diff --git a/crates/ide-assists/src/handlers/inline_call.rs b/crates/ide-assists/src/handlers/inline_call.rs
index 621ac9223abd..78c4d3007e56 100644
--- a/crates/ide-assists/src/handlers/inline_call.rs
+++ b/crates/ide-assists/src/handlers/inline_call.rs
@@ -13,7 +13,7 @@ use ide_db::{
 };
 use itertools::{Itertools, izip};
 use syntax::{
-    AstNode, NodeOrToken, SyntaxKind, TextRange,
+    AstNode, NodeOrToken, SyntaxKind, T, TextRange,
     ast::{
         self, HasArgList, HasGenericArgs, Pat, PathExpr,
         edit::{AstNodeEdit, IndentLevel},
@@ -345,6 +345,7 @@ fn inline<'db>(
     file_editor: &SyntaxEditor,
 ) -> ast::Expr {
     let make = file_editor.make();
+    // Do not use original range as the body may be generated by a macro without mapping
     let file_id = sema.hir_file_for(fn_body.syntax());
 
     // Capture before `with_ast_node` re-roots and loses the source-relative position.
@@ -353,6 +354,7 @@ fn inline<'db>(
     let (editor, body) = SyntaxEditor::with_ast_node(fn_body);
 
     let usages_for_locals = |local| {
+        let body_root = fn_body.syntax().tree_top();
         Definition::Local(local)
             .usages(sema)
             .all()
@@ -360,6 +362,7 @@ fn inline<'db>(
             .remove(&function_def_file_id)
             .unwrap_or_default()
             .into_iter()
+            .filter(move |it| it.name.syntax().tree_top() == body_root)
     };
     let param_use_nodes: Vec<Vec<_>> = params
         .iter()
@@ -471,6 +474,27 @@ fn inline<'db>(
         for usage in &self_token_usages {
             editor.replace(usage.clone(), this_token.clone());
         }
+        // Due to the difficulty in handling the parameters referenced by macro calls
+        // in macro generation functions, so add a syntax-based fallback
+        let mut depth = 0u32;
+        let not_replaced = |it: &syntax::SyntaxElement| {
+            self_token_usages
+                .iter()
+                .all(|usage| !usage.text_range().contains_range(it.text_range()))
+        };
+        let is_item_like = |kind| ast::Item::can_cast(kind) && !ast::MacroCall::can_cast(kind);
+        for event in body.syntax().preorder_with_tokens() {
+            match event {
+                syntax::WalkEvent::Enter(it) if is_item_like(it.kind()) => depth += 1,
+                syntax::WalkEvent::Leave(it) if is_item_like(it.kind()) => depth -= 1,
+                syntax::WalkEvent::Enter(it)
+                    if it.kind() == T![self] && depth == 0 && not_replaced(&it) =>
+                {
+                    editor.replace(it, this_token.clone());
+                }
+                _ => (),
+            }
+        }
     };
 
     // Inline parameter expressions or generate `let` statements depending on whether inlining works or not.
@@ -611,10 +635,15 @@ fn inline<'db>(
         body = ast::BlockExpr::cast(body_prettified).unwrap();
     }
 
+    fn reindent<T: AstNodeEdit>(value: T) -> T {
+        value.reset_indent().indent(1.into())
+    }
     let is_async_fn = function.is_async(sema.db);
     if is_async_fn {
         cov_mark::hit!(inline_call_async_fn);
-        body = make.async_move_block_expr(body.statements(), body.tail_expr());
+        body = make
+            .async_move_block_expr(body.statements().map(reindent), body.tail_expr().map(reindent));
+        original_body_indent = IndentLevel(0);
 
         // Arguments should be evaluated outside the async block, and then moved into it.
         if !let_stmts.is_empty() {
@@ -624,8 +653,9 @@ fn inline<'db>(
         }
     } else if !let_stmts.is_empty() {
         // Prepend let statements to the body's existing statements
-        let stmts: Vec<ast::Stmt> = let_stmts.into_iter().chain(body.statements()).collect();
-        body = make.block_expr(stmts, body.tail_expr());
+        let stmts: Vec<ast::Stmt> =
+            let_stmts.into_iter().chain(body.statements().map(reindent)).collect();
+        body = make.block_expr(stmts, body.tail_expr().map(reindent));
         original_body_indent = IndentLevel(0);
     }
 
@@ -1917,6 +1947,64 @@ pub fn main() {
 
     #[test]
     fn inline_call_with_reference_in_macros() {
+        check_assist(
+            inline_call,
+            r#"
+macro_rules! identity { ($($t:tt)*) => { $($t)* }; }
+struct Foo;
+impl Foo {
+    fn foo(self, r1: u32, r2: u32, (complex,): (u32,)) {
+        identity! {
+            let _ = self;
+            let _ = r1;
+            let _ = (r2, r2);
+            let _ = complex;
+        }
+        impl Foo {
+            fn nested(self) { _ = self; }
+        }
+    }
+}
+fn bar() {
+    Foo.$0foo(1, 2, (3,));
+}
+"#,
+            r#"
+macro_rules! identity { ($($t:tt)*) => { $($t)* }; }
+struct Foo;
+impl Foo {
+    fn foo(self, r1: u32, r2: u32, (complex,): (u32,)) {
+        identity! {
+            let _ = self;
+            let _ = r1;
+            let _ = (r2, r2);
+            let _ = complex;
+        }
+        impl Foo {
+            fn nested(self) { _ = self; }
+        }
+    }
+}
+fn bar() {
+    {
+        let this = Foo;
+        let r1 = 1;
+        let r2 = 2;
+        let (complex,) = (3,);
+        identity! {
+            let _ = this;
+            let _ = r1;
+            let _ = (r2, r2);
+            let _ = complex;
+        }
+        impl Foo {
+            fn nested(self) { _ = self; }
+        }
+    };
+}
+"#,
+        );
+
         check_assist(
             inline_call,
             r#"
@@ -1955,7 +2043,7 @@ fn _hash2(self_: &u64, state: &mut u64) {
     };
 }
 "#,
-        )
+        );
     }
 
     #[test]