diff --git a/idea/src/org/jetbrains/kotlin/idea/actions/JavaToKotlinAction.kt b/idea/src/org/jetbrains/kotlin/idea/actions/JavaToKotlinAction.kt
index a1185eb4746..fd217cfc90d 100644
--- a/idea/src/org/jetbrains/kotlin/idea/actions/JavaToKotlinAction.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/actions/JavaToKotlinAction.kt
@@ -54,6 +54,7 @@ public class JavaToKotlinAction : AnAction() {
                                                   IdeaReferenceSearcher, IdeaResolverForConverter, J2kPostProcessor(formatCode = true))
             val inputElements = javaFiles.map { JavaToKotlinConverter.InputElement(it, it) }
             convertedTexts = converter.elementsToKotlin(inputElements, ProgressManager.getInstance().getProgressIndicator())
+                    .map { it!!.text /*conversion of a file always succeeds*/ }
         }
 
         if (!ProgressManager.getInstance().runProcessWithProgressSynchronously(
diff --git a/idea/src/org/jetbrains/kotlin/idea/codeInsight/KotlinCopyPasteReferenceProcessor.kt b/idea/src/org/jetbrains/kotlin/idea/codeInsight/KotlinCopyPasteReferenceProcessor.kt
index 2af80f9db83..ac0da71dc17 100644
--- a/idea/src/org/jetbrains/kotlin/idea/codeInsight/KotlinCopyPasteReferenceProcessor.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/codeInsight/KotlinCopyPasteReferenceProcessor.kt
@@ -85,11 +85,7 @@ public class KotlinCopyPasteReferenceProcessor() : CopyPastePostProcessor<Kotlin
         if (file !is JetFile || DumbService.getInstance(file.getProject()).isDumb()) return listOf()
 
         val collectedData = try {
-            toTextRanges(startOffsets, endOffsets).flatMap {
-                CollectHighlightsUtil.getElementsInRange(file, it.start, it.end).flatMap { element ->
-                    collectReferenceDataFromElement(element, file, it.start, startOffsets, endOffsets)
-                }
-            }
+            collectReferenceData(file, startOffsets, endOffsets)
         }
         catch (e: ProcessCanceledException) {
             // supposedly analysis can only be canceled from another thread
@@ -107,23 +103,36 @@ public class KotlinCopyPasteReferenceProcessor() : CopyPastePostProcessor<Kotlin
         return listOf(KotlinReferenceTransferableData(collectedData.copyToArray()))
     }
 
-    private fun collectReferenceDataFromElement(
+    public fun collectReferenceData(
+            file: JetFile,
+            startOffsets: IntArray,
+            endOffsets: IntArray
+    ): List<KotlinReferenceData> {
+        val result = ArrayList<KotlinReferenceData>()
+        for (range in toTextRanges(startOffsets, endOffsets)) {
+            for (element in CollectHighlightsUtil.getElementsInRange(file, range.start, range.end)) {
+                result.addReferenceDataFromElement(element, file, range.start, startOffsets, endOffsets)
+            }
+        }
+        return result
+    }
+
+    private fun MutableCollection<KotlinReferenceData>.addReferenceDataFromElement(
             element: PsiElement,
             file: JetFile,
             startOffset: Int,
             startOffsets: IntArray,
             endOffsets: IntArray
-    ): Collection<KotlinReferenceData> {
+    ) {
 
-        if (PsiTreeUtil.getParentOfType(element, *IGNORE_REFERENCES_INSIDE) != null) return listOf()
+        if (PsiTreeUtil.getParentOfType(element, *IGNORE_REFERENCES_INSIDE) != null) return
 
-        val reference = element.getReference() as? JetReference ?: return listOf()
+        val reference = element.getReference() as? JetReference ?: return
 
         val descriptors = reference.resolveToDescriptors((element as JetElement).analyze()) //TODO: we could use partial body resolve for all references together
         //check whether this reference is unambiguous
-        if (reference !is JetMultiReference<*> && descriptors.size() > 1) return listOf()
+        if (reference !is JetMultiReference<*> && descriptors.size() > 1) return
 
-        val collectedData = ArrayList<KotlinReferenceData>()
         for (descriptor in descriptors) {
             val declarations = DescriptorToSourceUtilsIde.getAllDeclarations(file.getProject(), descriptor)
             val declaration = declarations.singleOrNull()
@@ -139,9 +148,8 @@ public class KotlinCopyPasteReferenceProcessor() : CopyPastePostProcessor<Kotlin
             if (!descriptor.canBeReferencedViaImport()) continue
 
             val kind = referenceDataKind(descriptor) ?: continue
-            collectedData.add(KotlinReferenceData(element.range.start - startOffset, element.range.end - startOffset, fqName.asString(), kind))
+            add(KotlinReferenceData(element.range.start - startOffset, element.range.end - startOffset, fqName.asString(), kind))
         }
-        return collectedData
     }
 
     private fun referenceDataKind(descriptor: DeclarationDescriptor): KotlinReferenceData.Kind? {
@@ -179,12 +187,16 @@ public class KotlinCopyPasteReferenceProcessor() : CopyPastePostProcessor<Kotlin
         val file = PsiDocumentManager.getInstance(project).getPsiFile(document)
         if (file !is JetFile) return
 
+        assert(values.size() == 1)
+        val referenceData = values.single().data
+
+        processReferenceData(project, file, bounds.getStartOffset(), referenceData)
+    }
+
+    public fun processReferenceData(project: Project, file: JetFile, boundStart: Int, referenceData: Array<KotlinReferenceData>) {
         PsiDocumentManager.getInstance(project).commitAllDocuments()
 
-        assert(values.size() == 1)
-
-        val referenceData = values.single().data
-        val referencesPossibleToRestore = findReferencesToRestore(file, bounds, referenceData)
+        val referencesPossibleToRestore = findReferencesToRestore(file, boundStart, referenceData)
 
         val selectedReferencesToRestore = showRestoreReferencesDialog(project, referencesPossibleToRestore)
         if (selectedReferencesToRestore.isEmpty()) return
@@ -192,14 +204,13 @@ public class KotlinCopyPasteReferenceProcessor() : CopyPastePostProcessor<Kotlin
         ApplicationManager.getApplication()!!.runWriteAction(Runnable {
             restoreReferences(selectedReferencesToRestore, file)
         })
-        PsiDocumentManager.getInstance(project).commitAllDocuments()
     }
 
