diff --git a/python/src/com/jetbrains/python/editor/PythonCopyPasteProcessor.java b/python/src/com/jetbrains/python/editor/PythonCopyPasteProcessor.java
index 03624c511007..0ddf46a7de80 100644
--- a/python/src/com/jetbrains/python/editor/PythonCopyPasteProcessor.java
+++ b/python/src/com/jetbrains/python/editor/PythonCopyPasteProcessor.java
@@ -11,10 +11,9 @@ import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.psi.PsiElement;
 import com.intellij.psi.PsiFile;
 import com.intellij.psi.PsiWhiteSpace;
+import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.util.PsiUtilCore;
-import com.jetbrains.python.psi.PyClass;
 import com.jetbrains.python.psi.PyFile;
-import com.jetbrains.python.psi.PyFunction;
 import com.jetbrains.python.psi.PyStatementList;
 
 import java.util.List;
@@ -54,14 +53,8 @@ public class PythonCopyPasteProcessor implements CopyPastePreProcessor {
       final PsiElement element1 = PsiUtilCore.getElementAtOffset(file, offset);
       boolean moved = false;
       if (element instanceof PsiWhiteSpace && element == element1) {
-        final PsiElement prevSibling = element.getPrevSibling();
-        PyStatementList statementList = null;
-        if (prevSibling instanceof PyFunction) {
-          statementList = ((PyFunction)prevSibling).getStatementList();
-        }
-        else if (prevSibling instanceof PyClass) {
-          statementList = ((PyClass)prevSibling).getStatementList();
-        }
+        PyStatementList statementList = PsiTreeUtil
+          .findElementOfClassAtOffset(file, element.getTextOffset() - 1, PyStatementList.class, false);
         // Caret beyond actual indent -- move to the actual offset
         if (statementList != null) {
           final PsiElement lastChild = statementList.getLastChild();
diff --git a/python/testData/copyPaste/singleLine/IndentInIfInDef.after.py b/python/testData/copyPaste/singleLine/IndentInIfInDef.after.py
new file mode 100644
index 000000000000..5cf2aefa0834
--- /dev/null
+++ b/python/testData/copyPaste/singleLine/IndentInIfInDef.after.py
@@ -0,0 +1,6 @@
+def f(self):
+    x = 1
+    if True:
+        b = 2
+        x = 1
+        <caret>
\ No newline at end of file
diff --git a/python/testData/copyPaste/singleLine/IndentInIfInDef.dst.py b/python/testData/copyPaste/singleLine/IndentInIfInDef.dst.py
new file mode 100644
index 000000000000..cd51f7265b8f
--- /dev/null
+++ b/python/testData/copyPaste/singleLine/IndentInIfInDef.dst.py
@@ -0,0 +1,5 @@
+def f(self):
+    x = 1
+    if True:
+        b = 2
+        <caret>
\ No newline at end of file
diff --git a/python/testData/copyPaste/singleLine/IndentInIfInDef.src.py b/python/testData/copyPaste/singleLine/IndentInIfInDef.src.py
new file mode 100644
index 000000000000..4e2976ce89a9
--- /dev/null
+++ b/python/testData/copyPaste/singleLine/IndentInIfInDef.src.py
@@ -0,0 +1,4 @@
+def f(self):
+<selection>    x = 1</selection>
+    if True:
+        b = 2
diff --git a/python/testSrc/com/jetbrains/python/PyCopyPasteTest.java b/python/testSrc/com/jetbrains/python/PyCopyPasteTest.java
index 71b9304804ab..d7e44915ebf9 100644
--- a/python/testSrc/com/jetbrains/python/PyCopyPasteTest.java
+++ b/python/testSrc/com/jetbrains/python/PyCopyPasteTest.java
@@ -171,6 +171,10 @@ public class PyCopyPasteTest extends PyTestCase {
     doTestSingleLine();
   }
 
+  public void testIndentInIfInDef() {    //PY-6927
+    doTestSingleLine();
+  }
+
   private void doTest() {
     String name = getTestName(false);