diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt
index b1234185d4c..384701b67ce 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/inline/KotlinInlineFunctionHandler.kt
@@ -23,19 +23,21 @@ import com.intellij.openapi.project.Project
 import com.intellij.psi.PsiElement
 import com.intellij.psi.search.GlobalSearchScope
 import com.intellij.refactoring.RefactoringBundle
+import com.intellij.refactoring.util.CommonRefactoringUtil
 import org.jetbrains.kotlin.descriptors.SimpleFunctionDescriptor
 import org.jetbrains.kotlin.idea.KotlinLanguage
 import org.jetbrains.kotlin.idea.analysis.analyzeInContext
 import org.jetbrains.kotlin.idea.caches.resolve.getResolutionFacade
 import org.jetbrains.kotlin.idea.caches.resolve.resolveToDescriptor
-import org.jetbrains.kotlin.idea.core.copied
 import org.jetbrains.kotlin.idea.codeInliner.CallableUsageReplacementStrategy
 import org.jetbrains.kotlin.idea.codeInliner.CodeToInlineBuilder
 import org.jetbrains.kotlin.idea.codeInliner.replaceUsagesInWholeProject
+import org.jetbrains.kotlin.idea.core.copied
 import org.jetbrains.kotlin.idea.util.getResolutionScope
 import org.jetbrains.kotlin.psi.KtBlockExpression
 import org.jetbrains.kotlin.psi.KtNamedFunction
 import org.jetbrains.kotlin.psi.KtReturnExpression
+import org.jetbrains.kotlin.psi.psiUtil.collectDescendantsOfType
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.types.TypeUtils
 
@@ -71,8 +73,22 @@ class KotlinInlineFunctionHandler: InlineActionHandler() {
         val replacement = if (element.hasBlockBody()) {
             bodyCopy as KtBlockExpression
             val statements = bodyCopy.statements
-            //TODO: check no other return's!
+
+            val returnStatements = bodyCopy.collectDescendantsOfType<KtReturnExpression> {
+                it.getLabelName().let { it == null || it == element.name }
+            }
+
             val lastReturn = statements.lastOrNull() as? KtReturnExpression
+            if (returnStatements.any { it != lastReturn }) {
+                val message = RefactoringBundle.getCannotRefactorMessage(
+                        if (returnStatements.size > 1)
+                            "Inline Function is not supported for functions with multiple return statements."
+                        else
+                            "Inline Function is not supported for functions with return statements not at the end of the body."
+                )
+                CommonRefactoringUtil.showErrorHint(project, editor, message, "Inline Function", null)
+            }
+
             if (lastReturn != null) {
                 replacementBuilder.prepareCodeToInline(lastReturn.returnedExpression, statements.dropLast(1), ::analyzeBodyCopy)
             }
diff --git a/idea/testData/refactoring/inline/function/MultipleReturns.kt b/idea/testData/refactoring/inline/function/MultipleReturns.kt
new file mode 100644
index 00000000000..b21d8c19e35
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/MultipleReturns.kt
@@ -0,0 +1,14 @@
+// ERROR: Cannot perform refactoring.\nInline Function is not supported for functions with multiple return statements.
+
+fun <caret>f(p1: Int, p2: Int): Int {
+    if (p1 > 0) {
+        return p2
+    }
+    else {
+        return -1
+    }
+}
+
+fun g() {
+    f(1, 2)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/ReturnNotInTheEnd.kt b/idea/testData/refactoring/inline/function/ReturnNotInTheEnd.kt
new file mode 100644
index 00000000000..13dfd1b4564
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/ReturnNotInTheEnd.kt
@@ -0,0 +1,13 @@
+// ERROR: Cannot perform refactoring.\nInline Function is not supported for functions with return statements not at the end of the body.
+
+fun <caret>f(p1: Int, p2: Int): Int {
+    while (true) {
+        if (x() > p1) return@f p2
+    }
+}
+
+fun x(): Int = TODO()
+
+fun g() {
+    f(1, 2)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt b/idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt
new file mode 100644
index 00000000000..680ce3ce4a5
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt
@@ -0,0 +1,10 @@
+fun <caret>f(list: List<String>): Boolean {
+    return list.any {
+        if (it.isEmpty()) return@any false
+        it.length < 10
+    }
+}
+
+fun g() {
+    println(f(listOf("a", "b")))
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt.after b/idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt.after
new file mode 100644
index 00000000000..7edca71c0e8
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt.after
@@ -0,0 +1,6 @@
+fun g() {
+    println(listOf("a", "b").any {
+        if (it.isEmpty()) return@any false
+        it.length < 10
+    })
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
index ca24efc2efa..19e6e43c480 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
@@ -49,6 +49,18 @@ public class InlineTestGenerated extends AbstractInlineTest {
             doTest(fileName);
         }
 
+        @TestMetadata("MultipleReturns.kt")
+        public void testMultipleReturns() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/MultipleReturns.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("ReturnNotInTheEnd.kt")
+        public void testReturnNotInTheEnd() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/ReturnNotInTheEnd.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("UnitReturnType.kt")
         public void testUnitReturnType() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/UnitReturnType.kt");
@@ -150,6 +162,12 @@ public class InlineTestGenerated extends AbstractInlineTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("ReturnFromLambda.kt")
+            public void testReturnFromLambda() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/returnAtEnd/ReturnFromLambda.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("SafeCall.kt")
             public void testSafeCall() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/returnAtEnd/SafeCall.kt");