diff --git a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/AddExceptionToExistingCatchFix.java b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/AddExceptionToExistingCatchFix.java
index de7f4ef2b320..cb99997c219e 100644
--- a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/AddExceptionToExistingCatchFix.java
+++ b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/AddExceptionToExistingCatchFix.java
@@ -14,10 +14,10 @@ import com.intellij.openapi.util.Pass;
 import com.intellij.psi.*;
 import com.intellij.psi.codeStyle.CodeStyleManager;
 import com.intellij.psi.codeStyle.JavaCodeStyleManager;
-import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.util.PsiUtil;
 import com.intellij.refactoring.IntroduceTargetChooser;
 import com.intellij.util.IncorrectOperationException;
+import com.intellij.util.SmartList;
 import org.jetbrains.annotations.Nls;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -28,8 +28,6 @@ import java.util.List;
 import java.util.Objects;
 import java.util.stream.Collectors;
 
-import static com.intellij.util.ObjectUtils.tryCast;
-
 public class AddExceptionToExistingCatchFix extends PsiElementBaseIntentionAction {
   private final PsiElement myErrorElement;
 
@@ -67,7 +65,7 @@ public class AddExceptionToExistingCatchFix extends PsiElementBaseIntentionActio
         },
         section -> Objects.requireNonNull(section.getCatchType()).getPresentableText(),
         QuickFixBundle.message("add.exception.to.existing.catch.chooser.title"),
-        dom -> Objects.requireNonNull(((PsiCatchSection)dom).getParameter()).getTextRange()
+        catchSection -> Objects.requireNonNull(((PsiCatchSection)catchSection).getParameter()).getTextRange()
       );
     }
   }
@@ -135,13 +133,7 @@ public class AddExceptionToExistingCatchFix extends PsiElementBaseIntentionActio
       if (!element.isValid() || !PsiUtil.isLanguageLevel7OrHigher(element)) return null;
       List<PsiClassType> unhandledExceptions = new ArrayList<>(ExceptionUtil.getOwnUnhandledExceptions(element));
       if (unhandledExceptions.isEmpty()) return null;
-      boolean containsInCatchOrFinally = containsInCatchOrFinally(element);
-      List<PsiTryStatement> tryStatements =
-        PsiTreeUtil.collectParents(element, PsiTryStatement.class, false, el ->
-          el instanceof PsiLambdaExpression || el instanceof PsiClass && !(el instanceof PsiAnonymousClass));
-      if (containsInCatchOrFinally) {
-        tryStatements.remove(0);
-      }
+      List<PsiTryStatement> tryStatements = getTryStatements(element);
       List<PsiCatchSection> sections =
         tryStatements.stream()
                      .flatMap(stmt -> Arrays.stream(stmt.getCatchSections()))
@@ -155,23 +147,31 @@ public class AddExceptionToExistingCatchFix extends PsiElementBaseIntentionActio
       return new Context(sections, unhandledExceptions);
     }
 
-    private static boolean containsInCatchOrFinally(@NotNull PsiElement element) {
+    @NotNull
+    private static List<PsiTryStatement> getTryStatements(@NotNull PsiElement element) {
+      PsiElement current = element;
       PsiElement parent = element.getParent();
+      List<PsiTryStatement> parents = new SmartList<>();
       while (parent != null) {
+        if (parent instanceof PsiLambdaExpression || parent instanceof PsiMember) break;
         if (parent instanceof PsiTryStatement) {
-          return false;
-        }
-        if (parent instanceof PsiCatchSection) {
-          return true;
-        }
-        if (parent instanceof PsiCodeBlock) {
-          PsiKeyword keyword = tryCast(PsiTreeUtil.skipWhitespacesAndCommentsBackward(parent), PsiKeyword.class);
-          if (keyword != null && keyword.getText().equals(PsiKeyword.FINALLY)) {
-            return true;
+          PsiTryStatement tryStatement = (PsiTryStatement)parent;
+          if (tryStatement.getFinallyBlock() != current && !isInCatch(current, tryStatement)) {
+            parents.add((PsiTryStatement)parent);
           }
         }
+        current = parent;
         parent = parent.getParent();
       }
+      return parents;
+    }
+
+    private static boolean isInCatch(PsiElement current, PsiTryStatement tryStatement) {
+      for (PsiCatchSection block : tryStatement.getCatchSections()) {
+        if (block == current) {
+          return true;
+        }
+      }
       return false;
     }
 
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/afterInAnnonimousClass.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/afterInAnnonimousClass.java
deleted file mode 100644
index e1c94f5728ab..000000000000
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/afterInAnnonimousClass.java
+++ /dev/null
@@ -1,18 +0,0 @@
-// "Add exception to existing catch clause" "true"
-import java.io.FileInputStream;
-import java.io.FileNotFoundException;
-
-class Test {
-  void m() {
-    try {
-      new Runnable() {
-        @Override
-        public void run() { }
-
-        InputStream in = new FileInputStream("");
-      };
-    } catch (RuntimeException | FileNotFoundException e) {
-      e.printStackTrace();
-    }
-  }
-}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInAnnonimousClass.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInAnnonimousClass.java
index 6f57aecfe6e1..83eefb3b9277 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInAnnonimousClass.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInAnnonimousClass.java
@@ -1,4 +1,4 @@
-// "Add exception to existing catch clause" "true"
+// "Add exception to existing catch clause" "false"
 import java.io.FileInputStream;
 
 class Test {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInDeepCatch.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInDeepCatch.java
new file mode 100644
index 000000000000..c71c1c1c2edd
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/addExceptionToExistingCatch/beforeInDeepCatch.java
@@ -0,0 +1,14 @@
+// "Add exception to existing catch clause" "false"
+import java.io.File;
+
+class Test {
+  void test() {
+    try { }
+    catch (Error ex) {
+      try { }
+      catch (RuntimeException ex2) {
+        Class.forName<caret>("xyz");
+      }
+    }
+  }
+}
\ No newline at end of file