diff --git a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateClassFromUsageBaseFix.java b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateClassFromUsageBaseFix.java
index 4042295af3ce..8973c26423ad 100644
--- a/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateClassFromUsageBaseFix.java
+++ b/java/java-impl/src/com/intellij/codeInsight/daemon/impl/quickfix/CreateClassFromUsageBaseFix.java
@@ -65,10 +65,11 @@ public abstract class CreateClassFromUsageBaseFix extends BaseIntentionAction {
           parent.getParent() instanceof PsiVariable ||
           parent.getParent() instanceof PsiMethod ||
           parent.getParent() instanceof PsiClassObjectAccessExpression ||
-          parent.getParent() instanceof PsiTypeCastExpression ||
-          (parent.getParent() instanceof PsiInstanceOfExpression && ((PsiInstanceOfExpression)parent.getParent()).getCheckType() == parent)) {
+          parent.getParent() instanceof PsiTypeCastExpression) {
         return true;
       }
+      PsiInstanceOfExpression instanceOfExpression = PsiTreeUtil.getParentOfType(parent, PsiInstanceOfExpression.class);
+      if (instanceOfExpression != null && instanceOfExpression.getCheckType() == parent) return true;
     }
     else if (parent instanceof PsiReferenceList) {
       if (myKind == CreateClassKind.ENUM || myKind == CreateClassKind.RECORD) return false;
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createInnerClassFromUsage/afterInstanceof.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createInnerClassFromUsage/afterInstanceof.java
new file mode 100644
index 000000000000..f557d06adfd6
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createInnerClassFromUsage/afterInstanceof.java
@@ -0,0 +1,9 @@
+// "Create inner class 'Foo'" "true"
+public class Test {
+  boolean foo(Object o) {
+    return o instanceof Foo;
+  }
+
+    private class Foo {
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createInnerClassFromUsage/beforeInstanceof.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createInnerClassFromUsage/beforeInstanceof.java
new file mode 100644
index 000000000000..5031200d60c8
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/quickFix/createInnerClassFromUsage/beforeInstanceof.java
@@ -0,0 +1,6 @@
+// "Create inner class 'Foo'" "true"
+public class Test {
+  boolean foo(Object o) {
+    return o instanceof F<caret>oo;
+  }
+}
\ No newline at end of file