-    private fun findReferencesToRestore(file: PsiFile, bounds: RangeMarker, referenceData: Array<out KotlinReferenceData>): List<ReferenceToRestoreData> {
+    private fun findReferencesToRestore(file: PsiFile, boundStart: Int, referenceData: Array<out KotlinReferenceData>): List<ReferenceToRestoreData> {
         if (file !is JetFile) return listOf()
 
         return referenceData.map {
-            val referenceElement = findReference(it, file, bounds)
+            val referenceElement = findReference(it, file, boundStart)
             if (referenceElement != null)
                 createReferenceToRestoreData(referenceElement, it)
             else
@@ -207,9 +218,9 @@ public class KotlinCopyPasteReferenceProcessor() : CopyPastePostProcessor<Kotlin
         }.filterNotNull()
     }
 
-    private fun findReference(data: KotlinReferenceData, file: JetFile, bounds: RangeMarker): JetElement? {
-        val startOffset = data.startOffset + bounds.getStartOffset()
-        val endOffset = data.endOffset + bounds.getStartOffset()
+    private fun findReference(data: KotlinReferenceData, file: JetFile, boundStart: Int): JetElement? {
+        val startOffset = data.startOffset + boundStart
+        val endOffset = data.endOffset + boundStart
         val element = file.findElementAt(startOffset)
         val desiredRange = TextRange(startOffset, endOffset)
         var expression = element
diff --git a/idea/src/org/jetbrains/kotlin/idea/conversion/copy/ConvertJavaCopyPastePostProcessor.kt b/idea/src/org/jetbrains/kotlin/idea/conversion/copy/ConvertJavaCopyPastePostProcessor.kt
index 2f51a6e9d08..d06047b5c47 100644
--- a/idea/src/org/jetbrains/kotlin/idea/conversion/copy/ConvertJavaCopyPastePostProcessor.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/conversion/copy/ConvertJavaCopyPastePostProcessor.kt
@@ -28,17 +28,18 @@ import com.intellij.openapi.project.Project
 import com.intellij.openapi.util.Ref
 import com.intellij.openapi.util.TextRange
 import com.intellij.psi.*
-import com.intellij.psi.codeStyle.CodeStyleManager
+import org.jetbrains.kotlin.idea.codeInsight.KotlinCopyPasteReferenceProcessor
+import org.jetbrains.kotlin.idea.codeInsight.KotlinReferenceData
 import org.jetbrains.kotlin.idea.editor.JetEditorOptions
 import org.jetbrains.kotlin.idea.j2k.IdeaResolverForConverter
 import org.jetbrains.kotlin.idea.j2k.J2kPostProcessor
-import org.jetbrains.kotlin.j2k.AfterConversionPass
-import org.jetbrains.kotlin.j2k.ConverterSettings
-import org.jetbrains.kotlin.j2k.IdeaReferenceSearcher
-import org.jetbrains.kotlin.j2k.JavaToKotlinConverter
+import org.jetbrains.kotlin.j2k.*
+import org.jetbrains.kotlin.name.FqName
+import org.jetbrains.kotlin.name.FqNameUnsafe
+import org.jetbrains.kotlin.platform.JavaToKotlinClassMap
 import org.jetbrains.kotlin.psi.JetFile
+import org.jetbrains.kotlin.psi.JetPsiFactory
 import org.jetbrains.kotlin.psi.psiUtil.elementsInRange
-import org.jetbrains.kotlin.psi.psiUtil.parents
 import java.awt.datatransfer.Transferable
 import java.util.ArrayList
 
@@ -69,43 +70,80 @@ public class ConvertJavaCopyPastePostProcessor : CopyPastePostProcessor<TextBloc
         val data = values.single()
         if (data !is CopiedCode) return
 
-        val targetFile = PsiDocumentManager.getInstance(project).getPsiFile(editor.getDocument()) as? JetFile ?: return
+        val document = editor.getDocument()
+        val targetFile = PsiDocumentManager.getInstance(project).getPsiFile(document) as? JetFile ?: return
 
-        fun doConversion(): String? {
+        fun doConversion(): Pair<String?, Collection<KotlinReferenceData>> {
+            //TODO: create it in correct context!
             val sourceFile = PsiFileFactory.getInstance(project).
                     createFileFromText(data.fileName, JavaLanguage.INSTANCE, data.fileText) as PsiJavaFile
-            return convertCopiedCodeToKotlin(data, sourceFile)
+            val result = convertCopiedCodeToKotlin(data, sourceFile)
+            val referenceData = buildReferenceData(result.text, result.parseContext, sourceFile, targetFile)
+            return (if (result.textChanged) result.text else null) to referenceData
         }
 
-        var conversionResult: String? = null
+        fun insertImports(bounds: TextRange, referenceData: Collection<KotlinReferenceData>): TextRange? {
+            if (referenceData.isEmpty()) return bounds
+
+            val rangeMarker = document.createRangeMarker(bounds)
+            rangeMarker.setGreedyToLeft(true)
+            rangeMarker.setGreedyToRight(true)
+
+            KotlinCopyPasteReferenceProcessor().processReferenceData(project, targetFile, bounds.start, referenceData.copyToArray())
+
+            return rangeMarker.range
+        }
+
+        var conversionResult: Pair<String?, Collection<KotlinReferenceData>>? = null
+
+        fun doConversionAndInsertImportsIfNoConversion(): Boolean {
+            conversionResult = doConversion()
+
+            val text = conversionResult!!.first
+            if (text != null) return false
+
+            insertImports(bounds.range ?: return true, conversionResult!!.second)
+            return true
+        }
 
         val textLength = data.startOffsets.indices.sumBy { data.endOffsets[it] - data.startOffsets[it] }
         if (textLength < 1000) { // if the text to convert is short enough, try to do conversion without permission from user and skip the dialog if nothing converted
-            conversionResult = doConversion() ?: return
+            if (doConversionAndInsertImportsIfNoConversion()) return
         }
 
         val jetEditorOptions = JetEditorOptions.getInstance()!!
         val needConvert = jetEditorOptions.isEnableJavaToKotlinConversion() && (jetEditorOptions.isDonTShowConversionDialog() || okFromDialog(project))
         if (needConvert) {
             if (conversionResult == null) {
-                conversionResult = doConversion() ?: return
+                if (doConversionAndInsertImportsIfNoConversion()) return
             }
+            val (text, referenceData) = conversionResult!!
+            text!! // otherwise we should get true from doConversionAndInsertImportsIfNoConversion and return above
+
             ApplicationManager.getApplication()!!.runWriteAction {
                 val startOffset = bounds.getStartOffset()
-                editor.getDocument().replaceString(startOffset, bounds.getEndOffset(), conversionResult!!)
+                document.replaceString(startOffset, bounds.getEndOffset(), text)
 
