diff --git a/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java b/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
index a44e539f7513..4c2fa489536a 100644
--- a/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/references/PyReferenceImpl.java
@@ -38,6 +38,7 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
 import java.util.*;
+import java.util.function.Supplier;
 
 /**
  * @author yole
@@ -265,11 +266,11 @@ public class PyReferenceImpl implements PsiReferenceEx, PsiPolyVariantReference
                                                                    @Nullable PsiElement realContext,
                                                                    @Nullable PsiElement resolveRoof) {
     boolean unreachableLocalDeclaration = false;
-    boolean resolveInParentScope = false;
+    Supplier<ScopeOwner> resolveInParentScope = null;
     final ResolveResultList resultList = new ResolveResultList();
     final ScopeOwner referenceOwner = ScopeUtil.getScopeOwner(realContext);
     final TypeEvalContext typeEvalContext = myContext.getTypeEvalContext();
-    ScopeOwner resolvedOwner = processor.getOwner();
+    final ScopeOwner resolvedOwner = processor.getOwner();
 
     final Collection<PsiElement> resolvedElements = processor.getElements();
     if (resolvedOwner != null && !resolvedElements.isEmpty() && !ControlFlowCache.getScope(resolvedOwner).isGlobal(referencedName)) {
@@ -290,8 +291,11 @@ public class PyReferenceImpl implements PsiReferenceEx, PsiPolyVariantReference
 
           return latestDefs;
         }
-        else if (resolvedOwner instanceof PyClass || instructions.isEmpty() && allInOwnScopeComprehensions(resolvedElements)) {
-          resolveInParentScope = true;
+        else if (resolvedOwner instanceof PyClass) {
+          resolveInParentScope = () -> PyUtil.as(resolvedOwner.getContainingFile(), PyFile.class);
+        }
+        else if (instructions.isEmpty() && allInOwnScopeComprehensions(resolvedElements)) {
+          resolveInParentScope = () -> ScopeUtil.getScopeOwner(resolvedOwner);
         }
         else {
           unreachableLocalDeclaration = true;
@@ -319,11 +323,11 @@ public class PyReferenceImpl implements PsiReferenceEx, PsiPolyVariantReference
     // TODO: Try resolve to latest defs for outer scopes starting from the last element in CFG (=> no need for a special rate for globals)
 
     if (!unreachableLocalDeclaration) {
-      if (resolveInParentScope) {
+      if (resolveInParentScope != null) {
         processor = new PyResolveProcessor(referencedName);
-        resolvedOwner = ScopeUtil.getScopeOwner(resolvedOwner);
-        if (resolvedOwner != null) {
-          PyResolveUtil.scopeCrawlUp(processor, resolvedOwner, referencedName, resolveRoof);
+        final ScopeOwner parentScope = resolveInParentScope.get();
+        if (parentScope != null) {
+          PyResolveUtil.scopeCrawlUp(processor, parentScope, referencedName, resolveRoof);
         }
       }
 
diff --git a/python/src/com/jetbrains/python/psi/resolve/PyResolveUtil.java b/python/src/com/jetbrains/python/psi/resolve/PyResolveUtil.java
index 442a2114c8df..7d300cccbf1e 100644
--- a/python/src/com/jetbrains/python/psi/resolve/PyResolveUtil.java
+++ b/python/src/com/jetbrains/python/psi/resolve/PyResolveUtil.java
@@ -22,7 +22,6 @@ import com.intellij.psi.ResolveState;
 import com.intellij.psi.scope.PsiScopeProcessor;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.util.QualifiedName;
-import com.jetbrains.extenstions.PsiElementExtKt;
 import com.jetbrains.python.codeInsight.controlflow.ControlFlowCache;
 import com.jetbrains.python.codeInsight.controlflow.ScopeOwner;
 import com.jetbrains.python.codeInsight.dataflow.scope.Scope;
@@ -111,7 +110,12 @@ public class PyResolveUtil {
       if (scopeOwner == roof) {
         return;
       }
-      scopeOwner = ScopeUtil.getScopeOwner(scopeOwner);
+      if (scopeOwner instanceof PyClass && scopeOwner == originalScopeOwner) {
+        scopeOwner = PyUtil.as(scopeOwner.getContainingFile(), PyFile.class);
+      }
+      else {
+        scopeOwner = ScopeUtil.getScopeOwner(scopeOwner);
+      }
     }
   }
 
diff --git a/python/testData/resolve/UnboundVariableOnClassLevel.py b/python/testData/resolve/UnboundVariableOnClassLevel.py
new file mode 100644
index 000000000000..1c073b275a40
--- /dev/null
+++ b/python/testData/resolve/UnboundVariableOnClassLevel.py
@@ -0,0 +1,8 @@
+foo = 'global'
+
+def method(foo):
+    class A:
+        print(foo)
+        #      <ref>
+        foo = 'local'
+        print(foo)
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyResolveTest.java b/python/testSrc/com/jetbrains/python/PyResolveTest.java
index 4a217efc30c9..204aa2daca83 100644
--- a/python/testSrc/com/jetbrains/python/PyResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/PyResolveTest.java
@@ -1286,4 +1286,13 @@ public class PyResolveTest extends PyResolveTestCase {
       () -> assertResolvesTo(PyClass.class, "A")
     );
   }
+
+  // PY-19890
+  public void testUnboundVariableOnClassLevel() {
+    final PyTargetExpression foo = assertResolvesTo(PyTargetExpression.class, "foo");
+
+    final PyExpression value = foo.findAssignedValue();
+    assertInstanceOf(value, PyStringLiteralExpression.class);
+    assertEquals("global", ((PyStringLiteralExpression)value).getStringValue());
+  }
 }