diff --git a/plugins/java-decompiler/engine/src/org/jetbrains/java/decompiler/main/ClassWriter.java b/plugins/java-decompiler/engine/src/org/jetbrains/java/decompiler/main/ClassWriter.java
index 6352fa9afdc4..93f68212017a 100644
--- a/plugins/java-decompiler/engine/src/org/jetbrains/java/decompiler/main/ClassWriter.java
+++ b/plugins/java-decompiler/engine/src/org/jetbrains/java/decompiler/main/ClassWriter.java
@@ -534,16 +534,13 @@ public class ClassWriter {
       if (!allSubClassesAreNested) { // only generate permits lists for non-nested classes
         buffer.append("permits ");
         for (int i = 0; i < permittedSubclassQualifiedNames.size(); i++) {
-          String qualifiedName = permittedSubclassQualifiedNames.get(i);
-          boolean isNested = qualifiedNested.contains(qualifiedName);
-          if (!isNested) {
-            if (i > 0) {
-              buffer.append(", ");
-            }
-            DecompilerContext.getImportCollector().getShortName(qualifiedName);
-            String simpleName = qualifiedName.substring(qualifiedName.lastIndexOf('/') + 1);
-            buffer.append(simpleName);
+          String qualifiedName = permittedSubclassQualifiedNames.get(i).replace("$", ".");
+          if (i > 0) {
+            buffer.append(", ");
           }
+          DecompilerContext.getImportCollector().getShortName(qualifiedName);
+          String simpleName = qualifiedName.substring(qualifiedName.lastIndexOf('/') + 1);
+          buffer.append(simpleName);
         }
         buffer.append(' ');
       }
diff --git a/plugins/java-decompiler/engine/test/org/jetbrains/java/decompiler/SingleClassesTest.java b/plugins/java-decompiler/engine/test/org/jetbrains/java/decompiler/SingleClassesTest.java
index 6958296479d6..2a5f76463141 100644
--- a/plugins/java-decompiler/engine/test/org/jetbrains/java/decompiler/SingleClassesTest.java
+++ b/plugins/java-decompiler/engine/test/org/jetbrains/java/decompiler/SingleClassesTest.java
@@ -1,4 +1,4 @@
-// Copyright 2000-2021 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
+// Copyright 2000-2022 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package org.jetbrains.java.decompiler;
 
 import org.jetbrains.java.decompiler.main.DecompilerContext;
@@ -176,6 +176,7 @@ public class SingleClassesTest {
     "sealed/RootWithInterfaceOuter", "sealed/ClassImplements", "sealed/ClassNonSealedExtendsImplements");
   }
   @Test public void testRootWithModule() { doTest("sealed/foo/RootWithModule", "sealed/bar/BarClassExtends");}
+  @Test public void testRootWithInterfaceInnerAndOuter() { doTest("sealed/RootWithInterfaceInnerAndOuter", "sealed/ClassNonSealed");}
   @Test public void testArrayTypeAnnotations() { doTest("typeAnnotations/ArrayTypeAnnotations",
     "typeAnnotations/A", "typeAnnotations/B", "typeAnnotations/C", "typeAnnotations/D");
   }
diff --git a/plugins/java-decompiler/engine/testData/classes/sealed/ClassNonSealed.class b/plugins/java-decompiler/engine/testData/classes/sealed/ClassNonSealed.class
index fcb5e012e85f..3a20fe5ebaba 100644
Binary files a/plugins/java-decompiler/engine/testData/classes/sealed/ClassNonSealed.class and b/plugins/java-decompiler/engine/testData/classes/sealed/ClassNonSealed.class differ
diff --git a/plugins/java-decompiler/engine/testData/classes/sealed/RootWithInterfaceInnerAndOuter$Inner.class b/plugins/java-decompiler/engine/testData/classes/sealed/RootWithInterfaceInnerAndOuter$Inner.class
new file mode 100644
index 000000000000..b91161c7a133
Binary files /dev/null and b/plugins/java-decompiler/engine/testData/classes/sealed/RootWithInterfaceInnerAndOuter$Inner.class differ
diff --git a/plugins/java-decompiler/engine/testData/classes/sealed/RootWithInterfaceInnerAndOuter.class b/plugins/java-decompiler/engine/testData/classes/sealed/RootWithInterfaceInnerAndOuter.class
new file mode 100644
index 000000000000..48ee6c8eeb20
Binary files /dev/null and b/plugins/java-decompiler/engine/testData/classes/sealed/RootWithInterfaceInnerAndOuter.class differ
diff --git a/plugins/java-decompiler/engine/testData/classes/typeAnnotations/L.class b/plugins/java-decompiler/engine/testData/classes/typeAnnotations/L.class
new file mode 100644
index 000000000000..c31d77ae81d5
Binary files /dev/null and b/plugins/java-decompiler/engine/testData/classes/typeAnnotations/L.class differ
diff --git a/plugins/java-decompiler/engine/testData/classes/typeAnnotations/LocalTypeAnnotations.class b/plugins/java-decompiler/engine/testData/classes/typeAnnotations/LocalTypeAnnotations.class
new file mode 100644
index 000000000000..1898a67497c6
Binary files /dev/null and b/plugins/java-decompiler/engine/testData/classes/typeAnnotations/LocalTypeAnnotations.class differ
diff --git a/plugins/java-decompiler/engine/testData/results/ClassNonSealed.dec b/plugins/java-decompiler/engine/testData/results/ClassNonSealed.dec
index a03c12c5d9a2..6a0718be1de0 100644
--- a/plugins/java-decompiler/engine/testData/results/ClassNonSealed.dec
+++ b/plugins/java-decompiler/engine/testData/results/ClassNonSealed.dec
@@ -1,5 +1,5 @@
 package sealed;
 
