diff --git a/core/org.eclipse.cdt.ui.tests/resources/refactoring/ExtractMethod.rts b/core/org.eclipse.cdt.ui.tests/resources/refactoring/ExtractMethod.rts
index cbabba76867..d68aa090f12 100644
--- a/core/org.eclipse.cdt.ui.tests/resources/refactoring/ExtractMethod.rts
+++ b/core/org.eclipse.cdt.ui.tests/resources/refactoring/ExtractMethod.rts
@@ -2564,3 +2564,31 @@ int main() {
 	return 0;
 }
 
+//!Bug#262000 refactoring "extract function" misinterprets artificial blocks
+//#org.eclipse.cdt.ui.tests.refactoring.extractfunction.ExtractFunctionRefactoringTest
+//@.config
+filename=main.cpp
+methodname=exp
+//@main.cpp
+int main(int argc, char **argv) {
+
+	/*$*/int a = 0;
+	{
+		a++;
+	}/*$$*/
+
+}
+
+//=
+void exp()
+{
+    int a = 0;
+    {
+        a++;
+    }
+}
+
+int main(int argc, char **argv) {
+    exp();
+}
+
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/extractfunction/ExtractFunctionRefactoring.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/extractfunction/ExtractFunctionRefactoring.java
index a11840e197d..f317fa34a0a 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/extractfunction/ExtractFunctionRefactoring.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/extractfunction/ExtractFunctionRefactoring.java
@@ -714,8 +714,7 @@ public class ExtractFunctionRefactoring extends CRefactoring {
 
 			@Override
 			public int visit(IASTStatement stmt) {
-				if (!(stmt instanceof IASTCompoundStatement)
-						&& SelectionHelper.isSelectedFile(region, stmt, file)) {
+				if ( SelectionHelper.isSelectedFile(region, stmt, file)) {
 					container.add(stmt);
 					return PROCESS_SKIP;
 				}
diff --git a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/utils/SelectionHelper.java b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/utils/SelectionHelper.java
index dbf85ac0e5b..b829d90236e 100644
--- a/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/utils/SelectionHelper.java
+++ b/core/org.eclipse.cdt.ui/src/org/eclipse/cdt/internal/ui/refactoring/utils/SelectionHelper.java
@@ -105,15 +105,25 @@ public class SelectionHelper {
 	
 	protected static Region createExpressionPosition(IASTNode expression) {
 
-		int start = 0;
+		int start = Integer.MAX_VALUE;
 		int nodeLength = 0;
 		IASTNodeLocation[] nodeLocations = expression.getNodeLocations();
 		if (nodeLocations.length != 1) {
 			for (IASTNodeLocation location : nodeLocations) {
 				if (location instanceof IASTMacroExpansionLocation) {
 					IASTMacroExpansionLocation macroLoc = (IASTMacroExpansionLocation) location;
-					start = macroLoc.asFileLocation().getNodeOffset();
-					nodeLength = macroLoc.asFileLocation().getNodeLength();
+					int nodeOffset = macroLoc.asFileLocation().getNodeOffset();
+					if(nodeOffset < start) {
+						start = nodeOffset;
+					}
+					nodeLength += macroLoc.asFileLocation().getNodeLength();
+				}else {
+					IASTFileLocation loc = expression.getFileLocation();
+					int nodeOffset = loc.getNodeOffset();
+					if(nodeOffset < start) {
+						start = nodeOffset;
+					}
+					nodeLength = loc.getNodeLength();
 				}
 			}
 		} else {