-                val endOffsetAfterCopy = startOffset + conversionResult!!.length()
+                val endOffsetAfterCopy = startOffset + text.length()
                 editor.getCaretModel().moveToOffset(endOffsetAfterCopy)
 
+                var newBounds = insertImports(TextRange(startOffset, endOffsetAfterCopy), referenceData)
+
                 PsiDocumentManager.getInstance(project).commitAllDocuments()
-                AfterConversionPass(project, J2kPostProcessor(formatCode = true)).run(targetFile, TextRange(startOffset, endOffsetAfterCopy))
+                AfterConversionPass(project, J2kPostProcessor(formatCode = true)).run(targetFile, newBounds)
 
                 conversionPerformed = true
             }
         }
     }
 
-    private fun convertCopiedCodeToKotlin(code: CopiedCode, sourceFile: PsiJavaFile): String? {
+    private data class ConversionResult(
+            val text: String,
+            val parseContext: ParseContext,
+            val textChanged: Boolean
+    )
+
+    private fun convertCopiedCodeToKotlin(code: CopiedCode, sourceFile: PsiJavaFile): ConversionResult {
         assert(code.startOffsets.size() == code.endOffsets.size(), "Must have the same size")
         val sourceFileText = code.fileText
 
@@ -114,8 +152,6 @@ public class ConvertJavaCopyPastePostProcessor : CopyPastePostProcessor<TextBloc
             list.collectElementsToConvert(sourceFile, sourceFileText, TextRange(code.startOffsets[i], code.endOffsets[i]))
         }
 
-        if (list.all { it is String }) return null // nothing to convert
-
         val converter = JavaToKotlinConverter(
                 sourceFile.getProject(),
                 ConverterSettings.defaultSettings,
@@ -130,12 +166,16 @@ public class ConvertJavaCopyPastePostProcessor : CopyPastePostProcessor<TextBloc
         var resultIndex = 0
         val convertedCodeBuilder = StringBuilder()
         val originalCodeBuilder = StringBuilder()
+        var parseContext: ParseContext? = null
         for (o in list) {
             if (o is PsiElement) {
                 val originalText = o.getText()
                 val result = results[resultIndex++]
-                if (!result.isEmpty()) {
-                    convertedCodeBuilder.append(result)
+                if (result != null) {
+                    convertedCodeBuilder.append(result.text)
+                    if (parseContext == null) { // use parse context of the first converted element as parse context for the whole text
+                        parseContext = result.parseContext
+                    }
                 }
                 else { // failed to convert element to Kotlin, insert "as is"
                     convertedCodeBuilder.append(originalText)
@@ -150,9 +190,7 @@ public class ConvertJavaCopyPastePostProcessor : CopyPastePostProcessor<TextBloc
 
         val convertedCode = convertedCodeBuilder.toString()
         val originalCode = originalCodeBuilder.toString()
-        if (convertedCode == originalCode) return null
-
-        return convertedCode
+        return ConversionResult(convertedCode, parseContext ?: ParseContext.TOP_LEVEL, convertedCode != originalCode)
     }
 
     // builds list consisting of PsiElement's to convert and plain String's
@@ -172,6 +210,76 @@ public class ConvertJavaCopyPastePostProcessor : CopyPastePostProcessor<TextBloc
         }
     }
 
+    private fun buildReferenceData(text: String, parseContext: ParseContext, sourceFile: PsiJavaFile, targetFile: JetFile): Collection<KotlinReferenceData> {
+        var blockStart: Int? = null
+        var blockEnd: Int? = null
+        val fileText = StringBuilder {
+            val packageName = sourceFile.getPackageName()
+            if (!packageName.isEmpty()) {
+                append("package ").append(packageName).append("\n")
+            }
+
+            val importList = sourceFile.getImportList()
+            if (importList != null) {
+                for (import in importList.getImportStatements()) {
+                    val qualifiedName = import.getQualifiedName() ?: continue
+                    if (import.isOnDemand()) {
+                        append("import ").append(qualifiedName).append(".*\n")
+                    }
+                    else {
+                        val fqName = FqNameUnsafe(qualifiedName)
+                        // skip explicit imports of platform classes mapped into Kotlin classes
+                        if (fqName.isSafe() && JavaToKotlinClassMap.INSTANCE.mapPlatformClass(fqName.toSafe()).isNotEmpty()) continue
+                        append("import ").append(qualifiedName).append("\n")
+                    }
+                }
+                //TODO: static imports
+            }
+
+
+            val contextPrefix: String
+            val contextSuffix: String
+            when (parseContext) {
+                ParseContext.CODE_BLOCK -> {
+                    contextPrefix = "fun ${generateDummyFunctionName(text)}() {\n"
+                    contextSuffix = "\n}"
+                }
+
+                ParseContext.TOP_LEVEL -> {
+                    contextPrefix = ""
+                    contextSuffix = ""
+                }
+
+                //TODO: see KT-7264
+                else -> {
+                    contextPrefix = ""
+                    contextSuffix = ""
+                }
+            }
+
+            append(contextPrefix)
+
+            blockStart = length()
+            append(text)
+            blockEnd = length()
+
+            append(contextSuffix)
+        }.toString()
+
+        val dummyFile = JetPsiFactory(targetFile.getProject()).createAnalyzableFile("dummy.kt", fileText, targetFile)
+
+        return KotlinCopyPasteReferenceProcessor().collectReferenceData(dummyFile, intArray(blockStart!!), intArray(blockEnd!!))
+    }
+
+    private fun generateDummyFunctionName(convertedCode: String): String {
+        var i = 0
+        while (true) {
+            val name = "dummy$i"
+            if (convertedCode.indexOf(name) < 0) return name
+            i++
+        }
+    }
+
     private fun okFromDialog(project: Project): Boolean {
         val dialog = KotlinPasteFromJavaDialog(project)
         dialog.show()
diff --git a/idea/src/org/jetbrains/kotlin/idea/conversion/copy/RangeUtils.kt b/idea/src/org/jetbrains/kotlin/idea/conversion/copy/RangeUtils.kt
index 05ef97d8a4e..a8a54f6dda8 100644
--- a/idea/src/org/jetbrains/kotlin/idea/conversion/copy/RangeUtils.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/conversion/copy/RangeUtils.kt
@@ -16,6 +16,7 @@
 
