diff --git a/idea/src/org/jetbrains/kotlin/idea/codeInsight/upDownMover/KotlinDeclarationMover.java b/idea/src/org/jetbrains/kotlin/idea/codeInsight/upDownMover/KotlinDeclarationMover.java
index b7e563ba0c9..d9f17f6d070 100644
--- a/idea/src/org/jetbrains/kotlin/idea/codeInsight/upDownMover/KotlinDeclarationMover.java
+++ b/idea/src/org/jetbrains/kotlin/idea/codeInsight/upDownMover/KotlinDeclarationMover.java
@@ -140,7 +140,17 @@ public class KotlinDeclarationMover extends AbstractKotlinUpDownMover {
     private static KtDeclaration getMovableDeclaration(@Nullable PsiElement element) {
         if (element == null) return null;
 
-        KtDeclaration declaration = PsiTreeUtil.getParentOfType(element, KtDeclaration.class, false);
+        KtDeclaration declaration = null;
+        if (element.getNode().getElementType() == KtTokens.LBRACE) {
+            KtLambdaExpression lambda = PsiTreeUtil.getParentOfType(element, KtLambdaExpression.class, true);
+            KtFunction function = PsiTreeUtil.getParentOfType(lambda, KtFunction.class, true);
+            if (function != null && function.getBodyExpression() == lambda) {
+                declaration = function;
+            }
+        }
+        if (declaration == null) {
+            declaration = PsiTreeUtil.getParentOfType(element, KtDeclaration.class, false);
+        }        
         if (declaration instanceof KtParameter) return null;
         if (declaration instanceof KtTypeParameter) {
             return getMovableDeclaration(declaration.getParent());
diff --git a/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt
new file mode 100644
index 00000000000..54c75633ca8
--- /dev/null
+++ b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt
@@ -0,0 +1,10 @@
+// MOVE: down
+fun a() {
+}
+
+<caret>fun b() = {
+    ""
+}
+
+fun c() {
+}
diff --git a/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt.after b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt.after
new file mode 100644
index 00000000000..bf2233b90e9
--- /dev/null
+++ b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt.after
@@ -0,0 +1,10 @@
+// MOVE: down
+fun a() {
+}
+
+fun c() {
+}
+
+<caret>fun b() = {
+    ""
+}
diff --git a/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt
new file mode 100644
index 00000000000..19bb1736912
--- /dev/null
+++ b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt
@@ -0,0 +1,10 @@
+// MOVE: up
+fun a() {
+}
+
+fun c() {
+}
+
+<caret>fun b() = {
+    ""
+}
diff --git a/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt.after b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt.after
new file mode 100644
index 00000000000..9ffccac9c65
--- /dev/null
+++ b/idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt.after
@@ -0,0 +1,10 @@
+// MOVE: up
+fun a() {
+}
+
+<caret>fun b() = {
+    ""
+}
+
+fun c() {
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/moveUpDown/MoveStatementTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/moveUpDown/MoveStatementTestGenerated.java
index 39a57f887b6..185acc908aa 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/moveUpDown/MoveStatementTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/moveUpDown/MoveStatementTestGenerated.java
@@ -418,6 +418,16 @@ public class MoveStatementTestGenerated extends AbstractMoveStatementTest {
             public void testFunctionAtTheScriptEnd() throws Exception {
                 runTest("idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/functionAtTheScriptEnd.kts");
             }
+
+            @TestMetadata("singleLambdaExpressionFunction1.kt")
+            public void testSingleLambdaExpressionFunction1() throws Exception {
+                runTest("idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction1.kt");
+            }
+
+            @TestMetadata("singleLambdaExpressionFunction2.kt")
+            public void testSingleLambdaExpressionFunction2() throws Exception {
+                runTest("idea/testData/codeInsight/moveUpDown/classBodyDeclarations/function/singleLambdaExpressionFunction2.kt");
+            }
         }
 
         @TestMetadata("idea/testData/codeInsight/moveUpDown/classBodyDeclarations/functionAnchors")