diff --git a/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java b/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
index 256cc5605dc6..e542b001cb22 100644
--- a/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
+++ b/python/src/com/jetbrains/python/editor/PythonBackspaceHandler.java
@@ -23,8 +23,11 @@ public class PythonBackspaceHandler extends BackspaceHandlerDelegate {
     if (myTargetPosition != null) {
       // Remove all the following spaces before moving to targetPosition
       final int offset = editor.getCaretModel().getOffset();
-      editor.getSelectionModel().setSelection(offset - editor.getCaretModel().getVisualPosition().column + myTargetPosition.column, offset);
-      EditorModificationUtil.deleteSelectedText(editor);
+      if (EditorModificationUtil.calcAfterLineEnd(editor) == 0) {
+        int delta = editor.getCaretModel().getVisualPosition().column - myTargetPosition.column;
+        editor.getSelectionModel().setSelection(offset - delta, offset);
+        EditorModificationUtil.deleteSelectedText(editor);
+      }
       editor.getCaretModel().moveToLogicalPosition(myTargetPosition);
       myTargetPosition = null;
       return true;
diff --git a/python/testSrc/com/jetbrains/python/PyEditingTest.java b/python/testSrc/com/jetbrains/python/PyEditingTest.java
index 7bf28fce8ed4..e148d7fb6f50 100644
--- a/python/testSrc/com/jetbrains/python/PyEditingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyEditingTest.java
@@ -1,6 +1,9 @@
 package com.jetbrains.python;
 
+import com.intellij.openapi.actionSystem.IdeActions;
 import com.intellij.openapi.application.ApplicationManager;
+import com.intellij.openapi.command.CommandProcessor;
+import com.intellij.openapi.editor.LogicalPosition;
 import com.intellij.openapi.util.Computable;
 import com.intellij.psi.PsiFile;
 import com.jetbrains.python.fixtures.PyLightFixtureTestCase;
@@ -23,6 +26,18 @@ public class PyEditingTest extends PyLightFixtureTestCase {
     assertEquals("r''", doTestTyping("r", 1, '\''));
   }
 
+  public void testGreedyBackspace() throws Exception {  // PY-254
+    myFixture.configureByFile("/editing/py254.py");
+    myFixture.getEditor().getCaretModel().moveToLogicalPosition(new LogicalPosition(4, 8));
+    CommandProcessor.getInstance().executeCommand(myFixture.getProject(), new Runnable() {
+      public void run() {
+        myFixture.performEditorAction(IdeActions.ACTION_EDITOR_BACKSPACE);
+      }
+    }, "", null);
+    // this should not modify the text, so we can check against the same file 
+    myFixture.checkResultByFile("/editing/py254.py", true);
+  }
+
   private String doTestTyping(final String text, final int offset, final char character) {
     final PsiFile file = ApplicationManager.getApplication().runWriteAction(new Computable<PsiFile>() {
       public PsiFile compute() {