diff --git a/java/java-tests/testSrc/com/intellij/find/FindManagerTest.java b/java/java-tests/testSrc/com/intellij/find/FindManagerTest.java
index cf876693e2f7..8bf2fb1d4284 100644
--- a/java/java-tests/testSrc/com/intellij/find/FindManagerTest.java
+++ b/java/java-tests/testSrc/com/intellij/find/FindManagerTest.java
@@ -722,4 +722,14 @@ public class FindManagerTest extends DaemonAnalyzerTestCase {
     assertTrue(findResult.isStringFound());
     assertTrue(findResult.getStartOffset() > prefix.length());
   }
+
+  public void testNoExceptionDuringReplaceAll() {
+    configureByText(FileTypes.PLAIN_TEXT, "something\telse");
+    FindModel model = new FindModel();
+    model.setStringToFind("m");
+    model.setStringToReplace("M");
+    model.setPromptOnReplace(false);
+    FindUtil.replace(myProject, myEditor, 0, model);
+    assertEquals("soMething\telse", myEditor.getDocument().getText());
+  }
 }
diff --git a/platform/lang-impl/src/com/intellij/find/FindUtil.java b/platform/lang-impl/src/com/intellij/find/FindUtil.java
index 674358a49379..166a3da626e6 100644
--- a/platform/lang-impl/src/com/intellij/find/FindUtil.java
+++ b/platform/lang-impl/src/com/intellij/find/FindUtil.java
@@ -494,29 +494,23 @@ public class FindUtil {
     document.startGuardedBlockChecking();
     boolean toPrompt = model.isPromptOnReplace();
 
-    if (!toPrompt) {
-      ((DocumentEx)document).setInBulkUpdate(true);
-    }
     try {
-      toPrompt = doReplace(project, editor, model, document, offset, toPrompt, delegate);
+      doReplace(project, editor, model, document, offset, toPrompt, delegate);
     }
     catch (ReadOnlyFragmentModificationException e) {
       EditorActionManager.getInstance().getReadonlyFragmentModificationHandler(document).handle(e);
     }
     finally {
-      if (!toPrompt) {
-        ((DocumentEx)document).setInBulkUpdate(false);
-      }
       document.stopGuardedBlockChecking();
     }
 
     return true;
   }
 
-  private static boolean doReplace(Project project, final Editor editor, final FindModel aModel, final Document document, int caretOffset,
+  private static void doReplace(Project project, final Editor editor, final FindModel aModel, final Document document, int caretOffset,
                                    boolean toPrompt, ReplaceDelegate delegate) {
     FindManager findManager = FindManager.getInstance(project);
-    final FindModel model = (FindModel)aModel.clone();
+    final FindModel model = aModel.clone();
     int occurrences = 0;
 
     List<Pair<TextRange, String>> rangesToChange = new ArrayList<Pair<TextRange, String>>();
@@ -560,20 +554,18 @@ public class FindUtil {
         }
         if (promptResult == FindManager.PromptResult.ALL) {
           toPrompt = false;
-          ((DocumentEx)document).setInBulkUpdate(true);
         }
       }
       int newOffset;
       if (delegate == null || delegate.shouldReplace(result, toReplace)) {
-        boolean reallyReplace = toPrompt;
-        if (reallyReplace) {
+        if (toPrompt) {
           //[SCR 7258]
           if (!reallyReplaced) {
             editor.getCaretModel().moveToOffset(0);
             reallyReplaced = true;
           }
         }
-        TextRange textRange = doReplace(project, document, model, result, toReplace, reallyReplace, rangesToChange);
+        TextRange textRange = doReplace(project, document, model, result, toReplace, toPrompt, rangesToChange);
         replaced = true;
         newOffset = model.isForward() ? textRange.getEndOffset() : textRange.getStartOffset();
         occurrences++;
@@ -646,7 +638,6 @@ public class FindUtil {
     }
 
     ReplaceInProjectManager.reportNumberReplacedOccurrences(project, occurrences);
-    return replaced;
   }
 
 
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/CaretImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/CaretImpl.java
index e2693b2c835f..ef7a088b788d 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/CaretImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/CaretImpl.java
@@ -853,6 +853,7 @@ public class CaretImpl extends UserDataHolderBase implements Caret {
 
   void updateCaretPosition(@NotNull final DocumentEventImpl event) {
     final DocumentEx document = myEditor.getDocument();
+    if (document.isInBulkUpdate()) return;
     boolean performSoftWrapAdjustment = event.getNewLength() > 0 // We want to put caret just after the last added symbol
                                         // There is a possible case that the user removes text just before the soft wrap. We want to keep caret
                                         // on a visual line with soft wrap start then.
@@ -875,7 +876,6 @@ public class CaretImpl extends UserDataHolderBase implements Caret {
       }
     }
     else {
-      if (document.isInBulkUpdate()) return;
       int startOffset = event.getOffset();
       int oldEndOffset = startOffset + event.getOldLength();
 
diff --git a/platform/platform-tests/testSrc/com/intellij/openapi/editor/impl/EditorImplTest.java b/platform/platform-tests/testSrc/com/intellij/openapi/editor/impl/EditorImplTest.java
index aff78b0b1d27..f37c096a0802 100644
--- a/platform/platform-tests/testSrc/com/intellij/openapi/editor/impl/EditorImplTest.java
+++ b/platform/platform-tests/testSrc/com/intellij/openapi/editor/impl/EditorImplTest.java
@@ -19,6 +19,7 @@ import com.intellij.codeInsight.folding.CodeFoldingManager;
 import com.intellij.openapi.actionSystem.IdeActions;
 import com.intellij.openapi.editor.Document;
 import com.intellij.openapi.editor.VisualPosition;
+import com.intellij.openapi.editor.ex.DocumentEx;
 import com.intellij.testFramework.EditorTestUtil;
 
 import java.io.IOException;
@@ -89,6 +90,19 @@ public class EditorImplTest extends AbstractEditorTest {
     checkResultByText(" \t<caret>space-indented line");
   }
 
+  public void testNoExceptionDuringBulkModeDocumentUpdate() throws Exception {
+    init("something");
+    DocumentEx document = (DocumentEx)myEditor.getDocument();
+    document.setInBulkUpdate(true);
+    try {
+      document.setText("something\telse");
+    }
+    finally {
+      document.setInBulkUpdate(false);
+    }
+    checkResultByText("something\telse");
+  }
+
   private void init(String text) throws IOException {
     configureFromFileText(getTestName(false) + ".txt", text);
   }