diff -r f51867aa225d java.source.base/src/org/netbeans/api/java/source/ElementHandle.java
--- a/java.source.base/src/org/netbeans/api/java/source/ElementHandle.java	Tue May 10 13:35:02 2016 +0300
+++ b/java.source.base/src/org/netbeans/api/java/source/ElementHandle.java	Wed May 18 16:36:24 2016 +0300
@@ -57,6 +57,7 @@
 import javax.lang.model.element.Element;
 import javax.lang.model.element.ElementKind;
 import javax.lang.model.element.ExecutableElement;
+import javax.lang.model.element.NestingKind;
 import javax.lang.model.element.PackageElement;
 import javax.lang.model.element.TypeElement;
 import javax.lang.model.element.TypeParameterElement;
@@ -113,13 +114,15 @@
     }
     
     private final ElementKind kind;
+    private final NestingKind nestingKind;
     private final String[] signatures;
         
        
-    private ElementHandle(final ElementKind kind, String... signatures) {
+    private ElementHandle(final ElementKind kind, NestingKind netsingKind, String... signatures) {
         assert kind != null;
         assert signatures != null;
         this.kind = kind;
+        this.nestingKind = netsingKind;
         this.signatures = signatures;
     }
     
@@ -380,6 +383,17 @@
     public @NonNull ElementKind getKind () {
         return this.kind;
     }
+
+    /**
+     * Returns the {@link NestingKind} of this element handle,
+     * it is the nesting kind of the {@link TypeElement} from which the handle
+     * was created.
+     * @return {@link NestingKind} or null
+     *
+     */
+    public NestingKind getNestingKind() {
+        return nestingKind;
+    }
     
     private static final WeakSet<ElementHandle<?>> NORMALIZATION_CACHE = new WeakSet<ElementHandle<?>>();
 
@@ -410,7 +424,7 @@
     public static ElementHandle<PackageElement> createPackageElementHandle (
         @NonNull final String packageName) {
         Parameters.notNull("packageName", packageName); //NOI18N
-        return new ElementHandle<PackageElement>(ElementKind.PACKAGE, packageName);
+        return new ElementHandle<PackageElement>(ElementKind.PACKAGE, null, packageName);
     }
     
     /**
@@ -432,12 +446,13 @@
         if (!kind.isClass() && !kind.isInterface()) {
             throw new IllegalArgumentException(kind.toString());
         }
-        return new ElementHandle<TypeElement>(kind, binaryName);
+        return new ElementHandle<TypeElement>(kind, null, binaryName);
     }
 
     private static @NonNull <T extends Element> ElementHandle<T> createImpl (@NonNull final T element) throws IllegalArgumentException {
         Parameters.notNull("element", element);
         ElementKind kind = element.getKind();
+        NestingKind nestingKind = null;
         String[] signatures;
         switch (kind) {
             case PACKAGE:
@@ -449,6 +464,7 @@
             case ENUM:
             case ANNOTATION_TYPE:
                 assert element instanceof TypeElement;
+                nestingKind = ((TypeElement) element).getNestingKind();
                 signatures = new String[] {ClassFileUtil.encodeClassNameOrArray((TypeElement)element)};
                 break;
             case METHOD:
@@ -456,11 +472,13 @@
             case INSTANCE_INIT:
             case STATIC_INIT:
                 assert element instanceof ExecutableElement;
+                nestingKind = getEnclosingElementNestingKind(element);
                 signatures = ClassFileUtil.createExecutableDescriptor((ExecutableElement)element);
                 break;
             case FIELD:
             case ENUM_CONSTANT:
                 assert element instanceof VariableElement;
+                nestingKind = getEnclosingElementNestingKind(element);
                 signatures = ClassFileUtil.createFieldDescriptor((VariableElement)element);
                 break;
             case TYPE_PARAMETER:
@@ -470,12 +488,14 @@
                 ElementKind gek = ge.getKind();
                 if (gek.isClass() || gek.isInterface()) {
                     assert ge instanceof TypeElement;
+                    nestingKind = ((TypeElement) ge).getNestingKind();
                     signatures = new String[2];
                     signatures[0] = ClassFileUtil.encodeClassNameOrArray((TypeElement)ge);
                     signatures[1] = tpe.getSimpleName().toString();
                 }
                 else if (gek == ElementKind.METHOD || gek == ElementKind.CONSTRUCTOR) {
                     assert ge instanceof ExecutableElement;
+                    nestingKind = getEnclosingElementNestingKind(ge);
                     String[] _sigs = ClassFileUtil.createExecutableDescriptor((ExecutableElement)ge);
                     signatures = new String[_sigs.length + 1];
                     System.arraycopy(_sigs, 0, signatures, 0, _sigs.length);
@@ -488,7 +508,14 @@
             default:
                 throw new IllegalArgumentException(kind.toString());
         }
-        return new ElementHandle<T> (kind, signatures);
+        return new ElementHandle<T> (kind, nestingKind, signatures);
+    }
+    
+    private static NestingKind getEnclosingElementNestingKind(Element element) {
+        if (element.getEnclosingElement() instanceof TypeElement) {
+            return ((TypeElement) element.getEnclosingElement()).getNestingKind();
+        }
+        return null;
     }
     
