diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java
index 316daa11035..a5c6bb0c4d0 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/AnnotationCodegen.java
@@ -389,7 +389,15 @@ public abstract class AnnotationCodegen {
             }
 
             private Void visitUnsupportedValue(ConstantValue<?> value) {
-                throw new IllegalStateException("Don't know how to compile annotation value " + value);
+                ClassBuilderMode mode = typeMapper.getClassBuilderMode();
+                switch (mode) {
+                    case FULL:
+                        throw new IllegalStateException("Don't know how to compile annotation value " + value);
+                    case LIGHT_CLASSES:
+                        return null;
+                    default:
+                        throw new IllegalStateException("Unknown builder mode: " + mode);
+                }
             }
         };
 
diff --git a/idea/testData/checker/NullAsAnnotationArgument.kt b/idea/testData/checker/NullAsAnnotationArgument.kt
new file mode 100644
index 00000000000..590c1b5c072
--- /dev/null
+++ b/idea/testData/checker/NullAsAnnotationArgument.kt
@@ -0,0 +1,10 @@
+// test for KT-5337
+package test
+
+annotation class A(val value: String)
+
+@A(<error>null</error>)
+fun foo() {}
+
+@A(<error>null</error>)
+class B
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerTestGenerated.java b/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerTestGenerated.java
index 4ab9fca7ce7..95b62e41b1e 100644
--- a/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/checkers/PsiCheckerTestGenerated.java
@@ -187,6 +187,12 @@ public class PsiCheckerTestGenerated extends AbstractPsiCheckerTest {
             doTest(fileName);
         }
 
+        @TestMetadata("NullAsAnnotationArgument.kt")
+        public void testNullAsAnnotationArgument() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/checker/NullAsAnnotationArgument.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("Nullability.kt")
         public void testNullability() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/checker/Nullability.kt");