diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/KotlinVariableInplaceRenameHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/KotlinVariableInplaceRenameHandler.kt
index aa48fd9f2f9..5344790704f 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/KotlinVariableInplaceRenameHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/KotlinVariableInplaceRenameHandler.kt
@@ -18,9 +18,6 @@ open class KotlinVariableInplaceRenameHandler : VariableInplaceRenameHandler() {
         fun isInplaceRenameAvailable(element: PsiElement): Boolean {
             when (element) {
                 is KtTypeParameter -> return true
-                is KtProperty -> {
-                    if (element.isLocal) return true
-                }
                 is KtDestructuringDeclarationEntry -> return true
                 is KtParameter -> {
                     val parent = element.parent
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/renameConflictUtils.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/renameConflictUtils.kt
index b6005f1e757..f8c7b6e961f 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/renameConflictUtils.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/renameConflictUtils.kt
@@ -105,7 +105,7 @@ internal fun checkRedeclarations(
     fun MemberScope.findSiblingsByName(): List<DeclarationDescriptor> {
         val descriptorKindFilter = when (descriptor) {
             is ClassifierDescriptor -> DescriptorKindFilter.CLASSIFIERS
-            is PropertyDescriptor -> DescriptorKindFilter.VARIABLES
+            is VariableDescriptor -> DescriptorKindFilter.VARIABLES
             is FunctionDescriptor -> DescriptorKindFilter.FUNCTIONS
             else -> return emptyList()
         }
@@ -150,7 +150,7 @@ internal fun checkRedeclarations(
                     if (it.name != newName) return@mapNotNull null
                     val isAccepted = when (descriptor) {
                         is ClassDescriptor -> it is KtClassOrObject
-                        is PropertyDescriptor -> it is KtProperty
+                        is VariableDescriptor -> it is KtProperty
                         is FunctionDescriptor -> it is KtNamedFunction
                         else -> false
                     }
diff --git a/idea/testData/refactoring/rename/inplace/LocalClassRedeclaration.kt b/idea/testData/refactoring/rename/inplace/LocalClassRedeclaration.kt
new file mode 100644
index 00000000000..3495be0c938
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/LocalClassRedeclaration.kt
@@ -0,0 +1,5 @@
+// SHOULD_FAIL_WITH: Class 'LocalClassB' is already declared in function 'containNames'
+fun containNames() {
+    class <caret>LocalClassA {}
+    class LocalClassB {}
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/rename/inplace/LocalFunRedeclaration.kt b/idea/testData/refactoring/rename/inplace/LocalFunRedeclaration.kt
new file mode 100644
index 00000000000..204d65bcdbb
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/LocalFunRedeclaration.kt
@@ -0,0 +1,5 @@
+// SHOULD_FAIL_WITH: Function 'localFunB' is already declared in function 'containNames'
+fun containNames() {
+    fun <caret>localFunA() = 11
+    fun localFunB() = 12
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/rename/inplace/LocalVarRedeclaration.kt b/idea/testData/refactoring/rename/inplace/LocalVarRedeclaration.kt
new file mode 100644
index 00000000000..a1b436f03ba
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/LocalVarRedeclaration.kt
@@ -0,0 +1,5 @@
+// SHOULD_FAIL_WITH: Variable 'localValB' is already declared in function 'containNames'
+fun containNames() {
+    val <caret>localValA = 11
+    val localValB = 12
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt b/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
index 9b40ad2f071..32bd7f2f30c 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
@@ -11,15 +11,18 @@ import com.intellij.codeInsight.template.impl.TemplateManagerImpl
 import com.intellij.openapi.actionSystem.CommonDataKeys
 import com.intellij.openapi.actionSystem.impl.SimpleDataContext
 import com.intellij.openapi.command.WriteCommandAction
+import com.intellij.refactoring.BaseRefactoringProcessor
 import com.intellij.refactoring.rename.inplace.VariableInplaceRenameHandler
 import com.intellij.testFramework.LightPlatformCodeInsightTestCase
 import com.intellij.testFramework.fixtures.CodeInsightTestUtil
+import junit.framework.TestCase
 import org.jetbrains.kotlin.idea.refactoring.rename.KotlinMemberInplaceRenameHandler
 import org.jetbrains.kotlin.idea.refactoring.rename.KotlinVariableInplaceRenameHandler
 import org.jetbrains.kotlin.idea.refactoring.rename.RenameKotlinImplicitLambdaParameter
 import org.jetbrains.kotlin.idea.refactoring.rename.findElementForRename
 import org.jetbrains.kotlin.idea.test.PluginTestCaseBase
 import org.jetbrains.kotlin.psi.KtNameReferenceExpression
+import org.jetbrains.kotlin.test.InTextDirectivesUtils
 import kotlin.test.assertFalse
 import kotlin.test.assertTrue
 
@@ -28,7 +31,7 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
     override fun getTestDataPath(): String = PluginTestCaseBase.getTestDataPathBase() + "/refactoring/rename/inplace/"
 
     fun testLocalVal() {
-        doTestInplaceRename("y")
+        doTestMemberInplaceRename("y")
     }
 
     fun testForLoop() {
@@ -80,7 +83,7 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
     }
 
     fun testLocalVarShadowingMemberProperty() {
-        doTestInplaceRename("name1")
+        doTestMemberInplaceRename("name1")
     }
 
     fun testNoReformat() {
@@ -144,7 +147,7 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
     }
 
     fun testQuotedLocalVar() {
-        doTestInplaceRename("x")
+        doTestMemberInplaceRename("x")
     }
 
     fun testQuotedParameter() {
@@ -155,6 +158,18 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
         doTestMemberInplaceRename("")
     }
 
+    fun testLocalVarRedeclaration() {
+        doTestMemberInplaceRename("localValB")
+    }
+
+    fun testLocalFunRedeclaration() {
+        doTestMemberInplaceRename("localFunB")
+    }
+
+    fun testLocalClassRedeclaration() {
+        doTestMemberInplaceRename("LocalClassB")
+    }
+
     private fun doTestImplicitLambdaParameter(newName: String) {
         configureByFile(getTestName(false) + ".kt")
 
@@ -225,9 +240,14 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
             assertFalse(handler.isRenaming(dataContext), "In-place rename is allowed for " + element)
         }
         else {
-            assertTrue(handler.isRenaming(dataContext), "In-place rename not allowed for " + element)
-            CodeInsightTestUtil.doInlineRename(handler, newName, LightPlatformCodeInsightTestCase.getEditor(), element)
-            checkResultByFile(getTestName(false) + ".kt.after")
+            try {
+                assertTrue(handler.isRenaming(dataContext), "In-place rename not allowed for " + element)
+                CodeInsightTestUtil.doInlineRename(handler, newName, LightPlatformCodeInsightTestCase.getEditor(), element)
+                checkResultByFile(getTestName(false) + ".kt.after")
+            } catch (e: BaseRefactoringProcessor.ConflictsInTestsException) {
+                val expectedMessage = InTextDirectivesUtils.findStringWithPrefixes(myFile.text, "// SHOULD_FAIL_WITH: ")
+                TestCase.assertEquals(expectedMessage, e.messages.joinToString())
+            }
         }
     }
 }