diff --git a/python/src/com/jetbrains/python/codeInsight/editorActions/moveUpDown/StatementMover.java b/python/src/com/jetbrains/python/codeInsight/editorActions/moveUpDown/StatementMover.java
index 0c58c2acea08..07da8c0f61da 100644
--- a/python/src/com/jetbrains/python/codeInsight/editorActions/moveUpDown/StatementMover.java
+++ b/python/src/com/jetbrains/python/codeInsight/editorActions/moveUpDown/StatementMover.java
@@ -339,8 +339,13 @@ public class StatementMover extends LineMover {
                                                                 getCurrentSettings().getIndentOptions(PythonFileType.INSTANCE);
     assert indentOptions != null;
     final Document document = editor.getDocument();
-    TextRange textRange = myStatementToDecreaseIndent.getTextRange();
-    document.deleteString(textRange.getStartOffset()-indentOptions.INDENT_SIZE, textRange.getStartOffset());
+    final int startLine = editor.offsetToLogicalPosition(myStatementToDecreaseIndent.getTextRange().getStartOffset()).line;
+    final int endLine = editor.offsetToLogicalPosition(myStatementToDecreaseIndent.getTextRange().getEndOffset()).line;
+    for (int line = startLine; line <= endLine; ++line) {
+      final int offset = document.getLineStartOffset(line);
+      document.deleteString(offset, offset + indentOptions.INDENT_SIZE);
+    }
+
     myStatementToDecreaseIndent = null;
   }
 
diff --git a/python/testData/mover/oneLineCompoundOutside.py b/python/testData/mover/oneLineCompoundOutside.py
new file mode 100644
index 000000000000..3f17b74d0fbb
--- /dev/null
+++ b/python/testData/mover/oneLineCompoundOutside.py
@@ -0,0 +1,6 @@
+if condition:
+    pass
+elif other_condition:
+    if another_one:
+        if T<caret>rue: a = 1      # <- move statement up here
+        else: b = 2
\ No newline at end of file
diff --git a/python/testData/mover/oneLineCompoundOutside_afterDown.py b/python/testData/mover/oneLineCompoundOutside_afterDown.py
new file mode 100644
index 000000000000..3f17b74d0fbb
--- /dev/null
+++ b/python/testData/mover/oneLineCompoundOutside_afterDown.py
@@ -0,0 +1,6 @@
+if condition:
+    pass
+elif other_condition:
+    if another_one:
+        if T<caret>rue: a = 1      # <- move statement up here
+        else: b = 2
\ No newline at end of file
diff --git a/python/testData/mover/oneLineCompoundOutside_afterUp.py b/python/testData/mover/oneLineCompoundOutside_afterUp.py
new file mode 100644
index 000000000000..21f27987a762
--- /dev/null
+++ b/python/testData/mover/oneLineCompoundOutside_afterUp.py
@@ -0,0 +1,7 @@
+if condition:
+    pass
+elif other_condition:
+    if T<caret>rue: a = 1      # <- move statement up here
+    else: b = 2
+    if another_one:
+        pass
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyStatementMoverTest.java b/python/testSrc/com/jetbrains/python/PyStatementMoverTest.java
index 6e0ff188e4e7..611784401ae7 100644
--- a/python/testSrc/com/jetbrains/python/PyStatementMoverTest.java
+++ b/python/testSrc/com/jetbrains/python/PyStatementMoverTest.java
@@ -121,6 +121,10 @@ public class PyStatementMoverTest extends PyTestCase {
     doTest();
   }
 
+  public void testOneLineCompoundOutside() { // PY-5201
+    doTest();
+  }
+
   public void testWith() { // PY-5202
     try {
       setLanguageLevel(LanguageLevel.PYTHON27);