diff --git a/idea/src/org/jetbrains/kotlin/idea/codeInliner/UsageReplacementStrategy.kt b/idea/src/org/jetbrains/kotlin/idea/codeInliner/UsageReplacementStrategy.kt
index 2af6d76a365..8abe88bbc83 100644
--- a/idea/src/org/jetbrains/kotlin/idea/codeInliner/UsageReplacementStrategy.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/codeInliner/UsageReplacementStrategy.kt
@@ -27,9 +27,12 @@ import com.intellij.psi.search.GlobalSearchScope
 import com.intellij.psi.search.searches.ReferencesSearch
 import com.intellij.ui.GuiUtils
 import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
+import org.jetbrains.kotlin.descriptors.FunctionDescriptor
 import org.jetbrains.kotlin.idea.caches.resolve.analyze
+import org.jetbrains.kotlin.idea.caches.resolve.resolveToDescriptorIfAny
 import org.jetbrains.kotlin.idea.core.targetDescriptors
 import org.jetbrains.kotlin.idea.intentions.ConvertReferenceToLambdaIntention
+import org.jetbrains.kotlin.idea.intentions.SpecifyExplicitLambdaSignatureIntention
 import org.jetbrains.kotlin.idea.references.KtSimpleNameReference
 import org.jetbrains.kotlin.idea.search.usagesSearch.descriptor
 import org.jetbrains.kotlin.idea.stubindex.KotlinSourceFilterScope
@@ -122,7 +125,7 @@ fun UsageReplacementStrategy.replaceUsages(
             val targetDeclaration = targetPsiElement as? KtNamedDeclaration
 
             val usagesChildrenFirst = usages.sortChildrenFirst()
-            for (usage in usagesChildrenFirst) {
+            usages@ for (usage in usagesChildrenFirst) {
                 try {
                     if (!usage.isValid) {
                         invalidUsagesFound = true
@@ -130,11 +133,35 @@ fun UsageReplacementStrategy.replaceUsages(
                     }
 
                     val usageParent = usage.parent
-                    if (usageParent is KtCallableReferenceExpression) {
-                        val grandParent = usageParent.parent
-                        ConvertReferenceToLambdaIntention().applyTo(usageParent, null)
-                        (grandParent as? KtElement)?.let { doRefactoringInside(it, targetDeclaration?.name, targetDeclaration?.descriptor) }
-                        continue
+                    when (usageParent) {
+                        is KtCallableReferenceExpression -> {
+                            val grandParent = usageParent.parent
+                            ConvertReferenceToLambdaIntention().applyTo(usageParent, null)
+                            (grandParent as? KtElement)?.let {
+                                doRefactoringInside(it, targetDeclaration?.name, targetDeclaration?.descriptor)
+                            }
+                            continue@usages
+                        }
+                        is KtCallElement -> {
+                            val lambdaArguments = usageParent.lambdaArguments
+                            if (lambdaArguments.isNotEmpty()) {
+                                val grandParent = usageParent.parent
+                                val specifySignature = SpecifyExplicitLambdaSignatureIntention()
+                                for (lambdaArgument in lambdaArguments) {
+                                    val lambdaExpression = lambdaArgument.getLambdaExpression()
+                                    val functionDescriptor =
+                                            lambdaExpression.functionLiteral.resolveToDescriptorIfAny() as? FunctionDescriptor ?: continue
+                                    if (functionDescriptor.valueParameters.isNotEmpty()) {
+                                        specifySignature.applyTo(lambdaExpression, null)
+                                    }
+                                }
+                                (grandParent as? KtElement)?.let {
+                                    doRefactoringInside(it, targetDeclaration?.name, targetDeclaration?.descriptor)
+                                }
+                                continue@usages
+                            }
+                        }
+
                     }
 
                     //TODO: keep the import if we don't know how to replace some of the usages
diff --git a/idea/testData/refactoring/inline/function/expressionBody/Lambda.kt b/idea/testData/refactoring/inline/function/expressionBody/Lambda.kt
new file mode 100644
index 00000000000..f0b9cc7d3f2
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/Lambda.kt
@@ -0,0 +1,7 @@
+class Declaration {
+    fun lambdaType(p: Int, f: (Int) -> Int) = f(p)
+}
+
+fun call(declaration: Declaration) {
+    declaration.<caret>lambdaType(6) { it + 7 }
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/Lambda.kt.after b/idea/testData/refactoring/inline/function/expressionBody/Lambda.kt.after
new file mode 100644
index 00000000000..8fa176ecf0c
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/Lambda.kt.after
@@ -0,0 +1,6 @@
+class Declaration {
+}
+
+fun call(declaration: Declaration) {
+    ({ it: Int -> it + 7 })(6)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt b/idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt
new file mode 100644
index 00000000000..526720e2af5
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt
@@ -0,0 +1,6 @@
+class Declaration {
+    fun lambdaType(p: Int, f: (Int) -> Int) = f(p)
+}
+
+fun call(declaration: Declaration) {
+    declaration.<caret>lambdaType(8) { x -> x + 9 }}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt.after b/idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt.after
new file mode 100644
index 00000000000..1c5110938ad
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt.after
@@ -0,0 +1,6 @@
+class Declaration {
+}
+
+fun call(declaration: Declaration) {
+    ({ x: Int -> x + 9 })(8)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt b/idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt
new file mode 100644
index 00000000000..3d16ee96d42
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt
@@ -0,0 +1,7 @@
+class Declaration {
+    fun lambdaType(p: Int, f: (Int) -> Int) = f(p)
+}
+
+fun call(declaration: Declaration) {
+    declaration.<caret>lambdaType(10) { _ -> 11 }
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt.after b/idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt.after
new file mode 100644
index 00000000000..2f6d5229d93
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt.after
@@ -0,0 +1,6 @@
+class Declaration {
+}
+
+fun call(declaration: Declaration) {
+    ({ _: Int -> 11 })(10)
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt b/idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt
new file mode 100644
index 00000000000..7af526124bf
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt
@@ -0,0 +1,4 @@
+fun <T, U> operateLambda(p: T, f: (T) -> U) = f(p)
+fun returnLabel() {
+    <caret>operateLambda(1) {}
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt.after b/idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt.after
new file mode 100644
index 00000000000..2862d7d0e4c
--- /dev/null
+++ b/idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt.after
@@ -0,0 +1,3 @@
+fun returnLabel() {
+    ({ it: Int -> })(1)
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
index eb1c174a5ef..4076dc0f9f5 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/inline/InlineTestGenerated.java
@@ -142,6 +142,30 @@ public class InlineTestGenerated extends AbstractInlineTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("Lambda.kt")
+            public void testLambda() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/Lambda.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("Lambda1.kt")
+            public void testLambda1() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/Lambda1.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("Lambda2.kt")
+            public void testLambda2() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/Lambda2.kt");
+                doTest(fileName);
+            }
+
+            @TestMetadata("LambdaGeneric.kt")
+            public void testLambdaGeneric() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/LambdaGeneric.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("MultipleInComposition.kt")
             public void testMultipleInComposition() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("idea/testData/refactoring/inline/function/expressionBody/MultipleInComposition.kt");