diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractableSubstringInfo.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractableSubstringInfo.kt
index 199d1db889d..b8f6290fe58 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractableSubstringInfo.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractableSubstringInfo.kt
@@ -69,6 +69,9 @@ class ExtractableSubstringInfo(
     val contentRange: TextRange
         get() = TextRange(startEntry.startOffset + prefix.length, endEntry.endOffset - suffix.length)
 
+    val relativeContentRange: TextRange
+        get() = contentRange.shiftRight(-template.startOffset)
+
     val entries: Sequence<KtStringTemplateEntry>
         get() = sequence(startEntry) { if (it != endEntry) it.nextSiblingOfSameType() else null }
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractableCodeDescriptor.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractableCodeDescriptor.kt
index e67963b070d..0355d0c39c8 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractableCodeDescriptor.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractableCodeDescriptor.kt
@@ -387,7 +387,7 @@ enum class ExtractionTarget(val targetName: String) {
         }
 
         fun checkSimpleBody(descriptor: ExtractableCodeDescriptor): Boolean {
-            val expression = descriptor.extractionData.getExpressions().singleOrNull()
+            val expression = descriptor.extractionData.expressions.singleOrNull()
             return expression != null && expression !is KtDeclaration && expression !is KtBlockExpression
         }
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractionData.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractionData.kt
index 84fcc1a871b..d64072e5420 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractionData.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/ExtractionData.kt
@@ -17,7 +17,6 @@
 package org.jetbrains.kotlin.idea.refactoring.introduce.extractionEngine
 
 import com.intellij.openapi.project.Project
-import com.intellij.openapi.util.TextRange
 import com.intellij.psi.PsiElement
 import com.intellij.psi.PsiNameIdentifierOwner
 import com.intellij.psi.util.PsiTreeUtil
@@ -28,12 +27,13 @@ import org.jetbrains.kotlin.idea.codeInsight.DescriptorToSourceUtilsIde
 import org.jetbrains.kotlin.idea.codeInsight.KotlinFileReferencesResolver
 import org.jetbrains.kotlin.idea.core.compareDescriptors
 import org.jetbrains.kotlin.idea.core.refactoring.getContextForContainingDeclarationBody
+import org.jetbrains.kotlin.idea.refactoring.introduce.ExtractableSubstringInfo
+import org.jetbrains.kotlin.idea.refactoring.introduce.extractableSubstringInfo
+import org.jetbrains.kotlin.idea.refactoring.introduce.substringContextOrThis
 import org.jetbrains.kotlin.idea.util.getResolutionScope
 import org.jetbrains.kotlin.idea.util.psi.patternMatching.KotlinPsiRange
 import org.jetbrains.kotlin.psi.*
-import org.jetbrains.kotlin.psi.psiUtil.getQualifiedExpressionForSelector
-import org.jetbrains.kotlin.psi.psiUtil.getStrictParentOfType
-import org.jetbrains.kotlin.psi.psiUtil.isInsideOf
+import org.jetbrains.kotlin.psi.psiUtil.*
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.resolve.DescriptorToSourceUtils
 import org.jetbrains.kotlin.resolve.DescriptorUtils
@@ -87,35 +87,31 @@ data class ExtractionData(
 ) {
     val project: Project = originalFile.getProject()
     val originalElements: List<PsiElement> = originalRange.elements
+    val physicalElements = originalElements.map { it.substringContextOrThis }
+
+    val substringInfo: ExtractableSubstringInfo?
+        get() = (originalElements.singleOrNull() as? KtExpression)?.extractableSubstringInfo
 
     val insertBefore: Boolean = options.extractAsProperty
                                 || targetSibling.getStrictParentOfType<KtDeclaration>()?.let {
                                     it is KtDeclarationWithBody || it is KtAnonymousInitializer
                                 } ?: false
 
-    fun getExpressions(): List<KtExpression> = originalElements.filterIsInstance<KtExpression>()
-
-    private fun getCodeFragmentTextRange(): TextRange? {
-        val originalElements = originalElements
-        return when (originalElements.size()) {
-            0 -> null
-            1 -> originalElements.first().getTextRange()
-            else -> {
-                val from = originalElements.first().getTextRange()!!.getStartOffset()
-                val to = originalElements.last().getTextRange()!!.getEndOffset()
-                TextRange(from, to)
-            }
-        }
-    }
+    val expressions = originalElements.filterIsInstance<KtExpression>()
 
     val codeFragmentText: String by lazy {
-        getCodeFragmentTextRange()?.let { originalFile.getText()?.substring(it.getStartOffset(), it.getEndOffset()) } ?: ""
+        val originalElements = originalElements
+        when (originalElements.size) {
+            0 -> ""
+            1 -> originalElements.first().text
+            else -> originalFile.text.substring(originalElements.first().startOffset, originalElements.last().endOffset)
+        }
     }
 
     val originalStartOffset: Int?
         get() = originalElements.firstOrNull()?.let { e -> e.getTextRange()!!.getStartOffset() }
 
-    val commonParent = PsiTreeUtil.findCommonParent(originalElements) as KtElement
+    val commonParent = PsiTreeUtil.findCommonParent(physicalElements) as KtElement
 
     val bindingContext: BindingContext? by lazy { commonParent.getContextForContainingDeclarationBody() }
 
@@ -126,7 +122,7 @@ data class ExtractionData(
         fun isExtractableIt(descriptor: DeclarationDescriptor, context: BindingContext): Boolean {
             if (!(descriptor is ValueParameterDescriptor && (context[BindingContext.AUTO_CREATED_IT, descriptor] ?: false))) return false
             val function = DescriptorToSourceUtils.descriptorToDeclaration(descriptor.getContainingDeclaration()) as? KtFunctionLiteral
-            return function == null || !function.isInsideOf(originalElements)
+            return function == null || !function.isInsideOf(physicalElements)
         }
 
         tailrec fun getDeclaration(descriptor: DeclarationDescriptor, context: BindingContext): PsiNameIdentifierOwner? {
@@ -157,18 +153,26 @@ data class ExtractionData(
                 }
 
                 override fun visitSimpleNameExpression(ref: KtSimpleNameExpression) {
-                    if (ref !is KtSimpleNameExpression) return
                     if (ref.getParent() is KtValueArgumentName) return
 
