diff --git a/python/src/com/jetbrains/python/formatter/PyBlock.java b/python/src/com/jetbrains/python/formatter/PyBlock.java
index 86244e6c45a9..45d2bcedfb06 100644
--- a/python/src/com/jetbrains/python/formatter/PyBlock.java
+++ b/python/src/com/jetbrains/python/formatter/PyBlock.java
@@ -162,7 +162,7 @@ public class PyBlock implements ASTBlock {
         childIndent = Indent.getNoneIndent();
       }
       else {
-        childIndent = parentType == PyElementTypes.PARAMETER_LIST 
+        childIndent = parentType == PyElementTypes.PARAMETER_LIST || isCallInControlStatement()
                       ? Indent.getContinuationIndent()
                       : Indent.getNormalIndent();
       }
@@ -214,6 +214,10 @@ public class PyBlock implements ASTBlock {
     return new PyBlock(this, child, childAlignment, childIndent, wrap, myContext);
   }
 
+  private boolean isCallInControlStatement() {
+    return PsiTreeUtil.getParentOfType(_node.getPsi(), PyStatementPart.class, false, PyStatementList.class) != null;
+  }
+
   private boolean isSliceOperand(ASTNode child) {
     if (_node.getPsi() instanceof PySliceExpression) {
       PySliceExpression sliceExpression = (PySliceExpression)_node.getPsi();
diff --git a/python/testData/formatter/continuationIndentForCallInStatementPart.py b/python/testData/formatter/continuationIndentForCallInStatementPart.py
new file mode 100644
index 000000000000..a8af12613683
--- /dev/null
+++ b/python/testData/formatter/continuationIndentForCallInStatementPart.py
@@ -0,0 +1,3 @@
+for item in really_long_name_of_the_function_with_a_lot_of_patams(
+    param1, param2, param3):
+    pass
\ No newline at end of file
diff --git a/python/testData/formatter/continuationIndentForCallInStatementPart_after.py b/python/testData/formatter/continuationIndentForCallInStatementPart_after.py
new file mode 100644
index 000000000000..cef6a8a4fd54
--- /dev/null
+++ b/python/testData/formatter/continuationIndentForCallInStatementPart_after.py
@@ -0,0 +1,3 @@
+for item in really_long_name_of_the_function_with_a_lot_of_patams(
+        param1, param2, param3):
+    pass
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyFormatterTest.java b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
index 15fc7db0a4df..b56aa6006e8a 100644
--- a/python/testSrc/com/jetbrains/python/PyFormatterTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
@@ -255,6 +255,10 @@ public class PyFormatterTest extends PyTestCase {
     doTest();
   }
 
+  public void testContinuationIndentForCallInStatementPart() {  // PY-8577
+    doTest();
+  }
+
   private void doTest() {
     myFixture.configureByFile("formatter/" + getTestName(true) + ".py");
     ApplicationManager.getApplication().runWriteAction(new Runnable() {