diff --git a/python/psi-api/src/com/jetbrains/python/psi/PyElementGenerator.java b/python/psi-api/src/com/jetbrains/python/psi/PyElementGenerator.java
index 3f28b98312ff..e9276cd57c74 100644
--- a/python/psi-api/src/com/jetbrains/python/psi/PyElementGenerator.java
+++ b/python/psi-api/src/com/jetbrains/python/psi/PyElementGenerator.java
@@ -63,6 +63,9 @@ public abstract class PyElementGenerator {
   @NotNull
   public abstract <T> T createFromText(LanguageLevel langLevel, Class<T> aClass, final String text);
 
+  @NotNull
+  public abstract <T> T createPhysicalFromText(LanguageLevel langLevel, Class<T> aClass, final String text);
+
   /**
    * Creates an arbitrary PSI element from text, by creating a bigger construction and then cutting the proper subelement.
    * Will produce all kinds of exceptions if the path or class would not match the PSI tree.
diff --git a/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java b/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java
index f7209cf0cb9b..bcd753bdf801 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyElementGeneratorImpl.java
@@ -42,11 +42,15 @@ public class PyElementGeneratorImpl extends PyElementGenerator {
 
   @Override
   public PsiFile createDummyFile(LanguageLevel langLevel, String contents) {
+    return createDummyFile(langLevel, contents, false);
+  }
+
+  public PsiFile createDummyFile(LanguageLevel langLevel, String contents, boolean physical) {
     final PsiFileFactory factory = PsiFileFactory.getInstance(myProject);
     final String name = "dummy." + PythonFileType.INSTANCE.getDefaultExtension();
     final LightVirtualFile virtualFile = new LightVirtualFile(name, PythonFileType.INSTANCE, contents);
     virtualFile.putUserData(LanguageLevel.KEY, langLevel);
-    final PsiFile psiFile = ((PsiFileFactoryImpl)factory).trySetupPsiForFile(virtualFile, PythonLanguage.getInstance(), false, true);
+    final PsiFile psiFile = ((PsiFileFactoryImpl)factory).trySetupPsiForFile(virtualFile, PythonLanguage.getInstance(), physical, true);
     assert psiFile != null;
     return psiFile;
   }
@@ -233,6 +237,12 @@ public class PyElementGeneratorImpl extends PyElementGenerator {
     return createFromText(langLevel, aClass, text, FROM_ROOT);
   }
 
+  @NotNull
+  @Override
+  public <T> T createPhysicalFromText(LanguageLevel langLevel, Class<T> aClass, String text) {
+    return createFromText(langLevel, aClass, text, FROM_ROOT, true);
+  }
+
   static int[] PATH_PARAMETER = {0, 3, 1};
 
   public PyNamedParameter createParameter(@NotNull String name) {
@@ -247,7 +257,12 @@ public class PyElementGeneratorImpl extends PyElementGenerator {
 
   @NotNull
   public <T> T createFromText(LanguageLevel langLevel, Class<T> aClass, final String text, final int[] path) {
-    PsiElement ret = createDummyFile(langLevel, text);
+    return createFromText(langLevel, aClass, text, path, false);
+  }
+
+  @NotNull
+  public <T> T createFromText(LanguageLevel langLevel, Class<T> aClass, final String text, final int[] path, boolean physical) {
+    PsiElement ret = createDummyFile(langLevel, text, physical);
     for (int skip : path) {
       if (ret != null) {
         ret = ret.getFirstChild();
diff --git a/python/src/com/jetbrains/python/psi/impl/PyStatementListImpl.java b/python/src/com/jetbrains/python/psi/impl/PyStatementListImpl.java
index fb4a56ed0014..7d70adc1478a 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyStatementListImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyStatementListImpl.java
@@ -1,6 +1,8 @@
 package com.jetbrains.python.psi.impl;
 
+import com.intellij.lang.ASTFactory;
 import com.intellij.lang.ASTNode;
+import com.intellij.psi.TokenType;
 import com.jetbrains.python.PythonDialectsTokenSetProvider;
 import com.jetbrains.python.psi.PyElementVisitor;
 import com.jetbrains.python.psi.PyStatement;
@@ -22,4 +24,16 @@ public class PyStatementListImpl extends PyElementImpl implements PyStatementLis
   public PyStatement[] getStatements() {
     return childrenToPsi(PythonDialectsTokenSetProvider.INSTANCE.getStatementTokens(), PyStatement.EMPTY_ARRAY);
   }
+
+  @Override
+  public ASTNode addInternal(ASTNode first, ASTNode last, ASTNode anchor, Boolean before) {
+    if (first.getPsi() instanceof PyStatement && getStatements().length == 1) {
+      ASTNode treePrev = getNode().getTreePrev();
+      if (treePrev != null && treePrev.getElementType() == TokenType.WHITE_SPACE && !treePrev.textContains('\n')) {
+        ASTNode lineBreak = ASTFactory.whitespace("\n");
+        treePrev.getTreeParent().replaceChild(treePrev, lineBreak);
+      }
+    }
+    return super.addInternal(first, last, anchor, before);
+  }
 }
diff --git a/python/testSrc/com/jetbrains/python/PyStatementListTest.java b/python/testSrc/com/jetbrains/python/PyStatementListTest.java
new file mode 100644
index 000000000000..3404eee421ce
--- /dev/null
+++ b/python/testSrc/com/jetbrains/python/PyStatementListTest.java
@@ -0,0 +1,30 @@
+package com.jetbrains.python;
+
+import com.intellij.openapi.command.WriteCommandAction;
+import com.jetbrains.python.fixtures.PyTestCase;
+import com.jetbrains.python.psi.LanguageLevel;
+import com.jetbrains.python.psi.PyElementGenerator;
+import com.jetbrains.python.psi.PyFunction;
+import com.jetbrains.python.psi.PyStatementList;
+
+/**
+ * @author yole
+ */
+public class PyStatementListTest extends PyTestCase {
+  public void testOneLineList() {
+    PyElementGenerator generator = PyElementGenerator.getInstance(myFixture.getProject());
+    PyFunction function = generator.createPhysicalFromText(LanguageLevel.PYTHON27, PyFunction.class, "def foo(): print 1");
+    PyFunction function2 = generator.createPhysicalFromText(LanguageLevel.PYTHON27, PyFunction.class, "def foo(): print 2");
+    final PyStatementList list1 = function.getStatementList();
+    final PyStatementList list2 = function2.getStatementList();
+
+    new WriteCommandAction.Simple(myFixture.getProject()) {
+      @Override
+      protected void run() throws Throwable {
+        list1.add(list2.getStatements()[0]);
+      }
+    }.execute();
+
+    assertEquals("def foo():\n    print 1\n    print 2", function.getText());
+  }
+}
diff --git a/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java b/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java
index a7dc71ab0544..cd0523dc0efb 100644
--- a/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java
+++ b/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java
@@ -99,7 +99,8 @@ public class PythonAllTestsSuite {
     PyPropertyAccessInspectionTest.class,
     Jinja2ParserTest.class,
     DjangoTemplateParserTest.class,
-    PyJoinLinesTest.class
+    PyJoinLinesTest.class,
+    PyStatementListTest.class
   };
 
   public static TestSuite suite() {