diff --git a/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java b/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
index e382a76fa679..ab0f53555ac9 100644
--- a/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
+++ b/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
@@ -36,6 +36,7 @@ import com.intellij.openapi.editor.event.SelectionListener;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.IconLoader;
 import com.intellij.openapi.util.SystemInfo;
+import com.intellij.openapi.util.TextRange;
 import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.openapi.wm.IdeFocusManager;
 import com.intellij.ui.LightColors;
@@ -93,6 +94,8 @@ public class EditorSearchComponent extends JPanel implements DataProvider, Selec
   private MyLivePreviewController myLivePreviewController;
   private LivePreview myLivePreview;
 
+  private boolean mySupressUpdate = false;
+
 
   private boolean myListeningSelection = false;
   private SearchResults mySearchResults;
@@ -650,7 +653,12 @@ public class EditorSearchComponent extends JPanel implements DataProvider, Selec
   private void initLivePreview() {
     myDocumentListener = new DocumentAdapter() {
       public void documentChanged(final DocumentEvent e) {
-        updateResults(false);
+        if (!mySupressUpdate) {
+          myLivePreview.inSmartUpdate();
+          updateResults(false);
+        } else {
+          mySupressUpdate = false;
+        }
       }
     };
 
@@ -787,8 +795,12 @@ public class EditorSearchComponent extends JPanel implements DataProvider, Selec
     }
 
     public void performReplace() {
+      mySupressUpdate = true;
       String replacement = getStringToReplace(myEditor, mySearchResults.getCursor());
-      performReplace(mySearchResults.getCursor(), replacement, myEditor);
+      final TextRange textRange = performReplace(mySearchResults.getCursor(), replacement, myEditor);
+      if (textRange == null) {
+        mySupressUpdate = false;
+      }
       //getFocusBack();
       addTextToRecents(myReplaceField) ;
     }
diff --git a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java
index ae01bf38dc45..98dc5b45e4e4 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java
@@ -51,12 +51,23 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
   private static final Object IN_SELECTION1 = new Object();
   private static final Object IN_SELECTION2 = new Object();
   private boolean myListeningSelection = false;
+  private boolean mySuppressedUpdate = false;
+  private boolean myInSmartUpdate = false;
+  private static final Key<Object> MARKER_USED = Key.create("LivePreview.MARKER_USED");
 
   @Override
   public void selectionChanged(SelectionEvent e) {
     updateInSelectionHighlighters();
   }
 
+  public void supressUpdate() {
+    mySuppressedUpdate = true;
+  }
+
+  public void inSmartUpdate() {
+    myInSmartUpdate = true;
+  }
+
   public interface Delegate {
 
     @Nullable
@@ -120,10 +131,38 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
   @Override
   public void searchResultsUpdated(SearchResults sr) {
     if (mySearchResults.getProject().isDisposed()) return;
-    removeFromEditor(mySearchResults.getEditor());
+    if (mySuppressedUpdate) {
+      mySuppressedUpdate = false;
+      return;
+    }
+    if (!myInSmartUpdate) {
+      removeFromEditor();
+    }
 
     highlightUsages();
     updateCursorHighlighting(false);
+    if (myInSmartUpdate) {
+      clearUnusedHightlighters();
+      myInSmartUpdate = false;
+    }
+  }
+
+  private void clearUnusedHightlighters() {
+    Set<RangeHighlighter> unused = new com.intellij.util.containers.HashSet<RangeHighlighter>();
+    for (RangeHighlighter highlighter : myHighlighters) {
+      if (highlighter.getUserData(MARKER_USED) == null) {
+        unused.add(highlighter);
+      } else {
+        highlighter.putUserData(MARKER_USED, null);
+      }
+    }
+    myHighlighters.removeAll(unused);
+    Project project = mySearchResults.getProject();
+    if (!project.isDisposed()) {
+      for (RangeHighlighter highlighter : unused) {
+        HighlightManager.getInstance(project).removeSegmentHighlighter(mySearchResults.getEditor(), highlighter);
+      }
+    }
   }
 
   @Override
@@ -133,7 +172,7 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
   }
 
   public void editorChanged(SearchResults sr, Editor oldEditor) {
-    removeFromEditor(mySearchResults.getEditor());
+    removeFromEditor();
     oldEditor.getDocument().removeDocumentListener(this);
     mySearchResults.getEditor().getDocument().addDocumentListener(this);
   }
@@ -187,14 +226,15 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
 
 
   public void cleanUp() {
-    removeFromEditor(mySearchResults.getEditor());
+    removeFromEditor();
   }
 
   public void dispose() {
     mySearchResults.removeListener(this);
   }
 
-  private void removeFromEditor(Editor editor) {
+  private void removeFromEditor() {
+    Editor editor = mySearchResults.getEditor();
     if (myReplacementBalloon != null) {
       myReplacementBalloon.hide();
     }
@@ -244,7 +284,7 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
       mySearchResults.getEditor().getSelectionModel().addSelectionListener(this);
       myListeningSelection = true;
     }
-
+    
   }
 
   private void updateInSelectionHighlighters() {
@@ -319,6 +359,26 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
 
   @NotNull
   private RangeHighlighter highlightRange(TextRange textRange, TextAttributes attributes, Collection<RangeHighlighter> highlighters) {
+    if (myInSmartUpdate) {
+      for (RangeHighlighter highlighter : myHighlighters) {
+        if (highlighter.getStartOffset() == textRange.getStartOffset() && highlighter.getEndOffset() == textRange.getEndOffset()) {
+          if (attributes.equals(highlighter.getTextAttributes())) {
+            if (myInSmartUpdate) {
+              highlighter.putUserData(MARKER_USED, new Object());
+            }
+            return highlighter;
+          }
+        }
+      }
+    }
+    final RangeHighlighter highlighter = doHightlightRange(textRange, attributes, highlighters);
+    if (myInSmartUpdate) {
+      highlighter.putUserData(MARKER_USED, new Object());
+    }
+    return highlighter;
+  }
+
+  private RangeHighlighter doHightlightRange(TextRange textRange, TextAttributes attributes, Collection<RangeHighlighter> highlighters) {
     HighlightManager highlightManager = HighlightManager.getInstance(mySearchResults.getProject());
     final ArrayList<RangeHighlighter> dummy = new ArrayList<RangeHighlighter>();
     highlightManager.addRangeHighlight(mySearchResults.getEditor(),
diff --git a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java
index 2b8861bbf30c..d8b38eafddfb 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java
@@ -64,7 +64,7 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
 
   @Override
   public void searchResultsUpdated(SearchResults sr) {
-    setReplaceDenied(false);
+    //setReplaceDenied(false);
   }
 
   @Override
@@ -149,7 +149,7 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
         Runnable denyReplace = new Runnable() {
           @Override
           public void run() {
-            setReplaceDenied(true);
+            //setReplaceDenied(true);
           }
         };
         if (unitTestMode) {
@@ -213,8 +213,10 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
     if (myReplaceListener != null) {
       myReplaceListener.replacePerformed(occurrence, replacement, editor);
     }
-    setReplaceDenied(true);
+    //setReplaceDenied(true);
+    myLivePreview.inSmartUpdate();
     mySearchResults.updateThreadSafe(findModel, true, result, mySearchResults.getStamp());
+    //myLivePreview.supressUpdate();
     return result;
   }