diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/JoinDeclarationAndAssignmentIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/JoinDeclarationAndAssignmentIntention.kt
index 8c19de5dd9b..70084161930 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/JoinDeclarationAndAssignmentIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/JoinDeclarationAndAssignmentIntention.kt
@@ -57,7 +57,7 @@ class JoinDeclarationAndAssignmentIntention : SelfTargetingRangeIntention<KtProp
 
         val assignment = findAssignment(element) ?: return null
         if (assignment.right?.let {
-                hasNoLocalDependencies(it, element.parent) && assignment.analyze().let { context ->
+                hasNoLocalDependencies(it, element) && assignment.analyze().let { context ->
                     (element.isVar && !element.isLocal) ||
                             equalNullableTypes(it.getType(context), context[BindingContext.TYPE, element.typeReference])
                 }
@@ -155,10 +155,13 @@ class JoinDeclarationAndAssignmentIntention : SelfTargetingRangeIntention<KtProp
     // a block that only contains comments is not empty
     private fun KtBlockExpression.isEmpty() = contentRange().isEmpty
 
-    private fun hasNoLocalDependencies(element: KtElement, localContext: PsiElement): Boolean =
-        !element.anyDescendantOfType<PsiElement> { child ->
-            child.resolveAllReferences().any { it != null && PsiTreeUtil.isAncestor(localContext, it, false) }
+    private fun hasNoLocalDependencies(element: KtElement, property: KtProperty): Boolean {
+        val localContext = property.parent
+        val nextSiblings = property.siblings(forward = true, withItself = false)
+        return !element.anyDescendantOfType<PsiElement> { child ->
+            child.resolveAllReferences().any { it != null && PsiTreeUtil.isAncestor(localContext, it, false) && it in nextSiblings }
         }
+    }
 }
 
 private fun PsiElement.resolveAllReferences(): Sequence<PsiElement?> =
diff --git a/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt
new file mode 100644
index 00000000000..84edf68e1fa
--- /dev/null
+++ b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt
@@ -0,0 +1,8 @@
+class Test(height: Int, width: Int) {
+    private val size: Int = height * width
+    private val <caret>data: Int
+
+    init {
+        data = size
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt.after b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt.after
new file mode 100644
index 00000000000..3a1d75860c2
--- /dev/null
+++ b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt.after
@@ -0,0 +1,5 @@
+class Test(height: Int, width: Int) {
+    private val size: Int = height * width
+    private val data: Int = size
+
+}
\ No newline at end of file
diff --git a/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt
new file mode 100644
index 00000000000..16833580cb5
--- /dev/null
+++ b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt
@@ -0,0 +1,10 @@
+class Foo(size: Int)
+
+class Test(height: Int, width: Int) {
+    private val size: Int = height * width
+    private val <caret>data: Foo
+
+    init {
+        data = Foo(size)
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt.after b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt.after
new file mode 100644
index 00000000000..ad41c353e95
--- /dev/null
+++ b/idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt.after
@@ -0,0 +1,7 @@
+class Foo(size: Int)
+
+class Test(height: Int, width: Int) {
+    private val size: Int = height * width
+    private val data: Foo = Foo(size)
+
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
index 7361e3149cb..aada917c937 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
@@ -10826,6 +10826,16 @@ public class IntentionTestGenerated extends AbstractIntentionTest {
             runTest("idea/testData/intentions/joinDeclarationAndAssignment/usedLocal2.kt");
         }
 
+        @TestMetadata("usedLocal3.kt")
+        public void testUsedLocal3() throws Exception {
+            runTest("idea/testData/intentions/joinDeclarationAndAssignment/usedLocal3.kt");
+        }
+
+        @TestMetadata("usedLocal4.kt")
+        public void testUsedLocal4() throws Exception {
+            runTest("idea/testData/intentions/joinDeclarationAndAssignment/usedLocal4.kt");
+        }
+
         @TestMetadata("varReassignment.kt")
         public void testVarReassignment() throws Exception {
             runTest("idea/testData/intentions/joinDeclarationAndAssignment/varReassignment.kt");