diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.k2/resources/kotlin.refactorings.k2.xml b/plugins/kotlin/refactorings/kotlin.refactorings.k2/resources/kotlin.refactorings.k2.xml
index 1817a5d62ad0..4ebd5ba5e26c 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.k2/resources/kotlin.refactorings.k2.xml
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.k2/resources/kotlin.refactorings.k2.xml
@@ -43,5 +43,10 @@
       <add-to-group group-id="IntroduceActionsGroup" anchor="after" relative-to-action="ExtractMethod"/>
       <add-to-group group-id="Floating.CodeToolbar.Extract" anchor="first"/>
     </action>
+    <action id="ExtractFunctionToScope" class="org.jetbrains.kotlin.idea.k2.refactoring.extractFunction.ExtractK2FunctionToScopeAction"
+            use-shortcut-of="ExtractMethod">
+      <keyboard-shortcut keymap="$default" first-keystroke="control alt shift M"/>
+      <add-to-group group-id="IntroduceActionsGroup" anchor="after" relative-to-action="ExtractFunction"/>
+    </action>
   </actions>
 </idea-plugin>
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionAction.kt b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionAction.kt
index 4d4150e5fe17..fde187586c4a 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionAction.kt
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionAction.kt
@@ -11,7 +11,7 @@ import org.jetbrains.kotlin.psi.KtElement
 
 class ExtractK2FunctionAction : BasePlatformRefactoringAction() {
     override fun getRefactoringHandler(provider: RefactoringSupportProvider): RefactoringActionHandler? =
-        KotlinFirExtractFunctionHandler()
+        KotlinFirExtractFunctionHandler(false)
 
     override fun isAvailableInEditorOnly(): Boolean {
         return true
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionToScopeAction.kt b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionToScopeAction.kt
new file mode 100644
index 000000000000..d6db43c853b6
--- /dev/null
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/ExtractK2FunctionToScopeAction.kt
@@ -0,0 +1,22 @@
+// Copyright 2000-2024 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
+
+package org.jetbrains.kotlin.idea.k2.refactoring.extractFunction
+
+import com.intellij.lang.refactoring.RefactoringSupportProvider
+import com.intellij.psi.PsiElement
+import com.intellij.refactoring.RefactoringActionHandler
+import com.intellij.refactoring.actions.BasePlatformRefactoringAction
+import org.jetbrains.kotlin.idea.k2.refactoring.introduce.extractFunction.KotlinFirExtractFunctionHandler
+import org.jetbrains.kotlin.psi.KtElement
+
+class ExtractK2FunctionToScopeAction : BasePlatformRefactoringAction() {
+    override fun getRefactoringHandler(provider: RefactoringSupportProvider): RefactoringActionHandler? =
+        KotlinFirExtractFunctionHandler(true)
+
+    override fun isAvailableInEditorOnly(): Boolean {
+        return true
+    }
+
+    override fun isEnabledOnElements(elements: Array<out PsiElement>): Boolean =
+        elements.all { it is KtElement }
+}
\ No newline at end of file
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/KotlinFirExtractFunctionHandler.kt b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/KotlinFirExtractFunctionHandler.kt
index 46c2e1ba5296..c5f041c02174 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/KotlinFirExtractFunctionHandler.kt
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.k2/src/org/jetbrains/kotlin/idea/k2/refactoring/extractFunction/KotlinFirExtractFunctionHandler.kt
@@ -23,6 +23,7 @@ import org.jetbrains.kotlin.idea.k2.refactoring.extractFunction.ExtractionData
 import org.jetbrains.kotlin.idea.k2.refactoring.extractFunction.ExtractionGeneratorConfiguration
 import org.jetbrains.kotlin.idea.k2.refactoring.extractFunction.ExtractionResult
 import org.jetbrains.kotlin.idea.k2.refactoring.extractFunction.ui.KotlinFirExtractFunctionDialog
+import org.jetbrains.kotlin.idea.k2.refactoring.introduce.extractFunction.KotlinFirExtractFunctionHandler.InteractiveExtractionHelper
 import org.jetbrains.kotlin.idea.k2.refactoring.introduce.extractionEngine.ExtractionDataAnalyzer
 import org.jetbrains.kotlin.idea.k2.refactoring.introduce.extractionEngine.ExtractionEngineHelper
 import org.jetbrains.kotlin.idea.refactoring.introduce.extractFunction.AbstractExtractKotlinFunctionHandler
@@ -36,8 +37,11 @@ import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.isIdentifier
 import org.jetbrains.kotlin.utils.addToStdlib.safeAs
 
-class KotlinFirExtractFunctionHandler(private val helper: ExtractionEngineHelper = InplaceExtractionHelper) :
-    AbstractExtractKotlinFunctionHandler() {
+class KotlinFirExtractFunctionHandler(
+    private val acceptAllScopes: Boolean,
+    private val helper: ExtractionEngineHelper = InplaceExtractionHelper(acceptAllScopes)
+) :
+    AbstractExtractKotlinFunctionHandler(acceptAllScopes) {
 
     object InteractiveExtractionHelper : ExtractionEngineHelper(EXTRACT_FUNCTION) {
         @OptIn(KtAllowAnalysisOnEdt::class)
@@ -59,10 +63,10 @@ class KotlinFirExtractFunctionHandler(private val helper: ExtractionEngineHelper
         }
     }
 
-    object InplaceExtractionHelper : ExtractionEngineHelper(EXTRACT_FUNCTION),
-                                     AbstractInplaceExtractionHelper<KtType, ExtractionResult, ExtractableCodeDescriptorWithConflicts> {
+    class InplaceExtractionHelper(private val acceptAllScopes: Boolean) : ExtractionEngineHelper(EXTRACT_FUNCTION),
+                                                                          AbstractInplaceExtractionHelper<KtType, ExtractionResult, ExtractableCodeDescriptorWithConflicts> {
         override fun createRestartHandler(): AbstractExtractKotlinFunctionHandler =
-            KotlinFirExtractFunctionHandler(InteractiveExtractionHelper)
+            KotlinFirExtractFunctionHandler(acceptAllScopes, InteractiveExtractionHelper)
 
         override fun extractDuplicates(
             duplicateReplacers: Map<KotlinPsiRange, () -> Unit>, project: Project, editor: Editor
diff --git a/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/AbstractK2IntroduceFunctionTest.kt b/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/AbstractK2IntroduceFunctionTest.kt
index 2a7cd64e533a..e7e35f6d34fe 100644
--- a/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/AbstractK2IntroduceFunctionTest.kt
+++ b/plugins/kotlin/refactorings/kotlin.refactorings.tests.k2/test/org/jetbrains/kotlin/idea/k2/refactoring/introduceFunction/AbstractK2IntroduceFunctionTest.kt
@@ -33,6 +33,7 @@ abstract class AbstractK2IntroduceFunctionTest : AbstractExtractionTest() {
         extractionOptions: ExtractionOptions
     ): AbstractExtractKotlinFunctionHandler {
         return KotlinFirExtractFunctionHandler(
+            false,
             helper = object : ExtractionEngineHelper(EXTRACT_FUNCTION) {
                 override fun adjustExtractionData(data: ExtractionData): ExtractionData {
                     return ActionUtil.underModalProgress(project, "adjust for tests") {