diff --git a/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java b/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
index bfd283667e94..516bdaac1f41 100644
--- a/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
+++ b/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
@@ -166,8 +166,6 @@ public class EditorSearchComponent extends JPanel implements DataProvider, Selec
         myEditor.getCaretModel().moveToOffset(range.getEndOffset());
         myEditor.getScrollingModel().scrollToCaret(ScrollType.RELATIVE);
 
-        myEditor.getCaretModel().moveToOffset(range.getStartOffset());
-        myEditor.getScrollingModel().scrollToCaret(ScrollType.RELATIVE);
       }
       myToChangeSelection = false;
     }
@@ -528,6 +526,13 @@ public class EditorSearchComponent extends JPanel implements DataProvider, Selec
     }
   }
 
+  public void replaceCurrent() {
+    if (mySearchResults.getCursor() != null) {
+      String replacement = myLivePreviewController.getReplacementPreviewText(myEditor, mySearchResults.getCursor());
+      myLivePreviewController.performReplace(mySearchResults.getCursor(), replacement, myEditor);
+    }
+  }
+
   private static void setSmallerFontAndOpaque(final JComponent component) {
     setSmallerFont(component);
     component.setOpaque(false);
diff --git a/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java b/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java
index d6925ef5d915..2381f31aaa3e 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java
@@ -237,6 +237,17 @@ public class SearchResults {
     return firstVisibleOccurrence != null ? firstVisibleOccurrence : firstOccurrence;
   }
 
+  @Nullable
+  private LiveOccurrence firstOccurrenceBeforeCaret() {
+    int offset = getEditor().getCaretModel().getOffset();
+    for (int i = getOccurrences().size()-1; i >= 0; --i) {
+      if (getOccurrences().get(i).getPrimaryRange().getEndOffset() < offset) {
+        return getOccurrences().get(i);
+      }
+    }
+    return null;
+  }
+
   @Nullable
   private LiveOccurrence firstOccurrenceAfterCaret() {
     LiveOccurrence afterCaret = null;
@@ -294,7 +305,7 @@ public class SearchResults {
   }
 
   public void prevOccurrence() {
-    LiveOccurrence prev = prevOccurrence(myCursor);
+    LiveOccurrence prev = firstOccurrenceBeforeCaret();
     if (prev == null && !getOccurrences().isEmpty()) {
       prev = getOccurrences().get(getOccurrences().size() - 1);
     }
@@ -302,7 +313,7 @@ public class SearchResults {
   }
 
   public void nextOccurrence() {
-    LiveOccurrence next = nextOccurrence(myCursor);
+    LiveOccurrence next = firstOccurrenceAfterCaret();
     if (next == null && !getOccurrences().isEmpty()) {
       next = getOccurrences().get(0);
     }
diff --git a/platform/lang-impl/src/com/intellij/openapi/editor/actions/IncrementalFindAction.java b/platform/lang-impl/src/com/intellij/openapi/editor/actions/IncrementalFindAction.java
index a8d73ba7d634..2f2535ff5e9f 100644
--- a/platform/lang-impl/src/com/intellij/openapi/editor/actions/IncrementalFindAction.java
+++ b/platform/lang-impl/src/com/intellij/openapi/editor/actions/IncrementalFindAction.java
@@ -42,8 +42,12 @@ public class IncrementalFindAction extends EditorAction {
       if (!editor.isOneLineMode()) {
         final JComponent headerComponent = editor.getHeaderComponent();
         if (headerComponent instanceof EditorSearchComponent) {
-          ((EditorSearchComponent) headerComponent).setInitialText(editor.getSelectionModel().getSelectedText());
-          headerComponent.requestFocus();
+          if (myReplace) {
+            ((EditorSearchComponent)headerComponent).replaceCurrent();
+          } else {
+            ((EditorSearchComponent) headerComponent).setInitialText(editor.getSelectionModel().getSelectedText());
+            headerComponent.requestFocus();
+          }
         }
         else {
           final EditorSearchComponent header = new EditorSearchComponent(editor, project, myReplace);