diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightClassUtil.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightClassUtil.java
index 710cb0efc6cc..6552e5aa2c7c 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightClassUtil.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/analysis/HighlightClassUtil.java
@@ -784,7 +784,8 @@ public class HighlightClassUtil {
           if (!PsiUtil.isInnerClass(base)) return;
 
           if (resolve == resolved && baseClass != null && (!PsiTreeUtil.isAncestor(baseClass, extendRef, true) || aClass.hasModifierProperty(PsiModifier.STATIC)) &&
-              !InheritanceUtil.hasEnclosingInstanceInScope(baseClass, extendRef, !aClass.hasModifierProperty(PsiModifier.STATIC), true) && !qualifiedNewCalledInConstructors(aClass)) {
+              !InheritanceUtil.hasEnclosingInstanceInScope(baseClass, extendRef, PsiUtil.isInnerClass(aClass) && !aClass.hasModifierProperty(PsiModifier.STATIC), true) &&
+              !qualifiedNewCalledInConstructors(aClass)) {
             String description = JavaErrorMessages.message("no.enclosing.instance.in.scope", HighlightUtil.formatClass(baseClass));
             infos[0] = HighlightInfo.newHighlightInfo(HighlightInfoType.ERROR).range(extendRef).descriptionAndTooltip(description).create();
           }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/EnclosingRefInTopLevelClassExtendingInnerWhichExtendsItsOuter.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/EnclosingRefInTopLevelClassExtendingInnerWhichExtendsItsOuter.java
new file mode 100644
index 000000000000..27cfe3cb7f1f
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/EnclosingRefInTopLevelClassExtendingInnerWhichExtendsItsOuter.java
@@ -0,0 +1,5 @@
+class Outer {
+  class Inner extends Outer {}
+}
+
+class Impl extends <error descr="No enclosing instance of type 'Outer' is in scope">Outer.Inner</error> {}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
index 88b9e3971fdd..228b846b0aa2 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -630,4 +630,8 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testUncheckedWarningWhenCastingFromCapturedWildcard() throws Exception {
     doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_8, true);
   }
+
+  public void testEnclosingRefInTopLevelClassExtendingInnerWhichExtendsItsOuter() throws Exception {
+    doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_8, true);
+  }
 }