diff --git a/platform/core-impl/src/com/intellij/openapi/application/TransactionGuardImpl.java b/platform/core-impl/src/com/intellij/openapi/application/TransactionGuardImpl.java
index 2c40b8549527..2ba93aaca322 100644
--- a/platform/core-impl/src/com/intellij/openapi/application/TransactionGuardImpl.java
+++ b/platform/core-impl/src/com/intellij/openapi/application/TransactionGuardImpl.java
@@ -36,24 +36,40 @@ public class TransactionGuardImpl extends TransactionGuard {
   private final Queue<Runnable> myQueue = new LinkedBlockingQueue<Runnable>();
   private final Set<TransactionKind> myMergeableKinds = ContainerUtil.newHashSet();
   private String myTransactionStartTrace;
+  private ModalityState myTransactionModality;
 
   @Override
   @NotNull
   public AccessToken startSynchronousTransaction(@NotNull TransactionKind kind) throws IllegalStateException {
-    ApplicationManager.getApplication().assertIsDispatchThread();
-    if (myTransactionStartTrace != null) {
-      if (!myMergeableKinds.contains(kind) && !ApplicationManager.getApplication().isUnitTestMode()) {
-        // please assign exceptions that occur here to Peter
-        LOG.error("Nested transactions are not allowed, see FAQ in TransactionGuard class javadoc. Transaction start trace is in attachment. Kind is " + kind,
-                  new Attachment("trace.txt", myTransactionStartTrace));
+    ModalityState modality = ModalityState.current();
+    if (isInsideTransaction()) {
+      if (myTransactionModality == modality) {
+        return AccessToken.EMPTY_ACCESS_TOKEN;
       }
+
+      if (myMergeableKinds.contains(kind)) {
+        final ModalityState prev = myTransactionModality;
+        myTransactionModality = modality;
+        return new AccessToken() {
+          @Override
+          public void finish() {
+            myTransactionModality = prev;
+          }
+        };
+      }
+
+      // please assign exceptions that occur here to Peter
+      LOG.error("Nested transactions are not allowed, see FAQ in TransactionGuard class javadoc. Transaction start trace is in attachment. Kind is " + kind,
+                new Attachment("trace.txt", myTransactionStartTrace));
       return AccessToken.EMPTY_ACCESS_TOKEN;
     }
+    myTransactionModality = modality;
     myTransactionStartTrace = DebugUtil.currentStackTrace();
     return new AccessToken() {
       @Override
       public void finish() {
         myTransactionStartTrace = null;
+        myTransactionModality = null;
         if (!myQueue.isEmpty()) {
           pollQueueLater();
         }
@@ -148,7 +164,7 @@ public class TransactionGuardImpl extends TransactionGuard {
   public void submitTransactionAndWait(@NotNull TransactionKind kind, @NotNull final Runnable transaction) throws ProcessCanceledException {
     Application app = ApplicationManager.getApplication();
     if (app.isDispatchThread()) {
-      if (!canRunTransactionNow(kind)) {
+      if (!canRunTransactionNow(kind) && myTransactionModality != ModalityState.current()) {
         throw new AssertionError("Cannot run submitTransactionAndWait from another transaction, kind " + kind + " is not allowed");
       }
       runSyncTransaction(kind, transaction);
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/editorActions/EndHandler.java b/platform/lang-impl/src/com/intellij/codeInsight/editorActions/EndHandler.java
index d43e47dfb3cb..72a64b2b49c4 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/editorActions/EndHandler.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/editorActions/EndHandler.java
@@ -94,9 +94,7 @@ public class EndHandler extends EditorActionHandler {
           // here just as a boolean value holder due to requirement to declare variable used from inner class as final.
           final AtomicBoolean stopProcessing = new AtomicBoolean(true);
 
-          TransactionGuard guard = TransactionGuard.getInstance();
-          // sometimes this handler is invoked from other actions, then we're already inside a transaction
-          try (AccessToken ignore = guard.isInsideTransaction() ? null : guard.startSynchronousTransaction(TransactionKind.TEXT_EDITING)) {
+          try (AccessToken ignore = TransactionGuard.getInstance().startSynchronousTransaction(TransactionKind.TEXT_EDITING)) {
             PsiDocumentManager.getInstance(project).commitAllDocuments();
             ApplicationManager.getApplication().runWriteAction(() -> {
               CodeStyleManager styleManager = CodeStyleManager.getInstance(project);