diff --git a/java/execution/impl/src/com/intellij/execution/junit/JUnitUtil.java b/java/execution/impl/src/com/intellij/execution/junit/JUnitUtil.java
index bbf5f37fc6eb..77878a2fae70 100644
--- a/java/execution/impl/src/com/intellij/execution/junit/JUnitUtil.java
+++ b/java/execution/impl/src/com/intellij/execution/junit/JUnitUtil.java
@@ -98,6 +98,7 @@ public class JUnitUtil {
   @NonNls public static final String PARAMETERIZED_CLASS_NAME = "org.junit.runners.Parameterized";
   @NonNls public static final String SUITE_CLASS_NAME = "org.junit.runners.Suite";
   public static final String JUNIT5_NESTED = "org.junit.jupiter.api.Nested";
+  private static final String[] KNOWN_RUNNERS = {"org.junit.runners.Parameterized", "org.junit.runners.BlockJUnit4ClassRunner", "org.junit.runners.JUnit4"};
 
   public static boolean isSuiteMethod(@NotNull PsiMethod psiMethod) {
     if (!psiMethod.hasModifierProperty(PsiModifier.PUBLIC)) return false;
@@ -135,7 +136,7 @@ public class JUnitUtil {
     if (checkClass && checkRunWith) {
       PsiAnnotation annotation = getRunWithAnnotation(aClass);
       if (annotation != null) {
-        return !isRunnerWithRequiredAnnotationOnTestMethod(annotation, "org.junit.runners.Parameterized", "org.junit.runners.BlockJUnit4ClassRunner");
+        return !isRunnerWithRequiredAnnotationOnTestMethod(annotation, KNOWN_RUNNERS);
       }
     }
     if (psiMethod.getParameterList().getParametersCount() > 0) return false;
@@ -216,7 +217,19 @@ public class JUnitUtil {
     final PsiModifierList modifierList = psiClass.getModifierList();
     if (modifierList == null) return false;
     final PsiClass topLevelClass = PsiTreeUtil.getTopmostParentOfType(modifierList, PsiClass.class);
-    if (topLevelClass != null && AnnotationUtil.isAnnotated(topLevelClass, RUN_WITH, true)) return true;
+    if (topLevelClass != null) {
+      if (AnnotationUtil.isAnnotated(topLevelClass, RUN_WITH, true)) {
+        PsiAnnotation annotation = getRunWithAnnotation(topLevelClass);
+        if (topLevelClass == psiClass) {
+          return true;
+        }
+
+        //default runners do not implicitly run inner classes
+        if (!isRunnerWithRequiredAnnotationOnTestMethod(annotation, KNOWN_RUNNERS)) {
+          return true;
+        }
+      }
+    }
 
     if (!PsiClassUtil.isRunnableClass(psiClass, true, checkAbstract)) return false;
 
diff --git a/plugins/junit/test/com/intellij/execution/junit/JUnitDetectionTest.java b/plugins/junit/test/com/intellij/execution/junit/JUnitDetectionTest.java
new file mode 100644
index 000000000000..46b417b19fbe
--- /dev/null
+++ b/plugins/junit/test/com/intellij/execution/junit/JUnitDetectionTest.java
@@ -0,0 +1,50 @@
+// Copyright 2000-2017 JetBrains s.r.o.
+// Use of this source code is governed by the Apache 2.0 license that can be
+// found in the LICENSE file.
+package com.intellij.execution.junit;
+
+import com.intellij.codeInsight.TestFrameworks;
+import com.intellij.psi.PsiClass;
+import com.intellij.psi.PsiClassOwner;
+import com.intellij.psi.PsiFile;
+import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase;
+import com.intellij.testIntegration.TestFramework;
+
+public class JUnitDetectionTest extends LightCodeInsightFixtureTestCase {
+
+  @Override
+  protected void setUp() throws Exception {
+    super.setUp();
+    myFixture.addClass("package org.junit; public @interface Test {}");
+    myFixture.addClass("package org.junit.runners; public class Parameterized { public @interface Parameters {} public @interface Parameter {}}");
+    myFixture.addClass("package org.junit.runner; public @interface RunWith {Class value();}");
+  }
+
+  public void testInnerClassesForKnownRunners() {
+    PsiFile file = myFixture.configureByText("A.java", "import org.junit.Test;\n" +
+                                                       "import org.junit.runner.RunWith;\n" +
+                                                       "import org.junit.runners.Parameterized;\n" +
+                                                       "import java.util.*;\n" +
+                                                       "@RunWith(Parameterized.class)\n" +
+                                                       "public class A {\n" +
+                                                       "  @Parameterized.Parameters\n" +
+                                                       "  public static Collection<Object[]> data() {\n" +
+                                                       "    return Arrays.asList(new Object[] {\"11\"}, new Object[] {\"12\"});\n" +
+                                                       "  }\n" +
+                                                       "  @Parameterized.Parameter\n" +
+                                                       "  public String myJUnitVersion;\n" +
+                                                       "  @Test\n" +
+                                                       "  public void ignoredTestMethod() throws Exception {}\n" +
+                                                       "  public class Foo {\n" +
+                                                       "    public void testMe() {}\n " +
+                                                       "  }\n" +
+                                                       "}\n");
+    PsiClass aClass = ((PsiClassOwner)file).getClasses()[0];
+    TestFramework framework = TestFrameworks.detectFramework(aClass);
+    assertTrue(framework != null);
+    assertTrue(framework.isTestClass(aClass));
+    PsiClass innerClass = aClass.getInnerClasses()[0];
+    assertFalse(framework.isTestClass(innerClass));
+    assertFalse(framework.isTestMethod(innerClass.getMethods()[0]));
+  }
+}