diff --git a/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java b/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
index 9a55542614bf..3cf7d73b067c 100644
--- a/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
+++ b/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/refactoring/introduce/ExtractionTestGenerated.java
@@ -2491,6 +2491,16 @@ public abstract class ExtractionTestGenerated extends AbstractExtractionTest {
                     runTest("testData/refactoring/extractFunction/parameters/misc/runQualifier.kt");
                 }
 
+                @TestMetadata("smartCastInside.kt")
+                public void testSmartCastInside() throws Exception {
+                    runTest("testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt");
+                }
+
+                @TestMetadata("smartCastInside1.kt")
+                public void testSmartCastInside1() throws Exception {
+                    runTest("testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt");
+                }
+
                 @TestMetadata("thisInObject.kt")
                 public void testThisInObject() throws Exception {
                     runTest("testData/refactoring/extractFunction/parameters/misc/thisInObject.kt");
diff --git a/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt
new file mode 100644
index 000000000000..b92fef8b9590
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt
@@ -0,0 +1,11 @@
+class X(val field: Any?)
+
+fun foo(list: List<X>) {
+    <selection>for (x in list) {
+        if (x.field != null) {
+            println(x.field.hashCode())
+        }
+    }</selection>
+}
+
+// IGNORE_K1
\ No newline at end of file
diff --git a/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt.after b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt.after
new file mode 100644
index 000000000000..50b3bb79c61c
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt.after
@@ -0,0 +1,15 @@
+class X(val field: Any?)
+
+fun foo(list: List<X>) {
+    __dummyTestFun__(list)
+}
+
+private fun __dummyTestFun__(list: List<X>) {
+    for (x in list) {
+        if (x.field != null) {
+            println(x.field.hashCode())
+        }
+    }
+}
+
+// IGNORE_K1
\ No newline at end of file
diff --git a/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt
new file mode 100644
index 000000000000..11798d407759
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt
@@ -0,0 +1,9 @@
+class C(val int: Int?)
+
+fun test(x: Int, c: C): Int {
+    val a =
+        <selection>if (c.int != null) x + c.int else x</selection>
+    return a * a
+}
+
+// IGNORE_K1
\ No newline at end of file
diff --git a/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt.after b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt.after
new file mode 100644
index 000000000000..6449f80d5ac7
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt.after
@@ -0,0 +1,11 @@
+class C(val int: Int?)
+
+fun test(x: Int, c: C): Int {
+    val a =
+        i(c, x)
+    return a * a
+}
+
+private fun i(c: C, x: Int): Int = if (c.int != null) x + c.int else x
+
+// IGNORE_K1
\ No newline at end of file
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/parametersUtil.kt b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/parametersUtil.kt
index 370f5fd89e13..d73120c6b729 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/parametersUtil.kt
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/parametersUtil.kt
@@ -84,6 +84,7 @@ import org.jetbrains.kotlin.psi.psiUtil.getQualifiedExpressionForSelectorOrThis
 import org.jetbrains.kotlin.psi.psiUtil.isInsideOf
 import org.jetbrains.kotlin.types.Variance
 import org.jetbrains.kotlin.types.expressions.OperatorConventions
+import org.jetbrains.kotlin.idea.k2.refactoring.introduce.K2SemanticMatcher.isSemanticMatch
 
 context(KtAnalysisSession)
 internal fun ExtractionData.inferParametersInfo(
@@ -416,6 +417,7 @@ private fun createOriginalType(
 private fun ExtractionData.getBrokenReferencesInfo(body: KtBlockExpression): List<ResolvedReferenceInfo<PsiNamedElement, KtSimpleNameExpression, KtType>> {
     val newReferences = body.collectDescendantsOfType<KtSimpleNameExpression> { it.resolveResult != null }
 
+    val smartCastPossibleRoots = mutableSetOf<KtExpression>()
     val referencesInfo = ArrayList<ResolvedReferenceInfo<PsiNamedElement, KtSimpleNameExpression, KtType>>()
     for (newRef in newReferences) {
         val originalResolveResult = newRef.resolveResult as? ResolveResult<PsiNamedElement, KtSimpleNameExpression> ?: continue
@@ -428,7 +430,21 @@ private fun ExtractionData.getBrokenReferencesInfo(body: KtBlockExpression): Lis
         val qualifiedExpression = newRef.getQualifiedExpressionForSelector()
         if (qualifiedExpression != null) {
             val smartCastTarget = originalRefExpr.parent as KtExpression
-            smartCast = analyze(smartCastTarget) { smartCastTarget.getSmartCastInfo()?.smartCastType }
+            smartCast = analyze(smartCastTarget) {
+                val cast = smartCastTarget.getSmartCastInfo()?.smartCastType
+                when {
+                    cast == null -> {
+                        smartCastPossibleRoots.add(smartCastTarget)
+                        null
+                    }
+
+                    //same qualified expressions without smartcast are present in the code fragment,
+                    //so smart cast is done inside selection, no need to extract additional parameter
+                    smartCastPossibleRoots.any { it.isSemanticMatch(smartCastTarget) } -> null
+                    else -> cast
+                }
+            }
+
             possibleTypes = analyze(smartCastTarget) { smartCastTarget.getExpectedType()?.let { setOf(it) } ?: emptySet() }
             val (isCompanionObject, bothReceivers) = analyze(smartCastTarget) {
                 val symbol = originalRefExpr.resolveCall()?.singleCallOrNull<KtCallableMemberCall<*, *>>()?.partiallyAppliedSymbol
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/K2IntroduceFunctionTestGenerated.java b/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/K2IntroduceFunctionTestGenerated.java
index 952426f44d1a..def046b7cda2 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/K2IntroduceFunctionTestGenerated.java
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/K2IntroduceFunctionTestGenerated.java
@@ -1649,6 +1649,16 @@ public abstract class K2IntroduceFunctionTestGenerated extends AbstractK2Introdu
                 runTest("../../idea/tests/testData/refactoring/extractFunction/parameters/misc/runQualifier.kt");
             }
 
+            @TestMetadata("smartCastInside.kt")
+            public void testSmartCastInside() throws Exception {
+                runTest("../../idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside.kt");
+            }
+
+            @TestMetadata("smartCastInside1.kt")
+            public void testSmartCastInside1() throws Exception {
+                runTest("../../idea/tests/testData/refactoring/extractFunction/parameters/misc/smartCastInside1.kt");
+            }
+
             @TestMetadata("thisInObject.kt")
             public void testThisInObject() throws Exception {
                 runTest("../../idea/tests/testData/refactoring/extractFunction/parameters/misc/thisInObject.kt");