     /**
@@ -563,7 +590,7 @@
                     if (descriptors.length != 1) {
                         throw new IllegalArgumentException ();
                     }
-                    return new ElementHandle<PackageElement> (kind, descriptors);
+                    return new ElementHandle<PackageElement> (kind, null, descriptors);
                 case CLASS:
                 case INTERFACE:
                 case ENUM:
@@ -572,25 +599,25 @@
                     if (descriptors.length != 1) {
                         throw new IllegalArgumentException ();
                     }
-                    return new ElementHandle<TypeElement> (kind, descriptors);
+                    return new ElementHandle<TypeElement> (kind, null, descriptors);
                 case METHOD:
                 case CONSTRUCTOR:                
                     if (descriptors.length != 3) {
                         throw new IllegalArgumentException ();
                     }
-                    return new ElementHandle<ExecutableElement> (kind, descriptors);
+                    return new ElementHandle<ExecutableElement> (kind, null, descriptors);
                 case INSTANCE_INIT:
                 case STATIC_INIT:
                     if (descriptors.length != 2) {
                         throw new IllegalArgumentException ();
                     }
-                    return new ElementHandle<ExecutableElement> (kind, descriptors);
+                    return new ElementHandle<ExecutableElement> (kind, null, descriptors);
                 case FIELD:
                 case ENUM_CONSTANT:
                     if (descriptors.length != 3) {
                         throw new IllegalArgumentException ();
                     }
-                    return new ElementHandle<VariableElement> (kind, descriptors);
+                    return new ElementHandle<VariableElement> (kind, null, descriptors);
                 default:
                     throw new IllegalArgumentException ();
             }            
diff -r f51867aa225d java.source.base/src/org/netbeans/api/java/source/SourceUtils.java
--- a/java.source.base/src/org/netbeans/api/java/source/SourceUtils.java	Tue May 10 13:35:02 2016 +0300
+++ b/java.source.base/src/org/netbeans/api/java/source/SourceUtils.java	Wed May 18 16:36:24 2016 +0300
@@ -529,7 +529,7 @@
                     return folders.isEmpty() ? pair.first() : folders.get(0);
                 } else {               
                     final boolean caseSensitive = isCaseSensitive ();
-                    final Object fnames = getSourceFileNames (className);
+                    final Object fnames = getSourceFileNames (className, handle.getNestingKind());
                     folders.addFirst(pair.first());
                     if (fnames instanceof String) {
                         FileObject match = findMatchingChild((String)fnames, folders, caseSensitive);
@@ -1038,12 +1038,15 @@
      * a String (top-level class, no $) or List&lt;String> as the JLS permits $ in
      * class names. 
      */
-    private static Object getSourceFileNames (String classFileName) {
+    private static Object getSourceFileNames (String classFileName, NestingKind nestingKind) {
         int max = classFileName.length() - 1;
         int index = classFileName.indexOf('$');
         if (index == -1) {
             return classFileName;
         }
+        if (nestingKind == NestingKind.TOP_LEVEL) {
+            return classFileName;
+        }
         List<String> ll = new ArrayList<>(3);
         do {
             ll.add(classFileName.substring(0, index));