diff --git a/python/src/META-INF/python-plugin-common.xml b/python/src/META-INF/python-plugin-common.xml
index f3aadb338fdf..e96104e2fdce 100644
--- a/python/src/META-INF/python-plugin-common.xml
+++ b/python/src/META-INF/python-plugin-common.xml
@@ -133,6 +133,11 @@
       <category>Python</category>
     </intentionAction>
 
+    <intentionAction>
+      <className>com.jetbrains.python.codeInsight.intentions.PyDictConstructorIntention</className>
+      <category>Python</category>
+    </intentionAction>
+
     <stubElementTypeHolder class="com.jetbrains.python.PyElementTypes"/>
     <inspectionToolProvider implementation="com.jetbrains.python.inspections.PythonInspectionToolProvider"/>
 
diff --git a/python/src/com/jetbrains/python/PyBundle.properties b/python/src/com/jetbrains/python/PyBundle.properties
index a67d8da2fa90..7fb2f7ddd794 100644
--- a/python/src/com/jetbrains/python/PyBundle.properties
+++ b/python/src/com/jetbrains/python/PyBundle.properties
@@ -125,6 +125,10 @@ INTN.convert.string=Convert single-quoted string to double-quoted
 INTN.join.if=Join if's
 INTN.join.if.text=Join two if's
 
