diff --git a/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java b/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java
index 23a55d930ba3..5ae875036908 100644
--- a/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java
+++ b/java/java-impl/src/com/intellij/refactoring/inline/InlineMethodProcessor.java
@@ -606,9 +606,9 @@ public class InlineMethodProcessor extends BaseRefactoringProcessor {
       @NonNls String defaultValue;
       if (paramType instanceof PsiEllipsisType) {
         final PsiEllipsisType ellipsisType = (PsiEllipsisType)paramType;
-        paramType = ellipsisType.toArrayType();
+        paramType = callSubstitutor.substitute(ellipsisType.toArrayType());
         if (applicabilityLevel == MethodCandidateInfo.ApplicabilityLevel.VARARGS) {
-          defaultValue = "new " + ellipsisType.getComponentType().getCanonicalText() + "[]{}";
+          defaultValue = "new " + ((PsiArrayType)paramType).getComponentType().getCanonicalText() + "[]{}";
         }
         else {
           defaultValue = PsiTypesUtil.getDefaultValueOfType(paramType);
diff --git a/java/java-tests/testData/refactoring/inlineMethod/ArrayTypeInferenceFromVarargs.java b/java/java-tests/testData/refactoring/inlineMethod/ArrayTypeInferenceFromVarargs.java
new file mode 100644
index 000000000000..4b74065686c0
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineMethod/ArrayTypeInferenceFromVarargs.java
@@ -0,0 +1,9 @@
+class Test {
+  <T> void doSmth(T... ps) {
+    System.out.println(ps);
+  }
+
+  void m() {
+    doS<caret>mth(1, 2, 3);
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/inlineMethod/ArrayTypeInferenceFromVarargs.java.after b/java/java-tests/testData/refactoring/inlineMethod/ArrayTypeInferenceFromVarargs.java.after
new file mode 100644
index 000000000000..483a7e0443db
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlineMethod/ArrayTypeInferenceFromVarargs.java.after
@@ -0,0 +1,6 @@
+class Test {
+
+    void m() {
+        System.out.println(new Integer[]{1, 2, 3});
+    }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java
index 21e5c85695bf..38740d0aa0a7 100644
--- a/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java
+++ b/java/java-tests/testSrc/com/intellij/refactoring/inline/InlineMethodTest.java
@@ -165,6 +165,10 @@ public class InlineMethodTest extends LightCodeInsightTestCase {
     doTest();
   }
 
+  public void testArrayTypeInferenceFromVarargs() throws Exception {
+    doTest();
+  }
+
   private void doTest() throws Exception {
     String name = getTestName(false);
     @NonNls String fileName = "/refactoring/inlineMethod/" + name + ".java";