diff --git a/platform/lang-impl/src/com/intellij/util/indexing/FileBasedIndexImpl.java b/platform/lang-impl/src/com/intellij/util/indexing/FileBasedIndexImpl.java
index e57161d0a3df..54f68c7416d5 100644
--- a/platform/lang-impl/src/com/intellij/util/indexing/FileBasedIndexImpl.java
+++ b/platform/lang-impl/src/com/intellij/util/indexing/FileBasedIndexImpl.java
@@ -502,12 +502,32 @@ public class FileBasedIndexImpl extends FileBasedIndex {
       @Override
       public PersistentHashMap<Integer, Collection<K>> create() {
         try {
-          return ProgressManager.getInstance().runProcessWithProgressSynchronously(new ThrowableComputable<PersistentHashMap<Integer, Collection<K>>, IOException>() {
-            @Override
-            public PersistentHashMap<Integer, Collection<K>> compute() throws IOException {
-              return createIdToDataKeysIndex(indexId, keyDescriptor, storage);
+          // this factory method may be called either on index creation from dispatch thread, or on index rebuild
+          // from arbitrary thread and under some existing progress indicator
+          final ProgressManager progressManager = ProgressManager.getInstance();
+          final ProgressIndicator currentProgress = progressManager.getProgressIndicator();
+          if (currentProgress == null && ApplicationManager.getApplication().isDispatchThread()) {
+            return progressManager.runProcessWithProgressSynchronously(
+              new ThrowableComputable<PersistentHashMap<Integer, Collection<K>>, IOException>() {
+                @Override
+                public PersistentHashMap<Integer, Collection<K>> compute() throws IOException {
+                  return createIdToDataKeysIndex(indexId, keyDescriptor, storage);
+                }
+              }, LangBundle.message("compacting.indices.title"), false, null);
+          }
+          if (currentProgress != null)  {
+            // reuse existing progress indicator if available
+            currentProgress.pushState();
+            currentProgress.setText(LangBundle.message("compacting.indices.title"));
+          }
+          try {
+            return createIdToDataKeysIndex(indexId, keyDescriptor, storage);
+          }
+          finally {
+            if (currentProgress != null) {
+              currentProgress.popState();
             }
-          }, LangBundle.message("compacting.indices.title"), false, null);
+          }
         }
         catch (IOException e) {
           throw new RuntimeException(e);