diff --git a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/JetBundle.properties b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/JetBundle.properties
index 44cdc4aa6ea..381d1b95957 100644
--- a/idea/idea-analysis/src/org/jetbrains/kotlin/idea/JetBundle.properties
+++ b/idea/idea-analysis/src/org/jetbrains/kotlin/idea/JetBundle.properties
@@ -312,8 +312,6 @@ remove.explicit.type.arguments=Remove explicit type arguments
 remove.explicit.type.arguments.family=Remove Explicit Type Arguments
 convert.if.with.throw.to.assert=Replace 'if' with 'assert' statement
 convert.if.with.throw.to.assert.family=Replace 'if' with 'assert' Statement
-make.type.implicit.in.lambda=Make types implicit in lambda (may break code)
-make.type.implicit.in.lambda.family=Make Types Implicit In Lambda (May Break Code)
 
 replace.java.class.argument=Replace javaClass<T>() with T::class
 replace.java.class.argument.family=Replace javaClass<T>() with T::class
diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/MakeTypeImplicitInLambdaIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/MakeTypeImplicitInLambdaIntention.kt
index e6c9999cd3a..1645eef68a3 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/MakeTypeImplicitInLambdaIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/MakeTypeImplicitInLambdaIntention.kt
@@ -21,71 +21,18 @@ import org.jetbrains.kotlin.psi.JetFunctionLiteralExpression
 import org.jetbrains.kotlin.psi.JetPsiFactory
 import org.jetbrains.kotlin.lexer.JetTokens
 
-public class MakeTypeImplicitInLambdaIntention : JetSelfTargetingIntention<JetFunctionLiteralExpression>(
-        "make.type.implicit.in.lambda", javaClass()) {
+public class MakeTypeImplicitInLambdaIntention : JetSelfTargetingIntention<JetFunctionLiteralExpression>(javaClass(), "Make types implicit in lambda (may break code)") {
     override fun isApplicableTo(element: JetFunctionLiteralExpression, caretOffset: Int): Boolean {
-        val openBraceOffset = element.getLeftCurlyBrace().getStartOffset()
-        val closeBraceOffset = element.getRightCurlyBrace()?.getStartOffset()
-        val arrow = element.getFunctionLiteral().getArrowNode()
-        if (arrow != null && !(openBraceOffset < caretOffset && caretOffset < arrow.getStartOffset() + 2) &&
-            caretOffset != closeBraceOffset) return false
-        else if (arrow == null && caretOffset != openBraceOffset + 1 && caretOffset != closeBraceOffset) return false
-        return hasExplicitReturnType(element) || hasExplicitReceiverType(element) || hasExplicitParamType(element)
+        if (element.getValueParameters().none { it.getTypeReference() != null }) return false
+        val arrow = element.getFunctionLiteral().getArrowNode() ?: return false
+        return caretOffset <= arrow.getTextRange().getEndOffset()
     }
 
     override fun applyTo(element: JetFunctionLiteralExpression, editor: Editor) {
-        val functionLiteral = element.getFunctionLiteral()
-        val oldParameterList = functionLiteral.getValueParameterList()
+        val oldParameterList = element.getFunctionLiteral().getValueParameterList()!!
 
