diff --git a/java/java-psi-impl/src/com/intellij/codeInsight/ExceptionUtil.java b/java/java-psi-impl/src/com/intellij/codeInsight/ExceptionUtil.java
index 91aef5388557..910a0d80499c 100644
--- a/java/java-psi-impl/src/com/intellij/codeInsight/ExceptionUtil.java
+++ b/java/java-psi-impl/src/com/intellij/codeInsight/ExceptionUtil.java
@@ -799,14 +799,14 @@ public final class ExceptionUtil {
   public static HandlePlace getHandlePlace(@Nullable PsiElement element,
                                            @NotNull PsiClassType exceptionType,
                                            @Nullable PsiElement topElement) {
-    if (element == null || element.getParent() == topElement || element.getParent() == null) return HandlePlace.UNHANDLED;
+    if (element == null || element == topElement) return HandlePlace.UNHANDLED;
+    PsiElement parent = element.getParent();
+    if (parent == null || parent == topElement) return HandlePlace.UNHANDLED;
 
     for (CustomExceptionHandler exceptionHandler : CustomExceptionHandler.KEY.getExtensionList()) {
       if (exceptionHandler.isHandled(element, exceptionType, topElement)) return HandlePlace.UNKNOWN;
     }
 
-    final PsiElement parent = element.getParent();
-
     if (parent instanceof PsiMethod) {
       PsiMethod method = (PsiMethod)parent;
       return HandlePlace.fromBoolean(isHandledByMethodThrowsClause(method, exceptionType));
diff --git a/java/java-tests/testData/refactoring/extractMethod/StringTemplateExceptionJava21Preview.java b/java/java-tests/testData/refactoring/extractMethod/StringTemplateExceptionJava21Preview.java
new file mode 100644
index 000000000000..0c69ab3ea8a7
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/StringTemplateExceptionJava21Preview.java
@@ -0,0 +1,21 @@
+package java.lang;
+public interface StringTemplate {
+  Processor<String, RuntimeException> STR = null;
+
+  @PreviewFeature(feature=PreviewFeature.Feature.STRING_TEMPLATES)
+  @FunctionalInterface
+  public interface Processor<R, E extends Throwable> {
+    R process(StringTemplate stringTemplate) throws E;
+  }
+}
+class Main {
+
+  class FailureException extends Exception {}
+
+  public static void x(StringTemplate.Processor<String, FailureException> p, int i, int j) {
+    try {
+      String t = <selection>p."\{i} + \{j} = \{i + j}";</selection>
+    }
+    catch (FailureException ignore) {}
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/extractMethod/StringTemplateExceptionJava21Preview_after.java b/java/java-tests/testData/refactoring/extractMethod/StringTemplateExceptionJava21Preview_after.java
new file mode 100644
index 000000000000..0a4af344b6f7
--- /dev/null
+++ b/java/java-tests/testData/refactoring/extractMethod/StringTemplateExceptionJava21Preview_after.java
@@ -0,0 +1,25 @@
+package java.lang;
+public interface StringTemplate {
+  Processor<String, RuntimeException> STR = null;
+
+  @PreviewFeature(feature=PreviewFeature.Feature.STRING_TEMPLATES)
+  @FunctionalInterface
+  public interface Processor<R, E extends Throwable> {
+    R process(StringTemplate stringTemplate) throws E;
+  }
+}
+class Main {
+
+  class FailureException extends Exception {}
+
+  public static void x(StringTemplate.Processor<String, FailureException> p, int i, int j) {
+    try {
+      String t = newMethod(p, i, j);
+    }
+    catch (FailureException ignore) {}
+  }
+
+    private static String newMethod(StringTemplate.Processor<String, FailureException> p, int i, int j) throws FailureException {
+        return p."\{i} + \{j} = \{i + j}";
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/extractMethod/StringTemplate.java b/java/java-tests/testData/refactoring/extractMethod/StringTemplateJava21Preview.java
similarity index 100%
rename from java/java-tests/testData/refactoring/extractMethod/StringTemplate.java
rename to java/java-tests/testData/refactoring/extractMethod/StringTemplateJava21Preview.java
diff --git a/java/java-tests/testData/refactoring/extractMethod/StringTemplate_after.java b/java/java-tests/testData/refactoring/extractMethod/StringTemplateJava21Preview_after.java
similarity index 100%
rename from java/java-tests/testData/refactoring/extractMethod/StringTemplate_after.java
rename to java/java-tests/testData/refactoring/extractMethod/StringTemplateJava21Preview_after.java
diff --git a/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodTest.java b/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodTest.java
index 13419c0dc15a..82860f9f880e 100644
--- a/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/refactoring/ExtractMethodTest.java
@@ -262,8 +262,12 @@ public class ExtractMethodTest extends LightJavaCodeInsightTestCase {
     doTestWithJava17();
   }
 
-  public void testStringTemplate() throws Exception {
-    doTestWithLanguageLevel(LanguageLevel.JDK_21_PREVIEW);
+  public void testStringTemplateJava21Preview() throws Exception {
+    doTest();
+  }
+
+  public void testStringTemplateExceptionJava21Preview() throws Exception {
+    doTest();
   }
 
   private void doTestWithJava17() throws Exception {