diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/completion/JavaAutoPopupTest.groovy b/java/java-tests/testSrc/com/intellij/codeInsight/completion/JavaAutoPopupTest.groovy
index 56adedd36b19..a863aea56332 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/completion/JavaAutoPopupTest.groovy
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/completion/JavaAutoPopupTest.groovy
@@ -819,5 +819,21 @@ public class UTest {
     assert 'xxxxx.SYSTEM_EXCEPTION' == ((JavaPsiClassReferenceElement) myFixture.lookupElements[2]).qualifiedName
   }
 
+  public void testTabShouldPreferLookupsToLiveTemplate() {
+    myFixture.configureByText "a.java", """
+class LiveComplete {
+    public void innerThing() { }
+    public void context() {
+      <caret>
+    }
+}
+"""
+    type 'inn'
+    assert myFixture.lookupElementStrings == ['inn', 'innerThing']
+    edt { myFixture.performEditorAction(IdeActions.ACTION_EDITOR_MOVE_CARET_DOWN) }
+    type '\t'
+    assert myFixture.file.text.contains("innerThing();")
+  }
+
 
 }
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/lookup/impl/actions/ChooseItemReplaceAction.java b/platform/lang-impl/src/com/intellij/codeInsight/lookup/impl/actions/ChooseItemReplaceAction.java
index 9697f81aa7a9..c75c38c23975 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/lookup/impl/actions/ChooseItemReplaceAction.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/lookup/impl/actions/ChooseItemReplaceAction.java
@@ -54,7 +54,7 @@ public class ChooseItemReplaceAction extends EditorAction {
         lookup.refreshUi(); // to bring the list model up to date
 
         CompletionProcess completion = CompletionService.getCompletionService().getCurrentCompletion();
-        if (completion != null && completion.isAutopopupCompletion() && hasTemplatePrefix(lookup, TemplateSettings.TAB_CHAR)) {
+        if (completion != null && completion.isAutopopupCompletion() && hasTemplatePrefix(lookup, TemplateSettings.TAB_CHAR) && !lookup.isSelectionTouched()) {
           return false;
         }