diff --git a/java/execution/impl/src/com/intellij/execution/testframework/JavaTestDiffProvider.kt b/java/execution/impl/src/com/intellij/execution/testframework/JavaTestDiffProvider.kt
index 3cdb673034c2..44341f0a311e 100644
--- a/java/execution/impl/src/com/intellij/execution/testframework/JavaTestDiffProvider.kt
+++ b/java/execution/impl/src/com/intellij/execution/testframework/JavaTestDiffProvider.kt
@@ -1,55 +1,8 @@
 // Copyright 2000-2022 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package com.intellij.execution.testframework
 
-import com.intellij.psi.*
-import com.intellij.psi.util.PsiTreeUtil
-import com.intellij.psi.util.parentOfType
-import com.intellij.refactoring.suggested.startOffset
-import com.intellij.util.asSafely
-import com.siyeh.ig.testFrameworks.AssertHint
-import org.jetbrains.uast.UMethod
-import org.jetbrains.uast.UParameter
+import com.intellij.psi.PsiElement
 
 class JavaTestDiffProvider : JvmTestDiffProvider() {
-  override fun failedCall(file: PsiFile, startOffset: Int, endOffset: Int, method: UMethod?): PsiElement? {
-    val failedCalls = findCallsInRange(file, startOffset, endOffset)
-    if (failedCalls.isEmpty()) return null
-    if (failedCalls.size == 1) return failedCalls.first()
-    if (method == null) return null
-    return failedCalls.firstOrNull { it.resolveMethod()?.isEquivalentTo(method.sourcePsi) == true }
-  }
-
-  private fun findCallsInRange(file: PsiFile, startOffset: Int, endOffset: Int): List<PsiMethodCallExpression> {
-    val element = file.findElementAt(startOffset)
-    val codeBlock = PsiTreeUtil.getParentOfType(element, PsiCodeBlock::class.java)
-    return PsiTreeUtil.findChildrenOfAnyType(codeBlock, false, PsiMethodCallExpression::class.java)
-      .filter { it.startOffset in startOffset..endOffset }
-  }
-
-  override fun getExpected(call: PsiElement, param: UParameter?): PsiElement? {
-    if (call !is PsiMethodCallExpression) return null
-    val expr = if (param == null) {
-      val assertHint = AssertHint.createAssertEqualsHint(call) ?: return null
-      if (assertHint.actual.type != PsiType.getJavaLangString(call.manager, call.resolveScope)) return null
-      if (assertHint.expected.type != PsiType.getJavaLangString(call.manager, call.resolveScope)) return null
-      assertHint.expected
-    } else {
-      val srcParam = param.sourcePsi?.asSafely<PsiParameter>()
-      val paramList = srcParam?.parentOfType<PsiParameterList>()
-      val argIndex = paramList?.parameters?.indexOf<PsiElement>(srcParam)
-      if (argIndex != null && argIndex != -1) call.argumentList.expressions.getOrNull(argIndex) else null
-    }
-    if (expr is PsiLiteralExpression) return expr
-    // disabled for now
-    //if (expr is PsiPolyadicExpression && expr.operands.all { it is PsiLiteralExpression }) return expr
-    if (expr is PsiReference) {
-      val resolved = expr.resolve()
-      if (resolved is PsiParameter) return resolved
-      if (resolved is PsiLocalVariable || resolved is PsiField) {
-        return resolved.asSafely<PsiVariable>()?.initializer.asSafely<PsiLiteralExpression>()
-      }
-      return null
-    }
-    return null
-  }
+  override fun getStringLiteral(expected: PsiElement) = expected
 }
\ No newline at end of file
diff --git a/java/execution/impl/src/com/intellij/execution/testframework/JvmTestDiffProvider.kt b/java/execution/impl/src/com/intellij/execution/testframework/JvmTestDiffProvider.kt
index 4e795fbb450c..2f392c14e6ea 100644
--- a/java/execution/impl/src/com/intellij/execution/testframework/JvmTestDiffProvider.kt
+++ b/java/execution/impl/src/com/intellij/execution/testframework/JvmTestDiffProvider.kt
@@ -6,43 +6,94 @@ import com.intellij.execution.filters.ExceptionLineParserFactory
 import com.intellij.execution.testframework.actions.TestDiffProvider
 import com.intellij.openapi.fileEditor.FileDocumentManager
 import com.intellij.openapi.project.Project
-import com.intellij.openapi.roots.ProjectFileIndex
 import com.intellij.psi.PsiElement
 import com.intellij.psi.PsiFile
+import com.intellij.psi.PsiType
 import com.intellij.psi.search.GlobalSearchScope
+import com.intellij.refactoring.suggested.startOffset
 import com.intellij.util.asSafely
+import com.siyeh.ig.testFrameworks.UAssertHint
 import org.jetbrains.uast.*
 
