diff --git a/src/tools/rust-analyzer/crates/ide-assists/src/handlers/extract_type_alias.rs b/src/tools/rust-analyzer/crates/ide-assists/src/handlers/extract_type_alias.rs
index 23573dc3388d..eda35eba45c9 100644
--- a/src/tools/rust-analyzer/crates/ide-assists/src/handlers/extract_type_alias.rs
+++ b/src/tools/rust-analyzer/crates/ide-assists/src/handlers/extract_type_alias.rs
@@ -1,6 +1,6 @@
 use either::Either;
 use hir::HirDisplay;
-use ide_db::syntax_helpers::node_ext::walk_ty;
+use ide_db::syntax_helpers::{node_ext::walk_ty, suggest_name::NameGenerator};
 use syntax::{
     ast::{self, AstNode, HasGenericArgs, HasGenericParams, HasName, edit::IndentLevel},
     syntax_editor,
@@ -40,9 +40,10 @@ pub(crate) fn extract_type_alias(acc: &mut Assists, ctx: &AssistContext<'_>) ->
     );
     let target = ty.syntax().text_range();
 
+    let scope = ctx.sema.scope(ty.syntax())?;
     let resolved_ty = ctx.sema.resolve_type(&ty)?;
     let resolved_ty = if !resolved_ty.contains_unknown() {
-        let module = ctx.sema.scope(ty.syntax())?.module();
+        let module = scope.module();
         resolved_ty.display_source_code(ctx.db(), module.into(), false).ok()?
     } else {
         ty.to_string()
@@ -57,6 +58,7 @@ pub(crate) fn extract_type_alias(acc: &mut Assists, ctx: &AssistContext<'_>) ->
             let make = editor.make();
 
             let resolved_ty = make.ty(&resolved_ty);
+            let name = &NameGenerator::new_from_scope_non_locals(Some(scope)).suggest_name("Type");
 
             let mut known_generics = match item.generic_param_list() {
                 Some(it) => it.generic_params().collect(),
@@ -75,15 +77,15 @@ pub(crate) fn extract_type_alias(acc: &mut Assists, ctx: &AssistContext<'_>) ->
             // Replace original type with the alias
             let ty_args = generic_params.as_ref().map(|it| it.to_generic_args().generic_args());
             let new_ty = if let Some(ty_args) = ty_args {
-                make.generic_ty_path_segment(make.name_ref("Type"), ty_args)
+                make.generic_ty_path_segment(make.name_ref(name), ty_args)
             } else {
-                make.path_segment(make.name_ref("Type"))
+                make.path_segment(make.name_ref(name))
             };
             editor.replace(ty.syntax(), new_ty.syntax());
 
             // Insert new alias
             let ty_alias =
-                make.ty_alias(None, "Type", generic_params, None, None, Some((resolved_ty, None)));
+                make.ty_alias(None, name, generic_params, None, None, Some((resolved_ty, None)));
 
             if let Some(cap) = ctx.config.snippet_cap
                 && let Some(name) = ty_alias.name()
@@ -447,4 +449,41 @@ fn main() {
             "#,
         )
     }
+
+    #[test]
+    fn duplicate_names() {
+        check_assist(
+            extract_type_alias,
+            r"
+struct Type;
+struct S {
+    field: $0u8$0,
+}
+            ",
+            r#"
+struct Type;
+type $0Type1 = u8;
+
+struct S {
+    field: Type1,
+}
+            "#,
+        );
+
+        check_assist(
+            extract_type_alias,
+            r"
+struct S<Type> {
+    field: $0u8$0,
+}
+            ",
+            r#"
+type $0Type1 = u8;
+
+struct S<Type> {
+    field: Type1,
+}
+            "#,
+        );
+    }
 }
diff --git a/src/tools/rust-analyzer/crates/ide-db/src/syntax_helpers/suggest_name.rs b/src/tools/rust-analyzer/crates/ide-db/src/syntax_helpers/suggest_name.rs
index 3a785fbe80a0..09e611532066 100644
--- a/src/tools/rust-analyzer/crates/ide-db/src/syntax_helpers/suggest_name.rs
+++ b/src/tools/rust-analyzer/crates/ide-db/src/syntax_helpers/suggest_name.rs
@@ -123,6 +123,20 @@ pub fn new_from_scope_locals(scope: Option<SemanticsScope<'_>>) -> Self {
         generator
     }
 
+    pub fn new_from_scope_non_locals(scope: Option<SemanticsScope<'_>>) -> Self {
+        let mut generator = Self::default();
+        if let Some(scope) = scope {
+            scope.process_all_names(&mut |name, scope| {
+                if let hir::ScopeDef::Local(_) = scope {
+                    return;
+                }
+                generator.insert(name.as_str());
+            });
+        }
+
+        generator
+    }
+
     /// Suggest a name without conflicts. If the name conflicts with existing names,
     /// it will try to resolve the conflict by adding a numeric suffix.
     pub fn suggest_name(&mut self, name: &str) -> SmolStr {