diff --git a/src/services/refactors/extractSymbol.ts b/src/services/refactors/extractSymbol.ts
index 4fadc5fdefb..9efcce30066 100644
--- a/src/services/refactors/extractSymbol.ts
+++ b/src/services/refactors/extractSymbol.ts
@@ -111,6 +111,7 @@ import {
     LabeledStatement,
     last,
     map,
+    mapDefined,
     MethodDeclaration,
     Modifier,
     ModifierFlags,
@@ -1070,12 +1071,12 @@ function extractFunctionInScope(
         callArguments.push(factory.createIdentifier(name));
     });
 
-    const typeParametersAndDeclarations = arrayFrom(typeParameterUsages.values(), type => ({ type, declaration: getFirstDeclaration(type) }));
+    const typeParametersAndDeclarations = arrayFrom(typeParameterUsages.values(), type => ({ type, declaration: getFirstDeclarationBeforePosition(type, context.startPosition) }));
     const sortedTypeParametersAndDeclarations = typeParametersAndDeclarations.sort(compareTypesByDeclarationOrder);
 
     const typeParameters: readonly TypeParameterDeclaration[] | undefined = sortedTypeParametersAndDeclarations.length === 0
         ? undefined
-        : sortedTypeParametersAndDeclarations.map(t => t.declaration as TypeParameterDeclaration);
+        : mapDefined(sortedTypeParametersAndDeclarations, ({ declaration }) => declaration as TypeParameterDeclaration);
 
     // Strictly speaking, we should check whether each name actually binds to the appropriate type
     // parameter.  In cases of shadowing, they may not.
@@ -1547,13 +1548,13 @@ function getContainingVariableDeclarationIfInList(node: Node, scope: Scope) {
     }
 }
 
-function getFirstDeclaration(type: Type): Declaration | undefined {
+function getFirstDeclarationBeforePosition(type: Type, position: number): Declaration | undefined {
     let firstDeclaration;
 
     const symbol = type.symbol;
     if (symbol && symbol.declarations) {
         for (const declaration of symbol.declarations) {
-            if (firstDeclaration === undefined || declaration.pos < firstDeclaration.pos) {
+            if ((firstDeclaration === undefined || declaration.pos < firstDeclaration.pos) && declaration.pos < position) {
                 firstDeclaration = declaration;
             }
         }
diff --git a/tests/cases/fourslash/extract-method-generics-inside-extraction1.ts b/tests/cases/fourslash/extract-method-generics-inside-extraction1.ts
new file mode 100644
index 00000000000..f585b96e918
--- /dev/null
+++ b/tests/cases/fourslash/extract-method-generics-inside-extraction1.ts
@@ -0,0 +1,22 @@
+/// <reference path='fourslash.ts' />
+
+////function f() {
+////    let g = /*start*/<T>(x: T) => x/*end*/;
+////    return g;
+////}
+
+goTo.select('start', 'end');
+edit.applyRefactor({
+    refactorName: "Extract Symbol",
+    actionName: "function_scope_1",
+    actionDescription: "Extract to function in global scope",
+    newContent:
+`function f() {
+    let g = /*RENAME*/newFunction();
+    return g;
+}
+
+function newFunction() {
+    return <T>(x: T) => x;
+}
+`});
diff --git a/tests/cases/fourslash/extract-method-generics-inside-extraction2.ts b/tests/cases/fourslash/extract-method-generics-inside-extraction2.ts
new file mode 100644
index 00000000000..62982480124
--- /dev/null
+++ b/tests/cases/fourslash/extract-method-generics-inside-extraction2.ts
@@ -0,0 +1,20 @@
+/// <reference path='fourslash.ts' />
+
+////function satisfies<A>() {
+////    return /*start*/<T extends A>(x: T) => x/*end*/;
+////}
+
+goTo.select('start', 'end');
+edit.applyRefactor({
+    refactorName: "Extract Symbol",
+    actionName: "function_scope_1",
+    actionDescription: "Extract to function in global scope",
+    newContent:
+`function satisfies<A>() {
+    return /*RENAME*/newFunction<A>();
+}
+
+function newFunction<A>() {
+    return <T extends A>(x: T) => x;
+}
+`});