diff --git a/java/java-impl/src/com/intellij/codeInsight/template/postfix/templates/InstanceofExpressionPostfixTemplate.java b/java/java-impl/src/com/intellij/codeInsight/template/postfix/templates/InstanceofExpressionPostfixTemplate.java
index d16c1906b9e8..f474b3d38d2f 100644
--- a/java/java-impl/src/com/intellij/codeInsight/template/postfix/templates/InstanceofExpressionPostfixTemplate.java
+++ b/java/java-impl/src/com/intellij/codeInsight/template/postfix/templates/InstanceofExpressionPostfixTemplate.java
@@ -48,6 +48,10 @@ public class InstanceofExpressionPostfixTemplate extends PostfixTemplate {
 
   @Override
   public boolean isApplicable(@NotNull PsiElement context, @NotNull Document copyDocument, int newOffset) {
+    if (context instanceof PsiJavaToken && ((PsiJavaToken)context).getTokenType().equals(JavaTokenType.STRING_LITERAL)) {
+      // Do not suggest inside String literals as it could be confusing if literal is interpreted as the reference
+      return false;
+    }
     return JavaPostfixTemplatesUtils.isNotPrimitiveTypeExpression(JavaPostfixTemplatesUtils.getTopmostExpression(context));
   }
 
diff --git a/java/java-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/JavaClassReference.java b/java/java-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/JavaClassReference.java
index 9c13544db441..c26bcdd5e726 100644
--- a/java/java-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/JavaClassReference.java
+++ b/java/java-impl/src/com/intellij/psi/impl/source/resolve/reference/impl/providers/JavaClassReference.java
@@ -259,8 +259,11 @@ public class JavaClassReference extends GenericReference implements PsiJavaRefer
 
   @Nullable
   public PsiElement getCompletionContext() {
-    PsiElement context = getContext();
-    return context == null ? JavaPsiFacade.getInstance(getElement().getProject()).findPackage("") : context;
+    final PsiReference contextRef = getContextReference();
+    if (contextRef == null) {
+      return JavaPsiFacade.getInstance(getElement().getProject()).findPackage("");
+    }
+    return contextRef.resolve();
   }
 
   /** @deprecated use {@link #getSuperClasses()} instead */
diff --git a/java/java-tests/testData/codeInsight/completion/reflection/ClassForNameInvalidPackage.java b/java/java-tests/testData/codeInsight/completion/reflection/ClassForNameInvalidPackage.java
new file mode 100644
index 000000000000..b9e7fbc59772
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/completion/reflection/ClassForNameInvalidPackage.java
@@ -0,0 +1,5 @@
+class Main {
+  void foo() throws ReflectiveOperationException {
+    Class.forName("com.foooooo.<caret>");
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/completion/reflection/ClassForNameInvalidPackage_after.java b/java/java-tests/testData/codeInsight/completion/reflection/ClassForNameInvalidPackage_after.java
new file mode 100644
index 000000000000..b9e7fbc59772
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/completion/reflection/ClassForNameInvalidPackage_after.java
@@ -0,0 +1,5 @@
+class Main {
+  void foo() throws ReflectiveOperationException {
+    Class.forName("com.foooooo.<caret>");
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/completion/JavaReflectionCompletionTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/completion/JavaReflectionCompletionTest.java
index aa1c87b8fdd6..103a5f414bc5 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/completion/JavaReflectionCompletionTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/completion/JavaReflectionCompletionTest.java
@@ -159,6 +159,12 @@ public class JavaReflectionCompletionTest extends LightFixtureCompletionTestCase
     doTest(1, "PackageLocalClass", "PublicClass");
   }
 
+  public void testClassForNameInvalidPackage() {
+    myFixture.addClass("package foo.bar; public class PublicClass {}");
+    myFixture.addClass("package foo.bar; class PackageLocalClass {}");
+    doTest(-1);
+  }
+
   public void testClassForNamePackages() {
     myFixture.addClass("package foo.bar.one; public class FirstClass {}");
     myFixture.addClass("package foo.bar.two; public class SecondClass {}");