diff --git a/python/src/META-INF/python-plugin-common.xml b/python/src/META-INF/python-plugin-common.xml
index 4d0e8d9a30c7..8f51fa96adb4 100644
--- a/python/src/META-INF/python-plugin-common.xml
+++ b/python/src/META-INF/python-plugin-common.xml
@@ -253,6 +253,7 @@
                   order="before completionAutoPopup"/>
 
     <referencesSearch implementation="com.jetbrains.python.psi.search.PyInitReferenceSearchExecutor"/>
+    <referencesSearch implementation="com.jetbrains.python.psi.search.PyKeywordArgumentSearchExecutor"/>
     <referencesSearch implementation="com.jetbrains.python.psi.search.PyStringReferenceSearch"/>
     <findUsagesHandlerFactory implementation="com.jetbrains.python.findUsages.PyFindUsagesHandlerFactory" id="Python"
                               order="last, before default"/>
@@ -276,6 +277,8 @@
 
     <lang.elementManipulator forClass="com.jetbrains.python.psi.PyStringLiteralExpression"
                              implementationClass="com.jetbrains.python.psi.impl.PyStringLiteralExpressionManipulator"/>
+    <lang.elementManipulator forClass="com.jetbrains.python.psi.PyKeywordArgument"
+                             implementationClass="com.jetbrains.python.psi.impl.PyKeywordArgumentManipulator"/>
 
     <analyzeStacktraceFilter implementation="com.jetbrains.python.run.PythonTracebackFilter"/>
 
diff --git a/python/src/com/jetbrains/python/psi/PyElementGenerator.java b/python/src/com/jetbrains/python/psi/PyElementGenerator.java
index 54c420b919d0..69a21d476235 100644
--- a/python/src/com/jetbrains/python/psi/PyElementGenerator.java
+++ b/python/src/com/jetbrains/python/psi/PyElementGenerator.java
@@ -41,7 +41,9 @@ public abstract class PyElementGenerator {
 
   public abstract PyBinaryExpression createBinaryExpression(String s, PyExpression expr, PyExpression listLiteral);
 
-  public abstract PyExpression createExpressionFromText(String text);
+  public abstract  PyExpression createExpressionFromText(String text);
+
+  public abstract PyExpression createExpressionFromText(final LanguageLevel languageLevel, String text);
 
   public abstract PsiElement insertItemIntoList(PyElement list, @Nullable PyExpression afterThis, PyExpression toInsert)
     throws IncorrectOperationException;
diff --git a/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java b/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java
index 3f6cbfd96fb4..49b38a1badf6 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java
@@ -191,7 +191,11 @@ public class PyElementGeneratorImpl extends PyElementGenerator {
   }
 
   public PyExpression createExpressionFromText(final String text) {
-    final PsiFile dummyFile = createDummyFile(LanguageLevel.getDefault(), text);
+    return createExpressionFromText(LanguageLevel.getDefault(), text);
+  }
+
+  public PyExpression createExpressionFromText(final LanguageLevel languageLevel, final String text) {
+    final PsiFile dummyFile = createDummyFile(languageLevel, text);
     final PyExpressionStatement expressionStatement = (PyExpressionStatement)dummyFile.getFirstChild();
     return expressionStatement.getExpression();
   }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentImpl.java b/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentImpl.java
index 27d0ddf3f9be..91c14a15db2c 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentImpl.java
@@ -1,6 +1,7 @@
 package com.jetbrains.python.psi.impl;
 
