NPE

java/java-impl/src/com/intellij/refactoring/inline/InlineParameterExpressionProcessor.java

@@ -50,7 +50,7 @@ public class InlineParameterExpressionProcessor extends BaseRefactoringProcessor
   private final PsiParameter myParameter;
   private PsiExpression myInitializer;
   private final boolean mySameClass;
-  private final PsiMethod myCallingMethod;
+  private final PsiCodeBlock myCallingBlock;
   private final boolean myCreateLocal;
 
   public InlineParameterExpressionProcessor(final PsiCallExpression methodCall,
@@ -67,7 +67,7 @@ public class InlineParameterExpressionProcessor extends BaseRefactoringProcessor
 
     PsiClass callingClass = PsiTreeUtil.getParentOfType(methodCall, PsiClass.class);
     mySameClass = (callingClass == myMethod.getContainingClass());
-    myCallingMethod = PsiTreeUtil.getParentOfType(myMethodCall, PsiMethod.class);
+    myCallingBlock = PsiTreeUtil.getTopmostParentOfType(myMethodCall, PsiCodeBlock.class);
   }
 
   @Override
@@ -110,7 +110,7 @@ public class InlineParameterExpressionProcessor extends BaseRefactoringProcessor
         final PsiElement element = expression.resolve();
         if (element instanceof PsiLocalVariable) {
           final PsiLocalVariable localVariable = (PsiLocalVariable)element;
-          final PsiElement[] elements = DefUseUtil.getDefs(myCallingMethod.getBody(), localVariable, expression);
+          final PsiElement[] elements = DefUseUtil.getDefs(myCallingBlock, localVariable, expression);
           if (elements.length == 1) {
             PsiExpression localInitializer = null;
             if (elements[0] instanceof PsiLocalVariable) {

java/java-tests/testData/refactoring/inlineParameter/FromClassInitializer.java

@@ -0,0 +1,10 @@
+class X {
+    {
+        String str = "";
+        foo(str, str.substring(0));
+    }
+
+    void foo(String str, String st<caret>r1) {
+
+    }
+}

java/java-tests/testData/refactoring/inlineParameter/FromClassInitializer.java.after

@@ -0,0 +1,10 @@
+class X {
+    {
+        String str = "";
+        foo(str);
+    }
+
+    void foo(String str) {
+
+    }
+}

java/java-tests/testSrc/com/intellij/refactoring/inline/InlineParameterTest.java

@@ -134,6 +134,10 @@ public class InlineParameterTest extends LightRefactoringTestCase {
     doTest(true);
   }
 
+  public void testFromClassInitializer() throws Exception {
+    doTest(false);
+  }
+
   public void testParameterWithWriteAccess() throws Exception {
     try {
       doTest(false);