diff --git a/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/NewCUProposal.java b/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/NewCUProposal.java
index b67af76452..42f1935215 100644
--- a/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/NewCUProposal.java
+++ b/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/NewCUProposal.java
@@ -17,6 +17,7 @@
  *******************************************************************************/
 package org.eclipse.jdt.ls.core.internal.corrections.proposals;
 
+import java.util.Arrays;
 import java.util.Collection;
 import java.util.Iterator;
 import java.util.Objects;
@@ -76,8 +77,6 @@ public class NewCUProposal extends ChangeCorrectionProposal {
 	private int fTypeKind;
 	private IJavaElement fTypeContainer; // IType or IPackageFragment
 	private String fTypeNameWithParameters;
-	private IType fCreatedType;
-
 	/**
 	 * Construct a new compilation unit proposal.
 	 *
@@ -391,22 +390,32 @@ private String constructCUContent(ICompilationUnit cu, String typeContent, Strin
 	 * Called from createType to construct the source for this type
 	 */
 	private String constructTypeStub(ICompilationUnit parentCU, String name, int modifiers, String lineDelimiter) throws CoreException {
-		StringBuffer buf = new StringBuffer();
+		StringBuilder buf = new StringBuilder();
 
 		buf.append(Flags.toString(modifiers));
 		if (modifiers != 0) {
 			buf.append(' ');
 		}
+
+		String[] permittedNames = fCompilationUnit.findPrimaryType().getPermittedSubtypeNames();
+		boolean isPermitted = Arrays.asList(permittedNames).stream().anyMatch(p -> name.equals(p));
+		if (isPermitted) {
+			buf.append("final ");
+		}
+
 		String type = ""; //$NON-NLS-1$
 		String templateID = ""; //$NON-NLS-1$
+		String superType = ""; //$NON-NLS-1$
 		switch (fTypeKind) {
 			case K_CLASS:
 				type = "class "; //$NON-NLS-1$
 				templateID = CodeGeneration.CLASS_BODY_TEMPLATE_ID;
+				superType = fCompilationUnit.findPrimaryType().isInterface() ? "implements " : "extends ";
 				break;
 			case K_INTERFACE:
 				type = "interface "; //$NON-NLS-1$
 				templateID = CodeGeneration.INTERFACE_BODY_TEMPLATE_ID;
+				superType = "extends ";
 				break;
 			case K_ENUM:
 				type = "enum "; //$NON-NLS-1$
@@ -419,6 +428,11 @@ private String constructTypeStub(ICompilationUnit parentCU, String name, int mod
 		}
 		buf.append(type);
 		buf.append(name);
+		if (isPermitted) {
+			buf.append(' ');
+			buf.append(superType);
+			buf.append(fCompilationUnit.findPrimaryType().getElementName());
+		}
 
 		buf.append(" {").append(lineDelimiter); //$NON-NLS-1$
 		String typeBody = CodeGeneration.getTypeBody(templateID, parentCU, name, lineDelimiter);
diff --git a/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/UnresolvedElementsSubProcessor.java b/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/UnresolvedElementsSubProcessor.java
index 9b8b45b4cc..b966582951 100644
--- a/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/UnresolvedElementsSubProcessor.java
+++ b/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/corrections/proposals/UnresolvedElementsSubProcessor.java
@@ -550,6 +550,23 @@ private static boolean hasFieldWithName(ITypeBinding typeBinding, String name) {
 
 	private static int evauateTypeKind(ASTNode node, IJavaProject project) {
 		int kind = ASTResolving.getPossibleTypeKinds(node, JavaModelUtil.is50OrHigher(project));
+
+		/*
+		 *  TODO : This code block should be contributed to ASTResolving.getPossibleTypeKinds(..)
+		 *  Support determining type of the 'permits' node type.
+		 */
+		ASTNode parent = node.getParent();
+		if (parent instanceof Type) {
+			Type type = (Type) parent;
+			TypeDeclaration typeDecl = ASTNodes.getParent(node, TypeDeclaration.class);
+			if (type.getLocationInParent() == TypeDeclaration.PERMITS_TYPES_PROPERTY) {
+				kind = TypeKinds.CLASSES;
+				if (typeDecl != null && typeDecl.isInterface()) {
+					kind |= TypeKinds.INTERFACES;
+				}
+			}
+		}
+
 		return kind;
 	}
 
diff --git a/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/correction/UnresolvedTypesQuickFixTest.java b/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/correction/UnresolvedTypesQuickFixTest.java
index dc69a741a4..75e9305293 100644
--- a/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/correction/UnresolvedTypesQuickFixTest.java
+++ b/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/correction/UnresolvedTypesQuickFixTest.java
@@ -16,8 +16,10 @@
 package org.eclipse.jdt.ls.core.internal.correction;
 
 import java.util.ArrayList;
+import java.util.HashMap;
 import java.util.Hashtable;
 import java.util.List;
+import java.util.Map;
 
 import org.eclipse.core.runtime.Path;
 import org.eclipse.jdt.core.IClasspathAttribute;
@@ -26,6 +28,7 @@
 import org.eclipse.jdt.core.IPackageFragment;
 import org.eclipse.jdt.core.IPackageFragmentRoot;
 import org.eclipse.jdt.core.JavaCore;
+import org.eclipse.jdt.internal.corext.util.JavaModelUtil;
 import org.eclipse.jdt.ls.core.internal.JavaProjectHelper;
 import org.junit.Before;
 import org.junit.Ignore;
@@ -1400,4 +1403,30 @@ public void testDontImportTestClassesInMainCode() throws Exception {
 		assertCodeActionNotExists(cu1, "Import 'Tests' (pt)");
 	}
 
+	@Test
+	public void testTypeInSealedTypeDeclaration() throws Exception {
+		Map<String, String> options15 = new HashMap<>();
+		JavaModelUtil.setComplianceOptions(options15, JavaCore.VERSION_15);
+		options15.put(JavaCore.COMPILER_PB_ENABLE_PREVIEW_FEATURES, JavaCore.ENABLED);
+		options15.put(JavaCore.COMPILER_PB_REPORT_PREVIEW_FEATURES, JavaCore.IGNORE);
+		fJProject1.setOptions(options15);
+
+		IPackageFragment pack1 = fSourceFolder.createPackageFragment("test1", false, null);
+		StringBuilder buf = new StringBuilder();
+		buf.append("package test1;\n");
+		buf.append("public sealed interface E permits F {\n");
+		buf.append("}\n");
+		ICompilationUnit cu = pack1.createCompilationUnit("E.java", buf.toString(), false, null);
+
+		buf = new StringBuilder();
+		buf.append("package test1;\n");
+		buf.append("\n");
+		buf.append("public final class F implements E {\n");
+		buf.append("\n");
+		buf.append("}\n");
+		Expected e1 = new Expected("Create class 'F'", buf.toString());
+
+		assertCodeActions(cu, e1);
+	}
+
 }
\ No newline at end of file