diff --git a/src/compiler/diagnosticMessages.json b/src/compiler/diagnosticMessages.json
index c3c8a58d8f5..f0f102bd129 100644
--- a/src/compiler/diagnosticMessages.json
+++ b/src/compiler/diagnosticMessages.json
@@ -7564,7 +7564,7 @@
         "category": "Message",
         "code": 95153
     },
-    "Can only convert string concatenation": {
+    "Can only convert string concatenations and string literals": {
         "category": "Message",
         "code": 95154
     },
diff --git a/src/services/refactors/convertStringOrTemplateLiteral.ts b/src/services/refactors/convertStringOrTemplateLiteral.ts
index a13e4f6f6eb..a43121260aa 100644
--- a/src/services/refactors/convertStringOrTemplateLiteral.ts
+++ b/src/services/refactors/convertStringOrTemplateLiteral.ts
@@ -15,6 +15,7 @@ import {
     getTokenAtPosition,
     getTrailingCommentRanges,
     isBinaryExpression,
+    isExpressionNode,
     isNoSubstitutionTemplateLiteral,
     isParenthesizedExpression,
     isStringLiteral,
@@ -58,14 +59,19 @@ function getRefactorActionsToConvertToTemplateString(context: RefactorContext):
     const { file, startPosition } = context;
     const node = getNodeOrParentOfParentheses(file, startPosition);
     const maybeBinary = getParentBinaryExpression(node);
+    const nodeIsStringLiteral = isStringLiteral(maybeBinary);
     const refactorInfo: ApplicableRefactorInfo = { name: refactorName, description: refactorDescription, actions: [] };
 
-    if (isBinaryExpression(maybeBinary) && treeToArray(maybeBinary).isValidConcatenation) {
+    if (nodeIsStringLiteral && context.triggerReason !== "invoked") {
+        return emptyArray;
+    }
+
+    if (isExpressionNode(maybeBinary) && (nodeIsStringLiteral || isBinaryExpression(maybeBinary) && treeToArray(maybeBinary).isValidConcatenation)) {
         refactorInfo.actions.push(convertStringAction);
         return [refactorInfo];
     }
     else if (context.preferences.provideRefactorNotApplicableReason) {
-        refactorInfo.actions.push({ ...convertStringAction, notApplicableReason: getLocaleSpecificMessage(Diagnostics.Can_only_convert_string_concatenation) });
+        refactorInfo.actions.push({ ...convertStringAction, notApplicableReason: getLocaleSpecificMessage(Diagnostics.Can_only_convert_string_concatenations_and_string_literals) });
         return [refactorInfo];
     }
     return emptyArray;
diff --git a/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateInvalidLocation.ts b/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateInvalidLocation.ts
new file mode 100644
index 00000000000..9abc6840992
--- /dev/null
+++ b/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateInvalidLocation.ts
@@ -0,0 +1,37 @@
+/// <reference path='fourslash.ts' />
+
+//// import * as a from "/*1a*/f/*1b*/oobar";
+//// export * as b from "/*2a*/f/*2b*/oobar";
+//// import * as c from "foobar" assert { "/*3a*/f/*3b*/oobar": "something" };
+//// import * as d from "foobar" assert { "something": "/*4a*/f/*4b*/oobar" };
+//// 
+//// let x = {
+////     "/*5a*/f/*5b*/oobar": 1234,
+//// };
+
+verify.getSyntacticDiagnostics([]);
+
+goTo.select("1a", "1b");
+verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
+
+goTo.select("2a", "2b");
+verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
+
+goTo.select("3a", "3b");
+verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
+
+goTo.select("4a", "4b");
+verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
+
+goTo.select("5a", "5b");
+verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
diff --git a/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSimple.ts b/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSimple.ts
index 86b1300ad01..f9d327b3ac9 100644
--- a/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSimple.ts
+++ b/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSimple.ts
@@ -3,4 +3,15 @@
 //// const foo = "/*x*/f/*y*/oobar rocks"
 
 goTo.select("x", "y");
-verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
\ No newline at end of file
+verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
+
+edit.applyRefactor({
+    refactorName: "Convert to template string",
+    actionName: "Convert to template string",
+    actionDescription: ts.Diagnostics.Convert_to_template_string.message,
+    triggerReason: "invoked",
+    newContent:
+        `const foo = \`foobar rocks\``,
+});
diff --git a/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSingleQuote.ts b/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSingleQuote.ts
index 8883cbb3ae3..a3606a0ca64 100644
--- a/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSingleQuote.ts
+++ b/tests/cases/fourslash/refactorConvertStringOrTemplateLiteral_ToTemplateSingleQuote.ts
@@ -4,3 +4,14 @@
 
 goTo.select("x", "y");
 verify.not.refactorAvailable(ts.Diagnostics.Convert_to_template_string.message);
+verify.refactorAvailableForTriggerReason("invoked", ts.Diagnostics.Convert_to_template_string.message);
+verify.not.refactorAvailableForTriggerReason("implicit", ts.Diagnostics.Convert_to_template_string.message);
+
+edit.applyRefactor({
+    refactorName: "Convert to template string",
+    actionName: "Convert to template string",
+    actionDescription: ts.Diagnostics.Convert_to_template_string.message,
+    triggerReason: "invoked",
+    newContent:
+        `const foo = \`foobar rocks\``,
+});