 package org.jetbrains.kotlin.idea.conversion.copy
 
+import com.intellij.openapi.editor.RangeMarker
 import com.intellij.openapi.util.TextRange
 import com.intellij.psi.PsiElement
 
@@ -29,3 +30,6 @@ public val TextRange.end: Int
 
 public val PsiElement.range: TextRange
     get() = getTextRange()!!
+
+public val RangeMarker.range: TextRange?
+    get() = if (isValid()) TextRange(getStartOffset(), getEndOffset()) else null
diff --git a/idea/testData/copyPaste/conversion/AddImports.expected.kt b/idea/testData/copyPaste/conversion/AddImports.expected.kt
new file mode 100644
index 00000000000..216bd16c88e
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImports.expected.kt
@@ -0,0 +1,5 @@
+import java.io.File
+
+fun foo(file: File): List<String> {
+    return emptyList()
+}
diff --git a/idea/testData/copyPaste/conversion/AddImports.java b/idea/testData/copyPaste/conversion/AddImports.java
new file mode 100644
index 00000000000..1f9d9b61bd3
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImports.java
@@ -0,0 +1,9 @@
+import java.io.File;
+import java.util.Collections;
+import java.util.List;
+
+class C {
+<selection>    List<String> foo(File file) {
+        return Collections.emptyList();
+    }
+</selection>}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImports.to.kt b/idea/testData/copyPaste/conversion/AddImports.to.kt
new file mode 100644
index 00000000000..81389d50841
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImports.to.kt
@@ -0,0 +1 @@
+<caret>
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsButNoConversion.expected.kt b/idea/testData/copyPaste/conversion/AddImportsButNoConversion.expected.kt
new file mode 100644
index 00000000000..8b3c431f711
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsButNoConversion.expected.kt
@@ -0,0 +1,3 @@
+import java.io.File
+
+fun foo(): List<File><caret>
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsButNoConversion.java b/idea/testData/copyPaste/conversion/AddImportsButNoConversion.java
new file mode 100644
index 00000000000..4bb93dbb9d2
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsButNoConversion.java
@@ -0,0 +1,10 @@
+// NO_CONVERSION_EXPECTED
+import java.io.*;
+import java.util.Collections;
+import java.util.List;
+
+class C {
+    <selection>List<File></selection> foo() {
+        return Collections.emptyList();
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsButNoConversion.to.kt b/idea/testData/copyPaste/conversion/AddImportsButNoConversion.to.kt
new file mode 100644
index 00000000000..9ef6a3c24c5
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsButNoConversion.to.kt
@@ -0,0 +1 @@
+fun foo(): <caret>
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.expected.kt b/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.expected.kt
new file mode 100644
index 00000000000..c7320826a4b
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.expected.kt
@@ -0,0 +1,5 @@
+import java.io.File
+
+fun foo() {
+    list.add(File.separatorChar)<caret>
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.java b/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.java
new file mode 100644
index 00000000000..8b59449479b
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.java
@@ -0,0 +1,9 @@
+// NO_CONVERSION_EXPECTED
+import java.io.*;
+import java.util.*;
+
+class C {
+    void foo(List<Character> list) {
+        <selection>list.add(File.separatorChar)</selection>
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.to.kt b/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.to.kt
new file mode 100644
index 00000000000..94c413776f2
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsButNoConversion2.to.kt
@@ -0,0 +1,3 @@
+fun foo() {
+    <caret>
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.dependency.kt b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.dependency.kt
new file mode 100644
index 00000000000..2e610815a3a
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.dependency.kt
@@ -0,0 +1,8 @@
+package ppp
+
+import kotlin.platform.platformStatic
+
+public object Dependency {
+    [platformStatic]
+    public val FIELD: Int = 1
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.expected.kt b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.expected.kt
new file mode 100644
index 00000000000..1aff96c92d6
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.expected.kt
@@ -0,0 +1,5 @@
+import ppp.Dependency
+
+fun f() {
+    return Dependency.FIELD<caret>
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.java b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.java
new file mode 100644
index 00000000000..33c097e84b5
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.java
@@ -0,0 +1,7 @@
+package ppp
+
+class C {
+    char foo() {
+        <selection>return Dependency.FIELD;</selection>
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.to.kt b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.to.kt
new file mode 100644
index 00000000000..b3a18cebd0c
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.to.kt
@@ -0,0 +1,3 @@
+fun f() {
+    <caret>
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsDummyConflict.dependency.kt b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.dependency.kt
new file mode 100644
index 00000000000..7f4d9475f93
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.dependency.kt
@@ -0,0 +1,3 @@
+package ppp
+
+class dummy0
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsDummyConflict.expected.kt b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.expected.kt
new file mode 100644
index 00000000000..6af6b20a805
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.expected.kt
@@ -0,0 +1,5 @@
+import ppp.dummy0
+
+fun f() {
+    return dummy0()<caret>
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsDummyConflict.java b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.java
new file mode 100644
index 00000000000..ca4865d9d7a
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.java
@@ -0,0 +1,7 @@
+import ppp.*
+
+class C {
+    dummy0 foo() {
+        <selection>return dummy0();</selection>
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/AddImportsDummyConflict.to.kt b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.to.kt
new file mode 100644
index 00000000000..b3a18cebd0c
--- /dev/null
+++ b/idea/testData/copyPaste/conversion/AddImportsDummyConflict.to.kt
@@ -0,0 +1,3 @@
+fun f() {
+    <caret>
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/Arithmetic.expected.kt b/idea/testData/copyPaste/conversion/Arithmetic.expected.kt
index 00397435237..02bf611c74f 100644
--- a/idea/testData/copyPaste/conversion/Arithmetic.expected.kt
+++ b/idea/testData/copyPaste/conversion/Arithmetic.expected.kt
@@ -1 +1 @@
-No conversion performed
\ No newline at end of file
+val v = b - c + d
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/Arithmetic.java b/idea/testData/copyPaste/conversion/Arithmetic.java
index eec7aac9280..f82b8852710 100644
--- a/idea/testData/copyPaste/conversion/Arithmetic.java
+++ b/idea/testData/copyPaste/conversion/Arithmetic.java
@@ -1,3 +1,4 @@
+// NO_CONVERSION_EXPECTED
 public static void main(String[]args){
     a + <selection>b - c + d</selection> - e
 }
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.expected.kt b/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.expected.kt
index 00397435237..636a2ba7a5d 100644
--- a/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.expected.kt
+++ b/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.expected.kt
@@ -1 +1,4 @@
-No conversion performed
\ No newline at end of file
+fun main(args: Array<String>) {
+    reference(arg)
+    somethingElse()
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.java b/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.java
index 09ed4a6d46d..8bc2bfb8b06 100644
--- a/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.java
+++ b/idea/testData/copyPaste/conversion/MethodReferenceWithoutQualifier.java
@@ -1,3 +1,4 @@
+// NO_CONVERSION_EXPECTED
 class A {
     public static void main(String[] args) {
         qualifier.<selection>reference(arg)</selection>;
diff --git a/idea/testData/copyPaste/conversion/OnlyClosingBrace.expected.kt b/idea/testData/copyPaste/conversion/OnlyClosingBrace.expected.kt
index 00397435237..ff30235f076 100644
--- a/idea/testData/copyPaste/conversion/OnlyClosingBrace.expected.kt
+++ b/idea/testData/copyPaste/conversion/OnlyClosingBrace.expected.kt
@@ -1 +1 @@
-No conversion performed
\ No newline at end of file
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/OnlyClosingBrace.java b/idea/testData/copyPaste/conversion/OnlyClosingBrace.java
index 8feec292e18..f2c1a88707c 100644
--- a/idea/testData/copyPaste/conversion/OnlyClosingBrace.java
+++ b/idea/testData/copyPaste/conversion/OnlyClosingBrace.java
@@ -1,3 +1,4 @@
+// NO_CONVERSION_EXPECTED
 class A {
     public static void main(String[] args) {
         //sdasd
diff --git a/idea/testData/copyPaste/conversion/OnlyQualifier.expected.kt b/idea/testData/copyPaste/conversion/OnlyQualifier.expected.kt
index 00397435237..0c1766e04c4 100644
--- a/idea/testData/copyPaste/conversion/OnlyQualifier.expected.kt
+++ b/idea/testData/copyPaste/conversion/OnlyQualifier.expected.kt
@@ -1 +1,4 @@
-No conversion performed
\ No newline at end of file
+fun main(args: Array<String>) {
+    qualifier
+    somethingElse()
+}
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/OnlyQualifier.java b/idea/testData/copyPaste/conversion/OnlyQualifier.java
index 300ee6e06f2..b7482511db4 100644
--- a/idea/testData/copyPaste/conversion/OnlyQualifier.java
+++ b/idea/testData/copyPaste/conversion/OnlyQualifier.java
@@ -1,3 +1,4 @@
+// NO_CONVERSION_EXPECTED
 class A {
     public static void main(String[] args) {
         <selection>qualifier</selection>.reference(arg);
diff --git a/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.expected.kt b/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.expected.kt
index 00397435237..0bfdbcff9f7 100644
--- a/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.expected.kt
+++ b/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.expected.kt
@@ -1 +1 @@
-No conversion performed
\ No newline at end of file
+class Some
\ No newline at end of file
diff --git a/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.java b/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.java
index 8ccb50accb5..3dfd2cb4b1d 100644
--- a/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.java
+++ b/idea/testData/copyPaste/conversion/SingleWordFromIdentifier.java
@@ -1,3 +1,4 @@
+// NO_CONVERSION_EXPECTED
 <selection>class Some</selection>InterestingClass {
 
