diff --git a/idea/src/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.java b/idea/src/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.java
index 4f659d23aff..b9d9f85ed93 100644
--- a/idea/src/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.java
+++ b/idea/src/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/KotlinIntroduceVariableHandler.java
@@ -377,8 +377,16 @@ public class KotlinIntroduceVariableHandler extends KotlinIntroduceHandlerBase {
                         }
                     }
                     else {
+                        PsiElement parent = anchor.getParent();
+                        PsiElement copyTo = parent.getLastChild();
+                        PsiElement copyFrom = anchor.getNextSibling();
+
                         property = (JetProperty)emptyBody.addAfter(property, firstChild);
                         emptyBody.addAfter(psiFactory.createNewLine(), firstChild);
+                        if (copyFrom != null && copyTo != null) {
+                            emptyBody.addRangeAfter(copyFrom, copyTo, property);
+                            parent.deleteChildRange(copyFrom, copyTo);
+                        }
                         emptyBody = (JetBlockExpression) anchor.replace(emptyBody);
                     }
                     for (PsiElement child : emptyBody.getChildren()) {
@@ -406,7 +414,13 @@ public class KotlinIntroduceVariableHandler extends KotlinIntroduceHandlerBase {
                         replaceExpression(replace);
                     }
                     else if (!needBraces) {
-                        replace.delete();
+                        PsiElement sibling = PsiTreeUtil.skipSiblingsBackward(replace, PsiWhiteSpace.class);
+                        if (sibling == property) {
+                            replace.getParent().deleteChildRange(property.getNextSibling(), replace);
+                        }
+                        else {
+                            replace.delete();
+                        }
                     }
                 }
                 propertyRef.set(property);
diff --git a/idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt
new file mode 100644
index 00000000000..0cd8d852acb
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt
@@ -0,0 +1,5 @@
+fun bar(): Int = 1
+
+fun foo() {
+    <selection>bar()</selection>;
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt.after b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt.after
new file mode 100644
index 00000000000..1f5f3942917
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt.after
@@ -0,0 +1,5 @@
+fun bar(): Int = 1
+
+fun foo() {
+    val i = bar();
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt
new file mode 100644
index 00000000000..c26ec052344
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt
@@ -0,0 +1,6 @@
+fun bar(): Int = 1
+fun baz()
+
+fun foo() {
+    if (true) <selection>bar()</selection>; else baz()
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt.after b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt.after
new file mode 100644
index 00000000000..e136ba4be0c
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt.after
@@ -0,0 +1,8 @@
+fun bar(): Int = 1
+fun baz()
+
+fun foo() {
+    if (true) {
+        val i = bar();
+    } else baz()
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/JetExtractionTestGenerated.java b/idea/tests/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/JetExtractionTestGenerated.java
index f04cfa8e09f..7c2272963b7 100644
--- a/idea/tests/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/JetExtractionTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/plugin/refactoring/introduce/introduceVariable/JetExtractionTestGenerated.java
@@ -177,6 +177,18 @@ public class JetExtractionTestGenerated extends AbstractJetExtractionTest {
             doIntroduceVariableTest(fileName);
         }
 
+        @TestMetadata("NoNewLinesInBetween.kt")
+        public void testNoNewLinesInBetween() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/NoNewLinesInBetween.kt");
+            doIntroduceVariableTest(fileName);
+        }
+
+        @TestMetadata("NoNewLinesInBetweenNoBraces.kt")
+        public void testNoNewLinesInBetweenNoBraces() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/NoNewLinesInBetweenNoBraces.kt");
+            doIntroduceVariableTest(fileName);
+        }
+
         @TestMetadata("nonEquivalentReceivers.kt")
         public void testNonEquivalentReceivers() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/nonEquivalentReceivers.kt");