diff --git a/platform/diff-impl/src/com/intellij/diff/actions/impl/SetEditorSettingsAction.java b/platform/diff-impl/src/com/intellij/diff/actions/impl/SetEditorSettingsAction.java
index efd204add095..f691ce2308a9 100644
--- a/platform/diff-impl/src/com/intellij/diff/actions/impl/SetEditorSettingsAction.java
+++ b/platform/diff-impl/src/com/intellij/diff/actions/impl/SetEditorSettingsAction.java
@@ -129,8 +129,10 @@ public class SetEditorSettingsAction extends ActionGroup implements DumbAware {
 
         @Override
         public void applyDefaults(@NotNull List<? extends Editor> editors) {
-          for (Editor editor : editors) {
-            if (editor.getUserData(EditorImpl.FORCED_SOFT_WRAPS) != null) myForcedSoftWrap = true;
+          if (!myTextSettings.isUseSoftWraps()) {
+            for (Editor editor : editors) {
+              myForcedSoftWrap = myForcedSoftWrap || ((EditorImpl)editor).shouldSoftWrapsBeForced();
+            }
           }
           super.applyDefaults(editors);
         }
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java
index 6460c89cc6f1..7f2234ebb4fe 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java
@@ -344,7 +344,7 @@ public final class EditorImpl extends UserDataHolderBase implements EditorEx, Hi
     initTabPainter();
     myIsViewer = viewer;
     mySettings = new SettingsImpl(this, project);
-    if (shouldSoftWrapsBeForced()) {
+    if (!mySettings.isUseSoftWraps() && shouldSoftWrapsBeForced()) {
       mySettings.setUseSoftWrapsQuiet();
       putUserData(FORCED_SOFT_WRAPS, Boolean.TRUE);
     }
@@ -583,10 +583,9 @@ public final class EditorImpl extends UserDataHolderBase implements EditorEx, Hi
     updateCaretCursor();
   }
 
-  private boolean shouldSoftWrapsBeForced() {
-    if (mySettings.isUseSoftWraps() ||
-        // Disable checking for files in intermediate states - e.g. for files during refactoring.
-        myProject != null && PsiDocumentManager.getInstance(myProject).isDocumentBlockedByPsi(myDocument)) {
+  public boolean shouldSoftWrapsBeForced() {
+    if (myProject != null && PsiDocumentManager.getInstance(myProject).isDocumentBlockedByPsi(myDocument)) {
+      // Disable checking for files in intermediate states - e.g. for files during refactoring.
       return false;
     }
     int lineWidthLimit = Registry.intValue("editor.soft.wrap.force.limit");