diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java
index 39ef8eb5f465..4094a3b828a4 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java
@@ -249,7 +249,7 @@ public class ClassResolverProcessor extends BaseScopeProcessor implements NameHi
     if (!accessible) return true;
     if (aClass.hasModifierProperty(PsiModifier.PRIVATE)) {
       final PsiClass containingPlaceClass = PsiTreeUtil.getParentOfType(myPlace, PsiClass.class, false);
-      if (containingPlaceClass != null && !PsiTreeUtil.isAncestor(containingPlaceClass, aClass, true)){
+      if (containingPlaceClass != null && !PsiTreeUtil.isAncestor(containingPlaceClass, aClass, false)){
         return true;
       }
     }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java
index e87c5db28998..647df2b9e7b0 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java
@@ -95,4 +95,18 @@ class WithFileInputStream {
     private FileInputStream(String str) {
     }
   }
-}
\ No newline at end of file
+}
+
+class ContainingKlass {
+    public static class Inner {
+    }
+
+    private static class OuterInner {
+        private static final class Inner {
+            private Inner s() {
+                return this;
+            }
+        }
+    }
+}
+