diff --git a/python/src/com/jetbrains/python/refactoring/PyReplaceExpressionUtil.java b/python/src/com/jetbrains/python/refactoring/PyReplaceExpressionUtil.java
index 2cebb3ec2720..4a8d2b9d8551 100644
--- a/python/src/com/jetbrains/python/refactoring/PyReplaceExpressionUtil.java
+++ b/python/src/com/jetbrains/python/refactoring/PyReplaceExpressionUtil.java
@@ -61,21 +61,26 @@ public class PyReplaceExpressionUtil implements PyElementTypes {
 
   private PyReplaceExpressionUtil() {}
 
+  /**
+   * @param oldExpr old expression that will be substituted
+   * @param newExpr new expression to substitute with
+   * @return whether new expression should be wrapped in parenthesis to preserve original semantics
+   */
   public static boolean isNeedParenthesis(@NotNull final PyElement oldExpr, @NotNull final PyElement newExpr) {
     final PyElement parentExpr = (PyElement)oldExpr.getParent();
     if (parentExpr instanceof PyArgumentList) {
       return newExpr instanceof PyTupleExpression;
     }
-    if (!(parentExpr instanceof PyExpression)) {
+    if (parentExpr instanceof PyParenthesizedExpression || !(parentExpr instanceof PyExpression)) {
       return false;
     }
-    int newPriority = getExpressionPriority(newExpr);
-    int parentPriority = getExpressionPriority(parentExpr);
+    final int newPriority = getExpressionPriority(newExpr);
+    final int parentPriority = getExpressionPriority(parentExpr);
     if (parentPriority > newPriority) {
       return true;
     } else if (parentPriority == newPriority && parentPriority != 0) {
       if (parentExpr instanceof PyBinaryExpression) {
-        PyBinaryExpression binaryExpression = (PyBinaryExpression)parentExpr;
+        final PyBinaryExpression binaryExpression = (PyBinaryExpression)parentExpr;
         if (isNotAssociative(binaryExpression) && oldExpr.equals(binaryExpression.getRightExpression())) {
           return true;
         }
diff --git a/python/testData/refactoring/inlinelocal/referenceInParenthesis.after.py b/python/testData/refactoring/inlinelocal/referenceInParenthesis.after.py
new file mode 100644
index 000000000000..67bea27b020e
--- /dev/null
+++ b/python/testData/refactoring/inlinelocal/referenceInParenthesis.after.py
@@ -0,0 +1,3 @@
+print ('spam!' * 42)
+('spam!' * 42)
+hex('spam!' * 42)
\ No newline at end of file
diff --git a/python/testData/refactoring/inlinelocal/referenceInParenthesis.before.py b/python/testData/refactoring/inlinelocal/referenceInParenthesis.before.py
new file mode 100644
index 000000000000..da3059f478cd
--- /dev/null
+++ b/python/testData/refactoring/inlinelocal/referenceInParenthesis.before.py
@@ -0,0 +1,5 @@
+x<caret> = 'spam!' * 42
+
+print (x)
+(x)
+hex(x)
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/refactoring/PyInlineLocalTest.java b/python/testSrc/com/jetbrains/python/refactoring/PyInlineLocalTest.java
index 4f02da1038ff..a86cf066bd4a 100644
--- a/python/testSrc/com/jetbrains/python/refactoring/PyInlineLocalTest.java
+++ b/python/testSrc/com/jetbrains/python/refactoring/PyInlineLocalTest.java
@@ -81,7 +81,13 @@ public class PyInlineLocalTest extends PyTestCase {
     doTest();
   }
 
+  // PY-12401
   public void testComment() {
     doTest();
   }
+
+  // PY-13114
+  public void testReferenceInParenthesis() {
+    doTest();
+  }
 }