-        val psiFactory = JetPsiFactory(element)
-        if (hasExplicitReturnType(element)) {
-            val childAfterParamList = oldParameterList?.getNextSibling()
-            val arrow = functionLiteral.getArrowNode()?.getPsi()
-            val childBeforeArrow = arrow?.getPrevSibling()
-            functionLiteral.deleteChildRange(childAfterParamList, childBeforeArrow)
-            val whiteSpaceBeforeArrow = psiFactory.createWhiteSpace()
-            functionLiteral.addBefore(whiteSpaceBeforeArrow, arrow)
-        }
-
-        if (hasExplicitReceiverType(element)) {
-            val childAfterBrace = functionLiteral.getLBrace()?.getNextSibling()
-            val childBeforeParamList = oldParameterList?.getPrevSibling()
-            functionLiteral.deleteChildRange(childAfterBrace, childBeforeParamList)
-        }
-
-        if (oldParameterList?.getParameters() != null && hasExplicitParamType(element)) {
-            val parameterString = oldParameterList!!.getParameters().map({ parameter ->
-                                                                             parameter.getNameIdentifier()!!.getText()
-                                                                         }).makeString(", ", "(", ")")
-            val newParameterList = psiFactory.createParameterList(parameterString)
-            oldParameterList.replace(newParameterList)
-        }
-
-        if (!hasExplicitParamType(element)) {
-            val currentParamList = element.getFunctionLiteral().getValueParameterList()
-            val firstChild = currentParamList?.getFirstChild()
-            if (firstChild?.getNode()?.getElementType() == JetTokens.LPAR) firstChild!!.delete()
-            val lastChild = currentParamList?.getLastChild()
-            if (lastChild?.getNode()?.getElementType() == JetTokens.RPAR) lastChild!!.delete()
-        }
-    }
-
-    private fun hasExplicitReturnType(element: JetFunctionLiteralExpression): Boolean {
-        return element.hasDeclaredReturnType()
-    }
-
-    private fun hasExplicitReceiverType(element: JetFunctionLiteralExpression): Boolean {
-        return element.getFunctionLiteral().getReceiverTypeReference() != null
-    }
-
-    private fun hasExplicitParamType(element: JetFunctionLiteralExpression): Boolean {
-        val parameters = element.getFunctionLiteral().getValueParameterList()?.getParameters()
-        if (parameters == null) return false
-        var hasExplicitParamType = false
-        for (param in parameters) {
-            if (param.getTypeReference() != null) hasExplicitParamType = true
-            if (param.getNameIdentifier()?.getText() == null) return false
-        }
-        return hasExplicitParamType
+        val parameterString = oldParameterList.getParameters().map { it.getName() }.joinToString(", ")
+        val newParameterList = JetPsiFactory(element).createFunctionLiteralParameterList(parameterString)
+        oldParameterList.replace(newParameterList)
     }
 }
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt b/idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt
deleted file mode 100644
index 7d143d8eb18..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt
+++ /dev/null
@@ -1,9 +0,0 @@
-public class TestingUse {
-    fun test(sum: Int.(a: Int) -> Int, b: Int): Int {
-        return b.sum(b)
-    }
-}
-
-fun main() {
-    val num = TestingUse().test({ Int.(x: Int): Int -> x + 2 <caret>}, 20)
-}
\ No newline at end of file
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt.after b/idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt.after
deleted file mode 100644
index a98cfa2f954..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt.after
+++ /dev/null
@@ -1,9 +0,0 @@
-public class TestingUse {
-    fun test(sum: Int.(a: Int) -> Int, b: Int): Int {
-        return b.sum(b)
-    }
-}
-
-fun main() {
-    val num = TestingUse().test({ x -> x + 2 }, 20)
-}
\ No newline at end of file
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt b/idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt
deleted file mode 100644
index ebc5bb8a3f4..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt
+++ /dev/null
@@ -1,3 +0,0 @@
-fun main() {
-    val sum = { (<caret>x: Int, y: Int): Int -> x + y }
-}
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt.after b/idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt.after
deleted file mode 100644
index f40b050385f..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt.after
+++ /dev/null
@@ -1,3 +0,0 @@
-fun main() {
-    val sum = { x, y -> x + y }
-}
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/invalidCursorPosition.kt b/idea/testData/intentions/makeTypeImplicitInLambda/invalidCursorPosition.kt
index 8d8ab10de0a..bb27b205126 100644
--- a/idea/testData/intentions/makeTypeImplicitInLambda/invalidCursorPosition.kt
+++ b/idea/testData/intentions/makeTypeImplicitInLambda/invalidCursorPosition.kt
@@ -1,4 +1,4 @@
 // IS_APPLICABLE: false
 fun main() {
-    val sum = { (x: Int, y: Int) -> <caret>x + y }
+    val sum = { x: Int, y: Int -> <caret>x + y }
 }
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/lambdaWithLambdaAsParam.kt b/idea/testData/intentions/makeTypeImplicitInLambda/lambdaWithLambdaAsParam.kt
index 4eeb70c0333..a377f8a644c 100644
--- a/idea/testData/intentions/makeTypeImplicitInLambda/lambdaWithLambdaAsParam.kt
+++ b/idea/testData/intentions/makeTypeImplicitInLambda/lambdaWithLambdaAsParam.kt
@@ -4,5 +4,5 @@ public class TestingUse {
 }
 
