diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt
index 768002d0733..5a749696453 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt
@@ -19,6 +19,7 @@ package org.jetbrains.kotlin.idea.intentions
 import com.intellij.openapi.editor.Editor
 import com.intellij.openapi.util.TextRange
 import org.jetbrains.kotlin.builtins.getReturnTypeFromFunctionType
+import org.jetbrains.kotlin.builtins.isExtensionFunctionType
 import org.jetbrains.kotlin.builtins.isFunctionType
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.idea.caches.resolve.analyze
@@ -65,6 +66,8 @@ class ConvertLambdaToReferenceIntention : SelfTargetingOffsetIndependentIntentio
             val outerCalleeDescriptor = lambdaParent.outerCalleeDescriptor() ?: return false
             val lambdaParameterType = outerCalleeDescriptor.valueParameters.lastOrNull()?.type
             if (lambdaParameterType != null && lambdaParameterType.isFunctionType) {
+                // For lambda parameter with receiver, conversion is not allowed
+                if (lambdaParameterType.isExtensionFunctionType) return false
                 // Special Unit case (non-Unit returning lambda is accepted here, but non-Unit returning reference is not)
                 lambdaMustReturnUnit = getReturnTypeFromFunctionType(lambdaParameterType).isUnit()
             }
diff --git a/idea/testData/intentions/convertLambdaToReference/argumentWithReceiver.kt b/idea/testData/intentions/convertLambdaToReference/argumentWithReceiver.kt
new file mode 100644
index 00000000000..c8a64768e9e
--- /dev/null
+++ b/idea/testData/intentions/convertLambdaToReference/argumentWithReceiver.kt
@@ -0,0 +1,11 @@
+// IS_APPLICABLE: false
+
+fun callMe(s: String) {
+}
+
+fun body(receiver: String.(String) -> Unit) {
+}
+
+fun usage() {
+    body { <caret>callMe(it) }
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
index e97af3face1..9c04782c906 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
@@ -3883,6 +3883,12 @@ public class IntentionTestGenerated extends AbstractIntentionTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/intentions/convertLambdaToReference"), Pattern.compile("^([\\w\\-_]+)\\.kt$"), true);
         }
 
+        @TestMetadata("argumentWithReceiver.kt")
+        public void testArgumentWithReceiver() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/intentions/convertLambdaToReference/argumentWithReceiver.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("constructor.kt")
         public void testConstructor() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/intentions/convertLambdaToReference/constructor.kt");