-                    val resolvedCall = ref.getResolvedCall(context)
-                    val descriptor = context[BindingContext.REFERENCE_TARGET, ref] ?: return
+                    val physicalRef = substringInfo?.let {
+                        // If substring contains some references it must be extracted as a string template
+                        val physicalExpression = expressions.single() as KtStringTemplateExpression
+                        val extractedContentOffset = physicalExpression.getContentRange().startOffset + physicalExpression.startOffset
+                        val offsetInExtracted = ref.startOffset - extractedContentOffset
+                        val offsetInTemplate = it.relativeContentRange.startOffset + offsetInExtracted
+                        it.template.findElementAt(offsetInTemplate)!!.getStrictParentOfType<KtSimpleNameExpression>()
+                    } ?: ref
+
+                    val resolvedCall = physicalRef.getResolvedCall(context)
+                    val descriptor = context[BindingContext.REFERENCE_TARGET, physicalRef] ?: return
                     val declaration = getDeclaration(descriptor, context) ?: return
 
                     val offset = ref.getTextRange()!!.getStartOffset() - originalStartOffset
-                    resultMap[offset] = ResolveResult(ref, declaration, descriptor, resolvedCall)
+                    resultMap[offset] = ResolveResult(physicalRef, declaration, descriptor, resolvedCall)
                 }
             }
-            getExpressions().forEach { it.accept(visitor) }
+            expressions.forEach { it.accept(visitor) }
 
             resultMap
         }
@@ -230,7 +234,7 @@ data class ExtractionData(
             val isBadRef = !(compareDescriptors(project, originalResolveResult.descriptor, descriptor)
                              && originalContext.diagnostics.forElement(originalResolveResult.originalRefExpr) == context.diagnostics.forElement(ref))
                            || smartCast != null
-            if (isBadRef && !originalResolveResult.declaration.isInsideOf(originalElements)) {
+            if (isBadRef && !originalResolveResult.declaration.isInsideOf(physicalElements)) {
                 val originalResolvedCall = originalResolveResult.resolvedCall as? VariableAsFunctionResolvedCall
                 val originalFunctionCall = originalResolvedCall?.functionCall
                 val originalVariableCall = originalResolvedCall?.variableCall
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/duplicateUtil.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/duplicateUtil.kt
index 4c34a282305..acc7aaea279 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/duplicateUtil.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/duplicateUtil.kt
@@ -35,9 +35,10 @@ import com.intellij.find.FindManager
 import org.jetbrains.kotlin.idea.util.application.executeWriteCommand
 import com.intellij.refactoring.util.duplicates.MethodDuplicatesHandler
 import com.intellij.refactoring.RefactoringBundle
+import org.jetbrains.kotlin.idea.refactoring.introduce.getPhysicalTextRange
 
 public fun KotlinPsiRange.highlight(project: Project, editor: Editor): RangeHighlighter? {
-    val textRange = getTextRange()
+    val textRange = getPhysicalTextRange()
     val highlighters = ArrayList<RangeHighlighter>()
     val attributes = EditorColorsManager.getInstance().getGlobalScheme().getAttributes(EditorColors.SEARCH_RESULT_ATTRIBUTES)!!
     HighlightManager.getInstance(project).addRangeHighlight(
@@ -48,7 +49,7 @@ public fun KotlinPsiRange.highlight(project: Project, editor: Editor): RangeHigh
 
 public fun KotlinPsiRange.preview(project: Project, editor: Editor): RangeHighlighter? {
     return highlight(project, editor)?.let {
-        val startOffset = getTextRange().getStartOffset()
+        val startOffset = getPhysicalTextRange().getStartOffset()
         val foldedRegions =
                 CodeFoldingManager.getInstance(project)
                         .getFoldRegionsAtOffset(editor, startOffset)
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractableAnalysisUtil.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractableAnalysisUtil.kt
index 9f0085d687e..9f8596c3b8a 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractableAnalysisUtil.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractableAnalysisUtil.kt
@@ -127,11 +127,11 @@ private fun List<Instruction>.getVarDescriptorsAccessedAfterwards(bindingContext
 private fun List<Instruction>.getExitPoints(): List<Instruction> =
         filter { localInstruction -> localInstruction.nextInstructions.any { it !in this } }
 
-private fun List<Instruction>.getResultTypeAndExpressions(
+private fun ExtractionData.getResultTypeAndExpressions(
+        instructions: List<Instruction>,
         bindingContext: BindingContext,
         targetScope: LexicalScope?,
-        options: ExtractionOptions,
-        module: ModuleDescriptor
+        options: ExtractionOptions, module: ModuleDescriptor
 ): Pair<KotlinType, List<KtExpression>> {
     fun instructionToExpression(instruction: Instruction, unwrapReturn: Boolean): KtExpression? {
         return when (instruction) {
@@ -146,6 +146,10 @@ private fun List<Instruction>.getResultTypeAndExpressions(
     fun instructionToType(instruction: Instruction): KotlinType? {
         val expression = instructionToExpression(instruction, true) ?: return null
 
+        substringInfo?.let {
+            if (it.template == expression) return it.type
+        }
+
         if (options.inferUnitTypeForUnusedValues && expression.isUsedAsStatement(bindingContext)) return null
 
         return bindingContext.getType(expression)
@@ -154,11 +158,11 @@ private fun List<Instruction>.getResultTypeAndExpressions(
                }
     }
 
-    val resultTypes = mapNotNull(::instructionToType)
+    val resultTypes = instructions.mapNotNull(::instructionToType)
     val commonSupertype = if (resultTypes.isNotEmpty()) CommonSupertypes.commonSupertype(resultTypes) else module.builtIns.defaultReturnType
     val resultType = if (options.allowSpecialClassNames) commonSupertype else commonSupertype.approximateWithResolvableType(targetScope, false)
 
-    val expressions = mapNotNull { instructionToExpression(it, false) }
+    val expressions = instructions.mapNotNull { instructionToExpression(it, false) }
 
     return resultType to expressions
 }
@@ -210,7 +214,7 @@ private fun ExtractionData.getLocalDeclarationsWithNonLocalUsages(
         if (instruction !in localInstructions) {
             instruction.getPrimaryDeclarationDescriptorIfAny(bindingContext)?.let { descriptor ->
                 val declaration = DescriptorToSourceUtilsIde.getAnyDeclaration(project, descriptor)
-                if (declaration is KtNamedDeclaration && declaration.isInsideOf(originalElements)) {
+                if (declaration is KtNamedDeclaration && declaration.isInsideOf(physicalElements)) {
                     declarations.add(declaration)
                 }
             }
@@ -279,8 +283,8 @@ private fun ExtractionData.analyzeControlFlow(
     val nonLocallyUsedDeclarations = getLocalDeclarationsWithNonLocalUsages(pseudocode, localInstructions, bindingContext)
     val (declarationsToCopy, declarationsToReport) = nonLocallyUsedDeclarations.partition { it is KtProperty && it.isLocal }
 