+INTN.convert.dict.constructor.to.dict.literal=Convert dict constructor to dict literal form
+INTN.convert.dict.literal.to.dict.constructor=Convert dict literal to dict constructor
+INTN.convert.dict=Convert dict back and forth between literal dict and dict(**kwargs) 
+
 # Conflict checker
 CONFLICT.name.$0.obscured=Name ''{0}'' obscured by local definitions
 CONFLICT.name.$0.obscured.cannot.convert=Name ''{0}'' obscured. Cannot convert.
diff --git a/python/src/com/jetbrains/python/codeInsight/intentions/PyDictConstructorIntention.java b/python/src/com/jetbrains/python/codeInsight/intentions/PyDictConstructorIntention.java
new file mode 100644
index 000000000000..a73f31bf8e5b
--- /dev/null
+++ b/python/src/com/jetbrains/python/codeInsight/intentions/PyDictConstructorIntention.java
@@ -0,0 +1,123 @@
+package com.jetbrains.python.codeInsight.intentions;
+
+import com.intellij.codeInsight.intention.impl.BaseIntentionAction;
+import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.project.Project;
+import com.intellij.psi.PsiFile;
+import com.intellij.psi.PsiPolyVariantReference;
+import com.intellij.psi.PsiReference;
+import com.intellij.psi.ResolveResult;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.intellij.util.IncorrectOperationException;
+import com.jetbrains.python.PyBundle;
+import com.jetbrains.python.psi.*;
+import com.jetbrains.python.psi.types.PyType;
+import com.jetbrains.python.psi.types.TypeEvalContext;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+
+/**
+ * User: catherine
+ */
+public class PyDictConstructorIntention extends BaseIntentionAction {
+  @NotNull
+  public String getFamilyName() {
+    return PyBundle.message("INTN.convert.dict");
+  }
+  
+  public boolean isAvailable(@NotNull Project project, Editor editor, PsiFile file) {
+    PyCallExpression expression =
+      PsiTreeUtil.getParentOfType(file.findElementAt(editor.getCaretModel().getOffset()), PyCallExpression.class);
+    
+    if (expression != null) {
+      String name = expression.getCallee().getText();
+      if ("dict".equals(name)) {
+        PyType type = expression.getType(TypeEvalContext.fast());
+        if (type != null) {
+          if (type.isBuiltin()) {
+            PyExpression[] argumentList = expression.getArgumentList().getArguments();
+            for (PyExpression argument : argumentList) {
+              if (!(argument instanceof PyKeywordArgument)) return false;
+            }
+            setText(PyBundle.message("INTN.convert.dict.constructor.to.dict.literal"));
+            return true;
+          }
+        }
+      }
+    }
+    PyDictLiteralExpression dictExpression =
+      PsiTreeUtil.getParentOfType(file.findElementAt(editor.getCaretModel().getOffset()), PyDictLiteralExpression.class);
+
+    if (dictExpression != null) {
+      PyKeyValueExpression[] elements = dictExpression.getElements();
+      if (elements.length != 0) {
+        for (PyKeyValueExpression element : elements) {
+          if (! (element.getKey() instanceof PyStringLiteralExpression)) return false;
+        }
+      }
+      setText(PyBundle.message("INTN.convert.dict.literal.to.dict.constructor"));
+      return true;
+    }
+
+    return false;
+  }
+
+  public void invoke(@NotNull Project project, Editor editor, PsiFile file) throws IncorrectOperationException {
+    PyCallExpression expression =
+          PsiTreeUtil.getParentOfType(file.findElementAt(editor.getCaretModel().getOffset()), PyCallExpression.class);
+    PyElementGenerator elementGenerator = PyElementGenerator.getInstance(project);
+    if (expression != null) {
+      replaceDictConstructor(expression, elementGenerator);
+      return;
+    }
+    PyDictLiteralExpression dictExpression =
+      PsiTreeUtil.getParentOfType(file.findElementAt(editor.getCaretModel().getOffset()), PyDictLiteralExpression.class);
+    if (dictExpression != null) {
+      replaceDictLiteral(dictExpression, elementGenerator);
+    }
+  }
+
+  private static void replaceDictConstructor(PyCallExpression expression, PyElementGenerator elementGenerator) {
+    PyExpression[] argumentList = expression.getArgumentList().getArguments();
+    StringBuilder stringBuilder = new StringBuilder();
+
+    int size = argumentList.length;
+
+    for (int i = 0; i != size; ++i) {
+      PyExpression argument = argumentList[i];
+      if (argument instanceof PyKeywordArgument) {
+        stringBuilder.append("'");
+        stringBuilder.append(((PyKeywordArgument)argument).getKeyword());
+        stringBuilder.append("' : ");
+        stringBuilder.append(((PyKeywordArgument)argument).getValueExpression().getText());
+        if (i != size-1)
+          stringBuilder.append(",");
+      }
+
+    }
+    PyExpressionStatement dict = elementGenerator.createFromText(LanguageLevel.forElement(expression), PyExpressionStatement.class,
+                                                "{" + stringBuilder.toString() + "}");
+    expression.replace(dict);
+  }
+
+  private static void replaceDictLiteral(PyDictLiteralExpression dictExpression, PyElementGenerator elementGenerator) {
+    PyExpression[] argumentList = dictExpression.getElements();
+    StringBuilder stringBuilder = new StringBuilder();
+    int size = argumentList.length;
+    for (int i = 0; i != size; ++i) {
+      PyExpression argument = argumentList[i];
+      if (argument instanceof PyKeyValueExpression) {
+        PyExpression key = ((PyKeyValueExpression)argument).getKey();
+        if (key instanceof PyStringLiteralExpression)
+          stringBuilder.append(((PyStringLiteralExpression)key).getStringValue());
+        stringBuilder.append("=");
+        stringBuilder.append(((PyKeyValueExpression)argument).getValue().getText());
+        if (i != size-1)
+          stringBuilder.append(", ");
+      }
+    }
+    PyStatement callExpression = elementGenerator.createFromText(LanguageLevel.forElement(dictExpression), PyStatement.class,
+                                                      "dict(" + stringBuilder.toString() + ")");
+    dictExpression.replace(callExpression);
+  }
+}
diff --git a/python/testData/intentions/afterDictConstructor.py b/python/testData/intentions/afterDictConstructor.py
new file mode 100644
index 000000000000..83d9439ef718
--- /dev/null
+++ b/python/testData/intentions/afterDictConstructor.py
@@ -0,0 +1 @@
+a = {'a': 3, 'b': 5}
diff --git a/python/testData/intentions/beforeDictConstructor.py b/python/testData/intentions/beforeDictConstructor.py
new file mode 100644
index 000000000000..64f47f0adb45
--- /dev/null
+++ b/python/testData/intentions/beforeDictConstructor.py
@@ -0,0 +1 @@
+a = dict(<caret>a=3, b=5)
diff --git a/python/testSrc/com/jetbrains/python/PyIntentionTest.java b/python/testSrc/com/jetbrains/python/PyIntentionTest.java
index fba23886e4d6..ac57562a1604 100644
--- a/python/testSrc/com/jetbrains/python/PyIntentionTest.java
+++ b/python/testSrc/com/jetbrains/python/PyIntentionTest.java
@@ -112,4 +112,8 @@ public class PyIntentionTest extends PyLightFixtureTestCase {
   public void testJoinIf() {
     doTest(PyBundle.message("INTN.join.if.text"));
   }
+
+  public void testDictConstructor() {
+    doTest(PyBundle.message("INTN.convert.dict.constructor.to.dict.literal"));
+  }
 }