diff --git a/compiler/testData/codegen/box/reflection/createAnnotation/callByJava.kt b/compiler/testData/codegen/box/reflection/createAnnotation/callByJava.kt
new file mode 100644
index 00000000000..d1e5e8b4786
--- /dev/null
+++ b/compiler/testData/codegen/box/reflection/createAnnotation/callByJava.kt
@@ -0,0 +1,78 @@
+// WITH_REFLECT
+// FILE: J.java
+
+public interface J {
+    @interface NoParams {}
+
+    @interface OneDefault {
+        String s() default "OK";
+    }
+
+    @interface OneNonDefault {
+        String s();
+    }
+
+    @interface TwoParamsOneDefault {
+        String s();
+        int x() default 42;
+    }
+
+    @interface TwoNonDefaults {
+        String string();
+        Class<?> clazz();
+    }
+
+    @interface ManyDefaultParams {
+        int i() default 0;
+        String s() default "";
+        double d() default 3.14;
+    }
+}
+
+// FILE: K.kt
+
+import J.*
+import kotlin.reflect.KClass
+import kotlin.reflect.primaryConstructor
+import kotlin.test.assertEquals
+import kotlin.test.assertFails
+
+inline fun <reified T : Annotation> create(args: Map<String, Any?>): T {
+    val ctor = T::class.constructors.single()
+    return ctor.callBy(args.mapKeys { entry -> ctor.parameters.single { it.name == entry.key } })
+}
+
+inline fun <reified T : Annotation> create(): T = create(emptyMap())
+
+fun box(): String {
+    create<NoParams>()
+
+    val t1 = create<OneDefault>()
+    assertEquals("OK", t1.s)
+    assertFails { create<OneDefault>(mapOf("s" to 42)) }
+
+    val t2 = create<OneNonDefault>(mapOf("s" to "OK"))
+    assertEquals("OK", t2.s)
+    assertFails { create<OneNonDefault>() }
+
+    val t3 = create<TwoParamsOneDefault>(mapOf("s" to "OK"))
+    assertEquals("OK", t3.s)
+    assertEquals(42, t3.x)
+    val t4 = create<TwoParamsOneDefault>(mapOf("s" to "OK", "x" to 239))
+    assertEquals(239, t4.x)
+    assertFails { create<TwoParamsOneDefault>(mapOf("s" to "Fail", "x" to "Fail")) }
+
+    assertFails("KClass (not Class) instances should be passed as arguments") {
+        create<TwoNonDefaults>(mapOf("clazz" to String::class.java, "string" to "Fail"))
+    }
+
+    val t5 = create<TwoNonDefaults>(mapOf("clazz" to String::class, "string" to "OK"))
+    assertEquals("OK", t5.string)
+
+    val t6 = create<ManyDefaultParams>()
+    assertEquals(0, t6.i)
+    assertEquals("", t6.s)
+    assertEquals(3.14, t6.d)
+
+    return "OK"
+}
diff --git a/compiler/testData/codegen/box/reflection/createAnnotation/callJava.kt b/compiler/testData/codegen/box/reflection/createAnnotation/callJava.kt
new file mode 100644
index 00000000000..60f662ed07e
--- /dev/null
+++ b/compiler/testData/codegen/box/reflection/createAnnotation/callJava.kt
@@ -0,0 +1,90 @@
+// WITH_REFLECT
+// FILE: J.java
+
+public interface J {
+    @interface NoParams {}
+
+    @interface OneDefault {
+        String foo() default "foo";
+    }
+
+    @interface OneDefaultValue {
+        String value() default "value";
+    }
+
+    @interface OneNonDefault {
+        String foo();
+    }
+
+    @interface OneNonDefaultValue {
+        String value();
+    }
+
+    @interface TwoParamsOneDefault {
+        String string();
+        Class<?> clazz() default Object.class;
+    }
+
+    @interface TwoParamsOneValueOneDefault {
+        String value();
+        Class<?> clazz() default Object.class;
+    }
+
+    @interface TwoNonDefaults {
