diff --git a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateMethodFromMethodReferenceFix.java b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateMethodFromMethodReferenceFix.java
index b0c29bf641e3..74df48381201 100644
--- a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateMethodFromMethodReferenceFix.java
+++ b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateMethodFromMethodReferenceFix.java
@@ -124,15 +124,16 @@ public class CreateMethodFromMethodReferenceFix extends CreateFromUsageBaseFix {
     final PsiType interfaceReturnType = LambdaUtil.getFunctionalInterfaceReturnType(functionalInterfaceType);
     LOG.assertTrue(interfaceReturnType != null);
 
+    final PsiSubstitutor substitutor = LambdaUtil.getSubstitutor(interfaceMethod, classResolveResult);
     final ExpectedTypeInfo[] expectedTypes = {new ExpectedTypeInfoImpl(interfaceReturnType, ExpectedTypeInfo.TYPE_OR_SUBTYPE, interfaceReturnType, TailType.NONE, null, ExpectedTypeInfoImpl.NULL)};
     CreateMethodFromUsageFix.doCreate(targetClass, method, false,
                                       ContainerUtil.map2List(interfaceMethod.getParameterList().getParameters(), new Function<PsiParameter, Pair<PsiExpression, PsiType>>() {
                                         @Override
                                         public Pair<PsiExpression, PsiType> fun(PsiParameter parameter) {
-                                          return Pair.create(null, parameter.getType());
+                                          return Pair.create(null, substitutor.substitute(parameter.getType()));
                                         }
                                       }),
-                                      LambdaUtil.getSubstitutor(interfaceMethod, classResolveResult),
+                                      PsiSubstitutor.EMPTY,
                                       expectedTypes, context);
   }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createMethodFromMethodRef/afterSubstitutionParams.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createMethodFromMethodRef/afterSubstitutionParams.java
new file mode 100644
index 000000000000..f4c31662d976
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createMethodFromMethodRef/afterSubstitutionParams.java
@@ -0,0 +1,15 @@
+// "Create Method 'fooBar'" "true"
+class FooBar {
+  {
+    Comparator<String> c = this::fooBar;
+  }
+
+    private int fooBar(String s, String s1) {
+        return 0;
+    }
+}
+
+
+interface Comparator<T> {
+  int compare(T o1, T o2);
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createMethodFromMethodRef/beforeSubstitutionParams.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createMethodFromMethodRef/beforeSubstitutionParams.java
new file mode 100644
index 000000000000..96dc6d176061
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createMethodFromMethodRef/beforeSubstitutionParams.java
@@ -0,0 +1,11 @@
+// "Create Method 'fooBar'" "true"
+class FooBar {
+  {
+    Comparator<String> c = this::foo<caret>Bar;
+  }
+}
+
+
+interface Comparator<T> {
+  int compare(T o1, T o2);
+}
\ No newline at end of file