 fun main() {
-    val funcInfunc = TestingUse().test6({<caret>(f: (Int) -> Int): Boolean -> f(5) > 20}, {x -> x + 2})
+    val funcInfunc = TestingUse().test6({<caret>f: (Int) -> Int -> f(5) > 20}, {x -> x + 2})
 }
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/multipleExplicitParams.kt b/idea/testData/intentions/makeTypeImplicitInLambda/multipleExplicitParams.kt
index 128bdc826ee..c70e095464e 100644
--- a/idea/testData/intentions/makeTypeImplicitInLambda/multipleExplicitParams.kt
+++ b/idea/testData/intentions/makeTypeImplicitInLambda/multipleExplicitParams.kt
@@ -1,3 +1,3 @@
 fun main() {
-    val f = {<caret> (x: Int, str: String): Unit -> x }
+    val f = {<caret> x: Int, str: String -> x }
 }
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/paramDeclaredReturnNotDeclared.kt b/idea/testData/intentions/makeTypeImplicitInLambda/paramDeclaredReturnNotDeclared.kt
deleted file mode 100644
index 5e6a7954e0c..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/paramDeclaredReturnNotDeclared.kt
+++ /dev/null
@@ -1,3 +0,0 @@
-fun main() {
-    val foo: (Int) -> String = {(x: Int) -> "This number is " + x<caret>}
-}
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/paramTypeDeclared.kt b/idea/testData/intentions/makeTypeImplicitInLambda/paramTypeDeclared.kt
new file mode 100644
index 00000000000..7e16596908d
--- /dev/null
+++ b/idea/testData/intentions/makeTypeImplicitInLambda/paramTypeDeclared.kt
@@ -0,0 +1,3 @@
+fun main() {
+    val foo: (Int) -> String = {x: Int<caret> -> "This number is " + x}
+}
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/paramDeclaredReturnNotDeclared.kt.after b/idea/testData/intentions/makeTypeImplicitInLambda/paramTypeDeclared.kt.after
similarity index 100%
rename from idea/testData/intentions/makeTypeImplicitInLambda/paramDeclaredReturnNotDeclared.kt.after
rename to idea/testData/intentions/makeTypeImplicitInLambda/paramTypeDeclared.kt.after
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt b/idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt
deleted file mode 100644
index e3ea2cf2faa..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt
+++ /dev/null
@@ -1,3 +0,0 @@
-fun main() {
-    val bar: (Array<String>) -> Int = {<caret>(arr): Int -> arr.size()}
-}
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt.after b/idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt.after
deleted file mode 100644
index ade25630210..00000000000
--- a/idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt.after
+++ /dev/null
@@ -1,3 +0,0 @@
-fun main() {
-    val bar: (Array<String>) -> Int = { arr -> arr.size()}
-}
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/singleExplicitParam.kt b/idea/testData/intentions/makeTypeImplicitInLambda/singleExplicitParam.kt
index cfd7e850334..7f1920df3f7 100644
--- a/idea/testData/intentions/makeTypeImplicitInLambda/singleExplicitParam.kt
+++ b/idea/testData/intentions/makeTypeImplicitInLambda/singleExplicitParam.kt
@@ -1,3 +1,3 @@
 fun main() {
-    val double = { (<caret>x: Int) -> x * 2 }
+    val double = { <caret>x: Int -> x * 2 }
 }
diff --git a/idea/testData/intentions/makeTypeImplicitInLambda/typesAlreadyImplicit.kt b/idea/testData/intentions/makeTypeImplicitInLambda/typesAlreadyImplicit.kt
index 9a0731949b6..ec1d85fca9a 100644
--- a/idea/testData/intentions/makeTypeImplicitInLambda/typesAlreadyImplicit.kt
+++ b/idea/testData/intentions/makeTypeImplicitInLambda/typesAlreadyImplicit.kt
@@ -4,5 +4,5 @@ fun testing(x: Int, y: Int, f: (a: Int, b: Int) -> Int): Int {
 }
 
 fun main() {
-    val num = testing(1, 2, { x, y -> x + y <caret>})
+    val num = testing(1, 2, {<caret> x, y -> x + y })
 }
diff --git a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
index 6afba0b33bf..13b4c7247ca 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
@@ -4357,18 +4357,6 @@ public class IntentionTestGenerated extends AbstractIntentionTest {
             JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/intentions/makeTypeImplicitInLambda"), Pattern.compile("^(.+)\\.kt$"), true);
         }
 
-        @TestMetadata("explicitReceiverType.kt")
-        public void testExplicitReceiverType() throws Exception {
-            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/makeTypeImplicitInLambda/explicitReceiverType.kt");
-            doTest(fileName);
-        }
-
-        @TestMetadata("explicitReturnType.kt")
-        public void testExplicitReturnType() throws Exception {
-            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/makeTypeImplicitInLambda/explicitReturnType.kt");
-            doTest(fileName);
-        }
-
         @TestMetadata("invalidCursorPosition.kt")
         public void testInvalidCursorPosition() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/makeTypeImplicitInLambda/invalidCursorPosition.kt");
@@ -4387,15 +4375,9 @@ public class IntentionTestGenerated extends AbstractIntentionTest {
             doTest(fileName);
         }
 
-        @TestMetadata("paramDeclaredReturnNotDeclared.kt")
-        public void testParamDeclaredReturnNotDeclared() throws Exception {
-            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/makeTypeImplicitInLambda/paramDeclaredReturnNotDeclared.kt");
-            doTest(fileName);
-        }
-
-        @TestMetadata("returnDeclaredParamNotDeclared.kt")
-        public void testReturnDeclaredParamNotDeclared() throws Exception {
-            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/makeTypeImplicitInLambda/returnDeclaredParamNotDeclared.kt");
+        @TestMetadata("paramTypeDeclared.kt")
+        public void testParamTypeDeclared() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/makeTypeImplicitInLambda/paramTypeDeclared.kt");
             doTest(fileName);
         }