diff --git a/python/src/com/jetbrains/python/formatter/PyBlock.java b/python/src/com/jetbrains/python/formatter/PyBlock.java
index 46810209418a..6f554254bf7b 100644
--- a/python/src/com/jetbrains/python/formatter/PyBlock.java
+++ b/python/src/com/jetbrains/python/formatter/PyBlock.java
@@ -295,7 +295,8 @@ public class PyBlock implements ASTBlock {
         }
         if (childType == PyTokenTypes.RPAR) {
           childIndent = Indent.getNoneIndent();
-          if (!hasHangingIndent(myNode.getPsi())) {
+          // Don't have hanging indent and is not going to have it due to the setting about opening parenthesis
+          if (!hasHangingIndent(myNode.getPsi()) && !settings.FROM_IMPORT_NEW_LINE_AFTER_LEFT_PARENTHESIS) {
             childAlignment = getAlignmentForChildren();
           }
           else if (settings.HANG_CLOSING_BRACKETS) {
diff --git a/python/testData/formatter/fromImportParenthesesPlacementHangClosingParenthesis.py b/python/testData/formatter/fromImportParenthesesPlacementHangClosingParenthesis.py
new file mode 100644
index 000000000000..fb69478bd4e4
--- /dev/null
+++ b/python/testData/formatter/fromImportParenthesesPlacementHangClosingParenthesis.py
@@ -0,0 +1,11 @@
+from module import (foo, bar)
+from module import (foo, bar,)
+from module import (foo, bar, baz, quux)
+from module import (foo,
+                    bar)
+from module import (foo,
+                    bar,
+                    )
+from module import (
+    foo,
+    bar)
\ No newline at end of file
diff --git a/python/testData/formatter/fromImportParenthesesPlacementHangClosingParenthesis_after.py b/python/testData/formatter/fromImportParenthesesPlacementHangClosingParenthesis_after.py
new file mode 100644
index 000000000000..a91d6d73655d
--- /dev/null
+++ b/python/testData/formatter/fromImportParenthesesPlacementHangClosingParenthesis_after.py
@@ -0,0 +1,17 @@
+from module import (foo, bar)
+from module import (foo, bar, )
+from module import (
+    foo, bar, baz, quux
+    )
+from module import (
+    foo,
+    bar
+    )
+from module import (
+    foo,
+    bar,
+    )
+from module import (
+    foo,
+    bar
+    )
diff --git a/python/testData/formatter/fromImportParenthesesPlacement_after.py b/python/testData/formatter/fromImportParenthesesPlacement_after.py
index fbf0e7a00dc0..ae41cfed13cc 100644
--- a/python/testData/formatter/fromImportParenthesesPlacement_after.py
+++ b/python/testData/formatter/fromImportParenthesesPlacement_after.py
@@ -2,15 +2,15 @@ from module import (foo, bar)
 from module import (foo, bar, )
 from module import (
     foo, bar, baz, quux
-    )
+)
 from module import (
     foo,
     bar
-    )
+)
 from module import (
     foo,
     bar,
-    )
+)
 from module import (
     foo,
     bar
diff --git a/python/testSrc/com/jetbrains/python/PyFormatterTest.java b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
index 8843ae87bb97..02544de4aca9 100644
--- a/python/testSrc/com/jetbrains/python/PyFormatterTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
@@ -741,7 +741,6 @@ public class PyFormatterTest extends PyTestCase {
   }
 
   // PY-20633
-  // XXX causes jumping closing parenthesis, because of the hanging indent detection
   public void testFromImportParenthesesPlacement() {
     getPythonCodeStyleSettings().FROM_IMPORT_NEW_LINE_AFTER_LEFT_PARENTHESIS = true;
     getPythonCodeStyleSettings().FROM_IMPORT_NEW_LINE_BEFORE_RIGHT_PARENTHESIS = true;
@@ -749,6 +748,16 @@ public class PyFormatterTest extends PyTestCase {
     getCodeStyleSettings().setRightMargin(PythonLanguage.INSTANCE, 35);
     doTest();
   }
+  
+  // PY-20633
+  public void testFromImportParenthesesPlacementHangClosingParenthesis() {
+    getPythonCodeStyleSettings().FROM_IMPORT_NEW_LINE_AFTER_LEFT_PARENTHESIS = true;
+    getPythonCodeStyleSettings().FROM_IMPORT_NEW_LINE_BEFORE_RIGHT_PARENTHESIS = true;
+    getPythonCodeStyleSettings().HANG_CLOSING_BRACKETS = true;
+    getCommonCodeStyleSettings().SPACE_AFTER_COLON = true;
+    getCodeStyleSettings().setRightMargin(PythonLanguage.INSTANCE, 35);
+    doTest();
+  }
 
   public void testVariableAnnotations() {
     runWithLanguageLevel(LanguageLevel.PYTHON36, this::doTest);