-    val (typeOfDefaultFlow, defaultResultExpressions) = defaultExits.getResultTypeAndExpressions(bindingContext, targetScope, options, module)
-    val (returnValueType, valuedReturnExpressions) = valuedReturnExits.getResultTypeAndExpressions(bindingContext, targetScope, options, module)
+    val (typeOfDefaultFlow, defaultResultExpressions) = getResultTypeAndExpressions(defaultExits, bindingContext, targetScope, options, module)
+    val (returnValueType, valuedReturnExpressions) = getResultTypeAndExpressions(valuedReturnExits, bindingContext, targetScope, options, module)
 
     val emptyControlFlow =
             ControlFlow(Collections.emptyList(), { OutputValueBoxer.AsTuple(it, module) }, declarationsToCopy)
@@ -586,7 +590,7 @@ private fun ExtractionData.checkDeclarationsMovingOutOfScope(
                 override fun visitSimpleNameExpression(expression: KtSimpleNameExpression) {
                     val target = expression.mainReference.resolve()
                     if (target is KtNamedDeclaration
-                        && target.isInsideOf(originalElements)
+                        && target.isInsideOf(physicalElements)
                         && target.getStrictParentOfType<KtDeclaration>() == enclosingDeclaration) {
                         declarationsOutOfScope.add(target)
                     }
@@ -605,7 +609,7 @@ private fun ExtractionData.checkDeclarationsMovingOutOfScope(
 private fun ExtractionData.getLocalInstructions(pseudocode: Pseudocode): List<Instruction> {
     val instructions = ArrayList<Instruction>()
     pseudocode.traverse(TraversalOrder.FORWARD) {
-        if (it is JetElementInstruction && it.element.isInsideOf(originalElements)) {
+        if (it is JetElementInstruction && it.element.isInsideOf(physicalElements)) {
             instructions.add(it)
         }
     }
@@ -725,7 +729,7 @@ private fun ExtractionData.suggestFunctionNames(returnType: KotlinType): List<St
         functionNames.addAll(KotlinNameSuggester.suggestNamesByType(returnType, validator))
     }
 
-    getExpressions().singleOrNull()?.let { expr ->
+    expressions.singleOrNull()?.let { expr ->
         val property = expr.getStrictParentOfType<KtProperty>()
         if (property?.initializer == expr) {
             property?.name?.let { functionNames.add(KotlinNameSuggester.suggestNameByName("get" + it.capitalize(), validator)) }
@@ -806,7 +810,7 @@ fun ExtractableCodeDescriptor.validate(): ExtractableCodeDescriptorWithConflicts
 
     fun validateBody() {
         for ((originalOffset, resolveResult) in extractionData.refOffsetToDeclaration) {
-            if (resolveResult.declaration.isInsideOf(extractionData.originalElements)) continue
+            if (resolveResult.declaration.isInsideOf(extractionData.physicalElements)) continue
 
             val currentRefExprs = result.nameByOffset[originalOffset].mapNotNull {
                 (it as? KtThisExpression)?.instanceReference ?: it as? KtSimpleNameExpression
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt
index 43ae4168e66..9d99af7b1a7 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/extractorUtil.kt
@@ -26,20 +26,22 @@ import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.descriptors.ClassDescriptor
 import org.jetbrains.kotlin.idea.core.*
 import org.jetbrains.kotlin.idea.core.refactoring.isMultiLine
+import org.jetbrains.kotlin.idea.core.refactoring.removeTemplateEntryBracesIfPossible
 import org.jetbrains.kotlin.idea.intentions.ConvertToExpressionBodyIntention
 import org.jetbrains.kotlin.idea.intentions.InfixCallToOrdinaryIntention
 import org.jetbrains.kotlin.idea.intentions.OperatorToFunctionIntention
 import org.jetbrains.kotlin.idea.intentions.RemoveExplicitTypeArgumentsIntention
+import org.jetbrains.kotlin.idea.refactoring.introduce.extractableSubstringInfo
 import org.jetbrains.kotlin.idea.refactoring.introduce.extractionEngine.OutputValue.*
 import org.jetbrains.kotlin.idea.refactoring.introduce.extractionEngine.OutputValueBoxer.AsTuple
+import org.jetbrains.kotlin.idea.refactoring.introduce.getPhysicalTextRange
+import org.jetbrains.kotlin.idea.refactoring.introduce.replaceWith
+import org.jetbrains.kotlin.idea.refactoring.introduce.substringContextOrThis
 import org.jetbrains.kotlin.idea.util.IdeDescriptorRenderers
 import org.jetbrains.kotlin.idea.util.ShortenReferences
-import org.jetbrains.kotlin.idea.util.psi.patternMatching.KotlinPsiRange
-import org.jetbrains.kotlin.idea.util.psi.patternMatching.KotlinPsiUnifier
-import org.jetbrains.kotlin.idea.util.psi.patternMatching.UnificationResult
+import org.jetbrains.kotlin.idea.util.psi.patternMatching.*
 import org.jetbrains.kotlin.idea.util.psi.patternMatching.UnificationResult.StronglyMatched
 import org.jetbrains.kotlin.idea.util.psi.patternMatching.UnificationResult.WeaklyMatched
-import org.jetbrains.kotlin.idea.util.psi.patternMatching.UnifierParameter
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.KtPsiFactory.CallableBuilder
 import org.jetbrains.kotlin.psi.codeFragmentUtil.DEBUG_TYPE_REFERENCE_STRING
@@ -206,15 +208,18 @@ fun ExtractableCodeDescriptor.findDuplicates(): List<DuplicateInfo> {
     val unifier = KotlinPsiUnifier(unifierParameters, true)
 
     val scopeElement = getOccurrenceContainer() ?: return Collections.emptyList()
-    val originalTextRange = extractionData.originalRange.getTextRange()
+    val originalTextRange = extractionData.originalRange.getPhysicalTextRange()
     return extractionData
             .originalRange
             .match(scopeElement, unifier)
             .asSequence()
-            .filter { !(it.range.getTextRange() intersects originalTextRange) }
+            .filter { !(it.range.getPhysicalTextRange() intersects originalTextRange) }
             .mapNotNull { match ->
                 val controlFlow = getControlFlowIfMatched(match)
-                controlFlow?.let { DuplicateInfo(match.range, it, unifierParameters.map { match.substitution[it]!!.text!! }) }
+                val range = with(match.range) {
+                    (elements.singleOrNull() as? KtStringTemplateEntryWithExpression)?.expression?.toRange() ?: this
+                }
+                controlFlow?.let { DuplicateInfo(range, it, unifierParameters.map { match.substitution[it]!!.text!! }) }
             }
             .toList()
 }
@@ -229,16 +234,15 @@ private fun makeCall(
         controlFlow: ControlFlow,
         rangeToReplace: KotlinPsiRange,
         arguments: List<String>) {
-    fun insertCall(anchor: PsiElement, wrappedCall: KtExpression) {
+    fun insertCall(anchor: PsiElement, wrappedCall: KtExpression): KtExpression? {
         val firstExpression = rangeToReplace.elements.firstOrNull { it is KtExpression } as? KtExpression
         if (firstExpression?.isFunctionLiteralOutsideParentheses() ?: false) {
             val functionLiteralArgument = firstExpression?.getStrictParentOfType<KtFunctionLiteralArgument>()!!
-            functionLiteralArgument.moveInsideParenthesesAndReplaceWith(wrappedCall, extractableDescriptor.originalContext)
-            return
+            return functionLiteralArgument.moveInsideParenthesesAndReplaceWith(wrappedCall, extractableDescriptor.originalContext)
         }
 
         if (anchor is KtOperationReferenceExpression) {
-            val operationExpression = anchor.parent as? KtOperationExpression ?: return
+            val operationExpression = anchor.parent as? KtOperationExpression ?: return null
             val newNameExpression = when (operationExpression) {
                 is KtUnaryExpression -> OperatorToFunctionIntention.convert(operationExpression).second
                 is KtBinaryExpression -> {
@@ -246,11 +250,14 @@ private fun makeCall(
                 }
                 else -> null
             }
-            newNameExpression?.replace(wrappedCall)
-            return
+            return newNameExpression?.replaced(wrappedCall)
         }
 
