diff --git a/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterMultilineMethodCallParamsTest.java b/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterMultilineMethodCallParamsTest.java
index d80b29c25191..1596c605d986 100644
--- a/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterMultilineMethodCallParamsTest.java
+++ b/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterMultilineMethodCallParamsTest.java
@@ -29,7 +29,7 @@ public class JavaFormatterMultilineMethodCallParamsTest extends AbstractJavaForm
     );
   }
 
-  public void IGNORED_testChainedMethodInsideCall_WithRParenOnNewLine() {
+  public void testChainedMethodInsideCall_WithRParenOnNewLine() {
     doMethodTest(
       "call(new StringBuilder()\n" +
       ".append(\"aaa\")\n" +
@@ -41,6 +41,31 @@ public class JavaFormatterMultilineMethodCallParamsTest extends AbstractJavaForm
       ");"
     );
   }
+  
+  public void testLambdas() {
+    doTextTest(
+      "public class Main {\n" +
+      "    public static void main(String... args) throws Exception {\n" +
+      "        RatpackServer.start(server -> server\n" +
+      "                        .handlers(chain -> chain\n" +
+      "                                        .get(ctx -> ctx.render(\"Hello World!\"))\n" +
+      "                                        .get(\":name\", ctx -> ctx.render(\"Hello \" + ctx.getPathTokens().get(\"name\") + \"!\"))\n" +
+      "                        )\n" +
+      "        );\n" +
+      "    }\n" +
+      "}",
+      "public class Main {\n" +
+      "    public static void main(String... args) throws Exception {\n" +
+      "        RatpackServer.start(server -> server\n" +
+      "                .handlers(chain -> chain\n" +
+      "                        .get(ctx -> ctx.render(\"Hello World!\"))\n" +
+      "                        .get(\":name\", ctx -> ctx.render(\"Hello \" + ctx.getPathTokens().get(\"name\") + \"!\"))\n" +
+      "                )\n" +
+      "        );\n" +
+      "    }\n" +
+      "}"
+    );
+  }
 
   public void testChainedMethodInsideCall_Shifted() {
     doMethodTest(
diff --git a/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java b/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
index 162f64c2008b..cc076c5d1708 100644
--- a/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
+++ b/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
@@ -1629,14 +1629,48 @@ public class FormatProcessor {
       }
 
       if (last != null) {
-        AbstractBlockWrapper prev = getPreviousBlock(last);
-        return prev != null && prev.getWhiteSpace().containsLineFeeds();
+        AbstractBlockWrapper next = getNextBlock(last);
+        if (next != null && next.getWhiteSpace().containsLineFeeds()) {
+          int nextNewLineBlockIndent = next.getNumberOfSymbolsBeforeBlock().getTotalSpaces();
+          if (nextNewLineBlockIndent >= finMinNewLineIndent(blocksToExpandIndent)) {
+            return true;  
+          }
+        }
       }
       
       return false;
     }
+
+    private int finMinNewLineIndent(@NotNull Collection<AbstractBlockWrapper> wrappers) {
+      int totalMinimum = Integer.MAX_VALUE;
+      for (AbstractBlockWrapper wrapper : wrappers) {
+        int minNewLineIndent = findMinNewLineIndent(wrapper);
+        if (minNewLineIndent < totalMinimum) {
+          totalMinimum = minNewLineIndent;
+        }
+      }
+      return totalMinimum;
+    }
     
-    private AbstractBlockWrapper getPreviousBlock(AbstractBlockWrapper block) {
+    private int findMinNewLineIndent(@NotNull AbstractBlockWrapper block) {
+      if (block instanceof LeafBlockWrapper && block.getWhiteSpace().containsLineFeeds()) {
+        return block.getNumberOfSymbolsBeforeBlock().getTotalSpaces();
+      }
+      else if (block instanceof CompositeBlockWrapper) {
+        List<AbstractBlockWrapper> children = ((CompositeBlockWrapper)block).getChildren();
+        int currentMin = Integer.MAX_VALUE;
+        for (AbstractBlockWrapper child : children) {
+          int childIndent = findMinNewLineIndent(child);
+          if (childIndent < currentMin) {
+            currentMin = childIndent;
+          }
+        }
+        return currentMin;
+      }
+      return Integer.MAX_VALUE;
+    }
+    
+    private AbstractBlockWrapper getNextBlock(AbstractBlockWrapper block) {
       List<AbstractBlockWrapper> children = block.getParent().getChildren();
       int nextBlockIndex = children.indexOf(block) + 1;
       if (nextBlockIndex < children.size()) {