diff --git a/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java b/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java
index 30587ef1d5d1..5532fa37da30 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyClassImpl.java
@@ -63,6 +63,12 @@ import static com.intellij.openapi.util.text.StringUtil.notNullize;
  * @author yole
  */
 public class PyClassImpl extends PyBaseElementImpl<PyClassStub> implements PyClass {
+  public static class MROException extends Exception {
+    public MROException(String s) {
+      super(s);
+    }
+  }
+
   public static final PyClass[] EMPTY_ARRAY = new PyClassImpl[0];
 
   private List<PyTargetExpression> myInstanceAttributes;
@@ -80,7 +86,28 @@ public class PyClassImpl extends PyBaseElementImpl<PyClassStub> implements PyCla
     @Nullable
     @Override
     public CachedValueProvider.Result<List<PyClassLikeType>> compute(@NotNull TypeEvalContext context) {
-      final List<PyClassLikeType> ancestorTypes = isNewStyleClass() ? getMROAncestorTypes(context) : getOldStyleAncestorTypes(context);
+      List<PyClassLikeType> ancestorTypes;
+      if (isNewStyleClass()) {
+        try {
+          ancestorTypes = getMROAncestorTypes(context);
+        }
+        catch (MROException e) {
+          ancestorTypes = getOldStyleAncestorTypes(context);
+          boolean hasUnresolvedAncestorTypes = false;
+          for (PyClassLikeType type : ancestorTypes) {
+            if (type == null) {
+              hasUnresolvedAncestorTypes = true;
+              break;
+            }
+          }
+          if (!hasUnresolvedAncestorTypes) {
+            ancestorTypes = Collections.singletonList(null);
+          }
+        }
+      }
+      else {
+        ancestorTypes = getOldStyleAncestorTypes(context);
+      }
       return CachedValueProvider.Result.create(ancestorTypes, PsiModificationTracker.MODIFICATION_COUNT);
     }
   }
@@ -321,7 +348,7 @@ public class PyClassImpl extends PyBaseElementImpl<PyClassStub> implements PyCla
   }
 
   @NotNull
-  private static List<PyClassLikeType> mroMerge(@NotNull List<List<PyClassLikeType>> sequences) {
+  private static List<PyClassLikeType> mroMerge(@NotNull List<List<PyClassLikeType>> sequences) throws MROException {
     List<PyClassLikeType> result = new LinkedList<PyClassLikeType>(); // need to insert to 0th position on linearize
     while (true) {
       // filter blank sequences
@@ -357,7 +384,7 @@ public class PyClassImpl extends PyBaseElementImpl<PyClassStub> implements PyCla
       }
       if (!found) {
         // Inconsistent hierarchy results in TypeError
-        throw new IllegalStateException("Inconsistent class hierarchy");
+        throw new MROException("Inconsistent class hierarchy");
       }
       // our head is clean;
       result.add(head);
@@ -374,9 +401,9 @@ public class PyClassImpl extends PyBaseElementImpl<PyClassStub> implements PyCla
 
   @NotNull
   private static List<PyClassLikeType> mroLinearize(@NotNull PyClassLikeType type, @NotNull Set<PyClassLikeType> seen, boolean addThisType,
-                                                    @NotNull TypeEvalContext context) {
+                                                    @NotNull TypeEvalContext context) throws MROException {
     if (seen.contains(type)) {
-      throw new IllegalStateException("Circular class inheritance");
+      throw new MROException("Circular class inheritance");
     }
     final List<PyClassLikeType> bases = type.getSuperClassTypes(context);
     List<List<PyClassLikeType>> lines = new ArrayList<List<PyClassLikeType>>();
@@ -1300,16 +1327,14 @@ public class PyClassImpl extends PyBaseElementImpl<PyClassStub> implements PyCla
   }
 
   @NotNull
-  private List<PyClassLikeType> getMROAncestorTypes(@NotNull TypeEvalContext context) {
+  private List<PyClassLikeType> getMROAncestorTypes(@NotNull TypeEvalContext context) throws MROException {
     final PyType thisType = context.getType(this);
     if (thisType instanceof PyClassLikeType) {
-      try {
-        return mroLinearize((PyClassLikeType)thisType, new HashSet<PyClassLikeType>(), false, context);
-      }
-      catch (IllegalStateException ignored) {
-      }
+      return mroLinearize((PyClassLikeType)thisType, new HashSet<PyClassLikeType>(), false, context);
+    }
+    else {
+      return Collections.emptyList();
     }
-    return Collections.emptyList();
   }
 
