diff --git a/python/src/com/jetbrains/python/console/PyConsoleIndentUtil.java b/python/src/com/jetbrains/python/console/PyConsoleIndentUtil.java
index e64c60806c01..83568809455c 100644
--- a/python/src/com/jetbrains/python/console/PyConsoleIndentUtil.java
+++ b/python/src/com/jetbrains/python/console/PyConsoleIndentUtil.java
@@ -95,7 +95,7 @@ public class PyConsoleIndentUtil {
         }
         lastIndent = indentArray[i];
         indentArray[i] -= indent;
-        if (lines.get(i).trim().endsWith(":")) {
+        if (shouldIndent(lines.get(i))) {
           lastIndented = true;
         }
         else {
@@ -121,4 +121,12 @@ public class PyConsoleIndentUtil {
 
     return result.toString();
   }
+
+  public static boolean shouldIndent(@NotNull String line) {
+    if (line.contains("#")) {
+      line = line.substring(0, line.indexOf("#")); //strip comments
+      line = line.trim();
+    }
+    return line.endsWith(":");
+  }
 }
diff --git a/python/src/com/jetbrains/python/console/PydevConsoleExecuteActionHandler.java b/python/src/com/jetbrains/python/console/PydevConsoleExecuteActionHandler.java
index 6dc4e44b6e6b..68a7c3333286 100644
--- a/python/src/com/jetbrains/python/console/PydevConsoleExecuteActionHandler.java
+++ b/python/src/com/jetbrains/python/console/PydevConsoleExecuteActionHandler.java
@@ -76,7 +76,7 @@ public class PydevConsoleExecuteActionHandler extends ConsoleExecuteActionHandle
     if (StringUtil.isEmptyOrSpaces(line)) {
       doProcessLine("\n");
     }
-    else if (indentSize == 0 && indentSize < myCurrentIndentSize && !shouldIndent(line) && !myConsoleCommunication.isWaitingForInput()) {
+    else if (indentSize == 0 && indentSize < myCurrentIndentSize && !PyConsoleIndentUtil.shouldIndent(line) && !myConsoleCommunication.isWaitingForInput()) {
       doProcessLine("\n");
       doProcessLine(line);
     }
@@ -140,7 +140,7 @@ public class PydevConsoleExecuteActionHandler extends ConsoleExecuteActionHandle
     if (!StringUtil.isEmptyOrSpaces(line)) {
       int indent = IndentHelperImpl.getIndent(getProject(), PythonFileType.INSTANCE, line, false);
       boolean flag = false;
-      if (shouldIndent(line)) {
+      if (PyConsoleIndentUtil.shouldIndent(line)) {
         indent += getPythonIndent();
         flag = true;
       }
@@ -276,10 +276,6 @@ public class PydevConsoleExecuteActionHandler extends ConsoleExecuteActionHandle
     }
   }
 
-  private static boolean shouldIndent(String line) {
-    return line.endsWith(":");
-  }
-
   public int getPythonIndent() {
     return CodeStyleSettingsManager.getSettings(getProject()).getIndentSize(PythonFileType.INSTANCE);
   }
diff --git a/python/src/com/jetbrains/python/debugger/PyDebugRunner.java b/python/src/com/jetbrains/python/debugger/PyDebugRunner.java
index 8b91415c6719..f980a7f859c5 100644
--- a/python/src/com/jetbrains/python/debugger/PyDebugRunner.java
+++ b/python/src/com/jetbrains/python/debugger/PyDebugRunner.java
@@ -176,6 +176,8 @@ public class PyDebugRunner extends GenericProgramRunner {
       debugParams.addParameter("--DEBUG");
     }
 
+    //debugParams.addParameter("--save-signatures");
+
     final String[] debuggerArgs = new String[]{
       CLIENT_PARAM, "127.0.0.1",
       PORT_PARAM, String.valueOf(serverLocalPort),
diff --git a/python/testData/console/indent5.after.py b/python/testData/console/indent5.after.py
new file mode 100644
index 000000000000..00d19a903408
--- /dev/null
+++ b/python/testData/console/indent5.after.py
@@ -0,0 +1,4 @@
+def dN(x,mu,si):    # pdf normal distribution
+    z = (x - mu) / si
+    return exp(-0.5 * z ** 2) / sqrt(2 * pi * si ** 2)
+S0 = 100.0       # initial index level
\ No newline at end of file
diff --git a/python/testData/console/indent5.py b/python/testData/console/indent5.py
new file mode 100644
index 000000000000..00d19a903408
--- /dev/null
+++ b/python/testData/console/indent5.py
@@ -0,0 +1,4 @@
+def dN(x,mu,si):    # pdf normal distribution
+    z = (x - mu) / si
+    return exp(-0.5 * z ** 2) / sqrt(2 * pi * si ** 2)
+S0 = 100.0       # initial index level
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyConsoleIndentTest.java b/python/testSrc/com/jetbrains/python/PyConsoleIndentTest.java
index 6a3545ba44db..8deef4254f68 100644
--- a/python/testSrc/com/jetbrains/python/PyConsoleIndentTest.java
+++ b/python/testSrc/com/jetbrains/python/PyConsoleIndentTest.java
@@ -27,6 +27,10 @@ public class PyConsoleIndentTest extends UsefulTestCase{
     doTest();
   }
 
+  public void testIndent5() {
+    doTest();
+  }
+
   private void doTest() {
     String name = getTestName(true);
     try {