diff --git a/platform/platform-impl/src/com/intellij/openapi/progress/impl/ProgressManagerImpl.java b/platform/platform-impl/src/com/intellij/openapi/progress/impl/ProgressManagerImpl.java
index 878e60099b50..51f14f8e2bd9 100644
--- a/platform/platform-impl/src/com/intellij/openapi/progress/impl/ProgressManagerImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/progress/impl/ProgressManagerImpl.java
@@ -56,7 +56,7 @@ import java.util.concurrent.atomic.AtomicReference;
 
 public class ProgressManagerImpl extends ProgressManager implements Disposable {
   private static final Logger LOG = Logger.getInstance("#com.intellij.openapi.progress.impl.ProgressManagerImpl");
-  public static final int CHECK_CANCELED_DELAY_MILLIS = 10;
+  static final int CHECK_CANCELED_DELAY_MILLIS = 10;
   private final AtomicInteger myCurrentUnsafeProgressCount = new AtomicInteger(0);
   private final AtomicInteger myCurrentModalProgressCount = new AtomicInteger(0);
 
@@ -321,19 +321,17 @@ public class ProgressManagerImpl extends ProgressManager implements Disposable {
       Set<Thread> threads = threadsUnderIndicator.get(indicator);
       if (threads != null) {
         for (Thread thread : threads) {
-          ProgressIndicator currentIndicator = getCurrentIndicator(thread);
-          boolean underCancelledIndicator = currentIndicator == indicator;
-
-          if (!underCancelledIndicator && currentIndicator instanceof WrappedProgressIndicator) {
-            while(currentIndicator instanceof WrappedProgressIndicator) {
-              ProgressIndicator originalProgressIndicator = ((WrappedProgressIndicator)currentIndicator).getOriginalProgressIndicator();
-              if (originalProgressIndicator == indicator) {
-                underCancelledIndicator = true;
-                break;
-              }
-              currentIndicator = originalProgressIndicator;
+          boolean underCancelledIndicator = false;
+          for (ProgressIndicator currentIndicator = getCurrentIndicator(thread);
+               currentIndicator != null;
+               currentIndicator = currentIndicator instanceof WrappedProgressIndicator ?
+                                  ((WrappedProgressIndicator)currentIndicator).getOriginalProgressIndicator() : null) {
+            if (currentIndicator == indicator) {
+              underCancelledIndicator = true;
+              break;
             }
           }
+
           if (underCancelledIndicator) {
             threadsUnderCanceledIndicator.add(thread);
           }
diff --git a/platform/platform-tests/testSrc/com/intellij/openapi/progress/impl/ProgressIndicatorTest.java b/platform/platform-tests/testSrc/com/intellij/openapi/progress/impl/ProgressIndicatorTest.java
index f1884e98875b..5545d44c9d8a 100644
--- a/platform/platform-tests/testSrc/com/intellij/openapi/progress/impl/ProgressIndicatorTest.java
+++ b/platform/platform-tests/testSrc/com/intellij/openapi/progress/impl/ProgressIndicatorTest.java
@@ -22,6 +22,7 @@ import com.intellij.openapi.application.ex.ApplicationManagerEx;
 import com.intellij.openapi.progress.*;
 import com.intellij.openapi.progress.util.ProgressIndicatorBase;
 import com.intellij.openapi.progress.util.ProgressIndicatorUtils;
+import com.intellij.openapi.progress.util.ProgressWrapper;
 import com.intellij.openapi.progress.util.ReadTask;
 import com.intellij.openapi.util.EmptyRunnable;
 import com.intellij.openapi.wm.ex.ProgressIndicatorEx;
@@ -373,6 +374,34 @@ public class ProgressIndicatorTest extends LightPlatformTestCase {
     }).assertTiming();
   }
 
+  public void testWrapperIndicatorGotCanceledTooWhenInnerIndicatorHas() {
+    final ProgressIndicator progress = new ProgressIndicatorBase(){
+      @Override
+      protected boolean isCancelable() {
+        return true;
+      }
+    };
+    try {
+      ProgressManager.getInstance().executeProcessUnderProgress(new Runnable() {
+        @Override
+        public void run() {
+          assertFalse(ProgressManagerImpl.threadsUnderCanceledIndicator.contains(Thread.currentThread()));
+          assertTrue(!progress.isCanceled());
+          progress.cancel();
+          assertTrue(ProgressManagerImpl.threadsUnderCanceledIndicator.contains(Thread.currentThread()));
+          assertTrue(progress.isCanceled());
+          while (true) { // wait for PCE
+            ProgressManager.checkCanceled();
+          }
+        }
+      }, ProgressWrapper.wrap(progress));
+      fail("PCE must have been thrown");
+    }
+    catch (ProcessCanceledException ignored) {
+
+    }
+  }
+
   private static class ProgressIndicatorStub implements ProgressIndicatorEx {
     private volatile boolean myCanceled;