 abstract class JvmTestDiffProvider : TestDiffProvider {
   final override fun findExpected(project: Project, stackTrace: String): PsiElement? {
-    var expectedParam: UParameter? = null
-    var enclosingMethod: UMethod? = null
+    var (searchStacktrace, expectedParam) = findExpectedEntryPoint(project, stackTrace) ?: return null
     val lineParser = ExceptionLineParserFactory.getInstance().create(ExceptionInfoCache(project, GlobalSearchScope.allScope(project)))
-    stackTrace.lineSequence().forEach { line ->
-      lineParser.execute(line, line.length) ?: return@forEach
+    searchStacktrace.lineSequence().forEach { line ->
+      lineParser.execute(line, line.length) ?: return@findExpected null
       val file = lineParser.file ?: return@findExpected null
-      val diffProvider = TestDiffProvider.TEST_DIFF_PROVIDER_LANGUAGE_EXTENSION.forLanguage(file.language).asSafely<JvmTestDiffProvider>()
-      if (diffProvider == null) return@findExpected null
-      if (!ProjectFileIndex.getInstance(project).isInSourceContent(file.virtualFile)) {
-        if (expectedParam == null) return@forEach // keep looking, test class wasn't found yet
-        else return@findExpected null // return null when tracking expected param
+      val diffProvider = TestDiffProvider.TEST_DIFF_PROVIDER_LANGUAGE_EXTENSION
+        .forLanguage(file.language).asSafely<JvmTestDiffProvider>() ?: return@findExpected null
+      val containingMethod = expectedParam.getContainingUMethod() ?: return@findExpected null
+      val failedCall = findFailedCall(file, lineParser.info.lineNumber, expectedParam.getContainingUMethod()) ?: return@findExpected null
+      val expectedArg = failedCall.getArgumentForParameter(containingMethod.uastParameters.indexOf(expectedParam)) ?: return@findExpected null
+      if (expectedArg.isInjectionHost()) {
+        return diffProvider.getStringLiteral(expectedArg.sourcePsi ?: return@forEach)
+      }
+      if (expectedArg is UReferenceExpression) {
+        val resolved = expectedArg.resolveToUElement()
+        if (resolved is UVariable && resolved.uastInitializer.isInjectionHost()) {
+          return diffProvider.getStringLiteral(resolved.uastInitializer?.sourcePsi ?: return@forEach)
+        }
+        if (resolved is UParameter) {
+          expectedParam = resolved
+          return@forEach
+        }
       }
-      val virtualFile = file.virtualFile ?: return@findExpected null
-      val document = FileDocumentManager.getInstance().getDocument(virtualFile) ?: return@findExpected null
-      val lineNumber = lineParser.info.lineNumber
-      if (lineNumber < 1 || lineNumber > document.lineCount) return@findExpected null
-      val startOffset = document.getLineStartOffset(lineNumber - 1)
-      val endOffset = document.getLineEndOffset(lineNumber - 1)
-      val failedCall = diffProvider.failedCall(file, startOffset, endOffset, enclosingMethod) ?: return@findExpected null
-      val expected = diffProvider.getExpected(failedCall, expectedParam) ?: return@findExpected null
-      enclosingMethod = failedCall.toUElement()?.getParentOfType<UMethod>(true)
-      expectedParam = expected.toUElementOfType<UParameter>()
-      if (expectedParam == null) return expected
     }
     return null
   }
 
