diff --git a/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java b/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java
index af2893077386..affeb60e2595 100644
--- a/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java
+++ b/java/java-impl/src/com/intellij/refactoring/extractMethod/ExtractMethodProcessor.java
@@ -265,7 +265,8 @@ public class ExtractMethodProcessor implements MatchProvider {
 
     PsiType returnStatementType = null;
     if (myHasReturnStatement) {
-      returnStatementType = myCodeFragmentMember instanceof PsiMethod ? ((PsiMethod)myCodeFragmentMember).getReturnType() : null;
+      returnStatementType = myCodeFragmentMember instanceof PsiMethod ? ((PsiMethod)myCodeFragmentMember).getReturnType() 
+                                                                      : myCodeFragmentMember instanceof PsiLambdaExpression ? LambdaUtil.getFunctionalInterfaceReturnType((PsiLambdaExpression)myCodeFragmentMember) : null;
     }
     myHasReturnStatementOutput = returnStatementType != null && returnStatementType != PsiType.VOID;
 
diff --git a/java/java-tests/testData/refactoring/extractMethod/FromLambdaBodyWithReturn.java b/java/java-tests/testData/refactoring/extractMethod/FromLambdaBodyWithReturn.java
new file mode 100644
index 000000000000..c3ba26d9f751
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/FromLambdaBodyWithReturn.java
@@ -0,0 +1,10 @@
+class Test {
+  interface I {
+    String foo();
+  }
+  public void foo(int ii) {
+    I r = () -> {
+      <selection>return "42";</selection>
+    };
+  }
+}
diff --git a/java/java-tests/testData/refactoring/extractMethod/FromLambdaBodyWithReturn_after.java b/java/java-tests/testData/refactoring/extractMethod/FromLambdaBodyWithReturn_after.java
new file mode 100644
index 000000000000..9b5d3d680a66
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/FromLambdaBodyWithReturn_after.java
@@ -0,0 +1,14 @@
+class Test {
+  interface I {
+    String foo();
+  }
+  public void foo(int ii) {
+    I r = () -> {
+        return newMethod();
+    };
+  }
+
+    private String newMethod() {
+        return "42";
+    }
+}
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java b/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
index 2caded9f6e63..f8da2ddc14b9 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/ExtractMethodTest.java
@@ -555,6 +555,10 @@ public class ExtractMethodTest extends LightCodeInsightTestCase {
     doTest();
   }
 
+  public void testFromLambdaBodyWithReturn() throws Exception {
+    doTest();
+  }
+
   public void testOneLineLambda() throws Exception {
     doTest();
   }