diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceParameter/KotlinIntroduceParameterHandler.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceParameter/KotlinIntroduceParameterHandler.kt
index 5c5dbe81cdc..8ac6201f16d 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceParameter/KotlinIntroduceParameterHandler.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/introduce/introduceParameter/KotlinIntroduceParameterHandler.kt
@@ -369,6 +369,13 @@ open class KotlinIntroduceParameterHandler(
         }
 
         if (file !is KtFile) return
+
+        val elementAtCaret = file.findElementAt(editor.caretModel.offset) ?: return
+        if (elementAtCaret.getNonStrictParentOfType<KtAnnotationEntry>() != null) {
+            showErrorHint(project, editor, "Introduce Parameter is not available inside of annotation entries", INTRODUCE_PARAMETER)
+            return
+        }
+
         selectNewParameterContext(editor, file) { elements, targetParent ->
             val expression = ((elements.singleOrNull() as? KtBlockExpression)?.statements ?: elements).singleOrNull()
             if (expression is KtExpression) {
diff --git a/idea/testData/refactoring/introduceParameter/annotationArgument.kt b/idea/testData/refactoring/introduceParameter/annotationArgument.kt
new file mode 100644
index 00000000000..beed564bf7b
--- /dev/null
+++ b/idea/testData/refactoring/introduceParameter/annotationArgument.kt
@@ -0,0 +1,2 @@
+annotation class FromCollection1(val value: String)
+@FromCollection1(<caret>"a") class CollectionValueUserJ
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceParameter/annotationArgument.kt.conflicts b/idea/testData/refactoring/introduceParameter/annotationArgument.kt.conflicts
new file mode 100644
index 00000000000..19d790c2fca
--- /dev/null
+++ b/idea/testData/refactoring/introduceParameter/annotationArgument.kt.conflicts
@@ -0,0 +1 @@
+Introduce Parameter is not available inside of annotation entries
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 7619105a2a3..c66bb9c930f 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
@@ -3344,6 +3344,12 @@ public class ExtractionTestGenerated extends AbstractExtractionTest {
             KotlinTestUtils.assertAllTestsPresentByMetadata(this.getClass(), new File("idea/testData/refactoring/introduceParameter"), Pattern.compile("^(.+)\\.(kt|kts)$"), TargetBackend.ANY, true);
         }
 
+        @TestMetadata("annotationArgument.kt")
+        public void testAnnotationArgument() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceParameter/annotationArgument.kt");
+            doIntroduceSimpleParameterTest(fileName);
+        }
+
         @TestMetadata("assignment.kt")
         public void testAssignment() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/introduceParameter/assignment.kt");