diff --git a/java/java-tests/testSrc/com/intellij/psi/codeStyle/arrangement/JavaRearrangerFoldingTest.groovy b/java/java-tests/testSrc/com/intellij/psi/codeStyle/arrangement/JavaRearrangerFoldingTest.groovy
index 9166eaf5d4ae..dfee35bb83c6 100644
--- a/java/java-tests/testSrc/com/intellij/psi/codeStyle/arrangement/JavaRearrangerFoldingTest.groovy
+++ b/java/java-tests/testSrc/com/intellij/psi/codeStyle/arrangement/JavaRearrangerFoldingTest.groovy
@@ -15,6 +15,9 @@
  */
 package com.intellij.psi.codeStyle.arrangement
 
+import static com.intellij.psi.codeStyle.arrangement.std.StdArrangementTokens.Modifier.PRIVATE
+import static com.intellij.psi.codeStyle.arrangement.std.StdArrangementTokens.Modifier.PUBLIC
+
 /**
  * @author Denis Zhdanov
  * @since 11/20/12 3:34 PM
@@ -24,51 +27,152 @@ class JavaRearrangerFoldingTest extends AbstractJavaRearrangerTest {
   void "test dummy"() {
   }
 
-  // This should be uncommented as soon as cdr pushed fixes for range markers processing.
-//  void "test that doc comment folding is preserved"() {
-//    commonSettings.BLANK_LINES_AROUND_METHOD = 1
-//    doTest(
-//      initial: '''\
-//import <fold>java.util.List;
-//import java.util.Set;</fold>
-//
-//<fold text="/**...*/">/**
-// * Class comment
-// */</fold>
-//class Test {
-//
-//  <fold text="/**...*/>/**
-//   * Method comment
-//   */</fold>
-//  private void test(List<String> l) {}
-//
-//  <fold text="/**...*/>/**
-//   * Another method comment
-//   */</fold>
-//  public void test(Set<String> s) {}
-//}''',
-//
-//      rules: [rule(PUBLIC), rule(PRIVATE)],
-//
-//      expected: '''\
-//import <fold>java.util.List;
-//import java.util.Set;</fold>
-//
-//<fold text="/**...*/">/**
-// * Class comment
-// */</fold>
-//class Test {
-//
-//  <fold text="/**...*/>/**
-//   * Another method comment
-//   */</fold>
-//  public void test(Set<String> s) {}
-//
-//  <fold text="/**...*/>/**
-//   * Method comment
-//   */</fold>
-//  private void test(List<String> l) {}
-//}'''
-//    )
-//  }
+  void "test that doc comment folding is preserved"() {
+    commonSettings.BLANK_LINES_AROUND_METHOD = 1
+    doTest(
+      initial: '''\
+import <fold>java.util.List;
+import java.util.Set;</fold>
+
+<fold text="/**...*/">/**
+* Class comment
+*/</fold>
+class Test {
+
+  <fold text="/**...*/>/**
+   * Method comment
+   */</fold>
+  private void test(List<String> l) {}
+
+  <fold text="/**...*/>/**
+   * Another method comment
+   */</fold>
+  public void test(Set<String> s) {}
+}''',
+
+      rules: [rule(PUBLIC), rule(PRIVATE)],
+
+      expected: '''\
+import <fold>java.util.List;
+import java.util.Set;</fold>
+
+<fold text="/**...*/">/**
+* Class comment
+*/</fold>
+class Test {
+
+  <fold text="/**...*/>/**
+   * Another method comment
+   */</fold>
+  public void test(Set<String> s) {}
+
+  <fold text="/**...*/>/**
+   * Method comment
+   */</fold>
+  private void test(List<String> l) {}
+}'''
+    )
+  }
+
+  void "test that doc comment and method folding is preserved"() {
+    commonSettings.BLANK_LINES_AROUND_METHOD = 1
+    doTest(
+      initial: '''\
+import java.util.List;
+import java.util.Set;
+
+class MyTest {
+    <fold text="/**...*/">/**
+     * comment 1
+     *
+     * @param s
+     */</fold>
+    private void test(String s) {
+    }
+
+    /**
+     * comment 2
+     *
+     * @param i
+     */
+    public void test(int i) {
+    }
+}''',
+
+      rules: [rule(PUBLIC), rule(PRIVATE)],
+
+      expected: '''\
+import java.util.List;
+import java.util.Set;
+
+class MyTest {
+    /**
+     * comment 2
+     *
+     * @param i
+     */
+    public void test(int i) {
+    }
+
+    <fold text="/**...*/">/**
+     * comment 1
+     *
+     * @param s
+     */</fold>
+    private void test(String s) {
+    }
+}'''
+    )
+  }
+
+  void "test that single doc comment folding is preserved"() {
+    commonSettings.BLANK_LINES_AROUND_METHOD = 1
+    doTest(
+      initial: '''\
+package a.b;
+
+class MyTest {
+    /**
+     * private comment
+     *
+     * @param s
+     */
+    private void test(String s) {
+    }
+
+    /**
+     * comment 2
+     *
+     * @param i
+     */
+    public void test(int i) <fold text="{...}">{
+        System.out.println(1);
+    }</fold>
+}''',
+
+      rules: [rule(PUBLIC), rule(PRIVATE)],
+
+      expected: '''\
+package a.b;
+
+class MyTest {
+    /**
+     * comment 2
+     *
+     * @param i
+     */
+    public void test(int i) <fold text="{...}">{
+        System.out.println(1);
+    }</fold>
+
+    /**
+     * private comment
+     *
+     * @param s
+     */
+    private void test(String s) {
+    }
+}'''
+    )
+  }
 }
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/actions/ReformatCodeAction.java b/platform/lang-impl/src/com/intellij/codeInsight/actions/ReformatCodeAction.java
index 0dc880d92a53..215e9a56ec40 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/actions/ReformatCodeAction.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/actions/ReformatCodeAction.java
@@ -194,7 +194,7 @@ public class ReformatCodeAction extends AnAction implements DumbAware {
         CommandProcessor.getInstance().executeCommand(project, new Runnable() {
           @Override
           public void run() {
-            engine.arrange(finalFile, Collections.singleton(rangeToUse));
+            engine.arrange(editor, finalFile, Collections.singleton(rangeToUse));
           }
         }, getTemplatePresentation().getText(), null);
       }
diff --git a/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/ArrangementEngine.java b/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/ArrangementEngine.java
index 53907d7c4d02..4f54fa7b56aa 100644
--- a/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/ArrangementEngine.java
+++ b/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/ArrangementEngine.java
@@ -53,12 +53,25 @@ import java.util.*;
  */
 public class ArrangementEngine {
 
