diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/GrIntroduceHandlerBase.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/GrIntroduceHandlerBase.java
index 1cfabe0d6cdf..f5e93ee66746 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/GrIntroduceHandlerBase.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/GrIntroduceHandlerBase.java
@@ -752,7 +752,7 @@ public abstract class GrIntroduceHandlerBase<Settings extends GrIntroduceSetting
   }
 
   @Nullable
-  private static GrVariable resolveLocalVar(@Nullable GrExpression expression) {
+  public static GrVariable resolveLocalVar(@Nullable GrExpression expression) {
     if (expression instanceof GrReferenceExpression) {
       final GrReferenceExpression ref = (GrReferenceExpression)expression;
 
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantDialog.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantDialog.java
index c41fc7d498be..954c96622a43 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantDialog.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantDialog.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2013 JetBrains s.r.o.
+ * Copyright 2000-2014 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -58,6 +58,7 @@ import org.jetbrains.plugins.groovy.refactoring.GroovyNamesUtil;
 import org.jetbrains.plugins.groovy.refactoring.GroovyRefactoringBundle;
 import org.jetbrains.plugins.groovy.refactoring.introduce.GrIntroduceContext;
 import org.jetbrains.plugins.groovy.refactoring.introduce.GrIntroduceDialog;
+import org.jetbrains.plugins.groovy.refactoring.introduce.GrIntroduceHandlerBase;
 import org.jetbrains.plugins.groovy.refactoring.introduce.StringPartInfo;
 import org.jetbrains.plugins.groovy.refactoring.introduce.field.GrFieldNameSuggester;
 import org.jetbrains.plugins.groovy.refactoring.introduce.variable.GroovyVariableValidator;
@@ -135,7 +136,7 @@ public class GrIntroduceConstantDialog extends DialogWrapper
     initializeName();
     initializeTargetClassEditor();
 
-    if (myContext.getVar() != null) {
+    if (GrIntroduceHandlerBase.resolveLocalVar(myContext) != null) {
       myReplaceAllOccurrences.setEnabled(false);
       myReplaceAllOccurrences.setSelected(true);
     }
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantHandler.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantHandler.java
index 95db618dbd6a..c29c4ac3709e 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantHandler.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantHandler.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2013 JetBrains s.r.o.
+ * Copyright 2000-2014 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -53,7 +53,13 @@ public class GrIntroduceConstantHandler extends GrIntroduceFieldHandlerBase<GrIn
 
   @Override
   protected void checkExpression(@NotNull GrExpression selectedExpr) {
-    selectedExpr.accept(new ConstantChecker(selectedExpr, selectedExpr));
+    GrVariable variable = GrIntroduceHandlerBase.resolveLocalVar(selectedExpr);
+    if (variable != null) {
+      checkVariable(variable);
+    }
+    else {
+      selectedExpr.accept(new ConstantChecker(selectedExpr, selectedExpr));
+    }
   }
 
   @Override
diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantProcessor.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantProcessor.java
index 6c18d070a9a9..bb6c887a1e2c 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantProcessor.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/refactoring/introduce/constant/GrIntroduceConstantProcessor.java
@@ -73,10 +73,17 @@ public class GrIntroduceConstantProcessor {
     final GrVariableDeclaration declaration = addDeclaration(targetClass);
     final GrField field = (GrField)declaration.getVariables()[0];
 
-    if (context.getVar() != null) {
-      GrVariable var = context.getVar();
-      replaceOccurrence(field, var.getInitializerGroovy(), isEscalateVisibility());
-      deleteLocalVar(var);
+    GrVariable localVar = GrIntroduceHandlerBase.resolveLocalVar(context);
+    if (localVar != null) {
+      assert localVar.getInitializerGroovy() != null : "initializer should exist: " + localVar.getText();
+      deleteLocalVar(localVar);
+
+      if (settings.replaceAllOccurrences()) {
+        processOccurrences(field);
+      }
+      else {
+        replaceOccurrence(field, localVar.getInitializerGroovy(), isEscalateVisibility());
+      }
     }
     else if (context.getStringPart() != null) {
       final GrExpression ref = processLiteral(field.getName(), context.getStringPart(), context.getProject());
@@ -85,11 +92,7 @@ public class GrIntroduceConstantProcessor {
     }
     else if (context.getExpression() != null) {
       if (settings.replaceAllOccurrences()) {
-        final PsiElement[] occurrences = context.getOccurrences();
-        GroovyRefactoringUtil.sortOccurrences(occurrences);
-        for (PsiElement occurrence : occurrences) {
-          replaceOccurrence(field, occurrence, isEscalateVisibility());
-        }
+        processOccurrences(field);
       }
       else {
         replaceOccurrence(field, context.getExpression(), isEscalateVisibility());
@@ -98,6 +101,14 @@ public class GrIntroduceConstantProcessor {
     return field;
   }
 