-non-sealed class ClassNonSealed extends RootWithClassOuter {
+non-sealed class ClassNonSealed extends RootWithClassOuter implements RootWithInterfaceInnerAndOuter {
 }
 
diff --git a/plugins/java-decompiler/engine/testData/results/RootWithInterfaceInnerAndOuter.dec b/plugins/java-decompiler/engine/testData/results/RootWithInterfaceInnerAndOuter.dec
new file mode 100644
index 000000000000..b35126b75573
--- /dev/null
+++ b/plugins/java-decompiler/engine/testData/results/RootWithInterfaceInnerAndOuter.dec
@@ -0,0 +1,7 @@
+package sealed;
+
+sealed interface RootWithInterfaceInnerAndOuter permits RootWithInterfaceInnerAndOuter.Inner, ClassNonSealed {
+   public static final class Inner implements RootWithInterfaceInnerAndOuter {
+   }
+}
+
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/ClassImplements.java b/plugins/java-decompiler/engine/testData/src/sealed/ClassImplements.java
index 453f8415fa03..c61eeb31fb3b 100644
--- a/plugins/java-decompiler/engine/testData/src/sealed/ClassImplements.java
+++ b/plugins/java-decompiler/engine/testData/src/sealed/ClassImplements.java
@@ -1,4 +1,4 @@
 package sealed;
 
-final class FinalImplements implements RootWithInterfaceOuter {
+final class ClassImplements implements RootWithInterfaceOuter {
 }
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealed.java b/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealed.java
index 9474dc34d45b..7cce7db9e540 100644
--- a/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealed.java
+++ b/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealed.java
@@ -1,4 +1,4 @@
 package sealed;
 
-non-sealed class ClassNonSealed extends RootWithClassOuter {
+non-sealed class ClassNonSealed extends RootWithClassOuter implements RootWithInterfaceInnerAndOuter{
 }
\ No newline at end of file
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealedExtendsImplements.java b/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealedExtendsImplements.java
new file mode 100644
index 000000000000..f943b3343af1
--- /dev/null
+++ b/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealedExtendsImplements.java
@@ -0,0 +1,4 @@
+package sealed;
+
+non-sealed class ClassNonSealedExtendsImplements extends RootWithClassOuter implements RootWithInterfaceOuter {
+}
\ No newline at end of file
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealedImplements.java b/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealedImplements.java
deleted file mode 100644
index 05683a1216b8..000000000000
--- a/plugins/java-decompiler/engine/testData/src/sealed/ClassNonSealedImplements.java
+++ /dev/null
@@ -1,4 +0,0 @@
-package sealed;
-
-non-sealed class ClassNonSealedImplements extends RootWithClassOuter implements RootWithInterfaceOuter {
-}
\ No newline at end of file
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassInner.java b/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassInner.java
index 123872914972..cd6136f3b5f0 100644
--- a/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassInner.java
+++ b/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassInner.java
@@ -1,6 +1,6 @@
 package sealed;
 
-sealed interface RootWithClassInner {
-  final class Inner implements RootWithClassInner {
+sealed class RootWithClassInner {
+  static final class Inner extends RootWithClassInner {
   }
 }
\ No newline at end of file
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassOuter.java b/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassOuter.java
index f905293a770a..87c9a5705f98 100644
--- a/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassOuter.java
+++ b/plugins/java-decompiler/engine/testData/src/sealed/RootWithClassOuter.java
@@ -1,4 +1,4 @@
 package sealed;
 
-abstract sealed class RootWithClassOuter permits ClassExtends, ClassNonSealed, ClassNonSealedImplements {
+abstract sealed class RootWithClassOuter permits ClassExtends, ClassNonSealed, ClassNonSealedExtendsImplements {
 }
\ No newline at end of file
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceInnerAndOuter.java b/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceInnerAndOuter.java
new file mode 100644
index 000000000000..cd5e0b75aafd
--- /dev/null
+++ b/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceInnerAndOuter.java
@@ -0,0 +1,6 @@
+package sealed;
+
+sealed interface RootWithInterfaceInnerAndOuter permits RootWithInterfaceInnerAndOuter.Inner, ClassNonSealed {
+  final class Inner implements RootWithInterfaceInnerAndOuter {
+  }
+}
\ No newline at end of file
diff --git a/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceOuter.java b/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceOuter.java
index e29d379886f0..28ad047d7514 100644
--- a/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceOuter.java
+++ b/plugins/java-decompiler/engine/testData/src/sealed/RootWithInterfaceOuter.java
@@ -1,4 +1,4 @@
 package sealed;
 
-sealed interface RootWithInterfaceOuter permits FinalImplements, InterfaceNonSealed, ClassNonSealedImplements {
+sealed interface RootWithInterfaceOuter permits ClassImplements, InterfaceNonSealed, ClassNonSealedExtendsImplements {
 }
\ No newline at end of file