diff --git a/compiler/src/dotty/tools/dotc/core/ContextOps.scala b/compiler/src/dotty/tools/dotc/core/ContextOps.scala
index 427cfa47c7c1..760e239cb434 100644
--- a/compiler/src/dotty/tools/dotc/core/ContextOps.scala
+++ b/compiler/src/dotty/tools/dotc/core/ContextOps.scala
@@ -135,7 +135,7 @@ object ContextOps:
     }
 
     def packageContext(tree: untpd.PackageDef, pkg: Symbol): Context = inContext(ctx) {
-      if (pkg.is(Package)) ctx.fresh.setOwner(pkg.moduleClass).setTree(tree)
+      if (pkg.is(Package)) ctx.fresh.setOwner(pkg.moduleClass).setTree(tree).setNewScope
       else ctx
     }
 end ContextOps
diff --git a/compiler/src/dotty/tools/dotc/typer/Namer.scala b/compiler/src/dotty/tools/dotc/typer/Namer.scala
index 3e4d740c87ac..c9ce8a894ac8 100644
--- a/compiler/src/dotty/tools/dotc/typer/Namer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Namer.scala
@@ -387,7 +387,7 @@ class Namer { typer: Typer =>
     def recur(stat: Tree): Context = stat match {
       case pcl: PackageDef =>
         val pkg = createPackageSymbol(pcl.pid)
-        index(pcl.stats)(using ctx.fresh.setOwner(pkg.moduleClass))
+        index(pcl.stats)(using ctx.packageContext(pcl, pkg))
         invalidateCompanions(pkg, Trees.flatten(pcl.stats map expanded))
         setDocstring(pkg, stat)
         ctx
diff --git a/language-server/test/dotty/tools/languageserver/CompletionTest.scala b/language-server/test/dotty/tools/languageserver/CompletionTest.scala
index de963926cc4e..b71552fe5e92 100644
--- a/language-server/test/dotty/tools/languageserver/CompletionTest.scala
+++ b/language-server/test/dotty/tools/languageserver/CompletionTest.scala
@@ -987,7 +987,7 @@ class CompletionTest {
 
   @Test def importAnnotationAfterImport : Unit =
     code"""import java.lang.annotation; import annot${m1}"""
-      .completion(("annotation", Module, "scala.annotation"))
+      .completion(("annotation", Module, "java.lang.annotation"))
 
   @Test def completeTemplateConstrArgType: Unit = {
     code"""import scala.concurrent.Future
diff --git a/tests/pos/i21405.scala b/tests/pos/i21405.scala
new file mode 100644
index 000000000000..4fcc1302882b
--- /dev/null
+++ b/tests/pos/i21405.scala
@@ -0,0 +1,7 @@
+package o { class IO }
+package p { class IO }
+import o._
+package q {
+  import p._
+  class D extends IO
+}