-        anchor.replace(wrappedCall)
+        (anchor as? KtExpression)?.extractableSubstringInfo?.let {
+            return it.replaceWith(wrappedCall)
+        }
+
+        return anchor.replaced(wrappedCall)
     }
 
     if (rangeToReplace !is KotlinPsiRange.ListRange) return
@@ -393,7 +400,7 @@ private fun makeCall(
         if (!inlinableCall) {
             block.addBefore(newLine, anchorInBlock)
         }
-        insertCall(anchor, wrapCall(it, unboxingExpressions[it]!!).first() as KtExpression)
+        insertCall(anchor, wrapCall(it, unboxingExpressions[it]!!).first() as KtExpression)?.removeTemplateEntryBracesIfPossible()
     }
 
     if (anchor.isValid) {
@@ -617,7 +624,7 @@ fun ExtractionGeneratorConfiguration.generateDeclaration(
     val anchor = with(descriptor.extractionData) {
         val targetParent = targetSibling.parent
 
-        val anchorCandidates = duplicates.mapTo(ArrayList<PsiElement>()) { it.range.elements.first() }
+        val anchorCandidates = duplicates.mapTo(ArrayList<PsiElement>()) { it.range.elements.first().substringContextOrThis }
         anchorCandidates.add(targetSibling)
         if (targetSibling is KtEnumEntry) {
             anchorCandidates.add(targetSibling.siblings().last { it is KtEnumEntry })
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/inferParameterInfo.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/inferParameterInfo.kt
index 9da5ae62fb5..45f2f0768ab 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/inferParameterInfo.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/extractionEngine/inferParameterInfo.kt
@@ -88,7 +88,7 @@ internal fun ExtractionData.inferParametersInfo(
 
     val varNameValidator = NewDeclarationNameValidator(
             commonParent.getNonStrictParentOfType<KtExpression>()!!,
-            originalElements.firstOrNull(),
+            physicalElements.firstOrNull(),
             NewDeclarationNameValidator.Target.VARIABLES
     )
 
@@ -131,7 +131,7 @@ private fun ExtractionData.extractReceiver(
     val thisExpr = refInfo.refExpr.parent as? KtThisExpression
 
     if (hasThisReceiver
-        && DescriptorToSourceUtilsIde.getAllDeclarations(project, thisDescriptor!!).all { it.isInsideOf(originalElements) }) {
+        && DescriptorToSourceUtilsIde.getAllDeclarations(project, thisDescriptor!!).all { it.isInsideOf(physicalElements) }) {
         return
     }
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceUtil.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceUtil.kt
index a40368b276e..9e462326a8f 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceUtil.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceUtil.kt
@@ -25,6 +25,7 @@ import com.intellij.psi.PsiElement
 import com.intellij.psi.util.PsiTreeUtil
 import org.jetbrains.kotlin.idea.codeInsight.CodeInsightUtils
 import org.jetbrains.kotlin.idea.core.refactoring.chooseContainerElementIfNecessary
+import org.jetbrains.kotlin.idea.core.refactoring.removeTemplateEntryBracesIfPossible
 import org.jetbrains.kotlin.idea.refactoring.KotlinRefactoringBundle
 import org.jetbrains.kotlin.idea.refactoring.KotlinRefactoringUtil
 import org.jetbrains.kotlin.idea.util.psi.patternMatching.KotlinPsiRange
@@ -52,7 +53,7 @@ fun selectElementsWithTargetSibling(
                      ?: throw AssertionError("Should have at least one parent: ${physicalElements.joinToString("\n")}")
 
         if (parent == targetContainer) {
-            continuation(elements, elements.first())
+            continuation(elements, physicalElements.first())
             return
         }
 
@@ -84,7 +85,7 @@ fun selectElementsWithTargetParent(
         val parent = PsiTreeUtil.findCommonParent(physicalElements)
             ?: throw AssertionError("Should have at least one parent: ${physicalElements.joinToString("\n")}")
 
-        val containers = getContainers(elements, parent)
+        val containers = getContainers(physicalElements, parent)
         if (containers.isEmpty()) {
             showErrorHintByKey("cannot.refactor.no.container")
             return
@@ -173,4 +174,26 @@ fun findExpressionOrStringFragment(file: KtFile, startOffset: Int, endOffset: In
     val suffix = entry2.text.substring(suffixOffset)
 
     return ExtractableSubstringInfo(entry1, entry2, prefix, suffix).createExpression()
+}
+
+fun KotlinPsiRange.getPhysicalTextRange(): TextRange {
+    return (elements.singleOrNull() as? KtExpression)?.extractableSubstringInfo?.contentRange ?: getTextRange()
+}
+
+fun ExtractableSubstringInfo.replaceWith(replacement: KtExpression): KtExpression {
+    return with(this) {
+        val psiFactory = KtPsiFactory(replacement)
+        val parent = startEntry.parent
+
+        psiFactory.createStringTemplate(prefix).entries.singleOrNull()?.let { parent.addBefore(it, startEntry) }
+
+        val refEntry = psiFactory.createBlockStringTemplateEntry(replacement)
+        val addedRefEntry = parent.addBefore(refEntry, startEntry) as KtStringTemplateEntryWithExpression
+
+        psiFactory.createStringTemplate(suffix).entries.singleOrNull()?.let { parent.addAfter(it, endEntry) }
+
+        parent.deleteChildRange(startEntry, endEntry)
+
+        addedRefEntry.expression!!
+    }
 }
\ No newline at end of file
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.kt
index e4cfdf65b19..1f18c594852 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.kt
@@ -42,8 +42,8 @@ import org.jetbrains.kotlin.idea.core.compareDescriptors
 import org.jetbrains.kotlin.idea.core.moveInsideParenthesesAndReplaceWith
 import org.jetbrains.kotlin.idea.core.refactoring.Pass
 import org.jetbrains.kotlin.idea.core.refactoring.chooseContainerElementIfNecessary
+import org.jetbrains.kotlin.idea.core.refactoring.removeTemplateEntryBracesIfPossible
 import org.jetbrains.kotlin.idea.intentions.ConvertToBlockBodyIntention
-import org.jetbrains.kotlin.idea.intentions.RemoveCurlyBracesFromTemplateIntention
 import org.jetbrains.kotlin.idea.refactoring.KotlinRefactoringBundle
 import org.jetbrains.kotlin.idea.refactoring.KotlinRefactoringUtil
 import org.jetbrains.kotlin.idea.refactoring.introduce.*
@@ -108,37 +108,17 @@ object KotlinIntroduceVariableHandler : KotlinIntroduceHandlerBase() {
 
