diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
index 13ad53d7747..401b5587d55 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/extension/InlineAnalyzerExtension.java
@@ -17,9 +17,7 @@
 package org.jetbrains.jet.lang.resolve.extension;
 
 import org.jetbrains.annotations.NotNull;
-import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
-import org.jetbrains.jet.lang.descriptors.SimpleFunctionDescriptor;
-import org.jetbrains.jet.lang.descriptors.ValueParameterDescriptor;
+import org.jetbrains.jet.lang.descriptors.*;
 import org.jetbrains.jet.lang.diagnostics.Errors;
 import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.lang.resolve.BindingTrace;
@@ -43,6 +41,7 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
                 "This method should be invoced on inline function: " + descriptor;
 
         checkDefaults(descriptor, function, trace);
+        checkModality(descriptor, function, trace);
 
         JetVisitorVoid visitor = new JetVisitorVoid() {
 
@@ -86,4 +85,21 @@ public class InlineAnalyzerExtension implements FunctionAnalyzerExtension.Analyz
             index++;
         }
     }
+
+    private static void checkModality(
+            @NotNull FunctionDescriptor functionDescriptor,
+            @NotNull JetFunction function,
+            @NotNull BindingTrace trace
+    ) {
+        if (functionDescriptor.getVisibility() == Visibilities.PRIVATE || functionDescriptor.getModality() == Modality.FINAL) {
+            return;
+        }
+
+        DeclarationDescriptor declaration = functionDescriptor.getContainingDeclaration();
+        if (declaration instanceof NamespaceDescriptor) {
+            return;
+        }
+
+        trace.report(Errors.DECLARATION_CANT_BE_INLINED.on(function));
+    }
 }
diff --git a/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt b/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt
new file mode 100644
index 00000000000..b18966960f5
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt
@@ -0,0 +1,48 @@
+inline private fun a() {}
+
+inline fun b() {}
+
+inline public fun c() {}
+
+abstract class A {
+    inline private fun good1() {}
+    inline public final fun good2() {}
+    inline protected final fun good3() {}
+    inline final fun good4() {}
+
+
+    <!DECLARATION_CANT_BE_INLINED!>inline open protected fun wrong1() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline open public fun wrong2() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline open fun wrong3() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline abstract protected fun wrong4()<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline abstract public fun wrong5()<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline abstract fun wrong6()<!>
+}
+
+
+trait B {
+
+    inline private fun good1() {}
+    inline public final fun good2() {}
+    inline protected final fun good3() {}
+    inline final fun good4() {}
+
+    <!DECLARATION_CANT_BE_INLINED!>inline fun wrong1() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline open protected fun wrong2() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline open public fun wrong3() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline open fun wrong4() {}<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline protected fun wrong5()<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline public fun wrong6()<!>
+
+    <!DECLARATION_CANT_BE_INLINED!>inline fun wrong7()<!>
+}
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index c13c400eb2c..959fa1dd328 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -3782,6 +3782,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                 doTest("compiler/testData/diagnostics/tests/inline/invoke.kt");
             }
             
+            @TestMetadata("nonVirtualMembersWithInline.kt")
+            public void testNonVirtualMembersWithInline() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/inline/nonVirtualMembersWithInline.kt");
+            }
+            
             @TestMetadata("propagation.kt")
             public void testPropagation() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/inline/propagation.kt");