-  abstract fun failedCall(file: PsiFile, startOffset: Int, endOffset: Int, method: UMethod?): PsiElement?
+  abstract fun getStringLiteral(expected: PsiElement): PsiElement?
 
-  abstract fun getExpected(call: PsiElement, param: UParameter?): PsiElement?
+  private data class ExpectedEntryPoint(val stackTrace: String, val param: UParameter)
+
+  private fun findExpectedEntryPoint(project: Project, stackTrace: String): ExpectedEntryPoint? {
+    val lineParser = ExceptionLineParserFactory.getInstance().create(ExceptionInfoCache(project, GlobalSearchScope.allScope(project)))
+    stackTrace.lineSequence().forEach { line ->
+      lineParser.execute(line, line.length) ?: return@forEach
+      val file = lineParser.file ?: return@findExpectedEntryPoint null
+      val failedCall = findFailedCall(file, lineParser.info.lineNumber, null) ?: return@forEach
+      val entryParam = findExpectedEntryPointParam(failedCall) ?: return@forEach
+      return ExpectedEntryPoint(line + stackTrace.substringAfter(line), entryParam)
+    }
+    return null
+  }
+
+  private fun findExpectedEntryPointParam(call: UCallExpression): UParameter? {
+    val assertHint = UAssertHint.createAssertEqualsHint(call) ?: return null
+    val srcCall = call.sourcePsi ?: return null
+    val stringType = PsiType.getJavaLangString(srcCall.manager, srcCall.resolveScope)
+    if (assertHint.expected.getExpressionType() != stringType || assertHint.actual.getExpressionType() != stringType) return null
+    val method = call.resolveToUElement()?.asSafely<UMethod>() ?: return null
+    if (method.name != "assertEquals") return null
+    return method.uastParameters.firstOrNull()
+  }
+
+  private fun findFailedCall(file: PsiFile, lineNumber: Int, resolvedMethod: UMethod?): UCallExpression? {
+    val virtualFile = file.virtualFile ?: return null
+    val document = FileDocumentManager.getInstance().getDocument(virtualFile) ?: return null
+    if (lineNumber < 1 || lineNumber > document.lineCount) return null
+    val startOffset = document.getLineStartOffset(lineNumber - 1)
+    val endOffset = document.getLineEndOffset(lineNumber - 1)
+    val candidateCalls = getCallElementsInRange(file, startOffset, endOffset) ?: return null
+    return if (candidateCalls.size != 1) {
+      candidateCalls.firstOrNull { call ->
+        call.resolveToUElement().asSafely<UMethod>()?.sourcePsi?.isEquivalentTo(resolvedMethod?.sourcePsi) == true
+      }
+    } else candidateCalls.first()
+  }
+
+  private fun getCallElementsInRange(file: PsiFile, startOffset: Int, endOffset: Int): List<UCallExpression>? {
+    val startElement = file.findElementAt(startOffset) ?: return null
+    val searchStartOffset = startElement.startOffset
+    val calls = mutableListOf<UCallExpression>()
+    var curElement: PsiElement? = startElement
+    while (curElement != null && curElement.startOffset in searchStartOffset..endOffset) {
+      val callExpression = curElement.toUElement().getUCallExpression(searchLimit = 2)
+      if (callExpression != null) calls.add(callExpression)
+      curElement = curElement.nextSibling
+    }
+    return calls
+  }
 }
\ No newline at end of file
diff --git a/plugins/junit/test/com/intellij/execution/junit/JavaTestDiffUpdateTest.kt b/plugins/junit/test/com/intellij/execution/junit/JavaTestDiffUpdateTest.kt
index e3d6a82f8771..f70d01afd2a6 100644
--- a/plugins/junit/test/com/intellij/execution/junit/JavaTestDiffUpdateTest.kt
+++ b/plugins/junit/test/com/intellij/execution/junit/JavaTestDiffUpdateTest.kt
@@ -6,8 +6,6 @@ import org.intellij.lang.annotations.Language
 