+  /**
+   * Arranges given PSI root contents that belong to the given ranges.
+   * <b>Note:</b> After arrangement editor foldings we'll be preserved.
+   *
+   * @param editor
+   * @param file   target PSI root
+   * @param ranges target ranges to use within the given root
+   */
   public void arrange(@NotNull final Editor editor, @NotNull PsiFile file, Collection<TextRange> ranges) {
-    arrange(file, ranges, null);
-    // This should be uncommented as soon as cdr pushed fixes for range markers processing.
-    //arrange(file, ranges, new RestoreFoldArrangementCallback(editor));
+    arrange(file, ranges, new RestoreFoldArrangementCallback(editor));
   }
 
+  /**
+   * Arranges given PSI root contents that belong to the given ranges.
+   * <b>Note:</b> Editor foldings are not expected to be preserved.
+   *
+   * @param file   target PSI root
+   * @param ranges target ranges to use within the given root
+   */
   public void arrange(@NotNull PsiFile file, @NotNull Collection<TextRange> ranges) {
     arrange(file, ranges, null);
   }
diff --git a/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/RestoreFoldArrangementCallback.java b/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/RestoreFoldArrangementCallback.java
index 8f93afe4cc50..b23b79c8c88b 100644
--- a/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/RestoreFoldArrangementCallback.java
+++ b/platform/lang-impl/src/com/intellij/psi/codeStyle/arrangement/engine/RestoreFoldArrangementCallback.java
@@ -18,16 +18,10 @@ package com.intellij.psi.codeStyle.arrangement.engine;
 import com.intellij.codeInsight.folding.CodeFoldingManager;
 import com.intellij.openapi.editor.Editor;
 import com.intellij.openapi.editor.FoldRegion;
-import com.intellij.openapi.fileEditor.impl.text.CodeFoldingState;
 import com.intellij.openapi.project.Project;
-import com.intellij.openapi.util.TextRange;
-import com.intellij.util.containers.ContainerUtil;
-import com.intellij.util.containers.ContainerUtilRt;
 import org.jetbrains.annotations.NotNull;
-import org.jetbrains.annotations.Nullable;
 
-import java.util.Collections;
-import java.util.Comparator;
+import java.util.ArrayList;
 import java.util.List;
 
 /**
@@ -37,34 +31,48 @@ import java.util.List;
 public class RestoreFoldArrangementCallback implements ArrangementCallback {
 
   @NotNull private final  Editor           myEditor;
-  @Nullable private final CodeFoldingState myCodeFoldingState;
 
   public RestoreFoldArrangementCallback(@NotNull Editor editor) {
     myEditor = editor;
-
-    Project project = editor.getProject();
-    if (project == null) {
-      myCodeFoldingState = null;
-    }
-    else {
-      final CodeFoldingManager foldingManager = CodeFoldingManager.getInstance(editor.getProject());
-      myCodeFoldingState = foldingManager.saveFoldingState(editor);
-    }
   }
 
   @Override
   public void afterArrangement(@NotNull final List<ArrangementMoveInfo> moveInfos) {
     // Restore state for the PSI elements not affected by arrangement.
     Project project = myEditor.getProject();
-    if (myCodeFoldingState != null && project != null) {
+    if (project != null) {
+      final FoldRegion[] regions = myEditor.getFoldingModel().getAllFoldRegions();
+      final List<FoldRegionInfo> foldRegionsInfo = new ArrayList<FoldRegionInfo>();
+      for (FoldRegion region : regions) {
+        final FoldRegionInfo info = new FoldRegionInfo(region.getStartOffset(), region.getEndOffset(), region.isExpanded());
+        foldRegionsInfo.add(info);
+      }
+
       final CodeFoldingManager foldingManager = CodeFoldingManager.getInstance(project);
       foldingManager.updateFoldRegions(myEditor);
       myEditor.getFoldingModel().runBatchFoldingOperation(new Runnable() {
         @Override
         public void run() {
-          foldingManager.restoreFoldingState(myEditor, myCodeFoldingState);
+          for (FoldRegionInfo info : foldRegionsInfo) {
+            final FoldRegion foldRegion = foldingManager.findFoldRegion(myEditor, info.myStart, info.myEnd);
+            if (foldRegion != null) {
+              foldRegion.setExpanded(info.myIsExpanded);
+            }
+          }
         }
       });
     }
   }
+
+  private static class FoldRegionInfo {
+    private int myStart;
+    private int myEnd;
+    private boolean myIsExpanded;
+
+    private FoldRegionInfo(int start, int end, boolean expanded) {
+      myStart = start;
+      myEnd = end;
+      myIsExpanded = expanded;
+    }
+  }
 }