diff --git a/xml/impl/src/com/intellij/xml/actions/GenerateXmlTagAction.java b/xml/impl/src/com/intellij/xml/actions/GenerateXmlTagAction.java
index 7f9a8aa7d29d..d091bbb3bdd1 100644
--- a/xml/impl/src/com/intellij/xml/actions/GenerateXmlTagAction.java
+++ b/xml/impl/src/com/intellij/xml/actions/GenerateXmlTagAction.java
@@ -303,46 +303,16 @@ public class GenerateXmlTagAction extends SimpleCodeInsightAction {
     }
   }
 
-  private static boolean isInsideTagBody(@NotNull Editor editor, @NotNull PsiFile file) {
-    PsiElement element = file.findElementAt(editor.getCaretModel().getOffset());
-    while (element != null && !(element.getParent() instanceof XmlTag)) {
-      element = element.getParent();
-    }
-    if (element == null) {
-      return false;
-    }
-
-    if (element.getNode().getElementType() == XmlTokenType.XML_START_TAG_START) {
-      return true;
-    } else {
-      PsiElement left = element.getPrevSibling();
-      while (left != null && left.getNode().getElementType() != XmlTokenType.XML_TAG_END) {
-        left = left.getPrevSibling();
-      }
-      if (left == null) {
-        return false;
-      }
-      PsiElement right = element.getNextSibling();
-      while (right != null && right.getNode().getElementType() != XmlTokenType.XML_END_TAG_START) {
-        right = right.getNextSibling();
-      }
-      if (right == null) {
-        return false;
-      }
-      return true;
-    }
+  private static boolean isInsideTagBody(XmlTag contextTag, @NotNull Editor editor) {
+    return contextTag.getValue().getTextRange().contains(editor.getCaretModel().getOffset());
   }
 
   @Override
   protected boolean isValidForFile(@NotNull Project project, @NotNull Editor editor, @NotNull PsiFile file) {
     if (!(file instanceof XmlFile)) return false;
 
-    if (!isInsideTagBody(editor, file)) {
-      return false;
-    }
-
     XmlTag contextTag = getContextTag(editor, file);
-    return contextTag != null && contextTag.getDescriptor() != null;
+    return contextTag != null && isInsideTagBody(contextTag, editor) && contextTag.getDescriptor() != null;
   }
 
   @Override