diff --git a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateTypeParameterFromUsageFix.java b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateTypeParameterFromUsageFix.java
index 56fdf5402d1e..9f860e1a2640 100644
--- a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateTypeParameterFromUsageFix.java
+++ b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateTypeParameterFromUsageFix.java
@@ -185,7 +185,7 @@ public class CreateTypeParameterFromUsageFix extends BaseIntentionAction {
       if (element instanceof PsiField && ((PsiField)element).hasModifierProperty(PsiModifier.STATIC)) {
         break;
       }
-      if (element instanceof PsiMethod || element instanceof PsiClass) {
+      if (element instanceof PsiMethod || (element instanceof PsiClass && !(element instanceof PsiTypeParameter))) {
         if (((PsiMember)element).getName() != null) {
           parents.add((PsiNameIdentifierOwner)element);
           if (findFirstOnly) {
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createTypeParameterFromUsage/afterTypeParameter.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createTypeParameterFromUsage/afterTypeParameter.java
new file mode 100644
index 000000000000..d26409fc34e0
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createTypeParameterFromUsage/afterTypeParameter.java
@@ -0,0 +1,40 @@
+// "Create type parameter 'U'" "true"
+
+public class Helpers {
+
+  interface RunAlgebra<A, R> {
+
+  }
+
+  interface ReturnAlgebra<R, O> {
+
+  }
+
+  interface SomeAlgebra<R> {
+
+  }
+
+  interface AlgebraImplementation extends ReturnAlgebra<String, Integer>, SomeAlgebra<String> {
+
+  }
+
+  public static <R> void giveMeAlgebraImplementation(RunAlgebra<AlgebraImplementation, R> algebra) {
+
+  }
+
+  public static <R, U, A extends ReturnAlgebra<R, U>> RunAlgebra<A, U> aReturn() {
+    return null;
+  }
+
+  public static <R, U, A extends ReturnAlgebra<R, U>> RunAlgebra<A, R> aReturn(String overload) {
+    return null;
+  }
+
+  public static <R,
+          A extends ReturnAlgebra<R, U>,
+          AI extends SomeAlgebra<R>, U> RunAlgebra<A, R> consumeReturn(A returnAlgebra) {
+    return null;
+  }
+
+
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createTypeParameterFromUsage/beforeTypeParameter.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createTypeParameterFromUsage/beforeTypeParameter.java
new file mode 100644
index 000000000000..8a76a96210ca
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createTypeParameterFromUsage/beforeTypeParameter.java
@@ -0,0 +1,40 @@
+// "Create type parameter 'U'" "true"
+
+public class Helpers {
+
+  interface RunAlgebra<A, R> {
+
+  }
+
+  interface ReturnAlgebra<R, O> {
+
+  }
+
+  interface SomeAlgebra<R> {
+
+  }
+
+  interface AlgebraImplementation extends ReturnAlgebra<String, Integer>, SomeAlgebra<String> {
+
+  }
+
+  public static <R> void giveMeAlgebraImplementation(RunAlgebra<AlgebraImplementation, R> algebra) {
+
+  }
+
+  public static <R, U, A extends ReturnAlgebra<R, U>> RunAlgebra<A, U> aReturn() {
+    return null;
+  }
+
+  public static <R, U, A extends ReturnAlgebra<R, U>> RunAlgebra<A, R> aReturn(String overload) {
+    return null;
+  }
+
+  public static <R,
+    A extends ReturnAlgebra<R, U<caret>>,
+    AI extends SomeAlgebra<R>> RunAlgebra<A, R> consumeReturn(A returnAlgebra) {
+    return null;
+  }
+
+
+}
\ No newline at end of file