diff --git a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/JavaResolveUtil.java b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/JavaResolveUtil.java
index b96a4db3378f..8113cf28f45b 100644
--- a/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/JavaResolveUtil.java
+++ b/java/java-psi-impl/src/com/intellij/psi/impl/source/resolve/JavaResolveUtil.java
@@ -196,7 +196,7 @@ public class JavaResolveUtil {
   private static boolean isInClassAnnotationParameterList(@NotNull PsiElement place, @Nullable PsiClass contextClass) {
     if (contextClass != null) {
       PsiAnnotation annotation = PsiTreeUtil.getContextOfType(place, PsiAnnotation.class, true);
-      if (annotation != null && contextClass.getModifierList() == annotation.getOwner()) {
+      if (annotation != null && PsiTreeUtil.isAncestor(contextClass.getModifierList(), annotation, false)) {
         return true;
       }
     }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/HighlightInaccessibleFromClassModifierList.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/HighlightInaccessibleFromClassModifierList.java
index 974d6ee9c6e6..78f20b9134ba 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/HighlightInaccessibleFromClassModifierList.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/advHighlighting7/HighlightInaccessibleFromClassModifierList.java
@@ -1,4 +1,14 @@
 @SuppressWarnings(ThisClass.<error descr="'FOO' has private access in 'ThisClass'">FOO</error>)
+@A(@B(ThisClass.<error descr="'FOO' has private access in 'ThisClass'">FOO</error>))
 public class ThisClass {
   private static final String FOO = "foo";
+}
+
+
+@interface A {
+  B value();
+}
+
+@interface B {
+  String value();
 }
\ No newline at end of file