diff --git a/python/src/com/jetbrains/python/inspections/PyMissingConstructorInspection.java b/python/src/com/jetbrains/python/inspections/PyMissingConstructorInspection.java
index ed93c2f82cff..c19730ba8f35 100644
--- a/python/src/com/jetbrains/python/inspections/PyMissingConstructorInspection.java
+++ b/python/src/com/jetbrains/python/inspections/PyMissingConstructorInspection.java
@@ -123,7 +123,9 @@ public class PyMissingConstructorInspection extends PyInspection {
                 PyExpression[] args = ((PyCallExpression)qualifier).getArguments();
                 if (args.length > 0) {
                   String firstArg = args[0].getText();
-                  if (firstArg.equals(cl.getName()) || firstArg.equals(CANONICAL_SELF+"."+ CLASS))
+                  final String qualifiedName = cl.getQualifiedName();
+                  if (firstArg.equals(cl.getName()) || firstArg.equals(CANONICAL_SELF+"."+ CLASS) ||
+                      (qualifiedName != null && qualifiedName.endsWith(firstArg)))
                       return true;
                   for (PyClass s : cl.iterateAncestorClasses()) {
                     if (firstArg.equals(s.getName()))
diff --git a/python/testData/inspections/PyMissingConstructorInspection/innerClass.py b/python/testData/inspections/PyMissingConstructorInspection/innerClass.py
new file mode 100644
index 000000000000..92cc3c83f432
--- /dev/null
+++ b/python/testData/inspections/PyMissingConstructorInspection/innerClass.py
@@ -0,0 +1,18 @@
+
+class Base(object):
+  def __init__(self, param):
+    print "Base", param
+
+
+class Wrapper(object):
+  class Child(Base):
+    def __init__(self, param1, param2):
+      # Here PyCharm claims no super call
+      super(Wrapper.Child, self).__init__(param2)
+      print "Child", param1
+
+  def __init__(self):
+    self.child = self.Child("aaa", "bbb")
+
+
+wrapper = Wrapper()
diff --git a/python/testSrc/com/jetbrains/python/inspections/PyMissingConstructorTest.java b/python/testSrc/com/jetbrains/python/inspections/PyMissingConstructorTest.java
index cf734731f38c..f575647386a7 100644
--- a/python/testSrc/com/jetbrains/python/inspections/PyMissingConstructorTest.java
+++ b/python/testSrc/com/jetbrains/python/inspections/PyMissingConstructorTest.java
@@ -33,8 +33,11 @@ public class PyMissingConstructorTest extends PyTestCase {
     doTest();
   }
 
-  // PY-7176
-  public void testException() {
+  public void testException() { // PY-7176
+    doTest();
+  }
+
+  public void testInnerClass() { //PY-7699
     doTest();
   }