diff --git a/java/java-impl/src/com/intellij/codeInsight/intention/impl/CreateSubclassAction.java b/java/java-impl/src/com/intellij/codeInsight/intention/impl/CreateSubclassAction.java
index 897d970c74a1..f3a7c1af737a 100644
--- a/java/java-impl/src/com/intellij/codeInsight/intention/impl/CreateSubclassAction.java
+++ b/java/java-impl/src/com/intellij/codeInsight/intention/impl/CreateSubclassAction.java
@@ -60,7 +60,9 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
 import java.util.ArrayList;
+import java.util.Collections;
 import java.util.List;
+import java.util.Objects;
 
 public class CreateSubclassAction extends BaseIntentionAction {
   private static final Logger LOG = Logger.getInstance(CreateSubclassAction.class);
@@ -262,6 +264,10 @@ public class CreateSubclassAction extends BaseIntentionAction {
       else {
         ref = (PsiJavaCodeReferenceElement)targetClass.getExtendsList().add(ref);
       }
+      if (psiClass.hasModifierProperty(PsiModifier.SEALED)) {
+        String createdClassName = targetClass.getQualifiedName();
+        FillPermitsListFix.fillPermitsList(psiClass, Collections.singleton(createdClassName));
+      }
       if (psiClass.hasTypeParameters() || includeClassName) {
         final Editor editor = CodeInsightUtil.positionCursorAtLBrace(project, targetClass.getContainingFile(), targetClass);
         final TemplateBuilderImpl templateBuilder = editor != null
@@ -361,6 +367,11 @@ public class CreateSubclassAction extends BaseIntentionAction {
       editor.getCaretModel().moveToOffset(offset);
     }
 
+    if (psiClass.hasModifierProperty(PsiModifier.SEALED)) {
+      PsiIdentifier targetNameIdentifier = Objects.requireNonNull(targetClass.getNameIdentifier());
+      editor.getCaretModel().moveToOffset(targetNameIdentifier.getTextRange().getStartOffset());
+    }
+
     if (showChooser) OverrideImplementUtil.chooseAndImplementMethods(project, editor, targetClass);
   }
 
diff --git a/java/java-tests/testData/codeInsight/createSubclass/sealed/after/Subclass.java b/java/java-tests/testData/codeInsight/createSubclass/sealed/after/Subclass.java
new file mode 100644
index 000000000000..306b1cb7aad3
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/createSubclass/sealed/after/Subclass.java
@@ -0,0 +1,2 @@
+public class Subclass extends Superclass {
+}
diff --git a/java/java-tests/testData/codeInsight/createSubclass/sealed/after/Superclass.java b/java/java-tests/testData/codeInsight/createSubclass/sealed/after/Superclass.java
new file mode 100644
index 000000000000..f01b469533ec
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/createSubclass/sealed/after/Superclass.java
@@ -0,0 +1,3 @@
+public sealed class Superclass permits Subclass {
+  void foo() {}
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/createSubclass/sealed/before/Superclass.java b/java/java-tests/testData/codeInsight/createSubclass/sealed/before/Superclass.java
new file mode 100644
index 000000000000..50d459bde7b6
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/createSubclass/sealed/before/Superclass.java
@@ -0,0 +1,3 @@
+public sealed class Superclass {
+  void foo() {}
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/intention/CreateSubclassTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/intention/CreateSubclassTest.java
index d8a2f058677a..808084c6820b 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/intention/CreateSubclassTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/intention/CreateSubclassTest.java
@@ -21,12 +21,19 @@ import com.intellij.openapi.application.ex.PathManagerEx;
 import com.intellij.psi.PsiClass;
 import com.intellij.psi.PsiDirectory;
 import com.intellij.refactoring.LightMultiFileTestCase;
+import com.intellij.testFramework.LightProjectDescriptor;
 import com.intellij.util.ui.UIUtil;
+import org.jetbrains.annotations.NotNull;
 
 /**
  * @author yole
  */
 public class CreateSubclassTest extends LightMultiFileTestCase {
+  @Override
+  protected @NotNull LightProjectDescriptor getProjectDescriptor() {
+    return JAVA_15;
+  }
+
   public void testGenerics() {
     doTest();
   }
@@ -43,6 +50,10 @@ public class CreateSubclassTest extends LightMultiFileTestCase {
     doTestInner();
   }
 
+  public void testSealed() {
+    doTest();
+  }
+
   private void doTestInner() {
     doTest(() -> {
       PsiClass superClass = myFixture.findClass("Test");