             val replacement = psiFactory.createExpression(nameSuggestion)
             val substringInfo = expressionToReplace.extractableSubstringInfo
-            var result = if (expressionToReplace.isFunctionLiteralOutsideParentheses()) {
-                val functionLiteralArgument = expressionToReplace.getStrictParentOfType<KtFunctionLiteralArgument>()!!
-                val newCallExpression = functionLiteralArgument.moveInsideParenthesesAndReplaceWith(replacement, bindingContext)
-                newCallExpression.valueArguments.last().getArgumentExpression()!!
-            }
-            else if (substringInfo != null) {
-                with(substringInfo) {
-                    val parent = startEntry.parent
-
-                    psiFactory.createStringTemplate(prefix).entries.singleOrNull()?.let { parent.addBefore(it, startEntry) }
-
-                    val refEntry = psiFactory.createBlockStringTemplateEntry(replacement)
-                    val addedRefEntry = parent.addBefore(refEntry, startEntry) as KtStringTemplateEntryWithExpression
-
-                    psiFactory.createStringTemplate(suffix).entries.singleOrNull()?.let { parent.addAfter(it, endEntry) }
-
-                    parent.deleteChildRange(startEntry, endEntry)
-
-                    addedRefEntry.expression!!
+            var result = when {
+                expressionToReplace.isFunctionLiteralOutsideParentheses() -> {
+                    val functionLiteralArgument = expressionToReplace.getStrictParentOfType<KtFunctionLiteralArgument>()!!
+                    val newCallExpression = functionLiteralArgument.moveInsideParenthesesAndReplaceWith(replacement, bindingContext)
+                    newCallExpression.valueArguments.last().getArgumentExpression()!!
                 }
-            }
-            else {
-                expressionToReplace.replace(replacement) as KtExpression
+                substringInfo != null -> substringInfo.replaceWith(replacement)
+                else -> expressionToReplace.replace(replacement) as KtExpression
             }
 
-            val parent = result.parent
-            if (parent is KtBlockStringTemplateEntry) {
-                val intention = RemoveCurlyBracesFromTemplateIntention()
-                val newEntry = if (intention.isApplicableTo(parent)) intention.applyTo(parent) else parent
-                result = newEntry.expression!!
-            }
+            result = result.removeTemplateEntryBracesIfPossible()
 
             if (addToReferences) references.addIfNotNull(result)
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/jetRefactoringUtil.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/jetRefactoringUtil.kt
index 6bf99ddb93f..6d9d7cbaeb7 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/jetRefactoringUtil.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/jetRefactoringUtil.kt
@@ -68,6 +68,7 @@ import org.jetbrains.kotlin.idea.caches.resolve.getJavaMemberDescriptor
 import org.jetbrains.kotlin.idea.caches.resolve.resolveToDescriptor
 import org.jetbrains.kotlin.idea.core.KotlinNameSuggester
 import org.jetbrains.kotlin.idea.core.getPackage
+import org.jetbrains.kotlin.idea.intentions.RemoveCurlyBracesFromTemplateIntention
 import org.jetbrains.kotlin.idea.j2k.IdeaJavaToKotlinServices
 import org.jetbrains.kotlin.idea.util.ProjectRootsUtil
 import org.jetbrains.kotlin.idea.util.string.collapseSpaces
@@ -750,4 +751,13 @@ fun <ListType : KtElement> replaceListPsiAndKeepDelimiters(
 
