diff --git a/python/src/com/jetbrains/python/codeInsight/intentions/ConvertVariadicParamIntention.java b/python/src/com/jetbrains/python/codeInsight/intentions/ConvertVariadicParamIntention.java
index bce13851d710..44c5108ea84e 100644
--- a/python/src/com/jetbrains/python/codeInsight/intentions/ConvertVariadicParamIntention.java
+++ b/python/src/com/jetbrains/python/codeInsight/intentions/ConvertVariadicParamIntention.java
@@ -180,11 +180,10 @@ public class ConvertVariadicParamIntention extends PyBaseIntentionAction {
 
   @NotNull
   private static <T> List<T> findKeywordContainerUsages(@NotNull PyFunction function,
-                                                        @NotNull BiPredicate<PsiElement, String> usagePredicate) {
+                                                        @NotNull BiPredicate<PsiElement, PyParameter> usagePredicate) {
     final PyParameter keywordContainer = getKeywordContainer(function.getParameterList());
-    final String keywordContainerName = keywordContainer == null ? null : keywordContainer.getName();
 
-    if (keywordContainerName != null) {
+    if (keywordContainer != null) {
       final List<T> result = new ArrayList<>();
       final Stack<PsiElement> stack = new Stack<>();
 
@@ -194,7 +193,7 @@ public class ConvertVariadicParamIntention extends PyBaseIntentionAction {
         while (!stack.isEmpty()) {
           final PsiElement element = stack.pop();
 
-          if (usagePredicate.test(element, keywordContainerName)) {
+          if (usagePredicate.test(element, keywordContainer)) {
             //noinspection unchecked
             result.add((T)element);
           }
@@ -212,25 +211,31 @@ public class ConvertVariadicParamIntention extends PyBaseIntentionAction {
     return Collections.emptyList();
   }
 
-  private static boolean isKeywordContainerSubscription(@Nullable PsiElement element, @NotNull String keywordContainerName) {
-    return element instanceof PySubscriptionExpression &&
-           keywordContainerName.equals(((PySubscriptionExpression)element).getOperand().getText());
+  private static boolean isKeywordContainerSubscription(@Nullable PsiElement element, @NotNull PyParameter keywordContainer) {
+    if (element instanceof PySubscriptionExpression) {
+      final PyExpression operand = ((PySubscriptionExpression)element).getOperand();
+      if (operand instanceof PyReferenceExpression) {
+        return ((PyReferenceExpression)operand).getReference().isReferenceTo(keywordContainer);
+      }
+    }
+
+    return false;
   }
 
-  private static boolean isKeywordContainerCall(@Nullable PsiElement element, @NotNull String keywordContainerName) {
-    return Optional
-      .ofNullable(PyUtil.as(element, PyCallExpression.class))
-      .map(PyCallExpression::getCallee)
-      .map(callee -> PyUtil.as(callee, PyQualifiedExpression.class))
-      .filter(
-        callee -> {
-          final PyExpression qualifier = callee.getQualifier();
-          return qualifier != null &&
-                 qualifier.getText().equals(keywordContainerName) &&
-                 ArrayUtil.contains(callee.getReferencedName(), "get", "pop", PyNames.GETITEM);
+  private static boolean isKeywordContainerCall(@Nullable PsiElement element, @NotNull PyParameter keywordContainer) {
+    if (element instanceof PyCallExpression) {
+      final PyExpression callee = ((PyCallExpression)element).getCallee();
+      if (callee instanceof PyQualifiedExpression) {
+        final PyQualifiedExpression qualifiedCallee = (PyQualifiedExpression)callee;
+        final PyExpression qualifier = qualifiedCallee.getQualifier();
+
+        if (qualifier instanceof PyReferenceExpression) {
+          return ((PyReferenceExpression)qualifier).getReference().isReferenceTo(keywordContainer) &&
+                 ArrayUtil.contains(qualifiedCallee.getReferencedName(), "get", "pop", PyNames.GETITEM);
         }
-      )
-      .isPresent();
+      }
+    }
+    return false;
   }
 
   private static void insertParameter(@NotNull PyParameterList parameterList,
diff --git a/python/testData/intentions/convertVariadicParamNotOverriddenInNested.py b/python/testData/intentions/convertVariadicParamNotOverriddenInNested.py
new file mode 100644
index 000000000000..c307be052226
--- /dev/null
+++ b/python/testData/intentions/convertVariadicParamNotOverriddenInNested.py
@@ -0,0 +1,4 @@
+def outer(<caret>**kwargs):
+    def nested():
+        print(kwargs['foo'])
+    return kwargs.get('bar')
\ No newline at end of file
diff --git a/python/testData/intentions/convertVariadicParamNotOverriddenInNested_after.py b/python/testData/intentions/convertVariadicParamNotOverriddenInNested_after.py
new file mode 100644
index 000000000000..45caaeb1b31c
--- /dev/null
+++ b/python/testData/intentions/convertVariadicParamNotOverriddenInNested_after.py
@@ -0,0 +1,4 @@
+def outer(foo, bar=None, **kwargs):
+    def nested():
+        print(foo)
+    return bar
\ No newline at end of file
diff --git a/python/testData/intentions/convertVariadicParamOverriddenInNested.py b/python/testData/intentions/convertVariadicParamOverriddenInNested.py
new file mode 100644
index 000000000000..02edc0923db1
--- /dev/null
+++ b/python/testData/intentions/convertVariadicParamOverriddenInNested.py
@@ -0,0 +1,4 @@
+def outer(<caret>**kwargs):
+    def nested(**kwargs):
+        print(kwargs['foo'])
+    return kwargs.get('bar')
\ No newline at end of file
diff --git a/python/testData/intentions/convertVariadicParamOverriddenInNested_after.py b/python/testData/intentions/convertVariadicParamOverriddenInNested_after.py
new file mode 100644
index 000000000000..1db13d408de7
--- /dev/null
+++ b/python/testData/intentions/convertVariadicParamOverriddenInNested_after.py
@@ -0,0 +1,4 @@
+def outer(bar=None, **kwargs):
+    def nested(**kwargs):
+        print(kwargs['foo'])
+    return bar
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/intentions/PyIntentionTest.java b/python/testSrc/com/jetbrains/python/intentions/PyIntentionTest.java
index fbf0cb504952..ad663e56a39f 100644
--- a/python/testSrc/com/jetbrains/python/intentions/PyIntentionTest.java
+++ b/python/testSrc/com/jetbrains/python/intentions/PyIntentionTest.java
@@ -244,6 +244,16 @@ public class  PyIntentionTest extends PyTestCase {
     doTest(PyBundle.message("INTN.convert.variadic.param"));
   }
 
+  // PY-26285
+  public void testConvertVariadicParamOverriddenInNested() {
+    doTest(PyBundle.message("INTN.convert.variadic.param"));
+  }
+
+  // PY-26285
+  public void testConvertVariadicParamNotOverriddenInNested() {
+    doTest(PyBundle.message("INTN.convert.variadic.param"));
+  }
+
   public void testConvertTripleQuotedString() { //PY-2697
     doTest(PyBundle.message("INTN.triple.quoted.string"));
   }