diff --git a/plugins/IntentionPowerPak/src/com/siyeh/ipp/functional/ExtractToMethodReferenceIntention.java b/plugins/IntentionPowerPak/src/com/siyeh/ipp/functional/ExtractToMethodReferenceIntention.java
index 3a26722b9702..ccab3ea87a05 100644
--- a/plugins/IntentionPowerPak/src/com/siyeh/ipp/functional/ExtractToMethodReferenceIntention.java
+++ b/plugins/IntentionPowerPak/src/com/siyeh/ipp/functional/ExtractToMethodReferenceIntention.java
@@ -28,6 +28,7 @@ import com.intellij.refactoring.util.duplicates.MethodDuplicatesHandler;
 import com.intellij.util.ObjectUtils;
 import com.intellij.util.text.UniqueNameGenerator;
 import com.siyeh.IntentionPowerPackBundle;
+import com.siyeh.ig.psiutils.ClassUtils;
 import com.siyeh.ig.psiutils.CommentTracker;
 import org.jetbrains.annotations.NotNull;
 
@@ -93,7 +94,7 @@ public class ExtractToMethodReferenceIntention extends BaseElementAtCaretIntenti
     if (lambdaExpression != null) {
       PsiCodeBlock body = RefactoringUtil.expandExpressionLambdaToCodeBlock(lambdaExpression);
 
-      PsiClass targetClass = PsiTreeUtil.getParentOfType(lambdaExpression, PsiClass.class);
+      PsiClass targetClass = ClassUtils.getContainingClass(lambdaExpression);
       if (targetClass == null) return;
       PsiElement[] elements = body.getStatements();
 
diff --git a/plugins/IntentionPowerPak/test/com/siyeh/ipp/functional/extractToMethodReference/AnonymousClassArgument.java b/plugins/IntentionPowerPak/test/com/siyeh/ipp/functional/extractToMethodReference/AnonymousClassArgument.java
new file mode 100644
index 000000000000..cdfdbbcb93cd
--- /dev/null
+++ b/plugins/IntentionPowerPak/test/com/siyeh/ipp/functional/extractToMethodReference/AnonymousClassArgument.java
@@ -0,0 +1,5 @@
+class AnonymousClassArgument {
+  {
+    Thread t = new Thread(() <caret>-> {}) {} ;
+  }
+}
\ No newline at end of file
diff --git a/plugins/IntentionPowerPak/test/com/siyeh/ipp/functional/extractToMethodReference/AnonymousClassArgument_after.java b/plugins/IntentionPowerPak/test/com/siyeh/ipp/functional/extractToMethodReference/AnonymousClassArgument_after.java
new file mode 100644
index 000000000000..54c85fe46a42
--- /dev/null
+++ b/plugins/IntentionPowerPak/test/com/siyeh/ipp/functional/extractToMethodReference/AnonymousClassArgument_after.java
@@ -0,0 +1,8 @@
+class AnonymousClassArgument {
+  {
+    Thread t = new Thread(AnonymousClassArgument::<caret>run) {} ;
+  }
+
+    private static void run() {
+    }
+}
\ No newline at end of file
diff --git a/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/functional/ExtractToMethodReferenceTest.java b/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/functional/ExtractToMethodReferenceTest.java
index 397a338fcae2..3213bfbdb959 100644
--- a/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/functional/ExtractToMethodReferenceTest.java
+++ b/plugins/IntentionPowerPak/testSrc/com/siyeh/ipp/functional/ExtractToMethodReferenceTest.java
@@ -58,6 +58,10 @@ public class ExtractToMethodReferenceTest extends IPPTestCase {
     doTest();
   }
 
+  public void testAnonymousClassArgument() {
+    doTest();
+  }
+
   public void testUsedLocalVariables() {
     assertIntentionNotAvailable();
   }