 @Suppress("AssertBetweenInconvertibleTypes", "NewClassNamingConvention", "SameParameterValue")
 class JavaTestDiffUpdateTest : JvmTestDiffUpdateTest() {
-  private val fileExt = "java"
-
   @Suppress("SameParameterValue")
   private fun checkHasNoDiff(
     @Language("Java") before: String,
@@ -97,6 +95,42 @@ class JavaTestDiffUpdateTest : JvmTestDiffUpdateTest() {
     """.trimIndent())
   }
 
+  fun `test accept string literal diff with actual call`() {
+    checkAcceptFullDiff("""
+      import org.junit.Assert;
+      import org.junit.Test;
+        
+      public class MyJUnitTest {
+        @Test
+        public void testFoo() {
+              Assert.assertEquals("expected", getActual(getActual(getActual("actual"))));
+          }
+      
+          private static String getActual(String str) {
+              return str;
+          }
+      }
+    """.trimIndent(), """
+      import org.junit.Assert;
+      import org.junit.Test;
+        
+      public class MyJUnitTest {
+        @Test
+        public void testFoo() {
+              Assert.assertEquals("actual", getActual(getActual(getActual("actual"))));
+          }
+      
+          private static String getActual(String str) {
+              return str;
+          }
+      }
+    """.trimIndent(), "MyJUnitTest", "testFoo", "expected", "actual", """
+      at org.junit.Assert.assertEquals(Assert.java:117)
+      at org.junit.Assert.assertEquals(Assert.java:146)
+      at MyJUnitTest.testFoo(MyJUnitTest.java:7)
+    """.trimIndent())
+  }
+
   fun `test accept string literal diff with carriage return and line feed in expected`() {
     checkAcceptFullDiff("""
       import org.junit.Assert;
diff --git a/plugins/kotlin/idea/src/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffProvider.kt b/plugins/kotlin/idea/src/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffProvider.kt
index a8136708258e..9845107d6e64 100644
--- a/plugins/kotlin/idea/src/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffProvider.kt
+++ b/plugins/kotlin/idea/src/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffProvider.kt
@@ -3,57 +3,10 @@ package org.jetbrains.kotlin.idea.testIntegration
 
 import com.intellij.execution.testframework.JvmTestDiffProvider
 import com.intellij.psi.PsiElement
-import com.intellij.psi.PsiFile
-import com.intellij.psi.PsiType
-import com.intellij.psi.util.parentOfType
-import com.intellij.util.asSafely
-import com.siyeh.ig.testFrameworks.UAssertHint
-import org.jetbrains.kotlin.backend.jvm.ir.psiElement
-import org.jetbrains.kotlin.idea.caches.resolve.resolveToCall
-import org.jetbrains.kotlin.idea.util.findElementsOfClassInRange
-import org.jetbrains.kotlin.psi.*
-import org.jetbrains.uast.UCallExpression
-import org.jetbrains.uast.UMethod
-import org.jetbrains.uast.UParameter
-import org.jetbrains.uast.toUElementOfType
+import org.jetbrains.kotlin.psi.KtStringTemplateEntry
 
