diff --git a/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java b/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java
index 7b68e338aa63..b29d02fad178 100644
--- a/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java
+++ b/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java
@@ -791,7 +791,7 @@ public class InlineMethodProcessor extends BaseRefactoringProcessor {
       String[] names = myJavaCodeStyle.suggestVariableName(VariableKind.LOCAL_VARIABLE, null, null, thisType)
         .names;
       String thisVarName = names[0];
-      thisVarName = myJavaCodeStyle.suggestUniqueVariableName(thisVarName, block.getFirstChild(), true);
+      thisVarName = myJavaCodeStyle.suggestUniqueVariableName(thisVarName, myMethod.getFirstChild(), true);
       PsiExpression initializer = myFactory.createExpressionFromText("null", null);
       PsiDeclarationStatement declaration = myFactory.createVariableDeclarationStatement(thisVarName, thisType, initializer);
       declaration = (PsiDeclarationStatement)block.addAfter(declaration, null);
diff --git a/java/java-tests/testData/refactoring/inlineMethod/ThisNameConflict.java b/java/java-tests/testData/refactoring/inlineMethod/ThisNameConflict.java
new file mode 100644
index 000000000000..262eae47d2a3
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineMethod/ThisNameConflict.java
@@ -0,0 +1,11 @@
+class Test {
+  private final String test = "";
+
+  {
+    foo();
+  }
+  
+  void fo<caret>o() {
+    if (test.isEmpty());
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/inlineMethod/ThisNameConflict.java.after b/java/java-tests/testData/refactoring/inlineMethod/ThisNameConflict.java.after
new file mode 100644
index 000000000000..76ed281eedb8
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineMethod/ThisNameConflict.java.after
@@ -0,0 +1,8 @@
+class Test {
+  private final String test = "";
+
+  {
+      if (test.isEmpty());
+  }
+
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java
index 99de5eb68dc4..922d5e04c3bc 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java
@@ -268,6 +268,10 @@ public class InlineMethodTest extends LightRefactoringTestCase {
     doTest();
   }
 
+  public void testThisNameConflict() throws Exception {
+    doTest();
+  }
+
   private void doTestInlineThisOnly() {
     @NonNls String fileName = "/refactoring/inlineMethod/" + getTestName(false) + ".java";
     configureByFile(fileName);