilerConfigurationKey<Boolean> ALLOW_KOTLIN_PACKAGE =
+            CompilerConfigurationKey.create("allow kotlin package");
 
     private CLIConfigurationKeys() {
     }
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt
index 077bf531dbb..97d94d6eeb5 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/K2JVMCompiler.kt
@@ -275,6 +275,7 @@ open class K2JVMCompiler : CLICompiler<K2JVMCompilerArguments>() {
             configuration.put(JVMConfigurationKeys.DISABLE_INLINE, arguments.noInline)
             configuration.put(JVMConfigurationKeys.DISABLE_OPTIMIZATION, arguments.noOptimize)
             configuration.put(JVMConfigurationKeys.MULTIFILE_FACADES_OPEN, arguments.multifileFacadesOpen);
+            configuration.put(CLIConfigurationKeys.ALLOW_KOTLIN_PACKAGE, arguments.allowKotlinPackage);
         }
 
         private fun getClasspath(paths: KotlinPaths, arguments: K2JVMCompilerArguments): List<File> {
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt
index cd01ce56d07..aa5ae072306 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/compiler/KotlinToJVMBytecodeCompiler.kt
@@ -21,7 +21,9 @@ import org.jetbrains.kotlin.asJava.FilteredJvmDiagnostics
 import org.jetbrains.kotlin.cli.common.CLIConfigurationKeys
 import org.jetbrains.kotlin.cli.common.CompilerPluginContext
 import org.jetbrains.kotlin.cli.common.messages.AnalyzerWithCompilerReport
+import org.jetbrains.kotlin.cli.common.messages.CompilerMessageSeverity
 import org.jetbrains.kotlin.cli.common.messages.MessageCollector
+import org.jetbrains.kotlin.cli.common.messages.MessageUtil
 import org.jetbrains.kotlin.cli.common.output.outputUtils.writeAll
 import org.jetbrains.kotlin.cli.jvm.K2JVMCompiler
 import org.jetbrains.kotlin.cli.jvm.config.*
@@ -35,6 +37,8 @@ import org.jetbrains.kotlin.load.kotlin.ModuleVisibilityManager
 import org.jetbrains.kotlin.modules.Module
 import org.jetbrains.kotlin.modules.TargetId
 import org.jetbrains.kotlin.name.FqName
+import org.jetbrains.kotlin.name.Name
+import org.jetbrains.kotlin.name.isSubpackageOf
 import org.jetbrains.kotlin.progress.ProgressIndicatorAndCompilationCanceledStatus
 import org.jetbrains.kotlin.psi.KtFile
 import org.jetbrains.kotlin.resolve.jvm.JvmClassName
@@ -106,10 +110,11 @@ object KotlinToJVMBytecodeCompiler {
 
         for (module in chunk) {
             ProgressIndicatorAndCompilationCanceledStatus.checkCanceled()
-            val jetFiles = CompileEnvironmentUtil.getKtFiles(
+            val ktFiles = CompileEnvironmentUtil.getKtFiles(
                     environment.project, getAbsolutePaths(directory, module)) { s -> throw IllegalStateException("Should have been checked before: " + s) }
+            if (!checkKotlinPackageUsage(environment, ktFiles)) return false
             val moduleOutputDirectory = File(module.getOutputDirectory())
-            val generationState = generate(environment, result, jetFiles, module, moduleOutputDirectory,
+            val generationState = generate(environment, result, ktFiles, module, moduleOutputDirectory,
                                            module.getModuleName())
             outputFiles.put(module, generationState.factory)
         }
@@ -173,6 +178,7 @@ object KotlinToJVMBytecodeCompiler {
             moduleVisibilityManager.addFriendPath(path)
         }
 
+        if (!checkKotlinPackageUsage(environment, environment.getSourceFiles())) return false
         val generationState = analyzeAndGenerate(environment) ?: return false
 
         val mainClass = findMainClass(generationState, environment.getSourceFiles())
@@ -360,6 +366,23 @@ object KotlinToJVMBytecodeCompiler {
         return generationState
     }
 