 }
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/AbstractCopyPasteTest.kt b/idea/tests/org/jetbrains/kotlin/idea/AbstractCopyPasteTest.kt
new file mode 100644
index 00000000000..ece8aafb960
--- /dev/null
+++ b/idea/tests/org/jetbrains/kotlin/idea/AbstractCopyPasteTest.kt
@@ -0,0 +1,35 @@
+/*
+ * Copyright 2010-2015 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea
+
+import com.intellij.codeInsight.CodeInsightSettings
+
+public abstract class AbstractCopyPasteTest : JetLightCodeInsightFixtureTestCase() {
+    private var savedImportsOnPasteSetting: Int = 0
+
+    override fun setUp() {
+        super.setUp()
+        savedImportsOnPasteSetting = CodeInsightSettings.getInstance().ADD_IMPORTS_ON_PASTE
+        CodeInsightSettings.getInstance().ADD_IMPORTS_ON_PASTE = CodeInsightSettings.YES
+    }
+
+    override fun tearDown() {
+        CodeInsightSettings.getInstance().ADD_IMPORTS_ON_PASTE = savedImportsOnPasteSetting
+        super.tearDown()
+    }
+}
+
diff --git a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/AbstractInsertImportOnPasteTest.java b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/AbstractInsertImportOnPasteTest.java
index 2a4f2c63ccc..1429acd8bea 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/AbstractInsertImportOnPasteTest.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/AbstractInsertImportOnPasteTest.java
@@ -16,7 +16,6 @@
 
 package org.jetbrains.kotlin.idea.codeInsight;
 
