diff --git a/idea/src/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableHandler.java b/idea/src/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableHandler.java
index 3208e0be9c9..45b5009c20b 100644
--- a/idea/src/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableHandler.java
+++ b/idea/src/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableHandler.java
@@ -208,9 +208,70 @@ public class JetIntroduceVariableHandler extends JetIntroduceHandlerBase {
                    JetExpression emptyBody = JetPsiFactory.createEmptyBody(project);
                    PsiElement firstChild = emptyBody.getFirstChild();
                    emptyBody.addAfter(JetPsiFactory.createWhiteSpace(project, "\n"), firstChild);
-                   property = (JetProperty) emptyBody.addAfter(property, firstChild);
-                   emptyBody.addAfter(JetPsiFactory.createWhiteSpace(project, "\n"), firstChild);
-                   emptyBody = (JetExpression) anchor.replace(emptyBody);
+                   if (replaceOccurrence && commonContainer != null) {
+                       for (JetExpression replace : allReplaces) {
+                           boolean isActualExpression = expression == replace;
+                           JetExpression element = (JetExpression) replace.replace(JetPsiFactory.createExpression(project, suggestedNames[0]));
+                           if (isActualExpression) reference.set(element);
+                       }
+                       PsiElement oldElement = commonContainer;
+                       if (commonContainer instanceof JetWhenEntry) {
+                           JetExpression body = ((JetWhenEntry) commonContainer).getExpression();
+                           if (body != null) {
+                               oldElement = body;
+                           }
+                       } else if (commonContainer instanceof JetNamedFunction) {
+                           JetExpression body = ((JetNamedFunction) commonContainer).getBodyExpression();
+                           if (body != null) {
+                               oldElement = body;
+                           }
+                       } else if (commonContainer instanceof JetSecondaryConstructor) {
+                           JetExpression body = ((JetSecondaryConstructor) commonContainer).getBodyExpression();
+                           if (body != null) {
+                               oldElement = body;
+                           }
+                       } else if (commonContainer instanceof JetContainerNode) {
+                           JetContainerNode container = (JetContainerNode) commonContainer;
+                           PsiElement[] children = container.getChildren();
+                           for (PsiElement child : children) {
+                               if (child instanceof JetExpression) {
+                                   oldElement = child;
+                               }
+                           }
+                       }
+                       //ugly logic to make sure we are working with right actual expression
+                       JetExpression actualExpression = reference.get();
+                       int diff = actualExpression.getTextRange().getStartOffset() - oldElement.getTextRange().getStartOffset();
+                       String actualExpressionText = actualExpression.getText();
+                       PsiElement newElement = emptyBody.addAfter(oldElement, firstChild);
+                       PsiElement elem = newElement.findElementAt(diff);
+                       while (elem != null && !(elem instanceof JetExpression &&
+                              actualExpressionText.equals(elem.getText()))) {
+                           elem = elem.getParent();
+                       }
+                       if (elem != null) {
+                           reference.set((JetExpression) elem);
+                       }
+                       emptyBody.addAfter(JetPsiFactory.createWhiteSpace(project, "\n"), firstChild);
+                       property = (JetProperty) emptyBody.addAfter(property, firstChild);
+                       emptyBody.addAfter(JetPsiFactory.createWhiteSpace(project, "\n"), firstChild);
+                       actualExpression = reference.get();
+                       diff = actualExpression.getTextRange().getStartOffset() - emptyBody.getTextRange().getStartOffset();
+                       actualExpressionText = actualExpression.getText();
+                       emptyBody = (JetExpression) anchor.replace(emptyBody);
+                       elem = emptyBody.findElementAt(diff);
+                       while (elem != null && !(elem instanceof JetExpression &&
+                                                actualExpressionText.equals(elem.getText()))) {
+                           elem = elem.getParent();
+                       }
+                       if (elem != null) {
+                           reference.set((JetExpression) elem);
+                       }
+                   } else {
+                       property = (JetProperty) emptyBody.addAfter(property, firstChild);
+                       emptyBody.addAfter(JetPsiFactory.createWhiteSpace(project, "\n"), firstChild);
+                       emptyBody = (JetExpression) anchor.replace(emptyBody);
+                   }
                    for (PsiElement child : emptyBody.getChildren()) {
                        if (child instanceof JetProperty) {
                            property = (JetProperty) child;
@@ -239,7 +300,7 @@ public class JetIntroduceVariableHandler extends JetIntroduceHandlerBase {
                    }
                }
                for (JetExpression replace : allReplaces) {
-                   if (replaceOccurrence) {
+                   if (replaceOccurrence && !needBraces) {
                        boolean isActualExpression = expression == replace;
                        JetExpression element = (JetExpression) replace.replace(JetPsiFactory.createExpression(project, suggestedNames[0]));
                        references.add(element);
diff --git a/idea/testData/refactoring/introduceVariable/DoWhileAddBlockInner.kt b/idea/testData/refactoring/introduceVariable/DoWhileAddBlockInner.kt
new file mode 100644
index 00000000000..ec34a0f00fb
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/DoWhileAddBlockInner.kt
@@ -0,0 +1,15 @@
+open class A() {
+    {
+        do println(<selection>1</selection>) while (true)
+    }
+}
+/*
+open class A() {
+    {
+        do {
+            val i = 1
+            println(i)
+        } while (true)
+    }
+}
+*/
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/FunctionAddBlockInner.kt b/idea/testData/refactoring/introduceVariable/FunctionAddBlockInner.kt
new file mode 100644
index 00000000000..c1ad9303d00
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/FunctionAddBlockInner.kt
@@ -0,0 +1,7 @@
+fun x(): Int = println(<selection>1</selection>)
+/*
+fun x(): Int {
+    val i = 1
+    println(i)
+}
+*/
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/IfElseAddBlockInner.kt b/idea/testData/refactoring/introduceVariable/IfElseAddBlockInner.kt
new file mode 100644
index 00000000000..674eedd3031
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/IfElseAddBlockInner.kt
@@ -0,0 +1,13 @@
+fun a() {
+    if (true) 2
+    else println(<selection>1</selection>)
+}
+/*
+fun a() {
+    if (true) 2
+    else {
+        val i = 1
+        println(i)
+    }
+}
+*/
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/IfThenAddBlockInner.kt b/idea/testData/refactoring/introduceVariable/IfThenAddBlockInner.kt
new file mode 100644
index 00000000000..a2d001ac260
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/IfThenAddBlockInner.kt
@@ -0,0 +1,12 @@
+fun a() {
+    if (true) println(<selection>1</selection>)
+    else 2
+}
+/*
+fun a() {
+    if (true) {
+        val i = 1
+        println(i)
+    } else 2
+}
+*/
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/WhenAddBlockInner.kt b/idea/testData/refactoring/introduceVariable/WhenAddBlockInner.kt
new file mode 100644
index 00000000000..3ae3550318b
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/WhenAddBlockInner.kt
@@ -0,0 +1,15 @@
+fun a() {
+    when (1) {
+        is 1 -> println(<selection>2</selection>)
+    }
+}
+/*
+fun a() {
+    when (1) {
+        is 1 -> {
+            val i = 2
+            println(i)
+        }
+    }
+}
+*/
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/WhileAddBlockInner.kt b/idea/testData/refactoring/introduceVariable/WhileAddBlockInner.kt
new file mode 100644
index 00000000000..1d46852ce01
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/WhileAddBlockInner.kt
@@ -0,0 +1,15 @@
+open class A() {
+    {
+        while (true) println(<selection>1</selection>)
+    }
+}
+/*
+open class A() {
+    {
+        while (true) {
+            val i = 1
+            println(i)
+        }
+    }
+}
+*/
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableTest.java b/idea/tests/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableTest.java
index 01da2d1b2eb..ceb6a3fb8f6 100644
--- a/idea/tests/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableTest.java
+++ b/idea/tests/org/jetbrains/jet/plugin/refactoring/introduceVariable/JetIntroduceVariableTest.java
@@ -37,6 +37,10 @@ public class JetIntroduceVariableTest extends LightCodeInsightFixtureTestCase {
         doTest();
     }
 