+    private fun checkKotlinPackageUsage(environment: KotlinCoreEnvironment, files: Collection<KtFile>): Boolean {
+        if (environment.configuration.get(CLIConfigurationKeys.ALLOW_KOTLIN_PACKAGE) == true) {
+            return true
+        }
+        val messageCollector = environment.configuration.get(CLIConfigurationKeys.MESSAGE_COLLECTOR_KEY, MessageCollector.NONE)
+        val kotlinPackage = FqName.topLevel(Name.identifier("kotlin"))
+        files.forEach {
+            if (it.packageFqName.isSubpackageOf(kotlinPackage)) {
+                messageCollector.report(CompilerMessageSeverity.ERROR,
+                                        "Only the Kotlin standard library is allowed to use the 'kotlin' package",
+                                        MessageUtil.psiElementToMessageLocation(it.packageDirective!!))
+                return false
+            }
+        }
+        return true
+    }
+
     fun KotlinCoreEnvironment.messageCollector(): MessageCollector {
         val result = configuration.get(CLIConfigurationKeys.MESSAGE_COLLECTOR_KEY)
         assert(result != null) { "Message collector not specified in compiler configuration" }
diff --git a/compiler/testData/cli/jvm/extraHelp.out b/compiler/testData/cli/jvm/extraHelp.out
index a39536a38ac..0e871954e54 100644
--- a/compiler/testData/cli/jvm/extraHelp.out
+++ b/compiler/testData/cli/jvm/extraHelp.out
@@ -5,6 +5,7 @@ where advanced options include:
   -Xno-optimize              Disable optimizations
   -Xreport-perf              Report detailed performance statistics
   -Xmultifile-facades-open   Compile multifile facade classes as open
+  -Xallow-kotlin-package     Allow compiling code in package 'kotlin'
   -Xno-inline                Disable method inlining
   -Xrepeat <count>           Repeat compilation (for performance analysis)
   -Xplugin <path>            Load plugins from the given classpath
diff --git a/compiler/testData/cli/jvm/kotlinPackage.args b/compiler/testData/cli/jvm/kotlinPackage.args
new file mode 100644
index 00000000000..61d00a6b529
--- /dev/null
+++ b/compiler/testData/cli/jvm/kotlinPackage.args
@@ -0,0 +1,3 @@
+$TESTDATA_DIR$/kotlinPackage.kt
+-d
+$TEMP_DIR$
diff --git a/compiler/testData/cli/jvm/kotlinPackage.kt b/compiler/testData/cli/jvm/kotlinPackage.kt
new file mode 100644
index 00000000000..afc3dc9a780
--- /dev/null
+++ b/compiler/testData/cli/jvm/kotlinPackage.kt
@@ -0,0 +1,4 @@
+package kotlin.mylibrary
+
+class MyLibraryManager {
+}
diff --git a/compiler/testData/cli/jvm/kotlinPackage.out b/compiler/testData/cli/jvm/kotlinPackage.out
new file mode 100644
index 00000000000..b2770332251
--- /dev/null
+++ b/compiler/testData/cli/jvm/kotlinPackage.out
@@ -0,0 +1,4 @@
+compiler/testData/cli/jvm/kotlinPackage.kt:1:1: error: only the Kotlin standard library is allowed to use the 'kotlin' package
+package kotlin.mylibrary
+^
+COMPILATION_ERROR
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java
index cfff9476d52..1e23f2a3c72 100644
--- a/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/cli/KotlincExecutableTestGenerated.java
@@ -133,6 +133,12 @@ public class KotlincExecutableTestGenerated extends AbstractKotlincExecutableTes
             doJvmTest(fileName);
         }
 
+        @TestMetadata("kotlinPackage.args")
+        public void testKotlinPackage() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/cli/jvm/kotlinPackage.args");
+            doJvmTest(fileName);
+        }
+
         @TestMetadata("multipleTextRangesInDiagnosticsOrder.args")
         public void testMultipleTextRangesInDiagnosticsOrder() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/cli/jvm/multipleTextRangesInDiagnosticsOrder.args");
diff --git a/libraries/stdlib/pom.xml b/libraries/stdlib/pom.xml
index 31a7f63f5db..c872823f663 100644
--- a/libraries/stdlib/pom.xml
+++ b/libraries/stdlib/pom.xml
@@ -40,6 +40,7 @@
                  <configuration>
                      <args>
                          <arg>-Xmultifile-facades-open</arg>
+                         <arg>-Xallow-kotlin-package</arg>
                      </args>
                  </configuration>