diff --git a/java/java-impl/src/com/intellij/psi/formatter/java/AbstractJavaBlock.java b/java/java-impl/src/com/intellij/psi/formatter/java/AbstractJavaBlock.java
index d1514e9ea764..1a9fe03a7256 100644
--- a/java/java-impl/src/com/intellij/psi/formatter/java/AbstractJavaBlock.java
+++ b/java/java-impl/src/com/intellij/psi/formatter/java/AbstractJavaBlock.java
@@ -949,7 +949,7 @@ public abstract class AbstractJavaBlock extends AbstractBlock implements JavaBlo
     Indent externalIndent = Indent.getNoneIndent();
     Indent internalIndent = Indent.getContinuationWithoutFirstIndent(false);
 
-    if (isInsideMethodCallParenthesis(child)) {
+    if (isInsideMethodCallParenthesis(child) || isInsideMethodDeclarationParenthesis(child)) {
       internalIndent = Indent.getSmartIndent(Indent.Type.CONTINUATION);
     }
 
@@ -1021,6 +1021,13 @@ public abstract class AbstractJavaBlock extends AbstractBlock implements JavaBlo
     return false;
   }
 
+  private static boolean isInsideMethodDeclarationParenthesis(@NotNull ASTNode child) {
+    ASTNode parent = child.getTreeParent();
+    if (parent == null || parent.getElementType() != JavaElementType.PARAMETER_LIST) return false;
+    ASTNode grandParent = parent.getTreeParent();
+    return grandParent != null && grandParent.getElementType() == JavaElementType.METHOD;
+  }
+
   private static boolean canUseAnonymousClassAlignment(@NotNull ASTNode child) {
     // The general idea is to handle situations like below:
     //     test(new Runnable() {