diff --git a/python/src/com/jetbrains/python/codeInsight/controlflow/PyControlFlowBuilder.java b/python/src/com/jetbrains/python/codeInsight/controlflow/PyControlFlowBuilder.java
index 67f7494e5893..fbff5c2d8a00 100644
--- a/python/src/com/jetbrains/python/codeInsight/controlflow/PyControlFlowBuilder.java
+++ b/python/src/com/jetbrains/python/codeInsight/controlflow/PyControlFlowBuilder.java
@@ -164,6 +164,16 @@ public class PyControlFlowBuilder extends PyRecursiveElementVisitor {
     myBuilder.checkPending(readWriteInstruction);
   }
 
+  @Override
+  public void visitPyTypeDeclarationStatement(PyTypeDeclarationStatement node) {
+    myBuilder.startNode(node);
+    final PyAnnotation annotation = node.getAnnotation();
+    if (annotation != null) {
+      annotation.accept(this);
+    }
+    node.getTarget().accept(this);
+  }
+
   @Override
   public void visitPyAssignmentStatement(final PyAssignmentStatement node) {
     myBuilder.startNode(node);
@@ -171,6 +181,10 @@ public class PyControlFlowBuilder extends PyRecursiveElementVisitor {
     if (value != null) {
       value.accept(this);
     }
+    final PyAnnotation annotation = node.getAnnotation();
+    if (annotation != null) {
+      annotation.accept(this);
+    }
     for (PyExpression expression : node.getRawTargets()) {
       expression.accept(this);
     }
diff --git a/python/testData/codeInsight/controlflow/variableannotations.py b/python/testData/codeInsight/controlflow/variableannotations.py
new file mode 100644
index 000000000000..10a123df4506
--- /dev/null
+++ b/python/testData/codeInsight/controlflow/variableannotations.py
@@ -0,0 +1,2 @@
+x: int
+xs: List = []
diff --git a/python/testData/codeInsight/controlflow/variableannotations.txt b/python/testData/codeInsight/controlflow/variableannotations.txt
new file mode 100644
index 000000000000..2424a846814b
--- /dev/null
+++ b/python/testData/codeInsight/controlflow/variableannotations.txt
@@ -0,0 +1,8 @@
+0(1) element: null
+1(2) element: PyTypeDeclarationStatement
+2(3) READ ACCESS: int
+3(4) WRITE ACCESS: x
+4(5) element: PyAssignmentStatement
+5(6) READ ACCESS: List
+6(7) WRITE ACCESS: xs
+7() element: null
\ No newline at end of file
diff --git a/python/testData/resolve/LocalVariableAnnotationWithInnerClass.py b/python/testData/resolve/LocalVariableAnnotationWithInnerClass.py
new file mode 100644
index 000000000000..3503548cd845
--- /dev/null
+++ b/python/testData/resolve/LocalVariableAnnotationWithInnerClass.py
@@ -0,0 +1,6 @@
+def f():
+    class MyType: 
+        pass
+    
+    xs: MyType = None
+         <ref>
\ No newline at end of file
diff --git a/python/testData/resolve/TopLevelVariableAnnotationFromTyping.py b/python/testData/resolve/TopLevelVariableAnnotationFromTyping.py
new file mode 100644
index 000000000000..22ee7be946f7
--- /dev/null
+++ b/python/testData/resolve/TopLevelVariableAnnotationFromTyping.py
@@ -0,0 +1,4 @@
+from typing import List
+
+xs: List = []
+     <ref>
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/Py3ResolveTest.java b/python/testSrc/com/jetbrains/python/Py3ResolveTest.java
index 9bfe1c5848d8..3369463514e1 100644
--- a/python/testSrc/com/jetbrains/python/Py3ResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/Py3ResolveTest.java
@@ -354,4 +354,15 @@ public class Py3ResolveTest extends PyResolveTestCase {
   public void testDunderClassInDeclarationInsideFunction() {
     assertUnresolved();
   }
+  
+  // PY-20864
+  public void testTopLevelVariableAnnotationFromTyping() {
+    myFixture.copyDirectoryToProject("typing", "");
+    runWithLanguageLevel(LanguageLevel.PYTHON36, () -> assertResolvesTo(PyClass.class, "List"));
+  }
+
+  // PY-20864
+  public void testLocalVariableAnnotationWithInnerClass() {
+    runWithLanguageLevel(LanguageLevel.PYTHON36, () -> assertResolvesTo(PyClass.class, "MyType"));
+  }
 }
diff --git a/python/testSrc/com/jetbrains/python/PyControlFlowBuilderTest.java b/python/testSrc/com/jetbrains/python/PyControlFlowBuilderTest.java
index 203b462c5a44..eae31579f153 100644
--- a/python/testSrc/com/jetbrains/python/PyControlFlowBuilderTest.java
+++ b/python/testSrc/com/jetbrains/python/PyControlFlowBuilderTest.java
@@ -239,6 +239,11 @@ public class PyControlFlowBuilderTest extends LightMarkedTestCase {
     doTest();
   }
 
+  // PY-20744, PY-20864
+  public void testVariableAnnotations() {
+    runWithLanguageLevel(LanguageLevel.PYTHON36, this::doTest);
+  }
+
   private void doTestFirstStatement() {
     final String testName = getTestName(false).toLowerCase();
     configureByFile(testName + ".py");