diff --git a/platform/structuralsearch/source/META-INF/structuralsearch.xml b/platform/structuralsearch/source/META-INF/structuralsearch.xml
index 49fa4d0261c0..030bc8674b5b 100644
--- a/platform/structuralsearch/source/META-INF/structuralsearch.xml
+++ b/platform/structuralsearch/source/META-INF/structuralsearch.xml
@@ -16,6 +16,8 @@
     <projectService serviceImplementation="com.intellij.structuralsearch.plugin.StructuralSearchPlugin"/>
     <projectService serviceImplementation="com.intellij.structuralsearch.plugin.ui.ExistingTemplatesComponent"/>
     <projectService serviceImplementation="com.intellij.structuralsearch.plugin.ui.ConfigurationManager"/>
+
+    <typedHandler implementation="com.intellij.structuralsearch.plugin.ui.StructuralSearchTypedHandler"/>
   </extensions>
 
   <actions>
diff --git a/platform/structuralsearch/source/com/intellij/structuralsearch/XmlStructuralSearchProfile.java b/platform/structuralsearch/source/com/intellij/structuralsearch/XmlStructuralSearchProfile.java
index 5d6cd596c964..d2e19b7c6628 100644
--- a/platform/structuralsearch/source/com/intellij/structuralsearch/XmlStructuralSearchProfile.java
+++ b/platform/structuralsearch/source/com/intellij/structuralsearch/XmlStructuralSearchProfile.java
@@ -11,10 +11,7 @@ import com.intellij.openapi.fileTypes.FileType;
 import com.intellij.openapi.fileTypes.StdFileTypes;
 import com.intellij.openapi.project.Project;
 import com.intellij.psi.*;
-import com.intellij.psi.xml.XmlDocument;
-import com.intellij.psi.xml.XmlFile;
-import com.intellij.psi.xml.XmlTag;
-import com.intellij.psi.xml.XmlText;
+import com.intellij.psi.xml.*;
 import com.intellij.structuralsearch.impl.matcher.*;
 import com.intellij.structuralsearch.impl.matcher.compiler.GlobalCompilingVisitor;
 import com.intellij.structuralsearch.impl.matcher.compiler.XmlCompilingVisitor;
@@ -48,6 +45,11 @@ public class XmlStructuralSearchProfile extends StructuralSearchProfile {
     return new XmlMatchingVisitor(globalVisitor);
   }
 
+  @Override
+  public boolean isIdentifier(PsiElement element) {
+    return element instanceof XmlToken && ((XmlToken)element).getTokenType() == XmlTokenType.XML_NAME;
+  }
+
   @NotNull
   @Override
   public NodeFilter getLexicalNodesFilter() {
diff --git a/platform/structuralsearch/source/com/intellij/structuralsearch/plugin/ui/StructuralSearchTypedHandler.java b/platform/structuralsearch/source/com/intellij/structuralsearch/plugin/ui/StructuralSearchTypedHandler.java
new file mode 100644
index 000000000000..8c4bc92a9751
--- /dev/null
+++ b/platform/structuralsearch/source/com/intellij/structuralsearch/plugin/ui/StructuralSearchTypedHandler.java
@@ -0,0 +1,80 @@
+// Copyright 2000-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license that can be found in the LICENSE file.
+package com.intellij.structuralsearch.plugin.ui;
+
+import com.intellij.codeInsight.editorActions.TypedHandlerDelegate;
+import com.intellij.openapi.editor.*;
+import com.intellij.openapi.project.Project;
+import com.intellij.openapi.util.text.StringUtil;
+import com.intellij.psi.PsiFile;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.intellij.structuralsearch.StructuralSearchUtil;
+import com.intellij.util.SmartList;
+import org.jetbrains.annotations.NotNull;
+
+import java.util.List;
+
+/**
+ * @author Bas Leijdekkers
+ */
+public class StructuralSearchTypedHandler extends TypedHandlerDelegate {
+
+  @NotNull
+  @Override
+  public Result beforeSelectionRemoved(char c,
+                                       @NotNull Project project,
+                                       @NotNull Editor editor,
+                                       @NotNull PsiFile file) {
+    if (editor.getUserData(SubstitutionShortInfoHandler.CURRENT_CONFIGURATION_KEY) == null) {
+      return Result.CONTINUE;
+    }
+    if (c == '$') {
+      final SelectionModel selectionModel = editor.getSelectionModel();
+      final String selectedText = selectionModel.getSelectedText();
+      if (!StringUtil.isEmpty(selectedText) && !selectedText.contains("$")) {
+        final Document document = editor.getDocument();
+        final List<RangeMarker> rangeMarkers = new SmartList<>();
+        rangeMarkers.add(document.createRangeMarker(selectionModel.getSelectionStart(), selectionModel.getSelectionEnd()));
+
+        final CaretModel caretModel = editor.getCaretModel();
+        final boolean multipleCarets = caretModel.getCaretCount() != 1;
+        if (!multipleCarets) {
+          PsiTreeUtil.processElements(file, element -> {
+            if (StructuralSearchUtil.isIdentifier(element) && element.getText().equals(selectedText)) {
+              rangeMarkers.add(document.createRangeMarker(element.getTextRange()));
+            }
+            return true;
+          });
+        }
+
+        final String newText = String.valueOf(c) + selectedText + c;
+        final boolean ltrSelection = selectionModel.getLeadSelectionOffset() != selectionModel.getSelectionEnd();
+        for (RangeMarker marker : rangeMarkers) {
+          if (marker.isValid()) {
+            document.replaceString(marker.getStartOffset(), marker.getEndOffset(), newText);
+            if (multipleCarets) {
+              final int startOffset = marker.getStartOffset() + 1;
+              final int endOffset = startOffset + selectedText.length();
+              selectionModel.setSelection(ltrSelection ? startOffset : endOffset, ltrSelection ? endOffset : startOffset);
+              caretModel.moveToOffset(ltrSelection ? endOffset : startOffset);
+            }
+          }
+        }
+        if (!multipleCarets) {
+          final List<CaretState> newCaretStates = new SmartList<>();
+          for (RangeMarker marker : rangeMarkers) {
+            final int startOffset = marker.getStartOffset() + 1;
+            final int endOffset = startOffset + selectedText.length();
+            final LogicalPosition selectionStart = editor.offsetToLogicalPosition(ltrSelection ? startOffset : endOffset);
+            final LogicalPosition selectionEnd = editor.offsetToLogicalPosition(ltrSelection ? endOffset : startOffset);
+            final LogicalPosition caretPosition = editor.offsetToLogicalPosition(ltrSelection ? endOffset : startOffset);
+            final CaretState state = new CaretState(caretPosition, selectionStart, selectionEnd);
+            newCaretStates.add(state);
+          }
+          caretModel.setCaretsAndSelections(newCaretStates);
+        }
+        return Result.STOP;
+      }
+    }
+    return super.beforeSelectionRemoved(c, project, editor, file);
+  }
+}