+  private void processOccurrences(GrField field) {
+    final PsiElement[] occurrences = context.getOccurrences();
+    GroovyRefactoringUtil.sortOccurrences(occurrences);
+    for (PsiElement occurrence : occurrences) {
+      replaceOccurrence(field, occurrence, isEscalateVisibility());
+    }
+  }
+
   private void updateCaretPosition(PsiElement element) {
     context.getEditor().getCaretModel().moveToOffset(element.getTextRange().getEndOffset());
     context.getEditor().getSelectionModel().removeSelection();
@@ -206,15 +217,15 @@ public class GrIntroduceConstantProcessor {
 
   @NotNull
   protected GrExpression getInitializer() {
+    GrVariable var = GrIntroduceHandlerBase.resolveLocalVar(context);
     GrExpression expression = context.getExpression();
-    GrVariable var = context.getVar();
 
-    if (expression != null) {
-      return expression;
-    }
-    else if (var != null) {
+    if (var != null) {
       return var.getInitializerGroovy();
     }
+    else if (expression != null) {
+      return expression;
+    }
     else {
       return GrIntroduceHandlerBase.generateExpressionFromStringPart(context.getStringPart(), context.getProject());
     }
diff --git a/plugins/groovy/test/org/jetbrains/plugins/groovy/refactoring/introduce/IntroduceConstantTest.java b/plugins/groovy/test/org/jetbrains/plugins/groovy/refactoring/introduce/IntroduceConstantTest.groovy
similarity index 73%
rename from plugins/groovy/test/org/jetbrains/plugins/groovy/refactoring/introduce/IntroduceConstantTest.java
rename to plugins/groovy/test/org/jetbrains/plugins/groovy/refactoring/introduce/IntroduceConstantTest.groovy
index 6b1987556ec9..99c5476ac7f0 100644
--- a/plugins/groovy/test/org/jetbrains/plugins/groovy/refactoring/introduce/IntroduceConstantTest.java
+++ b/plugins/groovy/test/org/jetbrains/plugins/groovy/refactoring/introduce/IntroduceConstantTest.groovy
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2013 JetBrains s.r.o.
+ * Copyright 2000-2014 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -13,24 +13,24 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
-package org.jetbrains.plugins.groovy.refactoring.introduce;
+package org.jetbrains.plugins.groovy.refactoring.introduce
 
-import com.intellij.openapi.command.WriteCommandAction;
-import com.intellij.openapi.editor.Editor;
-import com.intellij.psi.PsiClass;
-import com.intellij.psi.PsiElement;
-import com.intellij.psi.PsiModifier;
-import com.intellij.psi.PsiType;
-import com.intellij.psi.impl.source.PostprocessReformattingAspect;
-import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase;
-import com.intellij.util.VisibilityUtil;
-import org.jetbrains.annotations.NotNull;
-import org.jetbrains.annotations.Nullable;
-import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrVariable;
-import org.jetbrains.plugins.groovy.lang.psi.api.statements.expressions.GrExpression;
-import org.jetbrains.plugins.groovy.refactoring.introduce.constant.GrIntroduceConstantHandler;
-import org.jetbrains.plugins.groovy.refactoring.introduce.constant.GrIntroduceConstantSettings;
-import org.jetbrains.plugins.groovy.util.TestUtils;
+import com.intellij.openapi.command.WriteCommandAction
+import com.intellij.openapi.editor.Editor
+import com.intellij.psi.PsiClass
+import com.intellij.psi.PsiElement
+import com.intellij.psi.PsiModifier
+import com.intellij.psi.PsiType
+import com.intellij.psi.impl.source.PostprocessReformattingAspect
+import com.intellij.testFramework.fixtures.LightCodeInsightFixtureTestCase
+import com.intellij.util.VisibilityUtil
+import org.jetbrains.annotations.NotNull
+import org.jetbrains.annotations.Nullable
+import org.jetbrains.plugins.groovy.lang.psi.api.statements.GrVariable
+import org.jetbrains.plugins.groovy.lang.psi.api.statements.expressions.GrExpression
+import org.jetbrains.plugins.groovy.refactoring.introduce.constant.GrIntroduceConstantHandler
+import org.jetbrains.plugins.groovy.refactoring.introduce.constant.GrIntroduceConstantSettings
+import org.jetbrains.plugins.groovy.util.TestUtils
 
 /**
  * @author Maxim.Medvedev
@@ -38,7 +38,7 @@ import org.jetbrains.plugins.groovy.util.TestUtils;
 public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
   @Override
   protected String getBasePath() {
-    return TestUtils.getTestDataPath() + "refactoring/introduceConstant/";
+    TestUtils.testDataPath + "refactoring/introduceConstant/"
   }
 
   public void testSimple() {
@@ -62,7 +62,7 @@ public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
   }
 
   public void testTupleDeclaration() {
-    doTest("Test", false, false, PsiModifier.PUBLIC);
+    doTest("Test", true, false, PsiModifier.PUBLIC);
   }
 
   public void testStringPart() {
@@ -77,11 +77,15 @@ public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
     doTest();
   }
 
