diff --git a/python/testData/folding/customFoldingAtBlockEnd.py b/python/testData/folding/customFoldingAtBlockEnd.py
new file mode 100644
index 000000000000..db06884031cd
--- /dev/null
+++ b/python/testData/folding/customFoldingAtBlockEnd.py
@@ -0,0 +1,5 @@
+class C:<fold text='...'>
+    <fold text='Custom'># region Custom
+    def m(self):<fold text='...'>
+        pass</fold>
+    # endregion</fold></fold>
diff --git a/python/testSrc/com/jetbrains/python/PyFoldingTest.java b/python/testSrc/com/jetbrains/python/PyFoldingTest.java
index 1839a0bc8fc3..f2f84bc80feb 100644
--- a/python/testSrc/com/jetbrains/python/PyFoldingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFoldingTest.java
@@ -66,4 +66,8 @@ public class PyFoldingTest extends PyTestCase {
     doTest();
   }
 
+  // PY-17017
+  public void testCustomFoldingAtBlockEnd() {
+    doTest();
+  }
 }