diff --git a/plugins/devkit/devkit-core/src/dom/impl/ExtensionDomExtender.java b/plugins/devkit/devkit-core/src/dom/impl/ExtensionDomExtender.java
index 25034d2b768b..37635a5a9ea2 100644
--- a/plugins/devkit/devkit-core/src/dom/impl/ExtensionDomExtender.java
+++ b/plugins/devkit/devkit-core/src/dom/impl/ExtensionDomExtender.java
@@ -153,7 +153,7 @@ public class ExtensionDomExtender extends DomExtender<Extensions> {
       final String attrName = getStringAttribute(attrAnno, "value", evalHelper, fieldName);
       if (attrName != null) {
         Class clazz = String.class;
-        if (withElement != null && isClassField(fieldName)) {
+        if (withElement != null || isClassField(fieldName)) {
           clazz = PsiClass.class;
         } else if (PsiType.BOOLEAN.equals(field.getType())) {
           clazz = Boolean.class;
@@ -200,17 +200,16 @@ public class ExtensionDomExtender extends DomExtender<Extensions> {
   }
 
   private static void markAsClass(DomExtension extension, String fieldName, @Nullable With withElement) {
-    if (withElement == null) return;
-
-    final String withClassName = withElement.getImplements().getStringValue();
-    extension.addCustomAnnotation(new ExtendClassImpl() {
-      @Override
-      public String value() {
-        return withClassName;
-      }
-    });
-
-    if (isClassField(fieldName)) {
+    if (withElement != null) {
+      final String withClassName = withElement.getImplements().getStringValue();
+      extension.addCustomAnnotation(new ExtendClassImpl() {
+        @Override
+        public String value() {
+          return withClassName;
+        }
+      });
+    }
+    if (withElement != null || isClassField(fieldName)) {
       extension.setConverter(CLASS_CONVERTER);
     }
   }
diff --git a/plugins/devkit/devkit-java-tests/testData/codeInsight/ExtensionsHighlighting.xml b/plugins/devkit/devkit-java-tests/testData/codeInsight/ExtensionsHighlighting.xml
index 79d7ab616c51..78c7b75877b7 100644
--- a/plugins/devkit/devkit-java-tests/testData/codeInsight/ExtensionsHighlighting.xml
+++ b/plugins/devkit/devkit-java-tests/testData/codeInsight/ExtensionsHighlighting.xml
@@ -18,6 +18,9 @@
 
         <<error descr="Deprecated EP 'com.intellij.myPlugin.deprecatedEP'">myPlugin.deprecatedEP</error> implementation="foo.MyDeprecatedEPImpl"/>
 
+        <myService serviceImplementation="foo.<error descr="Cannot resolve class 'MyInvalid'">MyInvalid</error>"/>
+
+        <myService serviceImplementation="foo.MyRunnable"/>
         <myPlugin.foo.bar implementation="java.util.ArrayList"/>
         <completion.contributor/>
         <custom.custom/>
diff --git a/plugins/devkit/devkit-java-tests/testData/codeInsight/InnerClassCompletionInService.xml b/plugins/devkit/devkit-java-tests/testData/codeInsight/InnerClassCompletionInService.xml
new file mode 100644
index 000000000000..35ebc0e1b6b3
--- /dev/null
+++ b/plugins/devkit/devkit-java-tests/testData/codeInsight/InnerClassCompletionInService.xml
@@ -0,0 +1,5 @@
+<idea-plugin>
+    <extensions defaultExtensionNs="com.intellij">
+        <myService serviceImplementation="Fuba<caret>"/>
+    </extensions>
+</idea-plugin>
\ No newline at end of file
diff --git a/plugins/devkit/devkit-java-tests/testData/codeInsight/InnerClassCompletionInService_after.xml b/plugins/devkit/devkit-java-tests/testData/codeInsight/InnerClassCompletionInService_after.xml
new file mode 100644
index 000000000000..42445012686c
--- /dev/null
+++ b/plugins/devkit/devkit-java-tests/testData/codeInsight/InnerClassCompletionInService_after.xml
@@ -0,0 +1,5 @@
+<idea-plugin>
+    <extensions defaultExtensionNs="com.intellij">
+        <myService serviceImplementation="foo.Foo$Fubar<caret>"/>
+    </extensions>
+</idea-plugin>
\ No newline at end of file
diff --git a/plugins/devkit/devkit-java-tests/testSrc/org/jetbrains/idea/devkit/codeInsight/PluginXmlFunctionalTest.groovy b/plugins/devkit/devkit-java-tests/testSrc/org/jetbrains/idea/devkit/codeInsight/PluginXmlFunctionalTest.groovy
index 37c8fd575e6e..cd6c8cfb6af3 100644
--- a/plugins/devkit/devkit-java-tests/testSrc/org/jetbrains/idea/devkit/codeInsight/PluginXmlFunctionalTest.groovy
+++ b/plugins/devkit/devkit-java-tests/testSrc/org/jetbrains/idea/devkit/codeInsight/PluginXmlFunctionalTest.groovy
@@ -92,6 +92,7 @@ class PluginXmlFunctionalTest extends JavaCodeInsightFixtureTestCase {
         <id>com.intellij</id>
         <extensionPoints>
             <extensionPoint name="completion.contributor"/>
+            <extensionPoint name="myService" beanClass="foo.MyServiceDescriptor"/>
         </extensionPoints>
     """)
     addPluginXml("indirect", """
@@ -110,6 +111,9 @@ class PluginXmlFunctionalTest extends JavaCodeInsightFixtureTestCase {
     myFixture.addClass("package foo; public class MyRunnable implements java.lang.Runnable {}")
     myFixture.addClass("package foo; @Deprecated public abstract class MyDeprecatedEP {}")
     myFixture.addClass("package foo; public class MyDeprecatedEPImpl extends foo.MyDeprecatedEP {}")
+    myFixture.addClass("package foo;\n" +
+                       "import com.intellij.util.xmlb.annotations.Attribute;\n" +
+                       "public class MyServiceDescriptor { @Attribute public String serviceImplementation; }")
 
     configureByFile()
     myFixture.checkHighlighting(true, false, false)
@@ -181,6 +185,24 @@ class PluginXmlFunctionalTest extends JavaCodeInsightFixtureTestCase {
     myFixture.checkResultByFile(getTestName(false) + "_after.xml")
   }
 
+  void testInnerClassCompletionInService() {
+    addPluginXml("idea_core", """
+        <id>com.intellij</id>
+        <extensionPoints>
+            <extensionPoint name="completion.contributor"/>
+            <extensionPoint name="myService" beanClass="foo.MyServiceDescriptor"/>
+        </extensionPoints>
+    """)
+    myFixture.addClass("package foo;\n" +
+                       "import com.intellij.util.xmlb.annotations.Attribute;\n" +
+                       "public class MyServiceDescriptor { @Attribute public String serviceImplementation; }")
+    myFixture.addClass("package foo; public class Foo { public static class Fubar {} }")
+    myFixture.configureByFile(getTestName(false) + ".xml")
+    myFixture.completeBasic()
+    myFixture.type('\n')
+    myFixture.checkResultByFile(getTestName(false) + "_after.xml")
+  }
+
   void testInnerClassSmartCompletion() {
     myFixture.addClass("package foo; public class Foo { public static class Fubar extends Foo {} }")
     myFixture.configureByFile(getTestName(false) + ".xml")