 fun <T> Pass(body: (T) -> Unit) = object: Pass<T>() {
     override fun pass(t: T) = body(t)
+}
+
+fun KtExpression.removeTemplateEntryBracesIfPossible(): KtExpression {
+    val parent = parent
+    if (parent !is KtBlockStringTemplateEntry) return this
+
+    val intention = RemoveCurlyBracesFromTemplateIntention()
+    val newEntry = if (intention.isApplicableTo(parent)) intention.applyTo(parent) else parent
+    return newEntry.expression!!
 }
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt
new file mode 100644
index 00000000000..8d3f78f7b2c
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt
@@ -0,0 +1,3 @@
+fun foo(param: Int): String {
+    return "<selection>abc${pa</selection>ram}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt.conflicts b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt.conflicts
new file mode 100644
index 00000000000..21617cc617d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt.conflicts
@@ -0,0 +1 @@
+Cannot perform refactoring without an expression
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt
new file mode 100644
index 00000000000..a7ef59f2d42
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt
@@ -0,0 +1,3 @@
+fun foo(param: Int): String {
+    return "<selection>abc$pa</selection>ram"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt.conflicts b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt.conflicts
new file mode 100644
index 00000000000..21617cc617d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt.conflicts
@@ -0,0 +1 @@
+Cannot perform refactoring without an expression
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt
new file mode 100644
index 00000000000..3cc3e6f3471
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt
@@ -0,0 +1,3 @@
+fun foo(a: Int): String {
+    return "<selection>abc$a\</selection>ndef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt.conflicts b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt.conflicts
new file mode 100644
index 00000000000..21617cc617d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt.conflicts
@@ -0,0 +1 @@
+Cannot perform refactoring without an expression
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt b/idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt
new file mode 100644
index 00000000000..285d901493c
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt
@@ -0,0 +1,7 @@
+// SUGGESTED_NAMES: b, getX
+fun foo(param: Int): String {
+    val x = "xyfalsez"
+    val y = "xyFalsez"
+    val z = false
+    return "ab<selection>false</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt.after
new file mode 100644
index 00000000000..87a07d18e6c
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt.after
@@ -0,0 +1,9 @@
+// SUGGESTED_NAMES: b, getX
+fun foo(param: Int): String {
+    val x = "xy${b()}z"
+    val y = "xyFalsez"
+    val z = false
+    return "ab${b()}def"
+}
+
+private fun b() = false
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt b/idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt
new file mode 100644
index 00000000000..9662606678d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt
@@ -0,0 +1,8 @@
+// SUGGESTED_NAMES: i, getX
+fun foo(param: Int): String {
+    val x = "a1234_"
+    val y = "-4123a"
+    val z = "+1243a"
+    val u = 123
+    return "ab<selection>123</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt.after
new file mode 100644
index 00000000000..23f7cf14068
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt.after
@@ -0,0 +1,10 @@
+// SUGGESTED_NAMES: i, getX
+fun foo(param: Int): String {
+    val x = "a${i()}4_"
+    val y = "-4${i()}a"
+    val z = "+1243a"
+    val u = 123
+    return "ab${i()}def"
+}
+
+private fun i() = 123
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt b/idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt
new file mode 100644
index 00000000000..0a284805964
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt
@@ -0,0 +1,7 @@
+// SUGGESTED_NAMES: b, getX
+fun foo(param: Int): String {
+    val x = "atrue123"
+    val x = "aTRUE123"
+    val z = true
+    return "ab<selection>true</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt.after
new file mode 100644
index 00000000000..a882c5311e8
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt.after
@@ -0,0 +1,9 @@
+// SUGGESTED_NAMES: b, getX
+fun foo(param: Int): String {
+    val x = "a${b()}123"
+    val x = "aTRUE123"
+    val z = true
+    return "ab${b()}def"
+}
+
+private fun b() = true
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt b/idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt
new file mode 100644
index 00000000000..0dc08aed3df
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt
@@ -0,0 +1,8 @@
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int, Number, Comparable<Int>, java.io.Serializable, Any
+fun foo(a: Int): String {
+    val x = "abc$a"
+    val y = "abc${a}"
+    val z = "abc{$a}def"
+    return "<selection>abc$a</selection>" + "def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt.after
new file mode 100644
index 00000000000..ace6940cd9d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt.after
@@ -0,0 +1,10 @@
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int, Number, Comparable<Int>, java.io.Serializable, Any
+fun foo(a: Int): String {
+    val x = s(a)
+    val y = s(a)
+    val z = "abc{$a}def"
+    return s(a) + "def"
+}
+
+private fun s(a: Int) = "abc$a"
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt
new file mode 100644
index 00000000000..e667409008d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt
@@ -0,0 +1,8 @@
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "-${a + 1}"
+    val y = "x${a + 1}y"
+    val z = "x${a - 1}y"
+    return "abc<selection>${a + 1}</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt.after
new file mode 100644
index 00000000000..9274f2094b3
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt.after
@@ -0,0 +1,10 @@
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "-${i(a)}"
+    val y = "x${i(a)}y"
+    val z = "x${a - 1}y"
+    return "abc${i(a)}def"
+}
+
+private fun i(a: Int) = a + 1
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt
new file mode 100644
index 00000000000..06e5a1a0a53
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt
@@ -0,0 +1,8 @@
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int, Number, Comparable<Int>, java.io.Serializable, Any
+fun foo(a: Int): String {
+    val x = "-$a"
+    val y = "x${a}y"
+    val z = "x$ay"
+    return "abc<selection>${a}</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt.after
new file mode 100644
index 00000000000..d7802ccbe99
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt.after
@@ -0,0 +1,10 @@
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int, Number, Comparable<Int>, java.io.Serializable, Any
+fun foo(a: Int): String {
+    val x = "-$a"
+    val y = "x${a}y"
+    val z = "x$ay"
+    return "abc${i(a)}def"
+}
+
+private fun i(a: Int) = a
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt
new file mode 100644
index 00000000000..465a830b084
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt
@@ -0,0 +1,8 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "+cd$a:${a + 1}efg"
+    val y = "+cd$a${a + 1}efg"
+    return "ab<selection>cd$a:${a + 1}ef</selection>"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt.after
new file mode 100644
index 00000000000..9e62e4e325e
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt.after
@@ -0,0 +1,10 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "+${s(a)}g"
+    val y = "+cd$a${a + 1}efg"
+    return "ab${s(a)}"
+}
+
+private fun s(a: Int) = "cd$a:${a + 1}ef"
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt
new file mode 100644
index 00000000000..08af97badad
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt
@@ -0,0 +1,8 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "_c$a:${a + 1}d_"
+    val y = "_$a:${a + 1}d_"
+    return "ab<selection>c$a:${a + 1}d</selection>ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt.after
new file mode 100644
index 00000000000..9235c793e1d
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt.after
@@ -0,0 +1,10 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "_${s(a)}_"
+    val y = "_$a:${a + 1}d_"
+    return "ab${s(a)}ef"
+}
+
+private fun s(a: Int) = "c$a:${a + 1}d"
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt
new file mode 100644
index 00000000000..ee69551069f
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt
@@ -0,0 +1,8 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "_ab$a:${a + 1}cd__"
+    val y = "_a$a:${a + 1}cd__"
+    return "<selection>ab$a:${a + 1}cd</selection>ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt.after
new file mode 100644
index 00000000000..e526c3119d1
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt.after
@@ -0,0 +1,10 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = "_${s(a)}__"
+    val y = "_a$a:${a + 1}cd__"
+    return "${s(a)}ef"
+}
+
+private fun s(a: Int) = "ab$a:${a + 1}cd"
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt b/idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt
new file mode 100644
index 00000000000..b45dbc90cc2
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt
@@ -0,0 +1,12 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = """_c$a
+    :${a + 1}d_"""
+    val y = "_$a:${a + 1}d_"
+    val z = """_c$a:${a + 1}d_"""
+    val u = "_c$a\n:${a + 1}d_"
+    return """ab<selection>c$a
+    :${a + 1}d</selection>ef"""
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt.after
new file mode 100644
index 00000000000..dc6f0920546
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt.after
@@ -0,0 +1,13 @@
+// SUGGESTED_NAMES: s, getX
+// PARAM_DESCRIPTOR: value-parameter val a: kotlin.Int defined in foo
+// PARAM_TYPES: kotlin.Int
+fun foo(a: Int): String {
+    val x = """_${s(a)}_"""
+    val y = "_$a:${a + 1}d_"
+    val z = """_c$a:${a + 1}d_"""
+    val u = "_c$a\n:${a + 1}d_"
+    return """ab${s(a)}ef"""
+}
+
+private fun s(a: Int) = """c$a
+    :${a + 1}d"""
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt
new file mode 100644
index 00000000000..bb8506efffc
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt
@@ -0,0 +1,7 @@
+// SUGGESTED_NAMES: s, getX
+fun foo(a: Int): String {
+    val x = "xabc$a"
+    val y = "${a}abcx"
+    val z = "xacb$a"
+    return "<selection>abc</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt.after
new file mode 100644
index 00000000000..92610d1ab6e
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt.after
@@ -0,0 +1,9 @@
+// SUGGESTED_NAMES: s, getX
+fun foo(a: Int): String {
+    val x = "x${s()}$a"
+    val y = "${a}${s()}x"
+    val z = "xacb$a"
+    return "${s()}def"
+}
+
+private fun s() = "abc"
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt
new file mode 100644
index 00000000000..16a3a56b15c
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt
@@ -0,0 +1,7 @@
+// SUGGESTED_NAMES: s, getX
+fun foo(a: Int): String {
+    val x = "xcd$a"
+    val y = "${a}cdx"
+    val z = "xcf$a"
+    return "ab<selection>cd</selection>ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt.after
new file mode 100644
index 00000000000..210c9d5c0f7
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt.after
@@ -0,0 +1,9 @@
+// SUGGESTED_NAMES: s, getX
+fun foo(a: Int): String {
+    val x = "x${s()}$a"
+    val y = "${a}${s()}x"
+    val z = "xcf$a"
+    return "ab${s()}ef"
+}
+
+private fun s() = "cd"
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt
new file mode 100644
index 00000000000..c3111de2468
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt
@@ -0,0 +1,7 @@
+// SUGGESTED_NAMES: s, getX
+fun foo(a: Int): String {
+    val x = "xdef$a"
+    val y = "${a}defx"
+    val z = "xddf$a"
