diff --git a/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java b/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
index ab1f8b074935..c8e8756b010e 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/PsiUtil.java
@@ -306,6 +306,9 @@ public final class PsiUtil extends PsiUtilCore {
     PsiElement codeBlock = null;
     if (variable instanceof PsiParameter) {
       PsiElement declarationScope = ((PsiParameter)variable).getDeclarationScope();
+      if (variable instanceof PsiPatternVariable) {
+        return declarationScope;
+      }
       if (declarationScope instanceof PsiCatchSection) {
         codeBlock = ((PsiCatchSection)declarationScope).getCatchBlock();
       }
diff --git a/java/java-tests/testData/refactoring/inlinePatternVariable/InNestedCondition.java b/java/java-tests/testData/refactoring/inlinePatternVariable/InNestedCondition.java
new file mode 100644
index 000000000000..4e826eaa9bd0
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlinePatternVariable/InNestedCondition.java
@@ -0,0 +1,7 @@
+class Test {
+  void test(Object obj) {
+    if (Math.random() > 0.5 || (obj instanceof String <caret>s && s.isEmpty())) {
+      System.out.println();
+    }
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testData/refactoring/inlinePatternVariable/InNestedCondition.java.after b/java/java-tests/testData/refactoring/inlinePatternVariable/InNestedCondition.java.after
new file mode 100644
index 000000000000..7d3e1bde93b6
--- /dev/null
+++ b/java/java-tests/testData/refactoring/inlinePatternVariable/InNestedCondition.java.after
@@ -0,0 +1,7 @@
+class Test {
+  void test(Object obj) {
+    if (Math.random() > 0.5 || (obj instanceof String && ((String) obj).isEmpty())) {
+      System.out.println();
+    }
+  }
+}
\ No newline at end of file
diff --git a/java/java-tests/testSrc/com/intellij/java/refactoring/inline/InlinePatternVariableTest.java b/java/java-tests/testSrc/com/intellij/java/refactoring/inline/InlinePatternVariableTest.java
index 3fbac3d5f5c7..cc13416657c8 100644
--- a/java/java-tests/testSrc/com/intellij/java/refactoring/inline/InlinePatternVariableTest.java
+++ b/java/java-tests/testSrc/com/intellij/java/refactoring/inline/InlinePatternVariableTest.java
@@ -22,6 +22,7 @@ public class InlinePatternVariableTest extends LightJavaCodeInsightTestCase {
   public void testSimple() { doTest(); }
   public void testSimpleAtRef() { doTest(); }
   public void testTernary() { doTest(); }
+  public void testInNestedCondition() { doTest(); }
 
   @Override
   protected @NotNull LightProjectDescriptor getProjectDescriptor() {