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 23e6cb7403a..83ee1c34a7b 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
@@ -177,7 +177,7 @@ public class KotlinIntroduceVariableHandler extends KotlinIntroduceHandlerBase {
             @Override
             public void pass(OccurrencesChooser.ReplaceChoice replaceChoice) {
                 boolean replaceOccurrence =
-                        container != expression.getParent() || container instanceof JetNamedFunction;
+                        container != expression.getParent() || BindingContextUtilPackage.isUsedAsExpression(expression, bindingContext);
                 List<JetExpression> allReplaces;
                 if (OccurrencesChooser.ReplaceChoice.ALL == replaceChoice) {
                     if (allOccurrences.size() > 1) replaceOccurrence = true;
diff --git a/idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt b/idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt
new file mode 100644
index 00000000000..8e76a051b14
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt
@@ -0,0 +1,3 @@
+fun a(x: Int) {
+    val t = if (x > 0) <selection>x + x</selection> - 1 else x * x + 1
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt.after b/idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt.after
new file mode 100644
index 00000000000..a680bf6c178
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt.after
@@ -0,0 +1,6 @@
+fun a(x: Int) {
+    val t = if (x > 0) {
+        val i = x + x
+        i - 1
+    } else x * x + 1
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/It.kt.after b/idea/testData/refactoring/introduceVariable/It.kt.after
index 57e869d9c78..e4fd6200727 100644
--- a/idea/testData/refactoring/introduceVariable/It.kt.after
+++ b/idea/testData/refactoring/introduceVariable/It.kt.after
@@ -3,5 +3,6 @@ fun b() {
     a {it}
     a {
         val i = it
+        i
     }
 }
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt b/idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt
new file mode 100644
index 00000000000..9a232466853
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt
@@ -0,0 +1,7 @@
+fun a(x: Int) {
+    val t = when {
+        x > 0 -> <selection>x * x</selection> + 1
+        x < 0 -> x + x
+        else -> 0
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt.after b/idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt.after
new file mode 100644
index 00000000000..c19d17fe036
--- /dev/null
+++ b/idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt.after
@@ -0,0 +1,10 @@
+fun a(x: Int) {
+    val t = when {
+        x > 0 -> {
+            val i = x * x
+            i + 1
+        }
+        x < 0 -> x + x
+        else -> 0
+    }
+}
\ 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 6d310d2f436..a6e30161ed0 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
@@ -129,6 +129,12 @@ public class JetExtractionTestGenerated extends AbstractJetExtractionTest {
             doIntroduceVariableTest(fileName);
         }
 
+        @TestMetadata("IfThenValuedAddBlock.kt")
+        public void testIfThenValuedAddBlock() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/IfThenValuedAddBlock.kt");
+            doIntroduceVariableTest(fileName);
+        }
+
         @TestMetadata("It.kt")
         public void testIt() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/It.kt");
@@ -249,6 +255,12 @@ public class JetExtractionTestGenerated extends AbstractJetExtractionTest {
             doIntroduceVariableTest(fileName);
         }
 
+        @TestMetadata("WhenValuedAddBlock.kt")
+        public void testWhenValuedAddBlock() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/WhenValuedAddBlock.kt");
+            doIntroduceVariableTest(fileName);
+        }
+
         @TestMetadata("WhileAddBlock.kt")
         public void testWhileAddBlock() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/refactoring/introduceVariable/WhileAddBlock.kt");