diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt
index d9a73fa0cde..768002d0733 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/ConvertLambdaToReferenceIntention.kt
@@ -17,6 +17,7 @@
 package org.jetbrains.kotlin.idea.intentions
 
 import com.intellij.openapi.editor.Editor
+import com.intellij.openapi.util.TextRange
 import org.jetbrains.kotlin.builtins.getReturnTypeFromFunctionType
 import org.jetbrains.kotlin.builtins.isFunctionType
 import org.jetbrains.kotlin.descriptors.*
@@ -25,6 +26,9 @@ import org.jetbrains.kotlin.idea.caches.resolve.getResolutionFacade
 import org.jetbrains.kotlin.idea.core.isVisible
 import org.jetbrains.kotlin.idea.inspections.IntentionBasedInspection
 import org.jetbrains.kotlin.psi.*
+import org.jetbrains.kotlin.psi.psiUtil.endOffset
+import org.jetbrains.kotlin.psi.psiUtil.getStartOffsetIn
+import org.jetbrains.kotlin.psi.psiUtil.startOffset
 import org.jetbrains.kotlin.resolve.BindingContext.REFERENCE_TARGET
 import org.jetbrains.kotlin.resolve.descriptorUtil.hasDefaultValue
 import org.jetbrains.kotlin.synthetic.SyntheticJavaPropertyDescriptor
@@ -35,7 +39,12 @@ import org.jetbrains.kotlin.types.typeUtil.isUnit
 class ConvertLambdaToReferenceInspection() : IntentionBasedInspection<KtLambdaExpression>(
         ConvertLambdaToReferenceIntention::class,
         { it -> ConvertLambdaToReferenceIntention.shouldSuggestToConvert(it) }
-)
+) {
+    override fun inspectionRange(element: KtLambdaExpression) = element.bodyExpression?.statements?.singleOrNull()?.let {
+        val start = it.getStartOffsetIn(element)
+        TextRange(start, start + it.endOffset - it.startOffset)
+    }
+}
 
 class ConvertLambdaToReferenceIntention : SelfTargetingOffsetIndependentIntention<KtLambdaExpression>(
         KtLambdaExpression::class.java, "Convert lambda to reference"
diff --git a/idea/testData/inspections/convertLambdaToReference/inspectionData/expected.xml b/idea/testData/inspections/convertLambdaToReference/inspectionData/expected.xml
index 0990a51a52f..da0cde82bb0 100644
--- a/idea/testData/inspections/convertLambdaToReference/inspectionData/expected.xml
+++ b/idea/testData/inspections/convertLambdaToReference/inspectionData/expected.xml
@@ -7,4 +7,12 @@
         <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">Can be replaced with function reference</problem_class>
         <description>Convert lambda to reference</description>
     </problem>
+    <problem>
+        <file>test.kt</file>
+        <line>14</line>
+        <module>light_idea_test_case</module>
+        <entry_point TYPE="file" FQNAME="temp:///src/test.kt" />
+        <problem_class severity="WARNING" attribute_key="WARNING_ATTRIBUTES">Can be replaced with function reference</problem_class>
+        <description>Convert lambda to reference</description>
+    </problem>
 </problems>
\ No newline at end of file
diff --git a/idea/testData/inspections/convertLambdaToReference/test.kt b/idea/testData/inspections/convertLambdaToReference/test.kt
index 7edab1a170d..abaa19071b9 100644
--- a/idea/testData/inspections/convertLambdaToReference/test.kt
+++ b/idea/testData/inspections/convertLambdaToReference/test.kt
@@ -6,4 +6,10 @@ val x = { y: Int -> TheirWrapper(y) }
 
 // Should not suggest to convert (too long reference)
 fun foo(arg: TheirWrapper, convert: (TheirWrapper) -> String) = convert(arg)
-val y = foo(TheirWrapper(42)) { it.toString() }
\ No newline at end of file
+val y = foo(TheirWrapper(42)) { it.toString() }
+
+// Also should suggest to convert, but only call should be highlighted
+fun bar(arg: Int, convert: (Int) -> TheirWrapper) = convert(arg)
+val z = bar(42) {
+    TheirWrapper(it)
+}
\ No newline at end of file