diff --git a/idea/src/org/jetbrains/kotlin/idea/inspections/FoldInitializerAndIfToElvisInspection.kt b/idea/src/org/jetbrains/kotlin/idea/inspections/FoldInitializerAndIfToElvisInspection.kt
index a1adb522e38..965905d8f2b 100644
--- a/idea/src/org/jetbrains/kotlin/idea/inspections/FoldInitializerAndIfToElvisInspection.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/inspections/FoldInitializerAndIfToElvisInspection.kt
@@ -84,20 +84,7 @@ class FoldInitializerAndIfToElvisInspection : AbstractApplicabilityBasedInspecti
 
             val explicitTypeToSet = when {
                 // for var with no explicit type, add it so that the actual change won't change
-                declaration.isVar && declaration.typeReference == null -> {
-                    if (element.condition is KtBinaryExpression) {
-                        val ifEndOffset = element.endOffset
-                        val context = element.analyze()
-                        val isUsedAsNotNullable = ReferencesSearch.search(declaration, LocalSearchScope(declaration.parent)).any {
-                            if (it.element.startOffset <= ifEndOffset) return@any false
-                            val type = it.element.safeAs<KtExpression>()?.getType(context) ?: return@any false
-                            !type.isNullable()
-                        }
-                        if (isUsedAsNotNullable) null else context.getType(initializer)
-                    } else {
-                        initializer.analyze(BodyResolveMode.PARTIAL).getType(initializer)
-                    }
-                }
+                declaration.isVar && declaration.typeReference == null -> initializer.analyze(BodyResolveMode.PARTIAL).getType(initializer)
 
                 // for val with explicit type, change it to non-nullable
                 !declaration.isVar && declaration.typeReference != null -> initializer.analyze(BodyResolveMode.PARTIAL).getType(initializer)
@@ -166,6 +153,15 @@ class FoldInitializerAndIfToElvisInspection : AbstractApplicabilityBasedInspecti
                 val checkedType = ifExpression.analyze(BodyResolveMode.PARTIAL)[BindingContext.TYPE, typeReference]
                 val variableType = (prevStatement.resolveToDescriptorIfAny() as? VariableDescriptor)?.type
                 if (checkedType != null && variableType != null && !checkedType.isSubtypeOf(variableType)) return null
+            } else if (prevStatement.isVar && operationExpression is KtBinaryExpression) {
+                val ifEndOffset = ifExpression.endOffset
+                val context = ifExpression.analyze()
+                val isUsedAsNotNullable = ReferencesSearch.search(prevStatement, LocalSearchScope(prevStatement.parent)).any {
+                    if (it.element.startOffset <= ifEndOffset) return@any false
+                    val type = it.element.safeAs<KtExpression>()?.getType(context) ?: return@any false
+                    !type.isNullable()
+                }
+                if (isUsedAsNotNullable) return null
             }
 
             val statement = if (then is KtBlockExpression) then.statements.singleOrNull() else then
diff --git a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt b/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt
index fb35def4b30..f3d46bcd50b 100644
--- a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt
+++ b/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt
@@ -1,3 +1,4 @@
+// PROBLEM: none
 fun test(foo: Int?, bar: Int): Int {
     var i = foo
     <caret>if (i == null) {
diff --git a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt.after b/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt.after
deleted file mode 100644
index 2f50b6e6857..00000000000
--- a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable.kt.after
+++ /dev/null
@@ -1,4 +0,0 @@
-fun test(foo: Int?, bar: Int): Int {
-    var i = foo ?: return bar
-    return i
-}
\ No newline at end of file
diff --git a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt b/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt
index 15aa169a478..ffaa8d2f4b0 100644
--- a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt
+++ b/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt
@@ -1,3 +1,4 @@
+// PROBLEM: none
 fun test(foo: Int?, bar: Int): Int {
     var i = foo
     <caret>if (i == null) {
diff --git a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt.after b/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt.after
deleted file mode 100644
index e93d33a285b..00000000000
--- a/idea/testData/inspectionsLocal/foldInitializerAndIfToElvis/VarUsedAsNotNullable2.kt.after
+++ /dev/null
@@ -1,8 +0,0 @@
-fun test(foo: Int?, bar: Int): Int {
-    var i = foo ?: return bar
-    baz(i)
-    val j = i + 1
-    return j
-}
-
-fun baz(i: Int?) {}
\ No newline at end of file