-import com.intellij.codeInsight.CodeInsightSettings;
 import com.intellij.openapi.actionSystem.IdeActions;
 import com.intellij.openapi.util.TextRange;
 import com.intellij.openapi.util.io.FileUtil;
@@ -26,7 +25,7 @@ import org.jetbrains.kotlin.diagnostics.Diagnostic;
 import org.jetbrains.kotlin.diagnostics.DiagnosticUtils;
 import org.jetbrains.kotlin.diagnostics.Errors;
 import org.jetbrains.kotlin.diagnostics.rendering.DefaultErrorMessages;
-import org.jetbrains.kotlin.idea.JetLightCodeInsightFixtureTestCase;
+import org.jetbrains.kotlin.idea.AbstractCopyPasteTest;
 import org.jetbrains.kotlin.idea.PluginTestCaseBase;
 import org.jetbrains.kotlin.idea.caches.resolve.ResolvePackage;
 import org.jetbrains.kotlin.psi.JetFile;
@@ -38,26 +37,11 @@ import org.jetbrains.kotlin.test.InTextDirectivesUtils;
 import java.io.File;
 import java.util.List;
 
-public abstract class AbstractInsertImportOnPasteTest extends JetLightCodeInsightFixtureTestCase {
+public abstract class AbstractInsertImportOnPasteTest extends AbstractCopyPasteTest {
     private static final String BASE_PATH = PluginTestCaseBase.getTestDataPathBase() + "/copyPaste/imports";
     private static final String DEFAULT_TO_FILE_TEXT = "package to\n\n<caret>";
     private static final String ALLOW_UNRESOLVED_DIRECTIVE = "// ALLOW_UNRESOLVED";
 