+        String string();
+        Class<?> clazz();
+    }
+
+    @interface ManyDefaults {
+        int i() default 0;
+        String s() default "";
+        double d() default 3.14;
+    }
+}
+
+// FILE: K.kt
+
+import J.*
+import kotlin.reflect.KClass
+import kotlin.reflect.primaryConstructor
+import kotlin.test.assertEquals
+import kotlin.test.assertFails
+
+inline fun <reified T : Annotation> create(vararg args: Any?): T =
+        T::class.constructors.single().call(*args)
+
+fun box(): String {
+    create<NoParams>()
+
+    assertFails { create<OneDefault>() }
+    assertFails { create<OneDefault>("") }
+    assertFails { create<OneDefault>("", "") }
+
+    assertFails { create<OneDefaultValue>() }
+    create<OneDefaultValue>("")
+    assertFails { create<OneDefaultValue>("", "") }
+
+    assertFails { create<OneNonDefault>() }
+    assertFails { create<OneNonDefault>("") }
+
+    assertFails { create<OneNonDefaultValue>() }
+    create<OneNonDefaultValue>("")
+
+    assertFails { create<TwoParamsOneDefault>() }
+    assertFails { create<TwoParamsOneDefault>("") }
+    assertFails { create<TwoParamsOneDefault>("", Any::class) }
+    assertFails { create<TwoParamsOneDefault>(Any::class, "") }
+
+    assertFails { create<TwoParamsOneValueOneDefault>() }
+    assertFails { create<TwoParamsOneValueOneDefault>("") }
+    assertFails { create<TwoParamsOneValueOneDefault>("", Any::class) }
+    assertFails { create<TwoParamsOneValueOneDefault>(Any::class, "") }
+
+    assertFails { create<TwoNonDefaults>("", Any::class) }
+    assertFails { create<TwoNonDefaults>(Any::class, "") }
+
+    assertFails { create<ManyDefaults>() }
+    assertFails { create<ManyDefaults>(42, "Fail", 2.72) }
+
+    return "OK"
+}
diff --git a/compiler/testData/codegen/box/reflection/createAnnotation/createJdkAnnotationInstance.kt b/compiler/testData/codegen/box/reflection/createAnnotation/createJdkAnnotationInstance.kt
new file mode 100644
index 00000000000..dcb310532cb
--- /dev/null
+++ b/compiler/testData/codegen/box/reflection/createAnnotation/createJdkAnnotationInstance.kt
@@ -0,0 +1,15 @@
+// WITH_REFLECT
+
+import java.lang.annotation.Retention
+import java.lang.annotation.RetentionPolicy
+import kotlin.test.assertEquals
+
+fun box(): String {
+    val ctor = Retention::class.constructors.single()
+    val r = ctor.callBy(mapOf(
+            ctor.parameters.single { it.name == "value" } to RetentionPolicy.RUNTIME
+    ))
+    assertEquals(RetentionPolicy.RUNTIME, r.value as RetentionPolicy)
+    assertEquals(Retention::class.java.classLoader, r.javaClass.classLoader)
+    return "OK"
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
index fda259d825a..4ef341ab7f3 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/BlackBoxCodegenTestGenerated.java
@@ -12156,17 +12156,35 @@ public class BlackBoxCodegenTestGenerated extends AbstractBlackBoxCodegenTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("callByJava.kt")
+            public void testCallByJava() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/reflection/createAnnotation/callByJava.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("callByKotlin.kt")
             public void testCallByKotlin() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/reflection/createAnnotation/callByKotlin.kt");
                 doTest(fileName);
             }
 
