diff --git a/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlock.java b/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlock.java
index dfec65651ec8..af5a734cf4fe 100644
--- a/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlock.java
+++ b/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlock.java
@@ -17,6 +17,7 @@ package com.intellij.formatting.templateLanguages;
 
 import com.intellij.formatting.*;
 import com.intellij.lang.ASTNode;
+import com.intellij.psi.codeStyle.CodeStyleSettings;
 import com.intellij.psi.formatter.FormatterUtil;
 import com.intellij.psi.formatter.common.AbstractBlock;
 import com.intellij.psi.tree.IElementType;
@@ -33,14 +34,24 @@ import java.util.List;
  */
 public abstract class TemplateLanguageBlock extends AbstractBlock implements BlockWithParent {
   private final TemplateLanguageBlockFactory myBlockFactory;
+  protected final CodeStyleSettings mySettings;
   private List<DataLanguageBlockWrapper> myForeignChildren;
   private boolean myChildrenBuilt = false;
   private BlockWithParent myParent;
 
-  protected TemplateLanguageBlock(@NotNull TemplateLanguageBlockFactory blockFactory, @NotNull ASTNode node, @Nullable List<DataLanguageBlockWrapper> foreignChildren) {
-    super(node, null, null);
+  protected TemplateLanguageBlock(@NotNull TemplateLanguageBlockFactory blockFactory, @NotNull CodeStyleSettings settings, 
+                                  @NotNull ASTNode node, @Nullable List<DataLanguageBlockWrapper> foreignChildren) {
+    this(node, null, null, blockFactory, settings, foreignChildren);
+  }
+  
+  protected TemplateLanguageBlock(@NotNull ASTNode node, @Nullable Wrap wrap, @Nullable Alignment alignment, 
+                                  @NotNull TemplateLanguageBlockFactory blockFactory,
+                                  @NotNull CodeStyleSettings settings,
+                                  @Nullable List<DataLanguageBlockWrapper> foreignChildren) {
+    super(node, wrap, alignment);
     myBlockFactory = blockFactory;
     myForeignChildren = foreignChildren;
+    mySettings = settings;
   }
 
   protected List<Block> buildChildren() {
@@ -51,8 +62,8 @@ public abstract class TemplateLanguageBlock extends AbstractBlock implements Blo
     final ArrayList<TemplateLanguageBlock> tlChildren = new ArrayList<TemplateLanguageBlock>(5);
     for (ASTNode childNode = getNode().getFirstChildNode(); childNode != null; childNode = childNode.getTreeNext()) {
       if (FormatterUtil.containsWhiteSpacesOnly(childNode)) continue;
-      if (childNode.getElementType() != getTemplateTextElementType() || noForeignChildren()) {
-        final TemplateLanguageBlock childBlock = myBlockFactory.createTemplateLanguageBlock(childNode, null);
+      if (shouldBuildBlockFor(childNode)) {
+        final TemplateLanguageBlock childBlock = myBlockFactory.createTemplateLanguageBlock(childNode, null, mySettings);
         childBlock.setParent(this);
         tlChildren.add(childBlock);
       }
@@ -62,6 +73,10 @@ public abstract class TemplateLanguageBlock extends AbstractBlock implements Blo
     return BlockUtil.setParent(children, this);
   }
 
+  protected boolean shouldBuildBlockFor(ASTNode childNode) {
+    return childNode.getElementType() != getTemplateTextElementType() || noForeignChildren();
+  }
+
   private boolean noForeignChildren() {
     return (myForeignChildren == null || myForeignChildren.isEmpty());
   }
diff --git a/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlockFactory.java b/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlockFactory.java
index 23aad1181096..0a8d54c13f38 100644
--- a/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlockFactory.java
+++ b/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageBlockFactory.java
@@ -16,6 +16,7 @@
 package com.intellij.formatting.templateLanguages;
 
 import com.intellij.lang.ASTNode;
+import com.intellij.psi.codeStyle.CodeStyleSettings;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
@@ -27,5 +28,6 @@ import java.util.List;
  *         Time: 6:56:55 PM
  */
 public interface TemplateLanguageBlockFactory {
-  TemplateLanguageBlock createTemplateLanguageBlock(@NotNull ASTNode node, @Nullable List<DataLanguageBlockWrapper> foreignChildren); 
+  TemplateLanguageBlock createTemplateLanguageBlock(@NotNull ASTNode node, @Nullable List<DataLanguageBlockWrapper> foreignChildren,
+                                                    @NotNull CodeStyleSettings codeStyleSettings); 
 }
diff --git a/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageFormattingModelBuilder.java b/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageFormattingModelBuilder.java
index f0037d896fb6..51e6016250ca 100644
--- a/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageFormattingModelBuilder.java
+++ b/platform/lang-impl/src/com/intellij/formatting/templateLanguages/TemplateLanguageFormattingModelBuilder.java
@@ -44,7 +44,7 @@ public abstract class TemplateLanguageFormattingModelBuilder implements Delegati
   @NotNull
   public FormattingModel createModel(PsiElement element, CodeStyleSettings settings) {
     final PsiFile file = element.getContainingFile();
-    Block rootBlock = getRootBlock(element, file.getViewProvider(), settings);
+    Block rootBlock = getRootBlock(file, file.getViewProvider(), settings);
     return new DocumentBasedFormattingModel(rootBlock, element.getProject(), settings, file.getFileType(), file);
   }
 
@@ -59,14 +59,14 @@ public abstract class TemplateLanguageFormattingModelBuilder implements Delegati
       return createDummyBlock(node);
     }
     if (builder == null) {
-      return createTemplateLanguageBlock(node, Collections.<DataLanguageBlockWrapper>emptyList());
+      return createTemplateLanguageBlock(node, Collections.<DataLanguageBlockWrapper>emptyList(), null);
     }
     final FormattingModel model = builder.createModel(viewProvider.getPsi(dataLanguage), settings);
     List<DataLanguageBlockWrapper> childWrappers = buildChildWrappers(model.getRootBlock());
     if (childWrappers.size() == 1) {
       childWrappers = buildChildWrappers(childWrappers.get(0).getOriginal());
     }
-    return createTemplateLanguageBlock(node, filterBlocksByRange(childWrappers, node.getTextRange()));
+    return createTemplateLanguageBlock(node, filterBlocksByRange(childWrappers, node.getTextRange()), settings);
   }
 
   protected AbstractBlock createDummyBlock(final ASTNode node) {