diff --git a/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaAnnotatorChecker.java b/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaAnnotatorChecker.java
index 5ac11f746eaf..5cb99f70401f 100644
--- a/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaAnnotatorChecker.java
+++ b/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaAnnotatorChecker.java
@@ -279,7 +279,7 @@ class JsonSchemaAnnotatorChecker {
       }
 
       final JsonPointerPosition step = JsonPointerPosition.createSingleProperty(name);
-      final Pair<ThreeState, JsonSchemaObject> pair = doSingleStep(step, schema, true);
+      final Pair<ThreeState, JsonSchemaObject> pair = doSingleStep(step, schema, true, false);
       if (ThreeState.NO.equals(pair.getFirst()) && !set.contains(name)) {
         error(JsonBundle.message("json.schema.annotation.not.allowed.property", name), property.getDelegate(),
               JsonValidationError.FixableIssueKind.ProhibitedProperty,
diff --git a/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaVariantsTreeBuilder.java b/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaVariantsTreeBuilder.java
index 89c394d9bdef..4628d0741b04 100644
--- a/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaVariantsTreeBuilder.java
+++ b/json/src/com/jetbrains/jsonSchema/impl/JsonSchemaVariantsTreeBuilder.java
@@ -59,7 +59,7 @@ public class JsonSchemaVariantsTreeBuilder {
         node.nothingChild();
         continue;
       }
-      final Pair<ThreeState, JsonSchemaObject> pair = doSingleStep(step, node.getSchema(), acceptAdditional);
+      final Pair<ThreeState, JsonSchemaObject> pair = doSingleStep(step, node.getSchema(), acceptAdditional, true);
       if (ThreeState.NO.equals(pair.getFirst())) node.nothingChild();
       else if (ThreeState.YES.equals(pair.getFirst())) node.anyChild();
       else {
@@ -112,10 +112,11 @@ public class JsonSchemaVariantsTreeBuilder {
   @NotNull
   public static Pair<ThreeState, JsonSchemaObject> doSingleStep(@NotNull JsonPointerPosition step,
                                                                 @NotNull JsonSchemaObject parent,
-                                                                boolean acceptAdditionalPropertiesSchemas) {
+                                                                boolean acceptAdditionalPropertiesSchemas,
+                                                                boolean processAllBranches) {
     final String name = step.getFirstName();
     if (name != null) {
-      return propertyStep(name, parent, acceptAdditionalPropertiesSchemas);
+      return propertyStep(name, parent, acceptAdditionalPropertiesSchemas, processAllBranches);
     } else {
       final int index = step.getFirstIndex();
       assert index >= 0;
@@ -383,7 +384,8 @@ public class JsonSchemaVariantsTreeBuilder {
   @NotNull
   private static Pair<ThreeState, JsonSchemaObject> propertyStep(@NotNull String name,
                                                                  @NotNull JsonSchemaObject parent,
-                                                                 boolean acceptAdditionalPropertiesSchemas) {
+                                                                 boolean acceptAdditionalPropertiesSchemas,
+                                                                 boolean processAllBranches) {
     final JsonSchemaObject child = parent.getProperties().get(name);
     if (child != null) {
       return Pair.create(ThreeState.UNSURE, child);
@@ -398,7 +400,7 @@ public class JsonSchemaVariantsTreeBuilder {
       }
 
       List<IfThenElse> ifThenElseList = parent.getIfThenElse();
-      if (ifThenElseList != null) {
+      if (ifThenElseList != null && processAllBranches) {
         for (IfThenElse ifThenElse : ifThenElseList) {
           // resolve inside V7 if-then-else conditionals
           JsonSchemaObject childObject;
diff --git a/json/tests/test/com/jetbrains/jsonSchema/JsonSchemaHighlightingTest.java b/json/tests/test/com/jetbrains/jsonSchema/JsonSchemaHighlightingTest.java
index 83ef97873906..1b9d02522146 100644
--- a/json/tests/test/com/jetbrains/jsonSchema/JsonSchemaHighlightingTest.java
+++ b/json/tests/test/com/jetbrains/jsonSchema/JsonSchemaHighlightingTest.java
@@ -1086,4 +1086,28 @@ public class JsonSchemaHighlightingTest extends JsonSchemaHighlightingTestBase {
            "    }\n" +
            "  }}", "{ <weak_warning descr=\"Property 'myPropertyXxx' is deprecated: Baz\">\"myPropertyXxx\"</weak_warning>: \"a\" }");
   }
+
+  public void testIfThenElseFlat() throws Exception {
+    @Language("JSON") String schemaText = FileUtil.loadFile(new File(getTestDataPath() + "/ifThenElseFlatSchema.json"));
+    doTest(schemaText, "{\n" +
+                       "  \"street_address\": \"24 Sussex Drive\",\n" +
+                       "  \"country\": \"Canada\",\n" +
+                       "  \"postal_code\": \"K1M 1M4\" \n" +
+                       "}");
+    doTest(schemaText, "{\n" +
+                       "  \"street_address\": \"24 Sussex Drive\",\n" +
+                       "  \"country\": \"Canada\",\n" +
+                       "  \"postal_code\": <warning descr=\"String is violating the pattern: '[A-Z][0-9][A-Z] [0-9][A-Z][0-9]'\">\"1K1M1M4\"</warning> \n" +
+                       "}");
+    doTest(schemaText, "{\n" +
+                       "  \"street_address\": \"24 Madison Cube Garden NYC\",\n" +
+                       "  \"country\": \"United States of America\",\n" +
+                       "  \"postal_code\": \"11222-1111-1111\"\n" +
+                       "}");
+    doTest(schemaText, "{\n" +
+                       "  \"street_address\": \"24 Madison Cube Garden NYC\",\n" +
+                       "  \"country\": \"United States of America\",\n" +
+                       "  \"postal_code\": <warning descr=\"String is violating the pattern: '[0-9]{5}(-[0-9]{4})?'\">\"1-1111-1111\"</warning>\n" +
+                       "}");
+  }
 }
diff --git a/json/tests/testData/jsonSchema/highlighting/ifThenElseFlatSchema.json b/json/tests/testData/jsonSchema/highlighting/ifThenElseFlatSchema.json
new file mode 100644
index 000000000000..b98146e02ea5
--- /dev/null
+++ b/json/tests/testData/jsonSchema/highlighting/ifThenElseFlatSchema.json
@@ -0,0 +1,20 @@
+{
+  "type": "object",
+  "properties": {
+    "street_address": {
+      "type": "string"
+    },
+    "country": {
+      "enum": ["United States of America", "Canada"]
+    }
+  },
+  "if": {
+    "properties": { "country": { "const": "United States of America" } }
+  },
+  "then": {
+    "properties": { "postal_code": { "pattern": "[0-9]{5}(-[0-9]{4})?" } }
+  },
+  "else": {
+    "properties": { "postal_code": { "pattern": "[A-Z][0-9][A-Z] [0-9][A-Z][0-9]" } }
+  }
+}