+            @TestMetadata("callJava.kt")
+            public void testCallJava() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/reflection/createAnnotation/callJava.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("callKotlin.kt")
             public void testCallKotlin() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/reflection/createAnnotation/callKotlin.kt");
                 doTest(fileName);
             }
+
+            @TestMetadata("createJdkAnnotationInstance.kt")
+            public void testCreateJdkAnnotationInstance() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/codegen/box/reflection/createAnnotation/createJdkAnnotationInstance.kt");
+                doTest(fileName);
+            }
         }
 
         @TestMetadata("compiler/testData/codegen/box/reflection/enclosing")
diff --git a/core/reflection.jvm/src/kotlin/reflect/jvm/internal/AnnotationConstructorCaller.kt b/core/reflection.jvm/src/kotlin/reflect/jvm/internal/AnnotationConstructorCaller.kt
index 1190c36071b..506df4b51f2 100644
--- a/core/reflection.jvm/src/kotlin/reflect/jvm/internal/AnnotationConstructorCaller.kt
+++ b/core/reflection.jvm/src/kotlin/reflect/jvm/internal/AnnotationConstructorCaller.kt
@@ -26,17 +26,31 @@ internal class AnnotationConstructorCaller(
         private val jClass: Class<*>,
         private val parameterNames: List<String>,
         private val callMode: CallMode,
+        origin: Origin,
         methods: List<ReflectMethod> = parameterNames.map { name -> jClass.getDeclaredMethod(name) }
 ) : FunctionCaller<Nothing?>(
         null, jClass, null, methods.map { it.genericReturnType }.toTypedArray()
 ) {
     enum class CallMode { CALL_BY_NAME, POSITIONAL_CALL }
 
+    enum class Origin { JAVA, KOTLIN }
+
     // Transform primitive int to java.lang.Integer because actual arguments passed here will be boxed and Class#isInstance should succeed
     private val erasedParameterTypes: List<Class<*>> = methods.map { method -> method.returnType.let { it.wrapperByPrimitive ?: it } }
 
     private val defaultValues: List<Any?> = methods.map { method -> method.defaultValue }
 
+    init {
+        // TODO: consider lifting this restriction once KT-8957 is implemented
+        if (callMode == CallMode.POSITIONAL_CALL && origin == Origin.JAVA && (parameterNames - "value").isNotEmpty()) {
+            throw UnsupportedOperationException(
+                    "Positional call of a Java annotation constructor is allowed only if there are no parameters " +
+                    "or one parameter named \"value\". This restriction exists because Java annotations (in contrast to Kotlin)" +
+                    "do not impose any order on their arguments. Use KCallable#callBy instead."
+            )
+        }
+    }
+
     override fun call(args: Array<*>): Any? {
         checkArguments(args)
 
diff --git a/core/reflection.jvm/src/kotlin/reflect/jvm/internal/KFunctionImpl.kt b/core/reflection.jvm/src/kotlin/reflect/jvm/internal/KFunctionImpl.kt
index 41e9542880f..80e295370d9 100644
--- a/core/reflection.jvm/src/kotlin/reflect/jvm/internal/KFunctionImpl.kt
+++ b/core/reflection.jvm/src/kotlin/reflect/jvm/internal/KFunctionImpl.kt
@@ -28,6 +28,8 @@ import kotlin.reflect.KFunction
 import kotlin.reflect.KotlinReflectionInternalError
 import kotlin.reflect.jvm.internal.AnnotationConstructorCaller.CallMode.CALL_BY_NAME
 import kotlin.reflect.jvm.internal.AnnotationConstructorCaller.CallMode.POSITIONAL_CALL
+import kotlin.reflect.jvm.internal.AnnotationConstructorCaller.Origin.JAVA
+import kotlin.reflect.jvm.internal.AnnotationConstructorCaller.Origin.KOTLIN
 import kotlin.reflect.jvm.internal.JvmFunctionSignature.*
 
 internal class KFunctionImpl private constructor(
@@ -55,12 +57,16 @@ internal class KFunctionImpl private constructor(
         val member: Member? = when (jvmSignature) {
             is KotlinConstructor -> {
                 if (isAnnotationConstructor)
-                    return@caller AnnotationConstructorCaller(container.jClass, parameters.map { it.name!! }, POSITIONAL_CALL)
+                    return@caller AnnotationConstructorCaller(container.jClass, parameters.map { it.name!! }, POSITIONAL_CALL, KOTLIN)
                 container.findConstructorBySignature(jvmSignature.constructorDesc, isDeclared())
             }
             is KotlinFunction -> container.findMethodBySignature(jvmSignature.methodName, jvmSignature.methodDesc, isDeclared())
             is JavaMethod -> jvmSignature.method
             is JavaConstructor -> jvmSignature.constructor
+            is FakeJavaAnnotationConstructor -> {
+                val methods = jvmSignature.methods
+                return@caller AnnotationConstructorCaller(container.jClass, methods.map { it.name }, POSITIONAL_CALL, JAVA, methods)
+            }
             is BuiltInFunction -> jvmSignature.getMember(container)
         }
 
