diff --git a/ChangeLog.md b/ChangeLog.md
index abc414ea50a..d024b4a3174 100644
--- a/ChangeLog.md
+++ b/ChangeLog.md
@@ -246,6 +246,7 @@ Using 'this' as function argument in constructor of non-final class
 - [`KT-13157`](https://youtrack.jetbrains.com/issue/KT-13157) Extract Function: Automatically quote function name if necessary
 - [`KT-13010`](https://youtrack.jetbrains.com/issue/KT-13010) Extract Function: Fix generation of destructuring declarations
 - [`KT-13128`](https://youtrack.jetbrains.com/issue/KT-13128) Introduce Variable: Retain entered name after changing "Specify type explicitly" option
+- [`KT-13054`](https://youtrack.jetbrains.com/issue/KT-13054) Introduce Variable: Skip leading/trailing comments inside selection
 
 ##### New features
 
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt
index 81f613fe297..dab06e24bde 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt
@@ -136,12 +136,12 @@ inline fun <reified T : PsiElement> PsiElement.getChildrenOfType(): Array<T> {
     return PsiTreeUtil.getChildrenOfType(this, T::class.java) ?: arrayOf()
 }
 
-fun PsiElement.getNextSiblingIgnoringWhitespaceAndComments(): PsiElement? {
-    return siblings(withItself = false).filter { it !is PsiWhiteSpace && it !is PsiComment }.firstOrNull()
+fun PsiElement.getNextSiblingIgnoringWhitespaceAndComments(withItself: Boolean = false): PsiElement? {
+    return siblings(withItself = withItself).filter { it !is PsiWhiteSpace && it !is PsiComment }.firstOrNull()
 }
 
-fun PsiElement.getPrevSiblingIgnoringWhitespaceAndComments(): PsiElement? {
-    return siblings(withItself = false, forward = false).filter { it !is PsiWhiteSpace && it !is PsiComment }.firstOrNull()
+fun PsiElement.getPrevSiblingIgnoringWhitespaceAndComments(withItself: Boolean = false): PsiElement? {
+    return siblings(withItself = withItself, forward = false).filter { it !is PsiWhiteSpace && it !is PsiComment }.firstOrNull()
 }
 
 inline fun <reified T : PsiElement> T.nextSiblingOfSameType() = PsiTreeUtil.getNextSiblingOfType(this, T::class.java)
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/KotlinRefactoringUtil.java b/idea/src/org/jetbrains/kotlin/idea/refactoring/KotlinRefactoringUtil.java
index 16012bfd69d..8d00b6a77c2 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/KotlinRefactoringUtil.java
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/KotlinRefactoringUtil.java
@@ -53,6 +53,7 @@ import org.jetbrains.kotlin.idea.refactoring.introduce.IntroduceUtilKt;
 import org.jetbrains.kotlin.idea.util.IdeDescriptorRenderers;
 import org.jetbrains.kotlin.psi.*;
 import org.jetbrains.kotlin.psi.psiUtil.KtPsiUtilKt;
+import org.jetbrains.kotlin.psi.psiUtil.PsiUtilsKt;
 import org.jetbrains.kotlin.renderer.DescriptorRenderer;
 import org.jetbrains.kotlin.resolve.BindingContext;
 import org.jetbrains.kotlin.resolve.DescriptorToSourceUtils;
@@ -350,9 +351,17 @@ public class KotlinRefactoringUtil {
         if (editor.getSelectionModel().hasSelection()) {
             int selectionStart = editor.getSelectionModel().getSelectionStart();
             int selectionEnd = editor.getSelectionModel().getSelectionEnd();
-            String text = file.getText();
-            while (selectionStart < selectionEnd && Character.isSpaceChar(text.charAt(selectionStart))) ++selectionStart;
-            while (selectionStart < selectionEnd && Character.isSpaceChar(text.charAt(selectionEnd - 1))) --selectionEnd;
+
+            PsiElement firstElement = file.findElementAt(selectionStart);
+            PsiElement lastElement = file.findElementAt(selectionEnd - 1);
+
+            if (PsiTreeUtil.getParentOfType(firstElement, KtLiteralStringTemplateEntry.class, KtEscapeStringTemplateEntry.class) == null
+                    && PsiTreeUtil.getParentOfType(lastElement, KtLiteralStringTemplateEntry.class, KtEscapeStringTemplateEntry.class) == null) {
+                firstElement = PsiUtilsKt.getNextSiblingIgnoringWhitespaceAndComments(firstElement, true);
+                lastElement = PsiUtilsKt.getPrevSiblingIgnoringWhitespaceAndComments(lastElement, true);
+                selectionStart = firstElement.getTextRange().getStartOffset();
+                selectionEnd = lastElement.getTextRange().getEndOffset();
+            }
 
             for (CodeInsightUtils.ElementKind elementKind : elementKinds) {
                 PsiElement element = findElement(file, selectionStart, selectionEnd, failOnEmptySuggestion, elementKind);
diff --git a/idea/testData/refactoring/introduceVariable/commentSkipping.kt b/idea/testData/refactoring/introduceVariable/commentSkipping.kt
new file mode 100644
index 00000000000..ee1a3ee37aa
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/commentSkipping.kt
@@ -0,0 +1,7 @@
+fun foo(x: Boolean) {
+
+}
+
+fun bar() {
+    foo(<selection>/* 1 */true/* 2 */</selection>)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/commentSkipping.kt.after b/idea/testData/refactoring/introduceVariable/commentSkipping.kt.after
new file mode 100644
index 00000000000..87952ab1a3e
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/commentSkipping.kt.after
@@ -0,0 +1,8 @@
+fun foo(x: Boolean) {
+
+}
+
+fun bar() {
+    val x = true
+    foo(/* 1 */x/* 2 */)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt b/idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt
new file mode 100644
index 00000000000..e56ef95182e
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt
@@ -0,0 +1,7 @@
+fun foo(param: Int): String {
+    val x = "atrue123"
+    val y = "aTRUE123"
+    val z = true
+    val u = "123 true 456"
+    return "ab<selection> true </selection>def"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt.after b/idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt.after
new file mode 100644
index 00000000000..50b597e01d8
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt.after
@@ -0,0 +1,8 @@
+fun foo(param: Int): String {
+    val x = "atrue123"
+    val y = "aTRUE123"
+    val z = true
+    val s = " true "
+    val u = "123${s}456"
+    return "ab${s}def"
+}
\ 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 1b28cc61e9c..51deba43f85 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
@@ -61,6 +61,12 @@ public class ExtractionTestGenerated extends AbstractExtractionTest {
             doIntroduceVariableTest(fileName);
         }
 
+        @TestMetadata("commentSkipping.kt")
+        public void testCommentSkipping() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/commentSkipping.kt");
+            doIntroduceVariableTest(fileName);
+        }
+
         @TestMetadata("ComplexCallee.kt")
         public void testComplexCallee() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/ComplexCallee.kt");
@@ -735,6 +741,12 @@ public class ExtractionTestGenerated extends AbstractExtractionTest {
                 doIntroduceVariableTest(fileName);
             }
 
+            @TestMetadata("extractTrueWithSpaces.kt")
+            public void testExtractTrueWithSpaces() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/stringTemplates/extractTrueWithSpaces.kt");
+                doIntroduceVariableTest(fileName);
+            }
+
             @TestMetadata("fullContent.kt")
             public void testFullContent() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/stringTemplates/fullContent.kt");