diff --git a/platform/core-impl/src/com/intellij/psi/impl/source/tree/CompositeElement.java b/platform/core-impl/src/com/intellij/psi/impl/source/tree/CompositeElement.java
index 01638a9fa2b6..b5ccb93c1e65 100644
--- a/platform/core-impl/src/com/intellij/psi/impl/source/tree/CompositeElement.java
+++ b/platform/core-impl/src/com/intellij/psi/impl/source/tree/CompositeElement.java
@@ -673,23 +673,23 @@ public class CompositeElement extends TreeElement {
     TreeUtil.ensureParsed(getFirstChildNode());
     TreeUtil.ensureParsed(anotherParent.getFirstChildNode());
     final ASTNode firstChild = anotherParent.getFirstChildNode();
-    ChangeUtil.prepareAndRunChangeAction(new ChangeUtil.ChangeAction(){
-      @Override
-      public void makeChange(TreeChangeEvent destinationTreeChange) {
-        remove((TreeChangeEventImpl)destinationTreeChange, (TreeElement)anotherParent.getFirstChildNode(), null);
-      }
-    }, (TreeElement)anotherParent);
+    ChangeUtil.prepareAndRunChangeAction(
+      event -> remove((TreeChangeEventImpl)event, (TreeElement)anotherParent.getFirstChildNode(), null), 
+      (TreeElement)anotherParent);
 
     if (firstChild != null) {
-      ChangeUtil.prepareAndRunChangeAction(new ChangeUtil.ChangeAction(){
-        @Override
-        public void makeChange(TreeChangeEvent destinationTreeChange) {
-          TreeElement first = getFirstChildNode();
-          remove((TreeChangeEventImpl)destinationTreeChange, first, null);
-          add((TreeChangeEventImpl)destinationTreeChange, CompositeElement.this, (TreeElement)firstChild);
-          if(getTreeParent() != null){
-            repairRemovedElement(CompositeElement.this, first);
-          }
+      ChangeUtil.prepareAndRunChangeAction(destinationTreeChange -> {
+        TreeElement first = getFirstChildNode();
+        TreeChangeEventImpl event = (TreeChangeEventImpl)destinationTreeChange;
+        CompositeElement parent = getTreeParent();
+        if (parent != null) {
+          // treat all replacements as one big childrenChanged to simplify resulting PSI/document events
+          event.addElementaryChange(parent); 
+        }
+        remove(event, first, null);
+        add(event, this, (TreeElement)firstChild);
+        if(parent != null) {
+          repairRemovedElement(this, first);
         }
       }, this);
     }
diff --git a/xml/tests/src/com/intellij/codeInsight/XmlEventsTest.java b/xml/tests/src/com/intellij/codeInsight/XmlEventsTest.java
index 9b276996f6ca..c1033e51143c 100644
--- a/xml/tests/src/com/intellij/codeInsight/XmlEventsTest.java
+++ b/xml/tests/src/com/intellij/codeInsight/XmlEventsTest.java
@@ -15,11 +15,13 @@
  */
 package com.intellij.codeInsight;
 
+import com.intellij.lang.xml.XMLLanguage;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.application.Result;
 import com.intellij.openapi.command.CommandProcessor;
 import com.intellij.openapi.command.WriteCommandAction;
 import com.intellij.openapi.editor.Document;
+import com.intellij.openapi.editor.RangeMarker;
 import com.intellij.openapi.util.TextRange;
 import com.intellij.pom.PomManager;
 import com.intellij.pom.PomModel;
@@ -30,6 +32,7 @@ import com.intellij.pom.event.PomModelListener;
 import com.intellij.pom.xml.XmlAspect;
 import com.intellij.psi.*;
 import com.intellij.psi.impl.source.PsiFileImpl;
+import com.intellij.psi.util.PsiTreeUtil;
 import com.intellij.psi.xml.*;
 import com.intellij.testFramework.LightCodeInsightTestCase;
 import com.intellij.util.DocumentUtil;
@@ -256,6 +259,22 @@ public class XmlEventsTest extends LightCodeInsightTestCase {
     PsiManager.getInstance(getProject()).removePsiTreeChangeListener(listener);
   }
 
+  public void testRangeMarkersShouldSurviveOnSmallTagValueModification() {
+    String text = "<tag>x y z a b c d</tag>";
+
+    PsiFile file = PsiFileFactory.getInstance(getProject()).createFileFromText("a.xml", XMLLanguage.INSTANCE, text);
+    Document document = file.getViewProvider().getDocument();
+    RangeMarker marker = document.createRangeMarker(TextRange.from(text.indexOf("a b"), 3));
+
+    XmlTag tag = PsiTreeUtil.findElementOfClassAtOffset(file, 0, XmlTag.class, false);
+    WriteCommandAction.runWriteCommandAction(null, () -> tag.getValue().setText("x a b c d"));
+
+    assertEquals("<tag>x a b c d</tag>", document.getText());
+    assertTrue(marker.isValid());
+    assertEquals("a b", document.getText(TextRange.create(marker)));
+  }
+
+
   private static class TestListener extends PsiTreeChangeAdapter {
     @Override
     public void childReplaced(@NotNull PsiTreeChangeEvent event) {