diff --git a/plugins/IntentionPowerPak/src/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassIntention.java b/plugins/IntentionPowerPak/src/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassIntention.java
index 8925761987d5..f636975ecf2e 100644
--- a/plugins/IntentionPowerPak/src/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassIntention.java
+++ b/plugins/IntentionPowerPak/src/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassIntention.java
@@ -191,25 +191,21 @@ public class ConvertInterfaceToClassIntention extends Intention {
   }
 
   private static void moveSubClassImplementsToExtends(PsiClass oldInterface, Collection<PsiClass> inheritors) {
-    final PsiJavaCodeReferenceElement oldInterfaceReference =
-      JavaPsiFacade.getElementFactory(oldInterface.getProject()).createClassReferenceElement(oldInterface);
     for (PsiClass inheritor : inheritors) {
       final PsiReferenceList implementsList = inheritor.getImplementsList();
       final PsiReferenceList extendsList = inheritor.getExtendsList();
       if (implementsList != null) {
-        moveReference(implementsList, extendsList, oldInterfaceReference);
+        moveReference(implementsList, extendsList, oldInterface);
       }
     }
   }
 
   private static void moveReference(@NotNull PsiReferenceList source,
                                     @Nullable PsiReferenceList target,
-                                    @NotNull PsiJavaCodeReferenceElement reference) {
+                                    @NotNull PsiClass oldInterface) {
     final PsiJavaCodeReferenceElement[] implementsReferences = source.getReferenceElements();
-    final String qualifiedName = reference.getQualifiedName();
     for (PsiJavaCodeReferenceElement implementsReference : implementsReferences) {
-      final String implementsReferenceQualifiedName = implementsReference.getQualifiedName();
-      if (qualifiedName.equals(implementsReferenceQualifiedName)) {
+      if (implementsReference.isReferenceTo(oldInterface)) {
         if (target != null) {
           final PsiJavaCodeReferenceElement[] referenceElements = target.getReferenceElements();
           if (referenceElements.length > 0) {
diff --git a/plugins/IntentionPowerPak/test/com/siyeh/ipp/interfaceToClass/LocalInterface.java b/plugins/IntentionPowerPak/test/com/siyeh/ipp/interfaceToClass/LocalInterface.java
new file mode 100644
index 000000000000..48338fc1efdd
--- /dev/null
+++ b/plugins/IntentionPowerPak/test/com/siyeh/ipp/interfaceToClass/LocalInterface.java
@@ -0,0 +1,7 @@
+class A {
+  void foo() {
+    interface Lo<caret>cal {}
+    class X implements Local {}
+    class X1 implements Cloneable, Local {}
+  }
+}
\ No newline at end of file
diff --git a/plugins/IntentionPowerPak/test/com/siyeh/ipp/interfaceToClass/LocalInterface_after.java b/plugins/IntentionPowerPak/test/com/siyeh/ipp/interfaceToClass/LocalInterface_after.java
new file mode 100644
index 000000000000..ebcfefec6e0a
--- /dev/null
+++ b/plugins/IntentionPowerPak/test/com/siyeh/ipp/interfaceToClass/LocalInterface_after.java
@@ -0,0 +1,7 @@
+class A {
+  void foo() {
+    abstract class Lo<caret>cal {}
+    class X extends Local {}
+    class X1 extends Local implements Cloneable {}
+  }
+}
\ No newline at end of file
diff --git a/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassTest.java b/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassTest.java
index 9ff2be49f31a..205cd8890cd7 100644
--- a/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassTest.java
+++ b/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/interfacetoclass/ConvertInterfaceToClassTest.java
@@ -13,6 +13,7 @@ public class ConvertInterfaceToClassTest extends IPPTestCase {
   public void testInnerInterface() { doTest(); }
   public void testStaticMethods() { doTest(); }
   public void testInterfaceExtendsClass() { doTest(); }
+  public void testLocalInterface() { doTest(); }
 
   public void testFunctionalExpressions() {
     try {
@@ -54,6 +55,6 @@ public class ConvertInterfaceToClassTest extends IPPTestCase {
   @NotNull
   @Override
   protected LightProjectDescriptor getProjectDescriptor() {
-    return JAVA_8;
+    return JAVA_15;
   }
 }