diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveDeclarations/ExtractDeclarationFromCurrentFileIntention.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveDeclarations/ExtractDeclarationFromCurrentFileIntention.kt
index c2fc1e870c5..ffe4e0266b6 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveDeclarations/ExtractDeclarationFromCurrentFileIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveDeclarations/ExtractDeclarationFromCurrentFileIntention.kt
@@ -11,7 +11,10 @@ import com.intellij.codeInsight.navigation.NavigationUtil
 import com.intellij.openapi.application.ApplicationManager
 import com.intellij.openapi.editor.Editor
 import com.intellij.openapi.fileEditor.FileEditorManager
+import com.intellij.openapi.project.Project
 import com.intellij.openapi.util.TextRange
+import com.intellij.psi.PsiDirectory
+import com.intellij.psi.PsiFile
 import com.intellij.refactoring.move.MoveCallback
 import com.intellij.refactoring.util.CommonRefactoringUtil
 import kotlinx.coroutines.runBlocking
@@ -22,7 +25,9 @@ import org.jetbrains.kotlin.idea.core.moveCaret
 import org.jetbrains.kotlin.idea.intentions.SelfTargetingRangeIntention
 import org.jetbrains.kotlin.idea.refactoring.createKotlinFile
 import org.jetbrains.kotlin.idea.refactoring.move.moveDeclarations.ui.MoveKotlinTopLevelDeclarationsDialog
+import org.jetbrains.kotlin.idea.refactoring.showWithTransaction
 import org.jetbrains.kotlin.lexer.KtTokens
+import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.endOffset
 import org.jetbrains.kotlin.psi.psiUtil.isAncestor
@@ -47,11 +52,10 @@ class ExtractDeclarationFromCurrentFileIntention :
     }
 
     override fun applicabilityRange(element: KtClassOrObject): TextRange? {
-        if (element.name == null) return null
+        element.name ?: return null
         if (element.parent !is KtFile) return null
         if (element.hasModifier(KtTokens.PRIVATE_KEYWORD)) return null
-        if (element.containingKtFile.declarations.size == 1) return null
-
+        if (element.containingKtFile.run { declarations.size == 1 || containingDirectory === null }) return null
         val extraClassesToMove = element.tryGetExtraClassesToMove() ?: return null
 
         val startOffset = when (element) {
@@ -71,7 +75,7 @@ class ExtractDeclarationFromCurrentFileIntention :
     override fun startInWriteAction() = false
 
     override fun applyTo(element: KtClassOrObject, editor: Editor?) {
-        if (editor == null) throw IllegalArgumentException("This intention requires an editor")
+        requireNotNull(editor) { "This intention requires an editor" }
         val file = element.containingKtFile
         val project = file.project
         val originalOffset = editor.caretModel.offset - element.startOffset
@@ -79,38 +83,17 @@ class ExtractDeclarationFromCurrentFileIntention :
         val packageName = file.packageFqName
         val targetFileName = "${element.name}.kt"
         val targetFile = directory.findFile(targetFileName)
-        if (targetFile != null) {
+
+        if (targetFile !== null) {
             if (ApplicationManager.getApplication().isUnitTestMode) {
                 throw CommonRefactoringUtil.RefactoringErrorHintException("File $targetFileName already exists")
             }
-
             // If automatic move is not possible, fall back to full-fledged Move Declarations refactoring
-            ApplicationManager.getApplication().invokeLater {
-                MoveKotlinTopLevelDeclarationsDialog(
-                    project,
-                    setOf(element),
-                    packageName.asString(),
-                    directory,
-                    targetFile as? KtFile,
-                    true,
-                    true,
-                    true,
-                    true,
-                    MoveCallback {
-                        runBlocking {
-                            withTimeoutOrNull(TIMEOUT_FOR_IMPORT_OPTIMIZING_MS) {
-                                OptimizeImportsProcessor(
-                                    project,
-                                    file
-                                ).run()
-                            }
-                        }
-                    }
-                ).show()
-            }
+            runFullFledgedMoveRefactoring(project, element, packageName, directory, targetFile, file)
             return
         }
-        val moveTarget = KotlinMoveTargetForDeferredFile(packageName, directory, null) {
+
+        val moveTarget = KotlinMoveTargetForDeferredFile(packageName, directory, targetFile = null) {
             createKotlinFile(targetFileName, directory, packageName.asString())
         }
 
@@ -120,22 +103,57 @@ class ExtractDeclarationFromCurrentFileIntention :
             }
             ?: MoveSource(element)
 
+        val moveCallBack = MoveCallback {
+            val newFile = directory.findFile(targetFileName) as KtFile
+            val newDeclaration = newFile.declarations.first()
+            NavigationUtil.activateFileWithPsiElement(newFile)
+            FileEditorManager.getInstance(project).selectedTextEditor?.moveCaret(newDeclaration.startOffset + originalOffset)
+            runBlocking { withTimeoutOrNull(TIMEOUT_FOR_IMPORT_OPTIMIZING_MS) { OptimizeImportsProcessor(project, file).run() } }
+        }
+
         val descriptor = MoveDeclarationsDescriptor(
-            project = project,
-            moveSource = moveSource,
-            moveTarget = moveTarget,
-            delegate = MoveDeclarationsDelegate.TopLevel,
+            project,
+            moveSource,
+            moveTarget,
+            MoveDeclarationsDelegate.TopLevel,
             searchInCommentsAndStrings = false,
             searchInNonCode = false,
-            moveCallback = MoveCallback {
-                val newFile = directory.findFile(targetFileName) as KtFile
-                val newDeclaration = newFile.declarations.first()
-                NavigationUtil.activateFileWithPsiElement(newFile)
-                FileEditorManager.getInstance(project).selectedTextEditor?.moveCaret(newDeclaration.startOffset + originalOffset)
-                runBlocking { withTimeoutOrNull(TIMEOUT_FOR_IMPORT_OPTIMIZING_MS) { OptimizeImportsProcessor(project, file).run() } }
-            }
+            moveCallback = moveCallBack
         )
 
         MoveKotlinDeclarationsProcessor(descriptor).run()
     }
+
+    private fun runFullFledgedMoveRefactoring(
+        project: Project,
+        element: KtClassOrObject,
+        packageName: FqName,
+        directory: PsiDirectory,
+        targetFile: PsiFile?,
+        file: KtFile
+    ) {
+        ApplicationManager.getApplication().invokeLater {
+
+            val callBack = MoveCallback {
+                runBlocking {
+                    withTimeoutOrNull(TIMEOUT_FOR_IMPORT_OPTIMIZING_MS) {
+                        OptimizeImportsProcessor(project, file).run()
+                    }
+                }
+            }
+
+            MoveKotlinTopLevelDeclarationsDialog(
+                project,
+                setOf(element),
+                packageName.asString(),
+                directory,
+                targetFile as? KtFile,
+                /* moveToPackage = */ true,
+                /* searchInComments = */ true,
+                /* searchForTextOccurrences = */ true,
+                /* deleteEmptySourceFiles = */ true,
+                callBack
+            ).showWithTransaction()
+        }
+    }
 }
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