diff --git a/java/java-impl/src/com/intellij/refactoring/inline/InlineParameterExpressionProcessor.java b/java/java-impl/src/com/intellij/refactoring/inline/InlineParameterExpressionProcessor.java
index ec8f158f715c..1e395c222ad2 100644
--- a/java/java-impl/src/com/intellij/refactoring/inline/InlineParameterExpressionProcessor.java
+++ b/java/java-impl/src/com/intellij/refactoring/inline/InlineParameterExpressionProcessor.java
@@ -177,6 +177,8 @@ public class InlineParameterExpressionProcessor extends BaseRefactoringProcessor
           if (!mySameClass && !((PsiModifierListOwner)element).hasModifierProperty(PsiModifier.STATIC)) {
             conflicts.putValue(expression, "Parameter initializer depend on non static member from some other class");
           }
+        } else if (element instanceof PsiParameter) {
+          conflicts.putValue(expression, "Parameter initializer depends on callers parameter");
         }
       }
 
diff --git a/java/java-tests/testData/refactoring/inlineParameter/RefCallerParameter.java b/java/java-tests/testData/refactoring/inlineParameter/RefCallerParameter.java
new file mode 100644
index 000000000000..c2d8469a792a
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineParameter/RefCallerParameter.java
@@ -0,0 +1,9 @@
+class Outer {
+  public void withClass(Object <caret>o) {
+    System.out.println(o.toString());
+  }
+
+  public void foor(Object objct) {
+    withClass(objct);
+  }
+}
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineParameterTest.java b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineParameterTest.java
index 0246b3133a32..618f78ea0550 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineParameterTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineParameterTest.java
@@ -148,6 +148,16 @@ public class InlineParameterTest extends LightCodeInsightTestCase {
     }
   }
 
+  public void testRefCallerParameter() throws Exception {
+    try {
+      doTest(false);
+    }
+    catch (BaseRefactoringProcessor.ConflictsInTestsException e) {
+      assertEquals("Parameter initializer depends on callers parameter", e.getMessage());
+    }
+  }
+
+
   public void testHandleExceptions() throws Exception {
     doTest(false);
   }