+  void testLocalVarRef() {
+    doTest()
+  }
+
   private void doTest() {
     doTest(null, true, true, PsiModifier.PUBLIC);
   }
 
-  private void doTest(@Nullable String targetClassName, boolean replaceAllOccurences, boolean useExplicitType, String modifier) {
+  private void doTest(@Nullable String targetClassName, boolean replaceAllOccurrences, boolean useExplicitType, String modifier) {
     myFixture.configureByFile(getTestName(false) + ".groovy");
 
 
@@ -95,25 +99,17 @@ public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
     PsiElement[] scopes = handler.findPossibleScopes(expression, variable, stringPart, editor);
     final GrIntroduceContext context = handler.getContext(getProject(), editor, expression, variable, stringPart, scopes[0]);
 
-    PsiClass targetClass;
-    if (targetClassName == null) {
-      targetClass = GrIntroduceConstantHandler.findContainingClass(context);
-    }
-    else {
-      targetClass = myFixture.findClass(targetClassName);
-    }
+    PsiClass targetClass = targetClassName == null ? GrIntroduceConstantHandler.findContainingClass(context)
+                                                   : myFixture.findClass(targetClassName);
     assertNotNull("target class is null", targetClass);
 
-    final GrIntroduceConstantSettings settings =
-      new MockIntroduceConstantSettings(targetClass, replaceAllOccurences, getType(useExplicitType, expression, variable, stringPart), modifier);
+    def type = getType(useExplicitType, expression, variable, stringPart)
+    final GrIntroduceConstantSettings settings = new MockIntroduceConstantSettings(targetClass, replaceAllOccurrences, type, modifier);
 
-    WriteCommandAction.runWriteCommandAction(null, new Runnable() {
-      @Override
-      public void run() {
-        handler.runRefactoring(context, settings);
-        PostprocessReformattingAspect.getInstance(getProject()).doPostponedFormatting();
-      }
-    });
+    WriteCommandAction.runWriteCommandAction(null) {
+      handler.runRefactoring(context, settings);
+      PostprocessReformattingAspect.getInstance(project).doPostponedFormatting();
+    }
     myFixture.checkResultByFile(getTestName(false) + "_after.groovy", true);
   }
 
@@ -122,8 +118,8 @@ public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
       return null;
     }
     return expression != null ? expression.getType() :
-           variable != null ? variable.getType() :
-           stringPart.getLiteral().getType();
+           variable   != null ? variable.getType() :
+                                stringPart.getLiteral().getType();
   }
 
   @Nullable
@@ -151,10 +147,10 @@ public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
   }
 
   private static class MockIntroduceConstantSettings implements GrIntroduceConstantSettings {
-    private PsiClass myTargetClass;
-    private boolean myReplaceAllOccurrences;
-    private PsiType mySelectedType;
-    private String myModifier;
+    private final PsiClass myTargetClass;
+    private final boolean myReplaceAllOccurrences;
+    private final PsiType mySelectedType;
+    private final String myModifier;
 
     private MockIntroduceConstantSettings(@NotNull PsiClass targetClass,
                                           boolean replaceAllOccurrences,
@@ -168,7 +164,6 @@ public class IntroduceConstantTest extends LightCodeInsightFixtureTestCase {
 
     @Override
     public String getVisibilityModifier() {
-
       return myModifier;
     }
 
diff --git a/plugins/groovy/testdata/refactoring/introduceConstant/LocalVarRef.groovy b/plugins/groovy/testdata/refactoring/introduceConstant/LocalVarRef.groovy
new file mode 100644
index 000000000000..f02441739c6a
--- /dev/null
+++ b/plugins/groovy/testdata/refactoring/introduceConstant/LocalVarRef.groovy
@@ -0,0 +1,11 @@
+class X {
+    def foo() {
+        def ad = 6
+
+        print <selection>ad</selection>
+        print ad
+        print "abc"
+
+        print 5
+    }
+}
\ No newline at end of file
diff --git a/plugins/groovy/testdata/refactoring/introduceConstant/LocalVarRef_after.groovy b/plugins/groovy/testdata/refactoring/introduceConstant/LocalVarRef_after.groovy
new file mode 100644
index 000000000000..02032b3ebfeb
--- /dev/null
+++ b/plugins/groovy/testdata/refactoring/introduceConstant/LocalVarRef_after.groovy
@@ -0,0 +1,12 @@
+class X {
+    public static final int CONST = 6
+
+    def foo() {
+
+        print CONST
+        print CONST
+        print "abc"
+
+        print 5
+    }
+}
\ No newline at end of file