diff --git a/python/python-common-tests/com/jetbrains/python/PyCommonResolveTest.java b/python/python-common-tests/com/jetbrains/python/PyCommonResolveTest.java
index 2b9e7af91279..b64308914e18 100644
--- a/python/python-common-tests/com/jetbrains/python/PyCommonResolveTest.java
+++ b/python/python-common-tests/com/jetbrains/python/PyCommonResolveTest.java
@@ -1419,6 +1419,15 @@ public abstract class PyCommonResolveTest extends PyCommonResolveTestCase {
     assertEquals("global", ((PyStringLiteralExpression)value).getStringValue());
   }
 
+  // PY-26947
+  public void testVariableDeclaredOnClassLevelResolvesOnlyToItself() {
+    final PyTargetExpression foo = assertResolvesTo(PyTargetExpression.class, "foo");
+
+    final PyExpression value = foo.findAssignedValue();
+    assertInstanceOf(value, PyStringLiteralExpression.class);
+    assertEquals("correct", ((PyStringLiteralExpression)value).getStringValue());
+  }
+
   // PY-29975
   public void testUnboundVariableOnClassLevelNotDeclaredBelow() {
     assertResolvesTo(PyNamedParameter.class, "foo");
diff --git a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
index 6224f2952453..f18f305b067b 100644
--- a/python/python-psi-impl/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
+++ b/python/python-psi-impl/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
@@ -256,7 +256,7 @@ public class PyReferenceImpl implements PsiReferenceEx, PsiPolyVariantReference
             })
             .toImmutableList();
         }
-        else if (resolvedOwner instanceof PyClass) {
+        else if (resolvedOwner instanceof PyClass && !(referenceAnchor instanceof PyTargetExpression)) {
           resolveInParentScope = () -> PyResolveUtil.parentScopeForUnresolvedClassLevelName((PyClass)resolvedOwner, referencedName);
         }
         else if (instructions.isEmpty() && allInOwnScopeComprehensions(resolvedElements)) {
diff --git a/python/testData/resolve/VariableDeclaredOnClassLevelResolvesOnlyToItself.py b/python/testData/resolve/VariableDeclaredOnClassLevelResolvesOnlyToItself.py
new file mode 100644
index 000000000000..ece8e7ee3bb5
--- /dev/null
+++ b/python/testData/resolve/VariableDeclaredOnClassLevelResolvesOnlyToItself.py
@@ -0,0 +1,5 @@
+foo = 'incorrect'
+
+class A:
+    foo = 'correct'
+    # <ref>
\ No newline at end of file