diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java
index 5ff8a99a631d..69ca8fb6af0c 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/ClassResolverProcessor.java
@@ -26,6 +26,7 @@ import com.intellij.psi.scope.*;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.util.SmartList;
 
+import java.util.ArrayList;
 import java.util.Iterator;
 import java.util.List;
 
@@ -227,7 +228,13 @@ public class ClassResolverProcessor extends BaseScopeProcessor implements NameHi
     myHasInaccessibleCandidate |= !accessible;
     myCandidates.add(new ClassCandidateInfo(aClass, state.get(PsiSubstitutor.KEY), !accessible, myCurrentFileContext));
     myResult = null;
-    if (!accessible || aClass.hasModifierProperty(PsiModifier.PRIVATE)) return true;
+    if (!accessible) return true;
+    if (aClass.hasModifierProperty(PsiModifier.PRIVATE)) {
+      final PsiClass containingPlaceClass = PsiTreeUtil.getParentOfType(myPlace, PsiClass.class, false);
+      if (containingPlaceClass != null && !PsiTreeUtil.isAncestor(containingPlaceClass, aClass, true)){
+        return true;
+      }
+    }
     return myCurrentFileContext instanceof PsiImportStatementBase;
   }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java
index 825d9d62f4cf..2922998974cd 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting/InnerClassesShadowing.java
@@ -68,3 +68,16 @@ class C extends D implements A
     interface F2 extends A.B1 { }
 
 }
+
+
+class AO {}
+class BAO {
+    AO bar = new AO();
+    {
+        bar.foo();
+    }
+    private class AO {
+        void foo(){}
+    }
+
+}
\ No newline at end of file