diff --git a/java/java-tests/testData/refactoring/extractMethod/ParamDetection.java b/java/java-tests/testData/refactoring/extractMethod/ParamDetection.java
new file mode 100644
index 000000000000..2bef3d88687d
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/ParamDetection.java
@@ -0,0 +1,20 @@
+import java.util.*;
+
+class Test {
+  public void foo() {
+    <selection>List trades;
+    try {
+      trades = getTrades();
+    }
+    catch (RemoteException e) {
+    }
+    </selection>
+
+    //probably not assigned !!!
+    if (trades.isEmpty()) {
+    }
+  }
+
+  static class RemoteException extends Exception {
+  }
+}
diff --git a/java/java-tests/testData/refactoring/extractMethod/ParamDetection_after.java b/java/java-tests/testData/refactoring/extractMethod/ParamDetection_after.java
new file mode 100644
index 000000000000..f64ddcd4cb7a
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/ParamDetection_after.java
@@ -0,0 +1,25 @@
+import java.util.*;
+
+class Test {
+  public void foo() {
+      List trades = newMethod();
+    
+
+    //probably not assigned !!!
+    if (trades.isEmpty()) {
+    }
+  }
+
+    private List newMethod() {
+        List trades;
+        try {
+          trades = getTrades();
+        }
+        catch (RemoteException e) {
+        }
+        return trades;
+    }
+
+    static class RemoteException extends Exception {
+  }
+}
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java b/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
index 6e3e4a59ed42..734d76f0a8f7 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
@@ -550,6 +550,10 @@ public class ExtractMethodTest extends LightCodeInsightTestCase {
     doTest();
   }
 
+  public void testParamDetection() throws Exception {
+    doTest();
+  }
+
   private void doTestDisabledParam() throws PrepareFailedException {
     final CodeStyleSettings settings = CodeStyleSettingsManager.getSettings(getProject());
     settings.ELSE_ON_NEW_LINE = true;