diff --git a/java/execution/impl/src/com/intellij/execution/testframework/JavaTestLocator.java b/java/execution/impl/src/com/intellij/execution/testframework/JavaTestLocator.java
index d4e529772a72..ac4c581f15e9 100644
--- a/java/execution/impl/src/com/intellij/execution/testframework/JavaTestLocator.java
+++ b/java/execution/impl/src/com/intellij/execution/testframework/JavaTestLocator.java
@@ -22,10 +22,11 @@ import com.intellij.execution.junit2.info.MethodLocation;
 import com.intellij.execution.testframework.sm.runner.SMTestLocator;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.text.StringUtil;
-import com.intellij.psi.JavaPsiFacade;
 import com.intellij.psi.PsiClass;
+import com.intellij.psi.PsiManager;
 import com.intellij.psi.PsiMethod;
 import com.intellij.psi.search.GlobalSearchScope;
+import com.intellij.psi.util.ClassUtil;
 import com.intellij.util.containers.ContainerUtil;
 import org.jetbrains.annotations.NotNull;
 
@@ -50,32 +51,27 @@ public class JavaTestLocator implements SMTestLocator {
       path = path.substring(0, idx);
     }
 
-    JavaPsiFacade javaPsiFacade = JavaPsiFacade.getInstance(project);
     if (SUITE_PROTOCOL.equals(protocol)) {
       path = StringUtil.trimEnd(path, ".");
-      PsiClass[] classes = javaPsiFacade.findClasses(path, scope);
-      if (classes.length > 0) {
+      PsiClass aClass = ClassUtil.findPsiClass(PsiManager.getInstance(project), path, null, true, scope);
+      if (aClass != null) {
         results = ContainerUtil.newSmartList();
-        for (PsiClass aClass : classes) {
-          results.add(paramName != null ? PsiMemberParameterizedLocation.getParameterizedLocation(aClass, paramName)
-                                        : new PsiLocation<PsiClass>(project, aClass));
-        }
+        results.add(paramName != null ? PsiMemberParameterizedLocation.getParameterizedLocation(aClass, paramName)
+                                      : new PsiLocation<PsiClass>(project, aClass));
       }
     }
     else if (TEST_PROTOCOL.equals(protocol)) {
       String className = StringUtil.getPackageName(path);
       if (!StringUtil.isEmpty(className)) {
         String methodName = StringUtil.getShortName(path);
-        PsiClass[] classes = javaPsiFacade.findClasses(className, scope);
-        if (classes.length > 0) {
+        PsiClass aClass = ClassUtil.findPsiClass(PsiManager.getInstance(project), className, null, true, scope);
+        if (aClass != null) {
           results = ContainerUtil.newSmartList();
-          for (PsiClass aClass : classes) {
-            PsiMethod[] methods = aClass.findMethodsByName(methodName, true);
-            if (methods.length > 0) {
-              for (PsiMethod method : methods) {
-                results.add(paramName != null ? new PsiMemberParameterizedLocation(project, method, aClass, paramName)
-                                              : MethodLocation.elementInClass(method, aClass));
-              }
+          PsiMethod[] methods = aClass.findMethodsByName(methodName, true);
+          if (methods.length > 0) {
+            for (PsiMethod method : methods) {
+              results.add(paramName != null ? new PsiMemberParameterizedLocation(project, method, aClass, paramName)
+                                            : MethodLocation.elementInClass(method, aClass));
             }
           }
         }
diff --git a/plugins/junit/test/com/intellij/execution/junit/JUnitRerunFailedTestsTest.java b/plugins/junit/test/com/intellij/execution/junit/JUnitRerunFailedTestsTest.java
index f0273b478608..4a270259d8c0 100644
--- a/plugins/junit/test/com/intellij/execution/junit/JUnitRerunFailedTestsTest.java
+++ b/plugins/junit/test/com/intellij/execution/junit/JUnitRerunFailedTestsTest.java
@@ -130,4 +130,23 @@ public class JUnitRerunFailedTestsTest extends LightCodeInsightFixtureTestCase
     });
     assertNull(TestMethods.getTestPresentation(testProxy, project, searchScope));
   }
+
+  public void testInnerClass() throws Exception {
+    myFixture.addClass("public class TestClass {\n" +
+                       "    public static class Tests extends junit.framework.TestCase {\n" +
+                       "        public void testFoo() throws Exception {}\n" +
+                       "    }\n" +
+                       "}");
+
+    final SMTestProxy testProxy = new SMTestProxy("testFoo", false, "java:test://TestClass$Tests.testFoo");
+    final Project project = getProject();
+    final GlobalSearchScope searchScope = GlobalSearchScope.projectScope(project);
+    testProxy.setLocator(JavaTestLocator.INSTANCE);
+    Location location = testProxy.getLocation(project, searchScope);
+    assertNotNull(location);
+    PsiElement element = location.getPsiElement();
+    assertTrue(element instanceof PsiMethod);
+    String name = ((PsiMethod)element).getName();
+    assertEquals(name, "testFoo");
+  }
 }