diff --git a/java/java-impl/src/com/intellij/codeInsight/folding/impl/CollapseBlockHandler.java b/java/java-impl/src/com/intellij/codeInsight/folding/impl/CollapseBlockHandler.java
index 890268037df3..9b60f1e49d01 100644
--- a/java/java-impl/src/com/intellij/codeInsight/folding/impl/CollapseBlockHandler.java
+++ b/java/java-impl/src/com/intellij/codeInsight/folding/impl/CollapseBlockHandler.java
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2009 JetBrains s.r.o.
+ * Copyright 2000-2015 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -52,6 +52,11 @@ public class CollapseBlockHandler implements CodeInsightActionHandler {
           int end = block.getTextRange().getEndOffset();
           FoldRegion existing = FoldingUtil.findFoldRegion(editor, start, end);
           if (existing != null) {
+            if (existing.isExpanded()) {
+              existing.setExpanded(false);
+              editor.getCaretModel().moveToOffset(existing.getEndOffset());
+              return;
+            }
             previous = existing;
             if (info.getPsiElement(existing) == null) myPrevious = existing;
             block = PsiTreeUtil.getParentOfType(block, PsiCodeBlock.class);
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy b/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy
index 7347fe3b190a..78c6299ffb1c 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/folding/JavaFoldingTest.groovy
@@ -1,5 +1,5 @@
 /*
- * Copyright 2000-2014 JetBrains s.r.o.
+ * Copyright 2000-2015 JetBrains s.r.o.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -1116,6 +1116,31 @@ class Foo {
 \t}
 }""");
   }
+  
+  public void testCollapseExistingButExpandedBlock() {
+    String text = '''class Foo {
+    void m {
+        if (true) {
+            System.out.println();
+        }
+    }
+}
+'''
+    configure text
+    
+    myFixture.editor.caretModel.moveToOffset(text.indexOf("System"))
+    myFixture.performEditorAction("CollapseBlock")
+    
+    myFixture.performEditorAction("ExpandAllRegions")
+
+    myFixture.editor.caretModel.moveToOffset(text.indexOf("System"))
+    myFixture.performEditorAction("CollapseBlock")
+
+    def topLevelRegions = ((FoldingModelEx)myFixture.editor.foldingModel).fetchTopLevel()
+    assert topLevelRegions.length == 1
+    assert topLevelRegions[0].startOffset == text.indexOf('{', text.indexOf("if"))
+    assert topLevelRegions[0].endOffset == text.indexOf('}', text.indexOf("if")) + 1
+  }
 
   private int getFoldRegionsCount() {
     return myFixture.editor.foldingModel.allFoldRegions.length