+    return "abc<selection>def</selection>"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt.after b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt.after
new file mode 100644
index 00000000000..0f7b73b7cae
--- /dev/null
+++ b/idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt.after
@@ -0,0 +1,9 @@
+// SUGGESTED_NAMES: s, getX
+fun foo(a: Int): String {
+    val x = "x${s()}$a"
+    val y = "${a}${s()}x"
+    val z = "xddf$a"
+    return "abc${s()}"
+}
+
+private fun s() = "def"
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt
new file mode 100644
index 00000000000..ba92f111c54
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt
@@ -0,0 +1,6 @@
+// EXTRACTION_TARGET: property with initializer
+val prop = 1
+
+fun foo(): String {
+    return "<selection>abc${pr</selection>op}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt.conflicts b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt.conflicts
new file mode 100644
index 00000000000..21617cc617d
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt.conflicts
@@ -0,0 +1 @@
+Cannot perform refactoring without an expression
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt
new file mode 100644
index 00000000000..e0f5e75e69f
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt
@@ -0,0 +1,6 @@
+// EXTRACTION_TARGET: property with initializer
+val prop = 1
+
+fun foo(): String {
+    return "<selection>abc$pr</selection>op"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt.conflicts b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt.conflicts
new file mode 100644
index 00000000000..21617cc617d
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt.conflicts
@@ -0,0 +1 @@
+Cannot perform refactoring without an expression
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt
new file mode 100644
index 00000000000..d0010dcff5f
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt
@@ -0,0 +1,6 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    return "<selection>abc$a\</selection>ndef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt.conflicts b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt.conflicts
new file mode 100644
index 00000000000..21617cc617d
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt.conflicts
@@ -0,0 +1 @@
+Cannot perform refactoring without an expression
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt
new file mode 100644
index 00000000000..b58c35ba67c
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt
@@ -0,0 +1,7 @@
+// EXTRACTION_TARGET: property with initializer
+fun foo(): String {
+    val x = "xyfalsez"
+    val y = "xyFalsez"
+    val z = false
+    return "ab<selection>false</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt.after
new file mode 100644
index 00000000000..de6f1a07452
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt.after
@@ -0,0 +1,9 @@
+private val b = false
+
+// EXTRACTION_TARGET: property with initializer
+fun foo(): String {
+    val x = "xy${b}z"
+    val y = "xyFalsez"
+    val z = false
+    return "ab${b}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt
new file mode 100644
index 00000000000..2c3ded98146
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt
@@ -0,0 +1,8 @@
+// EXTRACTION_TARGET: property with initializer
+fun foo(): String {
+    val x = "a1234_"
+    val y = "-4123a"
+    val z = "+1243a"
+    val u = 123
+    return "ab<selection>123</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt.after
new file mode 100644
index 00000000000..fbccc451708
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt.after
@@ -0,0 +1,10 @@
+private val i = 123
+
+// EXTRACTION_TARGET: property with initializer
+fun foo(): String {
+    val x = "a${i}4_"
+    val y = "-4${i}a"
+    val z = "+1243a"
+    val u = 123
+    return "ab${i}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt
new file mode 100644
index 00000000000..811029e44b6
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt
@@ -0,0 +1,7 @@
+// EXTRACTION_TARGET: property with initializer
+fun foo(): String {
+    val x = "atrue123"
+    val x = "aTRUE123"
+    val z = true
+    return "ab<selection>true</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt.after
new file mode 100644
index 00000000000..4abdb696184
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt.after
@@ -0,0 +1,9 @@
+private val b = true
+
+// EXTRACTION_TARGET: property with initializer
+fun foo(): String {
+    val x = "a${b}123"
+    val x = "aTRUE123"
+    val z = true
+    return "ab${b}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt
new file mode 100644
index 00000000000..6c4effd3abe
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt
@@ -0,0 +1,9 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "abc$a"
+    val y = "abc${a}"
+    val z = "abc{$a}def"
+    return "<selection>abc$a</selection>" + "def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt.after
new file mode 100644
index 00000000000..8cb1c7b2d2d
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt.after
@@ -0,0 +1,11 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "abc$a"
+
+fun foo(): String {
+    val x = s
+    val y = s
+    val z = "abc{$a}def"
+    return s + "def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt
new file mode 100644
index 00000000000..cb05b7cc177
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt
@@ -0,0 +1,9 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "-${a + 1}"
+    val y = "x${a + 1}y"
+    val z = "x${a - 1}y"
+    return "abc<selection>${a + 1}</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt.after
new file mode 100644
index 00000000000..51e2a1a33a7
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt.after
@@ -0,0 +1,11 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val i = a + 1
+
+fun foo(): String {
+    val x = "-$i"
+    val y = "x${i}y"
+    val z = "x${a - 1}y"
+    return "abc${i}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt
new file mode 100644
index 00000000000..abef3e4cf6a
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt
@@ -0,0 +1,9 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "-$a"
+    val y = "x${a}y"
+    val z = "x$ay"
+    return "abc<selection>${a}</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt.after
new file mode 100644
index 00000000000..123413ebf88
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt.after
@@ -0,0 +1,11 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val i = a
+
+fun foo(): String {
+    val x = "-$i"
+    val y = "x${i}y"
+    val z = "x$ay"
+    return "abc${i}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt
new file mode 100644
index 00000000000..c50934eaa79
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt
@@ -0,0 +1,8 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "+cd$a:${a + 1}efg"
+    val y = "+cd$a${a + 1}efg"
+    return "ab<selection>cd$a:${a + 1}ef</selection>"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt.after
new file mode 100644
index 00000000000..96fd37312e1
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt.after
@@ -0,0 +1,10 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "cd$a:${a + 1}ef"
+
+fun foo(): String {
+    val x = "+${s}g"
+    val y = "+cd$a${a + 1}efg"
+    return "ab$s"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt
new file mode 100644
index 00000000000..b568baa46f7
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt
@@ -0,0 +1,8 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "_c$a:${a + 1}d_"
+    val y = "_$a:${a + 1}d_"
+    return "ab<selection>c$a:${a + 1}d</selection>ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt.after
new file mode 100644
index 00000000000..b908e1095d5
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt.after
@@ -0,0 +1,10 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "c$a:${a + 1}d"
+
+fun foo(): String {
+    val x = "_${s}_"
+    val y = "_$a:${a + 1}d_"
+    return "ab${s}ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt
new file mode 100644
index 00000000000..50fba655d01
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt
@@ -0,0 +1,8 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "_ab$a:${a + 1}cd__"
+    val y = "_a$a:${a + 1}cd__"
+    return "<selection>ab$a:${a + 1}cd</selection>ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt.after
new file mode 100644
index 00000000000..224bde8ba10
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt.after
@@ -0,0 +1,10 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "ab$a:${a + 1}cd"
+
+fun foo(): String {
+    val x = "_${s}__"
+    val y = "_a$a:${a + 1}cd__"
+    return "${s}ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt
new file mode 100644
index 00000000000..e04013f6561
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt
@@ -0,0 +1,12 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = """_c$a
+    :${a + 1}d_"""
+    val y = "_$a:${a + 1}d_"
+    val z = """_c$a:${a + 1}d_"""
+    val u = "_c$a\n:${a + 1}d_"
+    return """ab<selection>c$a
+    :${a + 1}d</selection>ef"""
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt.after
new file mode 100644
index 00000000000..ed41a2d9b7c
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt.after
@@ -0,0 +1,13 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = """c$a
+    :${a + 1}d"""
+
+fun foo(): String {
+    val x = """_${s}_"""
+    val y = "_$a:${a + 1}d_"
+    val z = """_c$a:${a + 1}d_"""
+    val u = "_c$a\n:${a + 1}d_"
+    return """ab${s}ef"""
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt
new file mode 100644
index 00000000000..94f7c604f76
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt
@@ -0,0 +1,9 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "xabc$a"
+    val y = "${a}abcx"
+    val z = "xacb$a"
+    return "<selection>abc</selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt.after
new file mode 100644
index 00000000000..b7d60bb1c41
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt.after
@@ -0,0 +1,11 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "abc"
+
+fun foo(): String {
+    val x = "x$s$a"
+    val y = "${a}${s}x"
+    val z = "xacb$a"
+    return "${s}def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt
new file mode 100644
index 00000000000..b95ef5df721
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt
@@ -0,0 +1,9 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "xcd$a"
+    val y = "${a}cdx"
+    val z = "xcf$a"
+    return "ab<selection>cd</selection>ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt.after
new file mode 100644
index 00000000000..7900d6081f9
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt.after
@@ -0,0 +1,11 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "cd"
+
+fun foo(): String {
+    val x = "x$s$a"
+    val y = "${a}${s}x"
+    val z = "xcf$a"
+    return "ab${s}ef"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt
new file mode 100644
index 00000000000..06f3236c0be
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt
@@ -0,0 +1,9 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+fun foo(): String {
+    val x = "xdef$a"
+    val y = "${a}defx"
+    val z = "xddf$a"
+    return "abc<selection>def</selection>"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt.after b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt.after
new file mode 100644
index 00000000000..ad13f30eaad
--- /dev/null
+++ b/idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt.after
@@ -0,0 +1,11 @@
+// EXTRACTION_TARGET: property with initializer
+val a = 1
+
+private val s = "def"
+
+fun foo(): String {
+    val x = "x$s$a"
+    val y = "${a}${s}x"
+    val z = "xddf$a"
+    return "abc$s"
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
index 2f0a0c80f16..5a0da257ea1 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
@@ -2488,6 +2488,111 @@ public class ExtractionTestGenerated extends AbstractExtractionTest {
             }
         }
 
