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 f85afa0270d8..312bbd0f4533 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
@@ -290,7 +290,8 @@ public class HighlightClassUtil {
   public static boolean isRestrictedIdentifier(String typeName, @NotNull LanguageLevel level) {
     return PsiKeyword.VAR.equals(typeName) && HighlightingFeature.LVTI.isSufficient(level) ||
            PsiKeyword.YIELD.equals(typeName) && HighlightingFeature.SWITCH_EXPRESSION.isSufficient(level) ||
-           PsiKeyword.RECORD.equals(typeName) && HighlightingFeature.RECORDS.isSufficient(level);
+           PsiKeyword.RECORD.equals(typeName) && HighlightingFeature.RECORDS.isSufficient(level) ||
+           (PsiKeyword.SEALED.equals(typeName) || PsiKeyword.PERMITS.equals(typeName)) && HighlightingFeature.SEALED_CLASSES.isSufficient(level);
   }
 
   static HighlightInfo checkClassAndPackageConflict(@NotNull PsiClass aClass) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingSealedTypes/SealedRestrictedTypes.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingSealedTypes/SealedRestrictedTypes.java
new file mode 100644
index 000000000000..aefc94e67fac
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlightingSealedTypes/SealedRestrictedTypes.java
@@ -0,0 +1,2 @@
+class <error descr="'sealed' is a restricted identifier and cannot be used for type declarations">sealed</error> {}
+class <error descr="'permits' is a restricted identifier and cannot be used for type declarations">permits</error> {}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightSealedTypesHighlightingTest.java b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightSealedTypesHighlightingTest.java
index 7b24b7520ac9..d2b3a14310e5 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightSealedTypesHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInsight/daemon/LightSealedTypesHighlightingTest.java
@@ -20,6 +20,7 @@ public class LightSealedTypesHighlightingTest extends LightJavaCodeInsightFixtur
 
   public void testSealedTypesBasics() { doTest(); }
   public void testSealedFunctionalInterface() { doTest(); }
+  public void testSealedRestrictedTypes() { doTest(); }
   
   private void doTest() {
     myFixture.configureByFile(getTestName(false) + ".java");