diff --git a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/SimplifyBooleanExpressionFix.java b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/SimplifyBooleanExpressionFix.java
index fedb1ea4f232..8d8971214f75 100644
--- a/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/SimplifyBooleanExpressionFix.java
+++ b/java/java-analysis-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/SimplifyBooleanExpressionFix.java
@@ -35,6 +35,7 @@ import com.intellij.psi.util.PsiUtil;
 import com.intellij.util.Function;
 import com.intellij.util.IncorrectOperationException;
 import com.siyeh.ig.psiutils.ParenthesesUtils;
+import com.siyeh.ig.psiutils.VariableSearchUtils;
 import org.jetbrains.annotations.NonNls;
 import org.jetbrains.annotations.NotNull;
 
@@ -130,14 +131,15 @@ public class SimplifyBooleanExpressionFix extends LocalQuickFixOnPsiElement {
     return true;
   }
 
-  private static void replaceWithStatements(final PsiStatement orig, final PsiStatement statement) throws IncorrectOperationException {
+  private static void replaceWithStatements(final PsiIfStatement orig, final PsiStatement statement) throws IncorrectOperationException {
     if (statement == null) {
       orig.delete();
       return;
     }
     PsiElement parent = orig.getParent();
     if (parent == null) return;
-    if (statement instanceof PsiBlockStatement && parent instanceof PsiCodeBlock) {
+    if (statement instanceof PsiBlockStatement && parent instanceof PsiCodeBlock &&
+        !VariableSearchUtils.containsConflictingDeclarations((PsiCodeBlock)parent, (PsiCodeBlock)parent)) {
       // See IDEADEV-24277
       // Code block can only be inlined into another (parent) code block.
       // Code blocks, which are if or loop statement branches should not be inlined.
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement/afterConflictingVariables.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement/afterConflictingVariables.java
new file mode 100644
index 000000000000..c19a040f7a69
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement/afterConflictingVariables.java
@@ -0,0 +1,9 @@
+// "Unwrap 'if' statement" "true"
+class X {
+    void f() {
+        <caret>{
+            int i = 0;
+        }
+        int i = 0;
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement/beforeConflictingVariables.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement/beforeConflictingVariables.java
new file mode 100644
index 000000000000..9246e00966b3
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement/beforeConflictingVariables.java
@@ -0,0 +1,9 @@
+// "Unwrap 'if' statement" "true"
+class X {
+    void f() {
+        if (tru<caret>e) {
+            int i = 0;
+        }
+        int i = 0;
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/quickFix/UnwrapIfStatementFixTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/quickFix/UnwrapIfStatementFixTest.java
new file mode 100644
index 000000000000..f82216f17de2
--- /dev/null
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/quickFix/UnwrapIfStatementFixTest.java
@@ -0,0 +1,42 @@
+/*
+ * Copyright 2000-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+/*
+ * User: anna
+ * Date: 21-Mar-2008
+ */
+package com.intellij.codeInsight.daemon.quickFix;
+
+import com.intellij.codeInspection.LocalInspectionTool;
+import com.intellij.codeInspection.dataFlow.DataFlowInspection;
+import org.jetbrains.annotations.NotNull;
+
+public class UnwrapIfStatementFixTest extends LightQuickFixParameterizedTestCase {
+  @NotNull
+  @Override
+  protected LocalInspectionTool[] configureLocalInspectionTools() {
+    return new LocalInspectionTool[]{new DataFlowInspection()};
+  }
+
+  public void test() throws Exception {
+     doAllTests();
+   }
+
+  @Override
+  protected String getBasePath() {
+    return "/codeInsight/daemonCodeAnalyzer/quickFix/unwrapIfStatement";
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTestSuite.java b/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTestSuite.java
index 89cbbc45395a..ad81053648a5 100644
--- a/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTestSuite.java
+++ b/java/java-tests/testSrc/com/intellij/codeInspection/DataFlowInspectionTestSuite.java
@@ -51,6 +51,7 @@ public class DataFlowInspectionTestSuite {
     suite.addTestSuite(ReplaceWithTernaryOperatorTest.class);
     suite.addTestSuite(ReplaceWithOfNullableFixTest.class);
     suite.addTestSuite(ReplaceFromOfNullableFixTest.class);
+    suite.addTestSuite(UnwrapIfStatementFixTest.class);
     return suite;
   }
 }