+        @TestMetadata("idea/testData/refactoring/extractFunction/stringTemplates")
+        @TestDataPath("$PROJECT_ROOT")
+        @RunWith(JUnit3RunnerWithInners.class)
+        public static class StringTemplates extends AbstractExtractionTest {
+            public void testAllFilesPresentInStringTemplates() throws Exception {
+                KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/refactoring/extractFunction/stringTemplates"), Pattern.compile("^(.+)\\.kt$"), true);
+            }
+
+            @TestMetadata("brokenEntryWithBlockExpr.kt")
+            public void testBrokenEntryWithBlockExpr() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithBlockExpr.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("brokenEntryWithExpr.kt")
+            public void testBrokenEntryWithExpr() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/brokenEntryWithExpr.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("brokenEscapeEntry.kt")
+            public void testBrokenEscapeEntry() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/brokenEscapeEntry.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("extractFalse.kt")
+            public void testExtractFalse() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/extractFalse.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("extractIntegerLiteral.kt")
+            public void testExtractIntegerLiteral() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/extractIntegerLiteral.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("extractTrue.kt")
+            public void testExtractTrue() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/extractTrue.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("fullContent.kt")
+            public void testFullContent() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/fullContent.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("fullEntryWithBlockExpr.kt")
+            public void testFullEntryWithBlockExpr() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithBlockExpr.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("fullEntryWithSimpleName.kt")
+            public void testFullEntryWithSimpleName() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/fullEntryWithSimpleName.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("multipleEntriesWithPrefix.kt")
+            public void testMultipleEntriesWithPrefix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithPrefix.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("multipleEntriesWithSubstring.kt")
+            public void testMultipleEntriesWithSubstring() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSubstring.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("multipleEntriesWithSuffix.kt")
+            public void testMultipleEntriesWithSuffix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/multipleEntriesWithSuffix.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("rawTemplateWithSubstring.kt")
+            public void testRawTemplateWithSubstring() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/rawTemplateWithSubstring.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("singleEntryPrefix.kt")
+            public void testSingleEntryPrefix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/singleEntryPrefix.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("singleEntrySubstring.kt")
+            public void testSingleEntrySubstring() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySubstring.kt");
+                doExtractFunctionTest(fileName);
+            }
+
+            @TestMetadata("singleEntrySuffix.kt")
+            public void testSingleEntrySuffix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/extractFunction/stringTemplates/singleEntrySuffix.kt");
+                doExtractFunctionTest(fileName);
+            }
+        }
+
         @TestMetadata("idea/testData/refactoring/extractFunction/typeParameters")
         @TestDataPath("$PROJECT_ROOT")
         @RunWith(JUnit3RunnerWithInners.class)
@@ -2787,6 +2892,111 @@ public class ExtractionTestGenerated extends AbstractExtractionTest {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/typeParameterResolvableInTargetScope.kt");
             doIntroducePropertyTest(fileName);
         }
+
+        @TestMetadata("idea/testData/refactoring/introduceProperty/stringTemplates")
+        @TestDataPath("$PROJECT_ROOT")
+        @RunWith(JUnit3RunnerWithInners.class)
+        public static class StringTemplates extends AbstractExtractionTest {
+            public void testAllFilesPresentInStringTemplates() throws Exception {
+                KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/refactoring/introduceProperty/stringTemplates"), Pattern.compile("^(.+)\\.kt$"), true);
+            }
+
+            @TestMetadata("brokenEntryWithBlockExpr.kt")
+            public void testBrokenEntryWithBlockExpr() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithBlockExpr.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("brokenEntryWithExpr.kt")
+            public void testBrokenEntryWithExpr() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/brokenEntryWithExpr.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("brokenEscapeEntry.kt")
+            public void testBrokenEscapeEntry() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/brokenEscapeEntry.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("extractFalse.kt")
+            public void testExtractFalse() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/extractFalse.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("extractIntegerLiteral.kt")
+            public void testExtractIntegerLiteral() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/extractIntegerLiteral.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("extractTrue.kt")
+            public void testExtractTrue() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/extractTrue.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("fullContent.kt")
+            public void testFullContent() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/fullContent.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("fullEntryWithBlockExpr.kt")
+            public void testFullEntryWithBlockExpr() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithBlockExpr.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("fullEntryWithSimpleName.kt")
+            public void testFullEntryWithSimpleName() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/fullEntryWithSimpleName.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("multipleEntriesWithPrefix.kt")
+            public void testMultipleEntriesWithPrefix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithPrefix.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("multipleEntriesWithSubstring.kt")
+            public void testMultipleEntriesWithSubstring() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSubstring.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("multipleEntriesWithSuffix.kt")
+            public void testMultipleEntriesWithSuffix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/multipleEntriesWithSuffix.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("rawTemplateWithSubstring.kt")
+            public void testRawTemplateWithSubstring() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/rawTemplateWithSubstring.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("singleEntryPrefix.kt")
+            public void testSingleEntryPrefix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/singleEntryPrefix.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("singleEntrySubstring.kt")
+            public void testSingleEntrySubstring() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySubstring.kt");
+                doIntroducePropertyTest(fileName);
+            }
+
+            @TestMetadata("singleEntrySuffix.kt")
+            public void testSingleEntrySuffix() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceProperty/stringTemplates/singleEntrySuffix.kt");
+                doIntroducePropertyTest(fileName);
+            }
+        }
     }
 
     @TestMetadata("idea/testData/refactoring/introduceParameter")