diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceVariableIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceVariableIntention.kt
index 85fdab6c976..03aa0a08aef 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceVariableIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceVariableIntention.kt
@@ -56,6 +56,8 @@ class IntroduceVariableIntention : SelfTargetingRangeIntention<PsiElement>(
 
     override fun applyTo(element: PsiElement, editor: Editor?) {
         val expression = getExpressionToProcess(element) ?: return
-        KotlinIntroduceVariableHandler.doRefactoring(element.project, editor, expression, null, null)
+        KotlinIntroduceVariableHandler.doRefactoring(
+                element.project, editor, expression, isVar = false, occurrencesToReplace = null, onNonInteractiveFinish = null
+        )
     }
 }
\ No newline at end of file
diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/branchedTransformations/IfThenUtils.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/branchedTransformations/IfThenUtils.kt
index 279572089c8..28baadfc333 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/branchedTransformations/IfThenUtils.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/branchedTransformations/IfThenUtils.kt
@@ -99,8 +99,8 @@ fun KtIfExpression.introduceValueForCondition(occurrenceInThenClause: KtExpressi
     KotlinIntroduceVariableHandler.doRefactoring(project,
                                                  editor,
                                                  occurrenceInConditional,
-                                                 listOf(occurrenceInConditional, occurrenceInThenClause),
-                                                 null)
+                                                 false,
+                                                 listOf(occurrenceInConditional, occurrenceInThenClause), null)
 }
 
 fun KtNameReferenceExpression.inlineIfDeclaredLocallyAndOnlyUsedOnceWithPrompt(editor: Editor?) {
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/changeSignature/usages/KotlinFunctionCallUsage.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/changeSignature/usages/KotlinFunctionCallUsage.kt
index ebfb01096a1..7ecc129f705 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/changeSignature/usages/KotlinFunctionCallUsage.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/changeSignature/usages/KotlinFunctionCallUsage.kt
@@ -203,9 +203,13 @@ class KotlinFunctionCallUsage(
                                                         KtSuperTypeListEntry::class.java,
                                                         KtParameter::class.java) == null) {
 
-                KotlinIntroduceVariableHandler.doRefactoring(project, null, argumentExpression, listOf(argumentExpression)) {
+                KotlinIntroduceVariableHandler.doRefactoring(
+                        project, null, argumentExpression,
+                        isVar = false,
+                        occurrencesToReplace = listOf(argumentExpression),
+                        onNonInteractiveFinish = {
                     argumentExpression = psiFactory.createExpression(it.name!!)
-                }
+                })
             }
 
             var expressionToReplace: KtExpression = nameCounterpartMap[ref.element] ?: continue
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 e4810f7645d..8cd45fe570d 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
@@ -130,7 +130,8 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
             return result
         }
 
-        private fun runRefactoring (
+        private fun runRefactoring(
+                isVar: Boolean,
                 expression: KtExpression,
                 commonContainer: PsiElement,
                 commonParent: PsiElement,
@@ -139,16 +140,18 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
             val initializer = (expression as? KtParenthesizedExpression)?.expression ?: expression
             val initializerText = if (initializer.mustBeParenthesizedInInitializerPosition()) "(${initializer.text})" else initializer.text
 
+            val varOvVal = if (isVar) "var" else "val"
+
             var property: KtDeclaration = if (componentFunctions.isNotEmpty()) {
                 buildString {
-                    componentFunctions.indices.joinTo(this, prefix = "val (", postfix = ")") { nameSuggestions[it].first() }
+                    componentFunctions.indices.joinTo(this, prefix = "$varOvVal (", postfix = ")") { nameSuggestions[it].first() }
                     append(" = ")
                     append(initializerText)
                 }.let { psiFactory.createDestructuringDeclaration(it) }
             }
             else {
                 buildString {
-                    append("val ")
+                    append("$varOvVal ")
                     append(nameSuggestions.single().first())
                     if (noTypeInference) {
                         val typeToRender = expressionType ?: resolutionFacade.moduleDescriptor.builtIns.anyType
@@ -281,8 +284,8 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
             }
         }
 
-        fun runRefactoring() {
-            if (commonContainer !is KtDeclarationWithBody) return runRefactoring(expression, commonContainer, commonParent, allReplaces)
+        fun runRefactoring(isVar: Boolean) {
+            if (commonContainer !is KtDeclarationWithBody) return runRefactoring(isVar, expression, commonContainer, commonParent, allReplaces)
 
             commonContainer.bodyExpression.sure { "Original body is not found: " + commonContainer }
 
@@ -306,7 +309,7 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
                 } ?: newReplace
             }
 
-            runRefactoring(newExpression, newCommonContainer, newCommonParent, newAllReplaces)
+            runRefactoring(isVar, newExpression, newCommonContainer, newCommonParent, newAllReplaces)
         }
     }
 
@@ -446,6 +449,7 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
             occurrenceContainer: KtElement,
             resolutionFacade: ResolutionFacade,
             bindingContext: BindingContext,
+            isVar: Boolean,
             occurrencesToReplace: List<KtExpression>?,
             onNonInteractiveFinish: ((KtDeclaration) -> Unit)?
     ) {
@@ -555,7 +559,7 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
                 )
 
                 project.executeCommand(INTRODUCE_VARIABLE, null) {
-                    runWriteAction { introduceVariableContext.runRefactoring() }
+                    runWriteAction { introduceVariableContext.runRefactoring(isVar) }
 
                     val property = introduceVariableContext.propertyRef ?: return@executeCommand
 
@@ -582,7 +586,7 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
                                     introduceVariableContext.reference,
                                     introduceVariableContext.references.toTypedArray(),
                                     suggestedNames.single(),
-                                    /*todo*/ false,
+                                    isVar,
                                     /*todo*/ false,
                                     expressionType,
                                     noTypeInference,
@@ -683,6 +687,7 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
             project: Project,
             editor: Editor?,
             expressionToExtract: KtExpression?,
+            isVar: Boolean,
             occurrencesToReplace: List<KtExpression>?,
             onNonInteractiveFinish: ((KtDeclaration) -> Unit)?
     ) {
@@ -695,7 +700,10 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
         val bindingContext = resolutionFacade.analyze(physicalExpression, BodyResolveMode.FULL)
 
         fun runWithChosenContainers(container: KtElement, occurrenceContainer: KtElement) {
-            doRefactoring(project, editor, expression, container, occurrenceContainer, resolutionFacade, bindingContext, occurrencesToReplace, onNonInteractiveFinish)
+            doRefactoring(
+                    project, editor, expression, container, occurrenceContainer, resolutionFacade, bindingContext,
+                    isVar, occurrencesToReplace, onNonInteractiveFinish
+            )
         }
 
         val candidateContainers = expression.getCandidateContainers(resolutionFacade, bindingContext).ifEmpty {
@@ -720,7 +728,7 @@ object KotlinIntroduceVariableHandler : RefactoringActionHandler {
 
         try {
             selectElement(editor, file, listOf(CodeInsightUtils.ElementKind.EXPRESSION)) {
-                doRefactoring(project, editor, it as KtExpression?, null, null)
+                doRefactoring(project, editor, it as KtExpression?, false, null, null)
             }
         }
         catch (e: IntroduceRefactoringException) {