@@ -86,9 +92,13 @@ internal class KFunctionImpl private constructor(
             }
             is KotlinConstructor -> {
                 if (isAnnotationConstructor)
-                    return@defaultCaller AnnotationConstructorCaller(container.jClass, parameters.map { it.name!! }, CALL_BY_NAME)
+                    return@defaultCaller AnnotationConstructorCaller(container.jClass, parameters.map { it.name!! }, CALL_BY_NAME, KOTLIN)
                 container.findDefaultConstructor(jvmSignature.constructorDesc, isDeclared())
             }
+            is FakeJavaAnnotationConstructor -> {
+                val methods = jvmSignature.methods
+                return@defaultCaller AnnotationConstructorCaller(container.jClass, methods.map { it.name }, CALL_BY_NAME, JAVA, methods)
+            }
             else -> {
                 // Java methods, Java constructors and built-ins don't have $default methods
                 null
diff --git a/core/reflection.jvm/src/kotlin/reflect/jvm/internal/RuntimeTypeMapper.kt b/core/reflection.jvm/src/kotlin/reflect/jvm/internal/RuntimeTypeMapper.kt
index 2ce8df8785c..c17403fc765 100644
--- a/core/reflection.jvm/src/kotlin/reflect/jvm/internal/RuntimeTypeMapper.kt
+++ b/core/reflection.jvm/src/kotlin/reflect/jvm/internal/RuntimeTypeMapper.kt
@@ -71,9 +71,15 @@ internal sealed class JvmFunctionSignature {
 
     class JavaConstructor(val constructor: Constructor<*>) : JvmFunctionSignature() {
         override fun asString(): String =
-                "<init>" +
-                constructor.parameterTypes.joinToString(separator = "", prefix = "(", postfix = ")") { it.desc } +
-                "V"
+                constructor.parameterTypes.joinToString(separator = "", prefix = "<init>(", postfix = ")V") { it.desc }
+    }
+
+    class FakeJavaAnnotationConstructor(val jClass: Class<*>) : JvmFunctionSignature() {
+        // Java annotations do not impose any order of methods inside them, so we consider them lexicographic here for stability
+        val methods = jClass.declaredMethods.sortedBy { it.name }
+
+        override fun asString(): String =
+                methods.joinToString(separator = "", prefix = "<init>(", postfix = ")V") { it.returnType.desc }
     }
 
     open class BuiltInFunction(private val signature: String) : JvmFunctionSignature() {
@@ -189,10 +195,14 @@ internal object RuntimeTypeMapper {
                 return JvmFunctionSignature.JavaMethod(method)
             }
             is JavaClassConstructorDescriptor -> {
-                val constructor = ((function.source as? JavaSourceElement)?.javaElement as? ReflectJavaConstructor)?.member ?:
-                                  throw KotlinReflectionInternalError("Incorrect resolution sequence for Java constructor $function")
-
-                return JvmFunctionSignature.JavaConstructor(constructor)
+                val element = (function.source as? JavaSourceElement)?.javaElement
+                when {
+                    element is ReflectJavaConstructor ->
+                        return JvmFunctionSignature.JavaConstructor(element.member)
+                    element is ReflectJavaClass && element.isAnnotationType ->
+                        return JvmFunctionSignature.FakeJavaAnnotationConstructor(element.element)
+                    else -> throw KotlinReflectionInternalError("Incorrect resolution sequence for Java constructor $function ($element)")
+                }
             }
             else -> throw KotlinReflectionInternalError("Unknown origin of $function (${function.javaClass})")
         }