diff --git a/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java b/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java
index f02de67d1fdd..8ee73bb0017f 100644
--- a/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java
+++ b/java/java-impl/src/com/intellij/refactoring/util/InlineUtil.java
@@ -55,7 +55,8 @@ public class InlineUtil {
     PsiExpression expr = (PsiExpression)replaceDiamondWithInferredTypesIfNeeded(initializer, ref);
     PsiType exprType = expr.getType();
     if (exprType != null && (!varType.equals(exprType) && varType instanceof PsiPrimitiveType
-                             || !TypeConversionUtil.isAssignable(varType, exprType))) {
+                             || !TypeConversionUtil.isAssignable(varType, exprType) 
+                             || expr instanceof PsiConditionalExpression)) {
       boolean matchedTypes = false;
       //try explicit type arguments
       final PsiElementFactory elementFactory = JavaPsiFacade.getInstance(manager.getProject()).getElementFactory();
diff --git a/java/java-tests/testData/refactoring/inlineLocal/ConditionExpr.java b/java/java-tests/testData/refactoring/inlineLocal/ConditionExpr.java
new file mode 100644
index 000000000000..58f3df62ffcd
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineLocal/ConditionExpr.java
@@ -0,0 +1,7 @@
+public class Test2 {
+  {
+      Integer iii = true ? 1 : 2;
+      <caret>iii.byteValue();
+  }
+}
+
diff --git a/java/java-tests/testData/refactoring/inlineLocal/ConditionExpr.java.after b/java/java-tests/testData/refactoring/inlineLocal/ConditionExpr.java.after
new file mode 100644
index 000000000000..0f18f384053a
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineLocal/ConditionExpr.java.after
@@ -0,0 +1,6 @@
+public class Test2 {
+  {
+      ((Integer) (true ? 1 : 2)).byteValue();
+  }
+}
+
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java
index 85484e5cf462..7cd884aab33c 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineLocalTest.java
@@ -148,6 +148,10 @@ public class InlineLocalTest extends LightCodeInsightTestCase {
                   "Variable 'x' is accessed for writing.");
   }
   
+  public void testConditionExpr() throws Exception {
+    doTest(true);
+  }
+  
   public void testLambdaExpr() throws Exception {
     doTest(true);
   }