 import com.intellij.lang.ASTNode;
+import com.intellij.psi.PsiReference;
 import com.intellij.psi.util.PsiTreeUtil;
 import com.jetbrains.python.PyTokenTypes;
 import com.jetbrains.python.psi.PyExpression;
@@ -43,4 +44,13 @@ public class PyKeywordArgumentImpl extends PyElementImpl implements PyKeywordArg
     final PyExpression e = getValueExpression();
     return e != null ? e.getType(context) : null;
   }
+
+  @Override
+  public PsiReference getReference() {
+    final ASTNode keywordNode = getKeywordNode();
+    if (keywordNode != null) {
+      return new PyKeywordArgumentReference(this, keywordNode.getTextRange().shiftRight(-getTextRange().getStartOffset()));
+    }
+    return null;
+  }
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentManipulator.java b/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentManipulator.java
new file mode 100644
index 000000000000..9dbc90cb0883
--- /dev/null
+++ b/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentManipulator.java
@@ -0,0 +1,29 @@
+package com.jetbrains.python.psi.impl;
+
+import com.intellij.lang.ASTNode;
+import com.intellij.openapi.util.TextRange;
+import com.intellij.psi.AbstractElementManipulator;
+import com.intellij.util.IncorrectOperationException;
+import com.jetbrains.python.psi.LanguageLevel;
+import com.jetbrains.python.psi.PyCallExpression;
+import com.jetbrains.python.psi.PyElementGenerator;
+import com.jetbrains.python.psi.PyKeywordArgument;
+
+/**
+ * @author yole
+ */
+public class PyKeywordArgumentManipulator extends AbstractElementManipulator<PyKeywordArgument> {
+  @Override
+  public PyKeywordArgument handleContentChange(PyKeywordArgument element, TextRange range, String newContent) throws IncorrectOperationException {
+    final ASTNode keywordNode = element.getKeywordNode();
+    if (keywordNode != null && keywordNode.getTextRange().shiftRight(-element.getTextRange().getStartOffset()).equals(range)) {
+      final LanguageLevel langLevel = LanguageLevel.forElement(element);
+      final PyElementGenerator generator = PyElementGenerator.getInstance(element.getProject());
+      final PyCallExpression callExpression = (PyCallExpression) generator.createExpressionFromText(langLevel, "foo(" + newContent + "=None)");
+      final PyKeywordArgument kwArg = callExpression.getArgumentList().getKeywordArgument(newContent);
+      element.getKeywordNode().getPsi().replace(kwArg.getKeywordNode().getPsi());
+      return element;
+    }
+    throw new IncorrectOperationException("unsupported manipulation on keyword argument");
+  }
+}
diff --git a/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentReference.java b/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentReference.java
new file mode 100644
index 000000000000..8da109b8affc
--- /dev/null
+++ b/python/src/com/jetbrains/python/psi/impl/PyKeywordArgumentReference.java
@@ -0,0 +1,68 @@
+package com.jetbrains.python.psi.impl;
+
+import com.intellij.openapi.util.TextRange;
+import com.intellij.psi.*;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.jetbrains.python.psi.*;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+
+import java.util.ArrayList;
+import java.util.List;
+
+/**
+ * @author yole
+ */
+public class PyKeywordArgumentReference extends PsiReferenceBase.Poly<PyKeywordArgument> {
+  public PyKeywordArgumentReference(@NotNull PyKeywordArgument element, TextRange textRange) {
+    super(element, textRange, true);
+  }
+
+  @NotNull
+  @Override
+  public ResolveResult[] multiResolve(boolean incompleteCode) {
+    PyCallExpression call = PsiTreeUtil.getParentOfType(myElement, PyCallExpression.class);
+    assert call != null;
+    final PyExpression callee = call.getCallee();
+    if (callee == null) return ResolveResult.EMPTY_ARRAY;
+    final PsiPolyVariantReference calleeReference = (PsiPolyVariantReference) callee.getReference();
+    if (calleeReference == null) return ResolveResult.EMPTY_ARRAY;
+    final ResolveResult[] calleeCandidates = calleeReference.multiResolve(incompleteCode);
+    List<ResolveResult> resultList = new ArrayList<ResolveResult>();
+    for (ResolveResult calleeCandidate : calleeCandidates) {
+      if (!calleeCandidate.isValidResult()) continue;
+      final PsiElement element = calleeCandidate.getElement();
+      if (element == null) continue;
+      final PyFunction calleeFunction = resolveToFunction(element);
+      if (calleeFunction != null) {
+        final PsiElement result = calleeFunction.getParameterList().getElementNamed(myElement.getKeyword());
+        if (result != null) {
+          resultList.add(new PsiElementResolveResult(result));
+        }
+      }
+    }
+    return resultList.toArray(new ResolveResult[resultList.size()]);
+  }
+
+  @Nullable
+  private static PyFunction resolveToFunction(PsiElement element) {
+    if (element instanceof PyFunction) {
+      return (PyFunction) element;
+    }
+    if (element instanceof PyTargetExpression) {
+      final PyExpression assignedValue = ((PyTargetExpression)element).findAssignedValue();
+      return resolveToFunction(assignedValue);
+    }
+    if (element instanceof PyReferenceExpression) {
+      final PsiElement resolveResult = ((PyReferenceExpression)element).getReference().resolve();
+      return resolveToFunction(resolveResult);
+    }
+    return null;
+  }
+
+  @NotNull
+  @Override
+  public Object[] getVariants() {
+    return new Object[0];  //To change body of implemented methods use File | Settings | File Templates.
+  }
+}
diff --git a/python/src/com/jetbrains/python/psi/search/PyKeywordArgumentSearchExecutor.java b/python/src/com/jetbrains/python/psi/search/PyKeywordArgumentSearchExecutor.java
