diff --git a/source/com/intellij/refactoring/convertToInstanceMethod/ConvertToInstanceMethodHandler.java b/source/com/intellij/refactoring/convertToInstanceMethod/ConvertToInstanceMethodHandler.java
index c10853feb2d0..33b84db4fd86 100644
--- a/source/com/intellij/refactoring/convertToInstanceMethod/ConvertToInstanceMethodHandler.java
+++ b/source/com/intellij/refactoring/convertToInstanceMethod/ConvertToInstanceMethodHandler.java
@@ -60,7 +60,7 @@ public class ConvertToInstanceMethodHandler implements RefactoringActionHandler
     for (int i = 0; i < parameters.length; i++) {
       final PsiParameter parameter = parameters[i];
       final PsiType type = parameter.getType();
-      if (type instanceof PsiClassType && !((PsiClassType)type).hasParameters()) {
+      if (type instanceof PsiClassType) {
         classTypesFound = true;
         final PsiClass psiClass = ((PsiClassType)type).resolve();
         if (psiClass != null && !(psiClass instanceof PsiTypeParameter)) {
diff --git a/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodHandler.java b/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodHandler.java
index 2fadbb248c39..60a14d18ac7f 100644
--- a/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodHandler.java
+++ b/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodHandler.java
@@ -11,6 +11,7 @@ import com.intellij.psi.codeStyle.SuggestedNameInfo;
 import com.intellij.psi.codeStyle.VariableKind;
 import com.intellij.psi.search.GlobalSearchScope;
 import com.intellij.psi.util.PsiSuperMethodUtil;
+import com.intellij.psi.util.PsiUtil;
 import com.intellij.refactoring.HelpID;
 import com.intellij.refactoring.RefactoringActionHandler;
 import com.intellij.refactoring.util.RefactoringMessageUtil;
@@ -59,6 +60,13 @@ public class MoveInstanceMethodHandler implements RefactoringActionHandler {
       return;
     }
 
+    if (PsiUtil.typeParametersIterator(method.getContainingClass()).hasNext()) {
+      String message = "Cannot perform the refactoring.\n" +
+                       "Move method is not supported for generic classes";
+      RefactoringMessageUtil.showErrorMessage(REFACTORING_NAME, message, HelpID.MOVE_INSTANCE_METHOD, project);
+      return;
+    }
+
     if (PsiSuperMethodUtil.findSuperMethods(method).length > 0 ||
         method.getManager().getSearchHelper().findOverridingMethods(method, GlobalSearchScope.allScope(project), true).length > 0) {
       String message = "Cannot perform the refactoring.\n" +
diff --git a/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodProcessor.java b/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodProcessor.java
index 06385fd1416f..f13f2437bfb6 100644
--- a/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodProcessor.java
+++ b/source/com/intellij/refactoring/move/moveInstanceMethod/MoveInstanceMethodProcessor.java
@@ -17,6 +17,7 @@ import com.intellij.usageView.FindUsagesCommand;
 import com.intellij.usageView.UsageInfo;
 import com.intellij.usageView.UsageViewDescriptor;
 import com.intellij.util.IncorrectOperationException;
+import com.intellij.codeInsight.ChangeContextUtil;
 
 import java.util.*;
 
@@ -227,7 +228,8 @@ public class MoveInstanceMethodProcessor extends BaseRefactoringProcessor{
 
   private void addMethodToClass(final PsiClass aClass, final PsiMethod patternMethod) {
     try {
-      aClass.add(patternMethod);
+      final PsiElement method = aClass.add(patternMethod);
+      ChangeContextUtil.decodeContextInfo(method, null, null);
     }
     catch (IncorrectOperationException e) {
       LOG.error(e);
@@ -235,6 +237,7 @@ public class MoveInstanceMethodProcessor extends BaseRefactoringProcessor{
   }
 
   private PsiMethod createPatternMethod () {
+    ChangeContextUtil.encodeContextInfo(myMethod, true);
     final PsiMethod methodCopy = (PsiMethod)myMethod.copy();
     final PsiElement elementAt = methodCopy.getContainingFile().findElementAt(myTargetVariable.getTextRange().getStartOffset());
     final PsiVariable variableCopy = PsiTreeUtil.getParentOfType(elementAt, PsiVariable.class);
diff --git a/testData/refactoring/moveInstanceMethod/WithInner.java b/testData/refactoring/moveInstanceMethod/WithInner.java
new file mode 100644
index 000000000000..415ce95e2872
--- /dev/null
+++ b/testData/refactoring/moveInstanceMethod/WithInner.java
@@ -0,0 +1,15 @@
+class Foreign {
+    class Inner {}
+}
+
+
+public abstract class Test1 {
+    void <caret>foo (Foreign f, Inner i) {
+    }
+
+    class Inner {}
+
+    void bar () {
+        foo(new Foreign(), new Inner());
+    }
+}
\ No newline at end of file
diff --git a/testData/refactoring/moveInstanceMethod/WithInner.java.after b/testData/refactoring/moveInstanceMethod/WithInner.java.after
new file mode 100644
index 000000000000..efa97cfb8450
--- /dev/null
+++ b/testData/refactoring/moveInstanceMethod/WithInner.java.after
@@ -0,0 +1,16 @@
+class Foreign {
+    void foo(Test1.Inner i, Test1 test1) {
+    }
+
+    class Inner {}
+}
+
+
+public abstract class Test1 {
+
+    class Inner {}
+
+    void bar () {
+        new Foreign().foo(new Inner(), this);
+    }
+}
\ No newline at end of file
diff --git a/testSource/com/intellij/refactoring/moveMethod/MoveInstanceMethodTest.java b/testSource/com/intellij/refactoring/moveMethod/MoveInstanceMethodTest.java
index c04d26800f2f..3765bdae3146 100644
--- a/testSource/com/intellij/refactoring/moveMethod/MoveInstanceMethodTest.java
+++ b/testSource/com/intellij/refactoring/moveMethod/MoveInstanceMethodTest.java
@@ -19,6 +19,8 @@ public class MoveInstanceMethodTest extends LightCodeInsightTestCase {
 
   public void testInterface() throws Exception { doTestForTargetParameter(true, 0); }
 
+  public void testWithInner() throws Exception { doTestForTargetParameter(true, 0); }
+
 
 
   private void doTestForTargetParameter(boolean isTargetParameter, final int targetIndex) throws Exception {