   @NotNull
diff --git a/python/testData/inspections/PyUnresolvedReferencesInspection/fallbackToOldStyleMROIfUnresolvedAncestorsAndC3Fails.py b/python/testData/inspections/PyUnresolvedReferencesInspection/fallbackToOldStyleMROIfUnresolvedAncestorsAndC3Fails.py
new file mode 100644
index 000000000000..edd8344dfae9
--- /dev/null
+++ b/python/testData/inspections/PyUnresolvedReferencesInspection/fallbackToOldStyleMROIfUnresolvedAncestorsAndC3Fails.py
@@ -0,0 +1,22 @@
+class X(<error descr="Unresolved reference 'Unresolved'">Unresolved</error>):
+    pass
+
+
+class Y(<error descr="Unresolved reference 'Unresolved'">Unresolved</error>):
+    pass
+
+
+class A(X, Y):
+    def foo(self):
+        pass
+
+
+class B(Y, X):
+    pass
+
+
+class C(A, B):  # we don't know whether MRO is OK or not
+    pass
+
+
+print(C.foo)  # pass
diff --git a/python/testData/inspections/PyUnresolvedReferencesInspection/noUnresolvedReferencesForClassesWithBadMRO.py b/python/testData/inspections/PyUnresolvedReferencesInspection/noUnresolvedReferencesForClassesWithBadMRO.py
new file mode 100644
index 000000000000..600ec8e33a53
--- /dev/null
+++ b/python/testData/inspections/PyUnresolvedReferencesInspection/noUnresolvedReferencesForClassesWithBadMRO.py
@@ -0,0 +1,26 @@
+class O(object):
+    pass
+
+
+class X(O):
+    pass
+
+
+class Y(O):
+    pass
+
+
+class A(X, Y):
+    def foo(self):
+        pass
+
+
+class B(Y, X):
+    pass
+
+
+class C(A, B):  # bad MRO
+    pass
+
+
+print(C.foo)  # pass
diff --git a/python/testData/resolve/ResolveAttributesUsingOldStyleMROWhenUnresolvedAncestorsAndC3Fails.py b/python/testData/resolve/ResolveAttributesUsingOldStyleMROWhenUnresolvedAncestorsAndC3Fails.py
new file mode 100644
index 000000000000..c279d67c9a4c
--- /dev/null
+++ b/python/testData/resolve/ResolveAttributesUsingOldStyleMROWhenUnresolvedAncestorsAndC3Fails.py
@@ -0,0 +1,23 @@
+class X(Unresolved):
+    pass
+
+
+class Y(Unresolved):
+    pass
+
+
+class A(X, Y):
+    def foo(self):
+        pass
+
+
+class B(Y, X):
+    pass
+
+
+class C(A, B):  # we don't know whether MRO is OK or not
+    pass
+
+
+print(C.foo)
+#       <ref>
diff --git a/python/testSrc/com/jetbrains/python/PyResolveTest.java b/python/testSrc/com/jetbrains/python/PyResolveTest.java
index 91a8955938cf..52089593aec6 100644
--- a/python/testSrc/com/jetbrains/python/PyResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/PyResolveTest.java
@@ -567,4 +567,9 @@ public class PyResolveTest extends PyResolveTestCase {
     PyTargetExpression xyzzy = assertResolvesTo(PyTargetExpression.class, "xyzzy");
     assertEquals("__init__", PsiTreeUtil.getParentOfType(xyzzy, PyFunction.class).getName());
   }
+
+  // PY-11401
+  public void testResolveAttributesUsingOldStyleMROWhenUnresolvedAncestorsAndC3Fails() {
+    assertResolvesTo(PyFunction.class, "foo");
+  }
 }
diff --git a/python/testSrc/com/jetbrains/python/codeInsight/PyClassMROTest.java b/python/testSrc/com/jetbrains/python/codeInsight/PyClassMROTest.java
index 2f500d573511..a6a2adc488c5 100644
--- a/python/testSrc/com/jetbrains/python/codeInsight/PyClassMROTest.java
+++ b/python/testSrc/com/jetbrains/python/codeInsight/PyClassMROTest.java
@@ -35,7 +35,7 @@ public class PyClassMROTest extends PyTestCase {
 
   // TypeError in Python
   public void testMROConflict() {
-    assertMRO(getClass("C"));
+    assertMRO(getClass("C"), "unknown");
   }
 
   public void testCircularInheritance() {
@@ -43,7 +43,7 @@ public class PyClassMROTest extends PyTestCase {
     myFixture.configureByFiles(getPath(testName), getPath(testName + "2"));
     final PyClass cls = myFixture.findElementByText("Foo", PyClass.class);
     assertNotNull(cls);
-    assertMRO(cls);
+    assertMRO(cls, "unknown");
   }
 
   public void testExampleFromDoc1() {
@@ -55,7 +55,7 @@ public class PyClassMROTest extends PyTestCase {
   }
 
   public void testExampleFromDoc3() {
-    assertMRO(getClass("G"));
+    assertMRO(getClass("G"), "unknown");
   }
 
   public void testExampleFromDoc4() {
@@ -71,7 +71,7 @@ public class PyClassMROTest extends PyTestCase {
     assertMRO(getClass("H"), "E", "F", "B", "G", "C", "D", "A", "object");
   }
 
-  // PY-11932
+  // PY-11401
   public void testUnresolvedClassesImpossibleToBuildMRO() {
     assertMRO(getClass("ObjectManager"),
               "CopyContainer", "unknown", "Navigation", "unknown", "Tabs", "unknown", "unknown", "unknown", "Collection", "Resource",
diff --git a/python/testSrc/com/jetbrains/python/inspections/PyUnresolvedReferencesInspectionTest.java b/python/testSrc/com/jetbrains/python/inspections/PyUnresolvedReferencesInspectionTest.java
index b367fcb8089f..d67766e31468 100644
--- a/python/testSrc/com/jetbrains/python/inspections/PyUnresolvedReferencesInspectionTest.java
+++ b/python/testSrc/com/jetbrains/python/inspections/PyUnresolvedReferencesInspectionTest.java
@@ -440,6 +440,16 @@ public class PyUnresolvedReferencesInspectionTest extends PyInspectionTestCase {
     doMultiFileTest("p1/__init__.py");
   }
 
+  // PY-11401
+  public void testNoUnresolvedReferencesForClassesWithBadMRO() {
+    doTest();
+  }
+
+  // PY-11401
+  public void testFallbackToOldStyleMROIfUnresolvedAncestorsAndC3Fails() {
+    doTest();
+  }
+
   @NotNull
   @Override
   protected Class<? extends PyInspection> getInspectionClass() {