diff --git a/python/src/com/jetbrains/python/psi/impl/PyTryExceptStatementImpl.java b/python/src/com/jetbrains/python/psi/impl/PyTryExceptStatementImpl.java
index ba04db727680..e4fcd01a593c 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyTryExceptStatementImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyTryExceptStatementImpl.java
@@ -96,22 +96,19 @@ public class PyTryExceptStatementImpl extends PyElementImpl implements PyTryExce
                                      @NotNull ResolveState substitutor,
                                      PsiElement lastParent,
                                      @NotNull PsiElement place) {
-    if (lastParent != null) {
-      return true;
-    }
-
-    if (!getTryStatementList().processDeclarations(processor, substitutor, null, place)) {
+    final PyStatementList tryStatementList = getTryStatementList();
+    if (tryStatementList != lastParent && !tryStatementList.processDeclarations(processor, substitutor, null, place)) {
       return false;
     }
 
     for (PyExceptBlock block : getExceptBlocks()) {
-      if (!block.processDeclarations(processor, substitutor, null, place)) {
+      if (block != lastParent && !block.processDeclarations(processor, substitutor, null, place)) {
         return false;
       }
     }
 
     PyStatementList elseStatementList = getElseStatementList();
-    if (elseStatementList != null) {
+    if (elseStatementList != null && elseStatementList != lastParent) {
       return elseStatementList.processDeclarations(processor, substitutor, null, place);
     }
     return true;
diff --git a/python/testData/highlighting/continueInFinallyBlock.py b/python/testData/highlighting/continueInFinallyBlock.py
index 586fe87155d8..a1615782d8c2 100644
--- a/python/testData/highlighting/continueInFinallyBlock.py
+++ b/python/testData/highlighting/continueInFinallyBlock.py
@@ -1,5 +1,5 @@
 while True:
   try:
-    x
+    print "a"
   finally:
     <error descr="'continue' not supported inside 'finally' clause">continue</error>
\ No newline at end of file
diff --git a/python/testData/resolve/TryExceptElse.py b/python/testData/resolve/TryExceptElse.py
new file mode 100644
index 000000000000..6a8e0d766c7c
--- /dev/null
+++ b/python/testData/resolve/TryExceptElse.py
@@ -0,0 +1,6 @@
+try:
+  name = ""
+except:
+  pass
+else:
+  print na<ref>me
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyResolveTest.java b/python/testSrc/com/jetbrains/python/PyResolveTest.java
index 40e498f3ed06..38ec32666f49 100644
--- a/python/testSrc/com/jetbrains/python/PyResolveTest.java
+++ b/python/testSrc/com/jetbrains/python/PyResolveTest.java
@@ -58,6 +58,11 @@ public class PyResolveTest extends ResolveTestCase {
     assertTrue(targetElement instanceof PyTargetExpression);
   }
 
+  public void testTryExceptElse() throws Exception {
+    PsiElement targetElement = resolve();
+    assertTrue(targetElement instanceof PyTargetExpression);
+  }
+
   @Override
   protected String getTestDataPath() {
     return PathManager.getHomePath() + "/plugins/python/testData/resolve/";