new file mode 100644
index 000000000000..fba0d68c573b
--- /dev/null
+++ b/python/src/com/jetbrains/python/psi/search/PyKeywordArgumentSearchExecutor.java
@@ -0,0 +1,44 @@
+package com.jetbrains.python.psi.search;
+
+import com.intellij.openapi.application.QueryExecutorBase;
+import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiReference;
+import com.intellij.psi.search.searches.ReferencesSearch;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.intellij.util.Processor;
+import com.jetbrains.python.psi.*;
+import org.jetbrains.annotations.NotNull;
+
+/**
+ * @author yole
+ */
+public class PyKeywordArgumentSearchExecutor extends QueryExecutorBase<PsiReference, ReferencesSearch.SearchParameters> {
+  @Override
+  public void processQuery(@NotNull ReferencesSearch.SearchParameters queryParameters, @NotNull final Processor<PsiReference> consumer) {
+    final PsiElement element = queryParameters.getElementToSearch();
+    if (!(element instanceof PyNamedParameter)) {
+      return;
+    }
+    PyFunction owner = PsiTreeUtil.getParentOfType(element, PyFunction.class);
+    if (owner == null) {
+      return;
+    }
+    ReferencesSearch.search(owner, queryParameters.getScope()).forEach(new Processor<PsiReference>() {
+      @Override
+      public boolean process(PsiReference reference) {
+        final PsiElement refElement = reference.getElement();
+        final PyCallExpression call = PsiTreeUtil.getParentOfType(refElement, PyCallExpression.class);
+        if (call != null && PsiTreeUtil.isAncestor(call.getCallee(), refElement, false)) {
+          final PyArgumentList argumentList = call.getArgumentList();
+          if (argumentList != null) {
+            final PyKeywordArgument keywordArgument = argumentList.getKeywordArgument(((PyNamedParameter)element).getName());
+            if (keywordArgument != null) {
+              return consumer.process(keywordArgument.getReference());
+            }
+          }
+        }
+        return true;
+      }
+    });
+  }
+}
diff --git a/python/src/com/jetbrains/python/refactoring/RefactoringProvider.java b/python/src/com/jetbrains/python/refactoring/RefactoringProvider.java
index 47bf49641deb..1d96a3126d58 100644
--- a/python/src/com/jetbrains/python/refactoring/RefactoringProvider.java
+++ b/python/src/com/jetbrains/python/refactoring/RefactoringProvider.java
@@ -6,7 +6,6 @@ import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.refactoring.RefactoringActionHandler;
 import com.jetbrains.python.psi.PyClass;
 import com.jetbrains.python.psi.PyFunction;
-import com.jetbrains.python.psi.PyNamedParameter;
 import com.jetbrains.python.psi.PyTargetExpression;
 import com.jetbrains.python.refactoring.classes.extractSuperclass.PyExtractSuperclassHandler;
 import com.jetbrains.python.refactoring.classes.pullUp.PyPullUpHandler;
@@ -62,9 +61,6 @@ public class RefactoringProvider extends RefactoringSupportProvider {
       if (element instanceof PyTargetExpression || element instanceof PyFunction || element instanceof PyClass) {
         return true;
       }
-      if (element instanceof PyNamedParameter) {
-        return containingFunction.getContainingClass() == null;
-      }
     }
     return false;
   }
diff --git a/python/testData/refactoring/rename/renameKeywordArgument.py b/python/testData/refactoring/rename/renameKeywordArgument.py
new file mode 100644
index 000000000000..e063e60981b6
--- /dev/null
+++ b/python/testData/refactoring/rename/renameKeywordArgument.py
@@ -0,0 +1,4 @@
+def foo(b<caret>ar=True):
+    pass
+
+foo(bar=False)
\ No newline at end of file
diff --git a/python/testData/refactoring/rename/renameKeywordArgument_after.py b/python/testData/refactoring/rename/renameKeywordArgument_after.py
new file mode 100644
index 000000000000..8cc1cc40a686
--- /dev/null
+++ b/python/testData/refactoring/rename/renameKeywordArgument_after.py
@@ -0,0 +1,4 @@
+def foo(baz=True):
+    pass
+
+foo(baz=False)
\ No newline at end of file
diff --git a/python/testData/resolve/KeywordArgument.py b/python/testData/resolve/KeywordArgument.py
new file mode 100644
index 000000000000..ee370714b131
--- /dev/null
+++ b/python/testData/resolve/KeywordArgument.py
@@ -0,0 +1,5 @@
+def foo(bar=True):
+    pass
+
+foo(bar=False)
+#    <ref>
diff --git a/python/testSrc/com/jetbrains/python/PyResolveTest.java b/python/testSrc/com/jetbrains/python/PyResolveTest.java
index e4a933e29aa4..5d5d0df7b060 100644
--- a/python/testSrc/com/jetbrains/python/PyResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/PyResolveTest.java
@@ -417,4 +417,8 @@ public class PyResolveTest extends PyResolveTestCase {
   public void testDontResolveTargetToBuiltins() {  // PY-4256
     assertResolvesTo(PyTargetExpression.class, "str");
   }
+  
+  public void testKeywordArgument() {
+    assertResolvesTo(PyNamedParameter.class, "bar");
+  }
 }
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/refactoring/PyRenameTest.java b/python/testSrc/com/jetbrains/python/refactoring/PyRenameTest.java
index 06abfec34864..3c92a6a60612 100644
--- a/python/testSrc/com/jetbrains/python/refactoring/PyRenameTest.java
+++ b/python/testSrc/com/jetbrains/python/refactoring/PyRenameTest.java
@@ -77,6 +77,10 @@ public class PyRenameTest extends PyLightFixtureTestCase {
   public void testRenameSlots() {  // PY-4195
     doTest("bacon");
   }
+  
+  public void testRenameKeywordArgument() {  // PY-3890
+    doTest("baz");
+  }
 
   public void testClassNameConflict() {  // PY-2390
     doRenameConflictTest("Foo", "A class named 'Foo' is already defined in classNameConflict.py");