+    public void testDoWhileAddBlockInner() {
+        doTest();
+    }
+
     public void testFewOccurrences() {
         doTest();
     }
@@ -45,6 +49,10 @@ public class JetIntroduceVariableTest extends LightCodeInsightFixtureTestCase {
         doTest();
     }
 
+    public void testFunctionAddBlockInner() {
+        doTest();
+    }
+
     public void testIfCondition() {
         doTest();
     }
@@ -53,10 +61,18 @@ public class JetIntroduceVariableTest extends LightCodeInsightFixtureTestCase {
         doTest();
     }
 
+    public void testIfElseAddBlockInner() {
+        doTest();
+    }
+
     public void testIfThenAddBlock() {
         doTest();
     }
 
+    public void testIfThenAddBlockInner() {
+        doTest();
+    }
+
     public void testIt() {
         doTest();
     }
@@ -93,6 +109,10 @@ public class JetIntroduceVariableTest extends LightCodeInsightFixtureTestCase {
         doTest();
     }
 
+    public void testWhenAddBlockInner() {
+        doTest();
+    }
+
     public void testWhenParts() {
         doTest();
     }
@@ -101,6 +121,10 @@ public class JetIntroduceVariableTest extends LightCodeInsightFixtureTestCase {
         doTest();
     }
 
+    public void testWhileAddBlockInner() {
+        doTest();
+    }
+
     public void testWhileCondition() {
         doTest();
     }
@@ -133,6 +157,7 @@ public class JetIntroduceVariableTest extends LightCodeInsightFixtureTestCase {
             }
         });
         int endOffset = file.getLastChild().getTextRange().getStartOffset();
+//        System.out.println(file.getText().substring(0, endOffset).trim());
         assertEquals(expectedResultText, file.getText().substring(0, endOffset).trim());
     }
 }