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 608ded63f7c3..2430e087ec8e 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
@@ -1148,6 +1148,11 @@ public abstract class ExtractionTestGenerated extends AbstractExtractionTest {
                 runTest("testData/refactoring/extractFunction/basic/suspendCall.kt");
             }
 
+            @TestMetadata("suspendCallInsideSuspendContinuation.kt")
+            public void testSuspendCallInsideSuspendContinuation() throws Exception {
+                runTest("testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt");
+            }
+
             @TestMetadata("suspendCallWithExtractedParameter.kt")
             public void testSuspendCallWithExtractedParameter() throws Exception {
                 runTest("testData/refactoring/extractFunction/basic/suspendCallWithExtractedParameter.kt");
diff --git a/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt
new file mode 100644
index 000000000000..94d7eac146e6
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt
@@ -0,0 +1,13 @@
+// PARAM_TYPES: D
+// PARAM_DESCRIPTOR: value-parameter d: D defined in test1
+fun m(block: suspend () -> Unit) {}
+
+class D {
+    suspend fun await() {}
+}
+
+fun test1(d: D) {
+    <selection>m {
+        d.await()
+    }</selection>
+}
\ No newline at end of file
diff --git a/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt.after b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt.after
new file mode 100644
index 000000000000..df858ce85c13
--- /dev/null
+++ b/plugins/kotlin/idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt.after
@@ -0,0 +1,17 @@
+// PARAM_TYPES: D
+// PARAM_DESCRIPTOR: value-parameter d: D defined in test1
+fun m(block: suspend () -> Unit) {}
+
+class D {
+    suspend fun await() {}
+}
+
+fun test1(d: D) {
+    __dummyTestFun__(d)
+}
+
+private fun __dummyTestFun__(d: D) {
+    m {
+        d.await()
+    }
+}
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/introduce/extractionEngine/ExtractionDataAnalyzer.kt b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/introduce/extractionEngine/ExtractionDataAnalyzer.kt
index c81775255bf9..15b6def10787 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/introduce/extractionEngine/ExtractionDataAnalyzer.kt
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/introduce/extractionEngine/ExtractionDataAnalyzer.kt
@@ -17,7 +17,6 @@ import org.jetbrains.kotlin.analysis.api.components.KtDataFlowExitPointSnapshot
 import org.jetbrains.kotlin.analysis.api.components.KtDiagnosticCheckerFilter
 import org.jetbrains.kotlin.analysis.api.fir.diagnostics.KtFirDiagnostic
 import org.jetbrains.kotlin.analysis.api.symbols.KtCallableSymbol
-import org.jetbrains.kotlin.analysis.api.symbols.KtFunctionSymbol
 import org.jetbrains.kotlin.analysis.api.symbols.markers.KtAnnotatedSymbol
 import org.jetbrains.kotlin.analysis.api.types.KtNonErrorClassType
 import org.jetbrains.kotlin.analysis.api.types.KtType
@@ -56,6 +55,7 @@ import org.jetbrains.kotlin.name.ClassId
 import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.psi.KtBlockExpression
 import org.jetbrains.kotlin.psi.KtBreakExpression
+import org.jetbrains.kotlin.psi.KtCallExpression
 import org.jetbrains.kotlin.psi.KtContinueExpression
 import org.jetbrains.kotlin.psi.KtDeclaration
 import org.jetbrains.kotlin.psi.KtElement
@@ -224,26 +224,34 @@ internal class ExtractionDataAnalyzer(private val extractionData: ExtractionData
             replacementMap = replacementMap,
             controlFlow = flow,
             returnType = returnType,
-            modifiers = if (hasSuspendReference(extractionData)) listOf(KtTokens.SUSPEND_KEYWORD) else emptyList(),
+            modifiers = emptyList(),
             optInMarkers = experimentalMarkers.optInMarkers,
             annotationClassIds = experimentalMarkers.propagatingMarkerClassIds
         )
+        val config = ExtractionGeneratorConfiguration(
+            descriptor,
+            ExtractionGeneratorOptions(inTempFile = true, allowExpressionBody = false)
+        )
+
+        val generatedDeclaration = Generator.generateDeclaration(config, null).declaration
+        val illegalSuspendInside = analyzeCopy(generatedDeclaration, DanglingFileResolutionMode.PREFER_SELF) {
+            generatedDeclaration.descendantsOfType<KtExpression>()
+                .flatMap {
+                    it.getDiagnostics(KtDiagnosticCheckerFilter.ONLY_COMMON_CHECKERS)
+                        .map { it.diagnosticClass }
+                }
+                .any { it == KtFirDiagnostic.IllegalSuspendFunctionCall::class || it == KtFirDiagnostic.IllegalSuspendPropertyAccess::class }
+        }
+        if (illegalSuspendInside) {
+            descriptor = descriptor.copy(modifiers = listOf(KtTokens.SUSPEND_KEYWORD))
+        }
+
+
         for (analyser in ExtractFunctionDescriptorModifier.EP_NAME.extensionList) {
             descriptor = analyser.modifyDescriptor(descriptor)
         }
         return descriptor
     }
-
-    private fun hasSuspendReference(extractionData: ExtractionData): Boolean {
-        return extractionData.expressions
-            .flatMap { it.descendantsOfType<KtSimpleNameExpression>() }
-            .any { nameExpression ->
-                analyze(nameExpression) {
-                    val symbol = nameExpression.mainReference.resolveToSymbol()
-                    symbol is KtFunctionSymbol && symbol.isSuspend
-                }
-            }
-    }
 }
 
 private data class ExperimentalMarkers(
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduce/K2IntroduceFunctionTestGenerated.java b/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduce/K2IntroduceFunctionTestGenerated.java
index dc9c48586777..4a70bac4b4a8 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduce/K2IntroduceFunctionTestGenerated.java
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduce/K2IntroduceFunctionTestGenerated.java
@@ -306,6 +306,11 @@ public abstract class K2IntroduceFunctionTestGenerated extends AbstractK2Introdu
             runTest("../../idea/tests/testData/refactoring/extractFunction/basic/suspendCall.kt");
         }
 
+        @TestMetadata("suspendCallInsideSuspendContinuation.kt")
+        public void testSuspendCallInsideSuspendContinuation() throws Exception {
+            runTest("../../idea/tests/testData/refactoring/extractFunction/basic/suspendCallInsideSuspendContinuation.kt");
+        }
+
         @TestMetadata("suspendCallWithExtractedParameter.kt")
         public void testSuspendCallWithExtractedParameter() throws Exception {
             runTest("../../idea/tests/testData/refactoring/extractFunction/basic/suspendCallWithExtractedParameter.kt");