diff --git a/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/handlers/KotlinFunctionInsertHandler.kt b/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/handlers/KotlinFunctionInsertHandler.kt
index a6d6d66c3f6..6a990945a6c 100644
--- a/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/handlers/KotlinFunctionInsertHandler.kt
+++ b/idea/idea-completion/src/org/jetbrains/kotlin/idea/completion/handlers/KotlinFunctionInsertHandler.kt
@@ -42,7 +42,7 @@ enum class CaretPosition {
 
 data class GenerateLambdaInfo(val lambdaType: JetType, val explicitParameters: Boolean)
 
-class KotlinFunctionInsertHandler(val caretPosition : CaretPosition, val lambdaInfo: GenerateLambdaInfo?) : KotlinCallableInsertHandler() {
+class KotlinFunctionInsertHandler(val caretPosition: CaretPosition, val lambdaInfo: GenerateLambdaInfo?) : KotlinCallableInsertHandler() {
     init {
         if (caretPosition == CaretPosition.AFTER_BRACKETS && lambdaInfo != null) {
             throw IllegalArgumentException("CaretPosition.AFTER_BRACKETS with lambdaInfo != null combination is not supported")
@@ -92,11 +92,10 @@ class KotlinFunctionInsertHandler(val caretPosition : CaretPosition, val lambdaI
         val document = context.getDocument()
         val chars = document.getCharsSequence()
 
-        val forceParenthesis = lambdaInfo != null && completionChar == '\t' && chars.charAt(offset) == '('
-        val braces = lambdaInfo != null && completionChar != '(' && !forceParenthesis
+        val insertLambda = lambdaInfo != null && completionChar != '(' && !(completionChar == '\t' && chars.charAt(offset) == '(')
 
-        val openingBracket = if (braces) '{' else '('
-        val closingBracket = if (braces) '}' else ')'
+        val openingBracket = if (insertLambda) '{' else '('
+        val closingBracket = if (insertLambda) '}' else ')'
 
         if (completionChar == Lookup.REPLACE_SELECT_CHAR) {
             val offset1 = chars.skipSpaces(offset)
@@ -117,7 +116,7 @@ class KotlinFunctionInsertHandler(val caretPosition : CaretPosition, val lambdaI
         var openingBracketOffset = chars.indexOfSkippingSpace(openingBracket, offset)
         var inBracketsShift = 0
         if (openingBracketOffset == null) {
-            if (braces) {
+            if (insertLambda) {
                 if (completionChar == ' ' || completionChar == '{') {
                     context.setAddCompletionChar(false)
                 }
@@ -151,8 +150,8 @@ class KotlinFunctionInsertHandler(val caretPosition : CaretPosition, val lambdaI
 
         PsiDocumentManager.getInstance(context.getProject()).commitDocument(document)
 
-        if (lambdaInfo != null && lambdaInfo.explicitParameters) {
-            insertLambdaTemplate(context, TextRange(openingBracketOffset, closeBracketOffset!! + 1), lambdaInfo.lambdaType)
+        if (insertLambda && lambdaInfo!!.explicitParameters) {
+            insertLambdaTemplate(context, TextRange(openingBracketOffset, closeBracketOffset!! + 1), lambdaInfo!!.lambdaType)
         }
     }
 
diff --git a/idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt b/idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt
new file mode 100644
index 00000000000..1e6481d03d6
--- /dev/null
+++ b/idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt
@@ -0,0 +1,9 @@
+fun foo(p : (String, Char) -> Boolean){}
+
+fun main(args: Array<String>) {
+    fo<caret>(1, 2
+}
+
+// ELEMENT: "foo"
+// TAIL_TEXT: " { String, Char -> ... } (<root>)"
+// CHAR: '\t'
diff --git a/idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt.after b/idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt.after
new file mode 100644
index 00000000000..d7a7884dcdf
--- /dev/null
+++ b/idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt.after
@@ -0,0 +1,9 @@
+fun foo(p : (String, Char) -> Boolean){}
+
+fun main(args: Array<String>) {
+    foo(<caret>1, 2
+}
+
+// ELEMENT: "foo"
+// TAIL_TEXT: " { String, Char -> ... } (<root>)"
+// CHAR: '\t'
diff --git a/idea/idea-completion/tests/org/jetbrains/kotlin/idea/completion/test/handlers/BasicCompletionHandlerTestGenerated.java b/idea/idea-completion/tests/org/jetbrains/kotlin/idea/completion/test/handlers/BasicCompletionHandlerTestGenerated.java
index 0d0b8786f8c..c458a472f7b 100644
--- a/idea/idea-completion/tests/org/jetbrains/kotlin/idea/completion/test/handlers/BasicCompletionHandlerTestGenerated.java
+++ b/idea/idea-completion/tests/org/jetbrains/kotlin/idea/completion/test/handlers/BasicCompletionHandlerTestGenerated.java
@@ -119,6 +119,12 @@ public class BasicCompletionHandlerTestGenerated extends AbstractBasicCompletion
         doTest(fileName);
     }
 
+    @TestMetadata("ReplaceByLambdaTemplateNoClosingParenth.kt")
+    public void testReplaceByLambdaTemplateNoClosingParenth() throws Exception {
+        String fileName = JetTestUtils.navigationMetadata("idea/idea-completion/testData/handlers/basic/ReplaceByLambdaTemplateNoClosingParenth.kt");
+        doTest(fileName);
+    }
+
     @TestMetadata("ReplaceFunctionCallByProperty.kt")
     public void testReplaceFunctionCallByProperty() throws Exception {
         String fileName = JetTestUtils.navigationMetadata("idea/idea-completion/testData/handlers/basic/ReplaceFunctionCallByProperty.kt");