 class KotlinTestDiffProvider : JvmTestDiffProvider() {
-    override fun failedCall(file: PsiFile, startOffset: Int, endOffset: Int, method: UMethod?): PsiElement? {
-        val failedCalls = findElementsOfClassInRange(file, startOffset, endOffset, KtCallExpression::class.java)
-            .map { it as KtCallExpression }
-        if (failedCalls.isEmpty()) return null
-        if (failedCalls.size == 1) return failedCalls.first()
-        if (method == null) return null
-        return failedCalls.firstOrNull { it.resolveToCall()?.resultingDescriptor?.psiElement?.isEquivalentTo(method.sourcePsi) == true }
-    }
-
-    override fun getExpected(call: PsiElement, param: UParameter?): PsiElement? {
-        if (call !is KtCallExpression) return null
-        val expr = if (param == null) {
-            val uCallElement = call.toUElementOfType<UCallExpression>() ?: return null
-            val assertHint = UAssertHint.createAssertEqualsHint(uCallElement) ?: return null
-            if (assertHint.expected.getExpressionType() != PsiType.getJavaLangString(call.manager, call.resolveScope)) return null
-            if (assertHint.actual.getExpressionType() != PsiType.getJavaLangString(call.manager, call.resolveScope)) return null
-            assertHint.expected.sourcePsi ?: return null
-        } else {
-            val argument = call.valueArguments.firstOrNull {it.getArgumentName()?.asName?.asString() == param.name } ?: let {
-                val srcParam = param.sourcePsi?.asSafely<KtParameter>()
-                val paramList = srcParam?.parentOfType<KtParameterList>()
-                val argIndex = paramList?.parameters?.indexOf<PsiElement>(srcParam)
-                if (argIndex != null && argIndex != -1) call.valueArguments.getOrNull(argIndex) else null
-            }
-            argument?.getArgumentExpression()
-        }
-        if (expr is KtStringTemplateExpression && expr.entries.size == 1) return expr
-        if (expr is KtStringTemplateEntry) return expr.parent
-        if (expr is KtNameReferenceExpression) {
-            val resolved = expr.reference?.resolve()
-            if (resolved is KtVariableDeclaration) {
-                val initializer = resolved.initializer
-                if (initializer is KtStringTemplateExpression) return initializer
-            }
-            return resolved
-        }
-        return null
+    override fun getStringLiteral(expected: PsiElement): PsiElement? {
+        return if (expected is KtStringTemplateEntry) expected.parent else null
     }
 }
\ No newline at end of file
diff --git a/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffUpdateTest.kt b/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffUpdateTest.kt
index 41028df042a5..80098f40a73a 100644
--- a/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffUpdateTest.kt
+++ b/plugins/kotlin/idea/tests/test/org/jetbrains/kotlin/idea/testIntegration/KotlinTestDiffUpdateTest.kt
@@ -68,6 +68,44 @@ class KotlinTestDiffUpdateTest : JvmTestDiffUpdateTest() {
         )
     }
 
+    fun `test accept string literal diff with actual call`() {
+        checkAcceptFullDiff(
+            """
+            import org.junit.Assert
+            import org.junit.Test
+                  
+            class MyJUnitTest {
+                @Test
+                fun testFoo() {
+                    Assert.assertEquals("expected", getActual(getActual(getActual("actual"))))
+                }
+            
+                private fun getActual(str: String): String {
+                    return str
+                }
+            }
+        """.trimIndent(), """
+            import org.junit.Assert
+            import org.junit.Test
+                  
+            class MyJUnitTest {
+                @Test
+                fun testFoo() {
+                    Assert.assertEquals("actual", getActual(getActual(getActual("actual"))))
+                }
+            
+                private fun getActual(str: String): String {
+                    return str
+                }
+            }
+        """.trimIndent(), "MyJUnitTest", "testFoo", "expected", "actual", """
+            at org.junit.Assert.assertEquals(Assert.java:117)
+            at org.junit.Assert.assertEquals(Assert.java:146)
+            at MyJUnitTest.testFoo(MyJUnitTest.kt:7)
+        """.trimIndent()
+        )
+    }
+
     fun `test accept diff is not available when expected is not a string literal`() {
         checkHasNoDiff(
             """