diff --git a/java/java-impl/src/com/intellij/codeInsight/completion/commands/JavaCommandCompletionFactory.java b/java/java-impl/src/com/intellij/codeInsight/completion/commands/JavaCommandCompletionFactory.java
index 34438eecde29..2aac49afe2d0 100644
--- a/java/java-impl/src/com/intellij/codeInsight/completion/commands/JavaCommandCompletionFactory.java
+++ b/java/java-impl/src/com/intellij/codeInsight/completion/commands/JavaCommandCompletionFactory.java
@@ -89,11 +89,12 @@ class JavaCommandCompletionFactory implements CommandCompletionFactory, DumbAwar
           if (open != null && curParent.getTextRange().getEndOffset() == element.getTextRange().getEndOffset()) {
             while (curParent.getTextRange().getEndOffset() == element.getTextRange().getEndOffset()) {
               int nextOffset = curParent.getTextRange().getStartOffset();
-              if (results.add(nextOffset)) {
+              curParent = curParent.getParent();
+              boolean stopParent = curParent == null || curParent instanceof PsiClass || curParent instanceof PsiFile;
+              if (results.add(nextOffset) && !stopParent) {
                 queue.add(nextOffset);
               }
-              curParent = curParent.getParent();
-              if (curParent == null) {
+              if (stopParent) {
                 break;
               }
             }
diff --git a/java/java-impl/src/com/intellij/codeInsight/intention/ReplaceConstructorWithFactoryAction.java b/java/java-impl/src/com/intellij/codeInsight/intention/ReplaceConstructorWithFactoryAction.java
index 3ba219f849ad..bc9ef13ea32d 100644
--- a/java/java-impl/src/com/intellij/codeInsight/intention/ReplaceConstructorWithFactoryAction.java
+++ b/java/java-impl/src/com/intellij/codeInsight/intention/ReplaceConstructorWithFactoryAction.java
@@ -38,7 +38,8 @@ public final class ReplaceConstructorWithFactoryAction implements ModCommandActi
   @Override
   public @Nullable Presentation getPresentation(@NotNull ActionContext context) {
     if (!BaseIntentionAction.canModify(context.file())) return null;
-    return getConstructorOrClass(context.findLeaf()) != null
+    PsiMember member = getConstructorOrClass(context.findLeaf());
+    return member != null && !getTargets(member).isEmpty()
            ? Presentation.of(getFamilyName()).withIcon(NewUiValue.isEnabled() ? null : AllIcons.Actions.RefactoringBulb)
            : null;
   }
@@ -48,12 +49,7 @@ public final class ReplaceConstructorWithFactoryAction implements ModCommandActi
     PsiElement element = context.findLeaf();
     PsiMember constructorOrClass = getConstructorOrClass(element);
     if (constructorOrClass == null) return ModCommand.nop();
-
-    List<PsiClass> targets = StreamEx.iterate(constructorOrClass, Objects::nonNull, PsiMember::getContainingClass)
-      .select(PsiClass.class)
-      .filter(cls -> !(cls instanceof PsiImplicitClass))
-      .filter(cls -> cls.hasModifierProperty(PsiModifier.STATIC) || cls.getContainingClass() == null)
-      .toList();
+    List<PsiClass> targets = getTargets(constructorOrClass);
     SmartPsiElementPointer<PsiMember> constructorOrClassPtr = SmartPointerManager.createPointer(constructorOrClass);
     List<ModCommandAction> options =
       ContainerUtil.map(targets, target -> ModCommand.psiUpdateStep(
@@ -66,6 +62,14 @@ public final class ReplaceConstructorWithFactoryAction implements ModCommandActi
     return ModCommand.chooseAction(JavaBundle.message("popup.title.choose.target.class"), options);
   }
 
+  private @NotNull List<PsiClass> getTargets(PsiMember constructorOrClass) {
+    return StreamEx.iterate(constructorOrClass, Objects::nonNull, PsiMember::getContainingClass)
+      .select(PsiClass.class)
+      .filter(cls -> !(cls instanceof PsiImplicitClass))
+      .filter(cls -> cls.hasModifierProperty(PsiModifier.STATIC) || cls.getContainingClass() == null)
+      .toList();
+  }
+
   private static void invoke(@NotNull PsiClass cls,
                              @NotNull ModPsiUpdater updater,
                              @NotNull SmartPsiElementPointer<PsiMember> constructorOrClassPtr) {
diff --git a/java/java-tests/testData/refactoring/replaceConstructorWithFactory/beforeImplicitClassAfterName.java b/java/java-tests/testData/refactoring/replaceConstructorWithFactory/beforeImplicitClassAfterName.java
new file mode 100644
index 000000000000..5634e54981d1
--- /dev/null
+++ b/java/java-tests/testData/refactoring/replaceConstructorWithFactory/beforeImplicitClassAfterName.java
@@ -0,0 +1,7 @@
+class nested<caret> {
+
+}
+void main() {
+
+
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/refactoring/ReplaceConstructorWithFactoryTest.java b/java/java-tests/testSrc/com/intellij/java/refactoring/ReplaceConstructorWithFactoryTest.java
index 7d3703ff38e6..f7856cfdba45 100644
--- a/java/java-tests/testSrc/com/intellij/java/refactoring/ReplaceConstructorWithFactoryTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/refactoring/ReplaceConstructorWithFactoryTest.java
@@ -123,6 +123,10 @@ public class ReplaceConstructorWithFactoryTest extends LightRefactoringTestCase
     assertNotAvailable("RedCode");
   }
 
+  public void testImplicitClassNotAvailable() {
+    assertNotAvailable("ImplicitClassAfterName");
+  }
+
   public void testRedCodeFromIDEA376351() {
     assertNotAvailable("RedCodeFromIDEA376351");
   }