diff --git a/java/java-impl/src/com/intellij/codeInsight/intention/impl/InvertIfConditionAction.java b/java/java-impl/src/com/intellij/codeInsight/intention/impl/InvertIfConditionAction.java
index 68743af9dc73..e8d98aa292b1 100644
--- a/java/java-impl/src/com/intellij/codeInsight/intention/impl/InvertIfConditionAction.java
+++ b/java/java-impl/src/com/intellij/codeInsight/intention/impl/InvertIfConditionAction.java
@@ -1,9 +1,9 @@
 // Copyright 2000-2023 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package com.intellij.codeInsight.intention.impl;
 
-import com.intellij.modcommand.ModPsiUpdater;
 import com.intellij.codeInspection.PsiUpdateModCommandAction;
 import com.intellij.java.JavaBundle;
+import com.intellij.modcommand.ModPsiUpdater;
 import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.TextRange;
@@ -326,8 +326,9 @@ public class InvertIfConditionAction extends PsiUpdateModCommandAction<PsiElemen
           }
         }
       }
-      if (thenBranch instanceof PsiContinueStatement || 
-          thenBranch instanceof PsiReturnStatement && ((PsiReturnStatement)thenBranch).getReturnValue() == null) {
+      if ((thenBranch instanceof PsiContinueStatement continueStatement &&
+           (continueStatement.getLabelIdentifier() == null || theSameLabel(continueStatement.getLabelIdentifier(), loopStmt))) ||
+          (thenBranch instanceof PsiReturnStatement && ((PsiReturnStatement)thenBranch).getReturnValue() == null)) {
         PsiStatement elseBranch = ifStatement.getElseBranch();
         if (elseBranch != null) {
           elseBranch.delete();
@@ -344,6 +345,16 @@ public class InvertIfConditionAction extends PsiUpdateModCommandAction<PsiElemen
     ifStatement.setElseBranch(ct.markUnchanged(thenBranch));
   }
 
+  private static boolean theSameLabel(@NotNull PsiIdentifier label, @Nullable PsiLoopStatement stmt) {
+    if (stmt == null) {
+      return false;
+    }
+    if (stmt.getParent() instanceof PsiLabeledStatement labeledStatement) {
+      return labeledStatement.getLabelIdentifier() == label;
+    }
+    return false;
+  }
+
   private static PsiStatement wrapWithCodeBlock(@NotNull PsiStatement statement) {
     final Project project = statement.getProject();
     final PsiElementFactory factory = JavaPsiFacade.getElementFactory(project);
diff --git a/java/java-tests/testData/codeInsight/invertIfCondition/afterContinueWithLabel.java b/java/java-tests/testData/codeInsight/invertIfCondition/afterContinueWithLabel.java
new file mode 100644
index 000000000000..d03914cff886
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/invertIfCondition/afterContinueWithLabel.java
@@ -0,0 +1,16 @@
+// "Invert 'if' condition" "true-preview"
+class A {
+    void foo () {
+      outer: for(int i = 0; i < 5; i++) {
+        for(int j = 0; j < 5; j++) {
+            if (j != 3) {
+                System.out.println("J:" + j);
+            }
+            else {
+                continue outer;
+            }
+        }
+        System.out.println("I:" + i);
+      }
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/invertIfCondition/beforeContinueWithLabel.java b/java/java-tests/testData/codeInsight/invertIfCondition/beforeContinueWithLabel.java
new file mode 100644
index 000000000000..e772fecfa44e
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/invertIfCondition/beforeContinueWithLabel.java
@@ -0,0 +1,13 @@
+// "Invert 'if' condition" "true-preview"
+class A {
+    void foo () {
+      outer: for(int i = 0; i < 5; i++) {
+        for(int j = 0; j < 5; j++) {
+          i<caret>f (j == 3)
+            continue outer;
+          System.out.println("J:" + j);
+        }
+        System.out.println("I:" + i);
+      }
+    }
+}
\ No newline at end of file