diff --git a/java/java-analysis-impl/src/com/intellij/codeInspection/testOnly/TestOnlyInspection.java b/java/java-analysis-impl/src/com/intellij/codeInspection/testOnly/TestOnlyInspection.java
index 2c8eb7e3652e..aa87acc06087 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInspection/testOnly/TestOnlyInspection.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInspection/testOnly/TestOnlyInspection.java
@@ -112,8 +112,8 @@ public class TestOnlyInspection extends AbstractBaseJavaLocalInspectionTool {
     if (vft == null && !isAnnotatedAsTestOnly(member)) {
       return true;
     }
-    if (isInsideTestOnlyMethod(place) || isInsideTestOnlyField(place) || isInsideTestClass(place) || isUnderTestSources(place)
-        || isGenericType(place, member)) {
+    if (isInsideTestOnlyMethod(place) || isInsideTestOnlyField(place) || isInsideTestOnlyClass(place) || isInsideTestClass(place)
+        || isUnderTestSources(place)) {
       return true;
     }
 
@@ -174,6 +174,10 @@ public class TestOnlyInspection extends AbstractBaseJavaLocalInspectionTool {
     return isAnnotatedAsTestOnly(getTopLevelParentOfType(e, PsiField.class));
   }
 
+  private static boolean isInsideTestOnlyClass(@NotNull PsiElement e) {
+    return isAnnotatedAsTestOnly(getTopLevelParentOfType(e, PsiClass.class));
+  }
+
   private static boolean isAnnotatedAsTestOnly(@Nullable PsiMember m) {
     if (m == null) return false;
     return isDirectlyTestOnly(m) || isAnnotatedAsTestOnly(m.getContainingClass());
@@ -188,11 +192,6 @@ public class TestOnlyInspection extends AbstractBaseJavaLocalInspectionTool {
     return c != null && TestFrameworks.getInstance().isTestClass(c);
   }
 
-  private static boolean isGenericType(@NotNull PsiElement place, @NotNull PsiMember member) {
-    PsiClass parent = PsiTreeUtil.getParentOfType(place, PsiClass.class);
-    return member.equals(parent);
-  }
-
   private static <T extends PsiElement> T getTopLevelParentOfType(PsiElement e, Class<T> c) {
     T parent = PsiTreeUtil.getParentOfType(e, c);
     if (parent == null) return null;
diff --git a/java/java-tests/testData/inspection/testOnly/genericType/expected.xml b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/expected.xml
similarity index 100%
rename from java/java-tests/testData/inspection/testOnly/genericType/expected.xml
rename to java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/expected.xml
diff --git a/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/InnerGenericType.java b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/InnerGenericType.java
new file mode 100644
index 000000000000..9b1259a8c873
--- /dev/null
+++ b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/InnerGenericType.java
@@ -0,0 +1,8 @@
+import org.jetbrains.annotations.TestOnly;
+import java.util.List;
+
+@TestOnly
+public class Bar {
+  static abstract class Foo implements List<Bar> {
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/inspection/testOnly/genericType/src/SeveralGenericTypes.java b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/SeveralGenericTypes.java
similarity index 100%
rename from java/java-tests/testData/inspection/testOnly/genericType/src/SeveralGenericTypes.java
rename to java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/SeveralGenericTypes.java
diff --git a/java/java-tests/testData/inspection/testOnly/genericType/src/SingleGenericType.java b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/SingleGenericType.java
similarity index 100%
rename from java/java-tests/testData/inspection/testOnly/genericType/src/SingleGenericType.java
rename to java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/SingleGenericType.java
diff --git a/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/StaticInitializerVariable.java b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/StaticInitializerVariable.java
new file mode 100644
index 000000000000..94544e4690c5
--- /dev/null
+++ b/java/java-tests/testData/inspection/testOnly/insideTestOnlyClass/src/StaticInitializerVariable.java
@@ -0,0 +1,8 @@
+import org.jetbrains.annotations.TestOnly;
+
+@TestOnly
+public class Bar {
+  static {
+    java.lang.Class<Bar> clazz = Bar.class;
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/codeInspection/TestOnlyInspectionTest.java b/java/java-tests/testSrc/com/intellij/java/codeInspection/TestOnlyInspectionTest.java
index e1f0b8e18d2a..19ac896bfaf3 100644
--- a/java/java-tests/testSrc/com/intellij/java/codeInspection/TestOnlyInspectionTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/codeInspection/TestOnlyInspectionTest.java
@@ -80,7 +80,7 @@ public class TestOnlyInspectionTest extends JavaInspectionTestCase {
     doTest();
   }
 
-  public void testGenericType() {
+  public void testInsideTestOnlyClass() {
     doTest();
   }