-    private int savedState;
-
-    @Override
-    protected void setUp() throws Exception {
-        super.setUp();
-        savedState = CodeInsightSettings.getInstance().ADD_IMPORTS_ON_PASTE;
-        CodeInsightSettings.getInstance().ADD_IMPORTS_ON_PASTE = CodeInsightSettings.YES;
-    }
-
-    @Override
-    protected void tearDown() throws Exception {
-        CodeInsightSettings.getInstance().ADD_IMPORTS_ON_PASTE = savedState;
-        super.tearDown();
-    }
-
     public void doTestCut(String path) throws Exception {
         doTestAction(IdeActions.ACTION_CUT, path);
     }
diff --git a/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/AbstractJavaToKotlinCopyPasteConversionTest.java b/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/AbstractJavaToKotlinCopyPasteConversionTest.java
deleted file mode 100644
index ba5cf5036dc..00000000000
--- a/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/AbstractJavaToKotlinCopyPasteConversionTest.java
+++ /dev/null
@@ -1,84 +0,0 @@
-/*
- * Copyright 2010-2015 JetBrains s.r.o.
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- * http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-package org.jetbrains.kotlin.idea.conversion.copy;
-
-import com.intellij.openapi.actionSystem.IdeActions;
-import com.intellij.openapi.application.ApplicationManager;
-import com.intellij.openapi.command.CommandProcessor;
-import com.intellij.openapi.editor.Document;
-import com.intellij.testFramework.LightProjectDescriptor;
-import org.jetbrains.annotations.NotNull;
-import org.jetbrains.kotlin.idea.JetLightCodeInsightFixtureTestCase;
-import org.jetbrains.kotlin.idea.JetWithJdkAndRuntimeLightProjectDescriptor;
-import org.jetbrains.kotlin.idea.PluginTestCaseBase;
-import org.jetbrains.kotlin.idea.editor.JetEditorOptions;
-
-public abstract class AbstractJavaToKotlinCopyPasteConversionTest extends JetLightCodeInsightFixtureTestCase {
-
-    private static final String BASE_PATH = PluginTestCaseBase.getTestDataPathBase() + "/copyPaste/conversion";
-    private JetEditorOptions oldState = null;
-
-    @NotNull
-    @Override
-    protected LightProjectDescriptor getProjectDescriptor() {
-        return JetWithJdkAndRuntimeLightProjectDescriptor.INSTANCE;
-    }
-
-    @Override
-    protected void setUp() throws Exception {
-        super.setUp();
-        oldState = JetEditorOptions.getInstance().getState();
-        JetEditorOptions.getInstance().setEnableJavaToKotlinConversion(true);
-        JetEditorOptions.getInstance().setDonTShowConversionDialog(true);
-    }
-
-    @Override
-    public void tearDown() throws Exception {
-        JetEditorOptions.getInstance().loadState(oldState);
-        super.tearDown();
-    }
-
-    public void doTest(@SuppressWarnings("UnusedParameters") String path) throws Exception {
-        myFixture.setTestDataPath(BASE_PATH);
-        String testName = getTestName(false);
-        myFixture.configureByFile(testName + ".java");
-        myFixture.performEditorAction(IdeActions.ACTION_COPY);
-
-        //noinspection AssignmentToStaticFieldFromInstanceMethod
-        ConvertJavaCopyPastePostProcessor.conversionPerformed = false;
-
-        myFixture.configureByFile(testName + ".to.kt");
-        myFixture.performEditorAction(IdeActions.ACTION_PASTE);
-
-        if (!ConvertJavaCopyPastePostProcessor.conversionPerformed) {
-            CommandProcessor.getInstance().executeCommand(getProject(), new Runnable() {
-                @Override
-                public void run() {
-                    ApplicationManager.getApplication().runWriteAction(new Runnable() {
-                        @Override
-                        public void run() {
-                            Document document = myFixture.getEditor().getDocument();
-                            document.replaceString(0, document.getTextLength(), "No conversion performed");
-                        }
-                    });
-                }
-            }, "", null);
-        }
-
-        myFixture.checkResultByFile(testName + ".expected.kt");
-    }
-}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/AbstractJavaToKotlinCopyPasteConversionTest.kt b/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/AbstractJavaToKotlinCopyPasteConversionTest.kt
new file mode 100644
index 00000000000..0edf8f0b060
--- /dev/null
+++ b/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/AbstractJavaToKotlinCopyPasteConversionTest.kt
@@ -0,0 +1,79 @@
+/*
+ * Copyright 2010-2015 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.conversion.copy
+
+import com.intellij.openapi.actionSystem.IdeActions
+import com.intellij.testFramework.LightProjectDescriptor
+import org.jetbrains.kotlin.idea.AbstractCopyPasteTest
+import org.jetbrains.kotlin.idea.JetWithJdkAndRuntimeLightProjectDescriptor
+import org.jetbrains.kotlin.idea.PluginTestCaseBase
+import org.jetbrains.kotlin.idea.editor.JetEditorOptions
+import org.jetbrains.kotlin.test.InTextDirectivesUtils
+import java.io.File
+import kotlin.test.assertEquals
+
+public abstract class AbstractJavaToKotlinCopyPasteConversionTest : AbstractCopyPasteTest() {
+    private val BASE_PATH = PluginTestCaseBase.getTestDataPathBase() + "/copyPaste/conversion"
+
+    private var oldEditorOptions: JetEditorOptions? = null
+
+    override fun getProjectDescriptor(): LightProjectDescriptor {
+        return JetWithJdkAndRuntimeLightProjectDescriptor.INSTANCE
+    }
+
+    override fun setUp() {
+        super.setUp()
+        oldEditorOptions = JetEditorOptions.getInstance().getState()
+        JetEditorOptions.getInstance().setEnableJavaToKotlinConversion(true)
+        JetEditorOptions.getInstance().setDonTShowConversionDialog(true)
+    }
+
+    override fun tearDown() {
+        JetEditorOptions.getInstance().loadState(oldEditorOptions)
+        super.tearDown()
+    }
+
+    public fun doTest(path: String) {
+        myFixture.setTestDataPath(BASE_PATH)
+        val testName = getTestName(false)
+        myFixture.configureByFiles(testName + ".java")
+
+        val fileText = myFixture.getEditor().getDocument().getText()
+        val noConversionExpected = InTextDirectivesUtils.findListWithPrefixes(fileText, "// NO_CONVERSION_EXPECTED").isNotEmpty()
+
+        myFixture.performEditorAction(IdeActions.ACTION_COPY)
+
+        val toFileName = testName + ".to.kt"
+        val dependencyFileName = testName + ".dependency.kt"
+
+        if (File(BASE_PATH + File.separator + dependencyFileName).exists()) {
+            myFixture.configureByFiles(toFileName, dependencyFileName)
+        }
+        else {
+            myFixture.configureByFile(toFileName)
+        }
+
+        ConvertJavaCopyPastePostProcessor.conversionPerformed = false
+
+        myFixture.performEditorAction(IdeActions.ACTION_PASTE)
+
+        assertEquals(noConversionExpected, !ConvertJavaCopyPastePostProcessor.conversionPerformed,
+        if (noConversionExpected) "Conversion to Kotlin should not be suggested" else "No conversion to Kotlin suggested")
+
+        myFixture.checkResultByFile(testName + ".expected.kt")
+    }
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/JavaToKotlinCopyPasteConversionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/JavaToKotlinCopyPasteConversionTestGenerated.java
index ae940b15cbc..e091b476373 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/JavaToKotlinCopyPasteConversionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/conversion/copy/JavaToKotlinCopyPasteConversionTestGenerated.java
@@ -32,6 +32,36 @@ import java.util.regex.Pattern;
 @TestDataPath("$PROJECT_ROOT")
 @RunWith(JUnit3RunnerWithInners.class)
 public class JavaToKotlinCopyPasteConversionTestGenerated extends AbstractJavaToKotlinCopyPasteConversionTest {
+    @TestMetadata("AddImports.java")
+    public void testAddImports() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/copyPaste/conversion/AddImports.java");
+        doTest(fileName);
+    }
+
+    @TestMetadata("AddImportsButNoConversion.java")
+    public void testAddImportsButNoConversion() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/copyPaste/conversion/AddImportsButNoConversion.java");
+        doTest(fileName);
+    }
+
+    @TestMetadata("AddImportsButNoConversion2.java")
+    public void testAddImportsButNoConversion2() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/copyPaste/conversion/AddImportsButNoConversion2.java");
+        doTest(fileName);
+    }
+
+    @TestMetadata("AddImportsClassInSamePackage.java")
+    public void testAddImportsClassInSamePackage() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/copyPaste/conversion/AddImportsClassInSamePackage.java");
+        doTest(fileName);
+    }
+
+    @TestMetadata("AddImportsDummyConflict.java")
+    public void testAddImportsDummyConflict() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/testData/copyPaste/conversion/AddImportsDummyConflict.java");
+        doTest(fileName);
+    }
+
     public void testAllFilesPresentInConversion() throws Exception {
         JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/copyPaste/conversion"), Pattern.compile("^(.+)\\.java$"), true);
     }
diff --git a/j2k/src/org/jetbrains/kotlin/j2k/Converter.kt b/j2k/src/org/jetbrains/kotlin/j2k/Converter.kt
index a3ac304764e..3a6183f5060 100644
--- a/j2k/src/org/jetbrains/kotlin/j2k/Converter.kt
+++ b/j2k/src/org/jetbrains/kotlin/j2k/Converter.kt
@@ -72,15 +72,26 @@ class Converter private(
 
     private fun createDefaultCodeConverter() = CodeConverter(this, DefaultExpressionConverter(), DefaultStatementConverter(), null)
 
-    public fun convert(): ((Map<PsiElement, UsageProcessing>) -> String)? {
-        val element = convertTopElement(elementToConvert) ?: return null
-        return { usageProcessings ->
-            unfoldDeferredElements(usageProcessings)
+    public data class IntermediateResult(
+            val codeGenerator: (Map<PsiElement, UsageProcessing>) -> String,
+            val parseContext: ParseContext
+    )
 
-            val builder = CodeBuilder(elementToConvert)
-            builder.append(element)
-            builder.result
+    public fun convert(): IntermediateResult? {
+        val element = convertTopElement(elementToConvert) ?: return null
+        val parseContext = when (elementToConvert) {
+            is PsiStatement, is PsiExpression -> ParseContext.CODE_BLOCK
+            else -> ParseContext.TOP_LEVEL
         }
+        return IntermediateResult(
+                { usageProcessings ->
+                    unfoldDeferredElements(usageProcessings)
+
+                    val builder = CodeBuilder(elementToConvert)
+                    builder.append(element)
+                    builder.result
+                },
+                parseContext)
     }
 
     private fun convertTopElement(element: PsiElement): Element? = when (element) {
diff --git a/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinConverter.kt b/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinConverter.kt
index fc7560fa43f..7a689e6c783 100644
--- a/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinConverter.kt
+++ b/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinConverter.kt
@@ -63,6 +63,11 @@ public trait PostProcessor {
     public fun doAdditionalProcessing(file: JetFile, rangeMarker: RangeMarker?)
 }
 
