diff --git a/idea/idea-replacement-engine/src/org/jetbrains/kotlin/idea/replacement/ReplacementBuilder.kt b/idea/idea-replacement-engine/src/org/jetbrains/kotlin/idea/replacement/ReplacementBuilder.kt
index e8db0e34c64..bc4f7edeadb 100644
--- a/idea/idea-replacement-engine/src/org/jetbrains/kotlin/idea/replacement/ReplacementBuilder.kt
+++ b/idea/idea-replacement-engine/src/org/jetbrains/kotlin/idea/replacement/ReplacementBuilder.kt
@@ -39,6 +39,8 @@ import org.jetbrains.kotlin.resolve.descriptorUtil.isExtension
 import org.jetbrains.kotlin.resolve.descriptorUtil.module
 import org.jetbrains.kotlin.resolve.scopes.LexicalScope
 import org.jetbrains.kotlin.resolve.scopes.receivers.ImplicitReceiver
+import org.jetbrains.kotlin.types.KotlinType
+import org.jetbrains.kotlin.types.TypeUtils
 import org.jetbrains.kotlin.types.expressions.ExpressionTypingServices
 import java.util.*
 
@@ -49,13 +51,14 @@ class ReplacementBuilder(
     fun buildReplacementExpression(
             expression: KtExpression,
             resolutionScope: LexicalScope,
+            expectedType: KotlinType = TypeUtils.NO_EXPECTED_TYPE,
             importFqNames: Collection<FqName> = emptyList(),
             copyExpression: Boolean = true
     ): ReplacementExpression {
         @Suppress("NAME_SHADOWING")
         var expression = if (copyExpression) expression.copied() else expression
 
-        var bindingContext = analyzeInContext(expression, resolutionScope)
+        var bindingContext = analyzeInContext(expression, resolutionScope, expectedType)
 
         val typeArgsToAdd = ArrayList<Pair<KtCallExpression, KtTypeArgumentList>>()
         expression.forEachDescendantOfType<KtCallExpression> {
@@ -70,7 +73,7 @@ class ReplacementBuilder(
             }
 
             // reanalyze expression - new usages of type parameters may be added
-            bindingContext = analyzeInContext(expression, resolutionScope)
+            bindingContext = analyzeInContext(expression, resolutionScope, expectedType)
         }
 
         val receiversToAdd = ArrayList<Pair<KtExpression, KtExpression>>()
@@ -122,8 +125,7 @@ class ReplacementBuilder(
         return ReplacementExpression(expression, resultImportFqNames)
     }
 
-    //TODO: there can be expected type and maybe something else
-    private fun analyzeInContext(expression: KtExpression, scope: LexicalScope): BindingContext {
+    private fun analyzeInContext(expression: KtExpression, scope: LexicalScope, expectedType: KotlinType): BindingContext {
         val module = scope.ownerDescriptor.module
         val frontendService = if (module.builtIns.builtInsModule == module) {
             // TODO: doubtful place, do we require this module or not? Built-ins module doesn't have some necessary components...
@@ -132,6 +134,6 @@ class ReplacementBuilder(
         else {
             resolutionFacade.getFrontendService(module, ExpressionTypingServices::class.java)
         }
-        return expression.analyzeInContext(scope, expressionTypingServices = frontendService)
+        return expression.analyzeInContext(scope, expectedType = expectedType, expressionTypingServices = frontendService)
     }
 }
\ No newline at end of file
diff --git a/idea/src/org/jetbrains/kotlin/idea/quickfix/replaceWith/ReplaceWithAnnotationAnalyzer.kt b/idea/src/org/jetbrains/kotlin/idea/quickfix/replaceWith/ReplaceWithAnnotationAnalyzer.kt
index 1ed3da50e34..0e61ce067d1 100644
--- a/idea/src/org/jetbrains/kotlin/idea/quickfix/replaceWith/ReplaceWithAnnotationAnalyzer.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/quickfix/replaceWith/ReplaceWithAnnotationAnalyzer.kt
@@ -76,7 +76,7 @@ object ReplaceWithAnnotationAnalyzer {
                                        listOf(explicitImportsScope) + defaultImportsScopes) ?: return null
 
         return ReplacementBuilder(symbolDescriptor, resolutionFacade)
-                .buildReplacementExpression(expression, scope, importFqNames(annotation), copyExpression = false)
+                .buildReplacementExpression(expression, scope, importFqNames = importFqNames(annotation), copyExpression = false)
     }
 
     fun analyzeClassReplacement(
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt
index bee98ef69e9..44471308fb4 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt
@@ -32,6 +32,7 @@ import org.jetbrains.kotlin.idea.replacement.ReplacementBuilder
 import org.jetbrains.kotlin.idea.replacement.replaceUsagesInWholeProject
 import org.jetbrains.kotlin.idea.util.getResolutionScope
 import org.jetbrains.kotlin.psi.KtNamedFunction
+import org.jetbrains.kotlin.types.TypeUtils
 
 class KotlinInlineFunctionHandler: InlineActionHandler() {
     override fun isEnabledForLanguage(language: Language) = language == KotlinLanguage.INSTANCE
@@ -48,8 +49,12 @@ class KotlinInlineFunctionHandler: InlineActionHandler() {
         val descriptor = element.resolveToDescriptor() as SimpleFunctionDescriptor
 
         val bodyExpression = element.bodyExpression!!
+        val expectedType = if (element.hasDeclaredReturnType())
+            descriptor.returnType ?: TypeUtils.NO_EXPECTED_TYPE
+        else
+            TypeUtils.NO_EXPECTED_TYPE
         val replacement = ReplacementBuilder(descriptor, element.getResolutionFacade())
-                .buildReplacementExpression(bodyExpression, bodyExpression.getResolutionScope())
+                .buildReplacementExpression(bodyExpression, bodyExpression.getResolutionScope(), expectedType)
 
         val commandName = RefactoringBundle.message("inline.command", element.name)
         CallableUsageReplacementStrategy(replacement)
diff --git a/idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt b/idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt
new file mode 100644
index 00000000000..18ac96df0e8
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt
@@ -0,0 +1,6 @@
+fun <caret>f(): List<String> = emptyList()
+
+fun main(args: Array<String>) {
+    val list1 = f()
+    val list2: List<String> = f()
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt.after b/idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt.after
new file mode 100644
index 00000000000..2a60b08ec7e
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt.after
@@ -0,0 +1,4 @@
+fun main(args: Array<String>) {
+    val list1 = emptyList<String>()
+    val list2: List<String> = emptyList()
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
index 670c455c7ee..90fe8c7b215 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
@@ -69,6 +69,12 @@ public class InlineTestGenerated extends AbstractInlineTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("ExplicitReturnType.kt")
+            public void testExplicitReturnType() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/ExplicitReturnType.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("FromUsage.kt")
             public void testFromUsage() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/FromUsage.kt");