+public enum class ParseContext {
+    TOP_LEVEL
+    CODE_BLOCK
+}
+
 public class JavaToKotlinConverter(private val project: Project,
                                    private val settings: ConverterSettings,
                                    private val referenceSearcher: ReferenceSearcher,
@@ -75,13 +80,15 @@ public class JavaToKotlinConverter(private val project: Project,
             val postProcessingContext: PsiElement?
     )
 
+    public data class Result(val text: String,  val parseContext: ParseContext)
+
     public fun elementsToKotlin(
             inputElements: List<InputElement>,
             progress: ProgressIndicator = EmptyProgressIndicator()
-    ): List<String> {
+    ): List<Result?> {
         try {
             val elementCount = inputElements.size()
-            val intermediateResults = ArrayList<((Map<PsiElement, UsageProcessing>) -> String)?>(elementCount)
+            val intermediateResults = ArrayList<(Converter.IntermediateResult)?>(elementCount)
             val usageProcessings = HashMap<PsiElement, UsageProcessing>()
             val usageProcessingCollector: (UsageProcessing) -> Unit = { usageProcessing ->
                 assert(!usageProcessings.containsKey(usageProcessing.targetElement))
@@ -130,21 +137,27 @@ public class JavaToKotlinConverter(private val project: Project,
                 intermediateResults.add(result)
             }
 
-            val results = ArrayList<String>(elementCount)
+            val results = ArrayList<Result?>(elementCount)
             processFilesWithProgress(0.25) { i ->
                 val result = intermediateResults[i]
-                results.add(if (result != null) result(usageProcessings) else "")
+                results.add(if (result != null)
+                                Result(result.codeGenerator(usageProcessings), result.parseContext)
+                            else
+                                null)
                 intermediateResults[i] = null // to not hold unused objects in the heap
             }
 
-            val finalResults = ArrayList<String>(elementCount)
+            if (postProcessor == null) return results
+
+            val finalResults = ArrayList<Result?>(elementCount)
             processFilesWithProgress(0.5) { i ->
                 val result = results[i]
-                if (postProcessor != null) {
+                if (result != null) {
                     try {
-                        val kotlinFile = JetPsiFactory(project).createAnalyzableFile("dummy.kt", result, inputElements[i].postProcessingContext!!)
+                        //TODO: post processing does not work correctly for ParseContext different from TOP_LEVEL
+                        val kotlinFile = JetPsiFactory(project).createAnalyzableFile("dummy.kt", result.text, inputElements[i].postProcessingContext!!)
                         AfterConversionPass(project, postProcessor).run(kotlinFile, null)
-                        finalResults.add(kotlinFile.getText())
+                        finalResults.add(Result(kotlinFile.getText(), result.parseContext))
                     }
                     catch(e: ProcessCanceledException) {
                         throw e
@@ -155,7 +168,7 @@ public class JavaToKotlinConverter(private val project: Project,
                     }
                 }
                 else {
-                    finalResults.add(result)
+                    finalResults.add(null)
                 }
             }
 
diff --git a/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinTranslator.kt b/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinTranslator.kt
index 742ce63901d..6d12bcc98c4 100644
--- a/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinTranslator.kt
+++ b/j2k/src/org/jetbrains/kotlin/j2k/JavaToKotlinTranslator.kt
@@ -135,7 +135,7 @@ public object JavaToKotlinTranslator {
         val file = createFile(javaCode)
         if (file is PsiJavaFile) {
             val converter = JavaToKotlinConverter(file.getProject(), ConverterSettings.defaultSettings, EmptyReferenceSearcher, EmptyResolverForConverter, null)
-            return prettify(converter.elementsToKotlin(listOf(JavaToKotlinConverter.InputElement(file, null))).single())
+            return prettify(converter.elementsToKotlin(listOf(JavaToKotlinConverter.InputElement(file, null))).single()!!.text)
         }
         return ""
     }
diff --git a/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterMultiFileTest.kt b/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterMultiFileTest.kt
index 78b84d2a2f5..2483d922446 100644
--- a/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterMultiFileTest.kt
+++ b/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterMultiFileTest.kt
@@ -46,7 +46,7 @@ public abstract class AbstractJavaToKotlinConverterMultiFileTest : AbstractJavaT
         val converter = JavaToKotlinConverter(project, ConverterSettings.defaultSettings,
                                               IdeaReferenceSearcher, IdeaResolverForConverter, J2kPostProcessor(formatCode = true))
         val inputElements = psiFiles.map { JavaToKotlinConverter.InputElement(it, it) }
-        val results: List<String> = converter.elementsToKotlin(inputElements)
+        val results: List<String> = converter.elementsToKotlin(inputElements).map { it!!.text }
 
         fun expectedFile(i: Int) = File(javaFiles[i].getPath().replace(".java", ".kt"))
 
diff --git a/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterSingleFileTest.kt b/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterSingleFileTest.kt
index f8a9616c187..f88531a8d79 100644
--- a/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterSingleFileTest.kt
+++ b/j2k/tests/org/jetbrains/kotlin/j2k/AbstractJavaToKotlinConverterSingleFileTest.kt
@@ -109,7 +109,7 @@ public abstract class AbstractJavaToKotlinConverterSingleFileTest : AbstractJava
         val converter = JavaToKotlinConverter(project, settings,
                                               IdeaReferenceSearcher, IdeaResolverForConverter, J2kPostProcessor(formatCode = false))
         val inputElements = listOf(JavaToKotlinConverter.InputElement(file, file))
-        return converter.elementsToKotlin(inputElements).single()
+        return converter.elementsToKotlin(inputElements).single()!!.text
     }
 
     private fun methodToKotlin(text: String, settings: ConverterSettings, project: Project): String {