diff --git a/python/src/com/jetbrains/python/parsing/FunctionParsing.java b/python/src/com/jetbrains/python/parsing/FunctionParsing.java
index 2c8b7dff584b..6ea9a38558de 100644
--- a/python/src/com/jetbrains/python/parsing/FunctionParsing.java
+++ b/python/src/com/jetbrains/python/parsing/FunctionParsing.java
@@ -99,6 +99,18 @@ public class FunctionParsing extends Parsing {
   }
 
   protected void parseDeclarationAfterDecorator(PsiBuilder.Marker endMarker) {
+    if (myBuilder.getTokenType() == PyTokenTypes.ASYNC_KEYWORD) {
+      myBuilder.advanceLexer();
+      myContext.pushScope(myContext.getScope().withAsync());
+      parseSyncDeclarationAfterDecorator(endMarker);
+      myContext.popScope();
+    }
+    else {
+      parseSyncDeclarationAfterDecorator(endMarker);
+    }
+  }
+
+  private void parseSyncDeclarationAfterDecorator(PsiBuilder.Marker endMarker) {
     if (myBuilder.getTokenType() == PyTokenTypes.DEF_KEYWORD) {
       parseFunctionInnards(endMarker);
     }
diff --git a/python/testData/psi/DecoratedAsyncDef.py b/python/testData/psi/DecoratedAsyncDef.py
new file mode 100644
index 000000000000..c2bfe7f6c0ba
--- /dev/null
+++ b/python/testData/psi/DecoratedAsyncDef.py
@@ -0,0 +1,9 @@
+@foo
+async def bar():
+    await x
+    return 0
+
+
+@baz(x, y)
+async def quux():
+    return await x
diff --git a/python/testData/psi/DecoratedAsyncDef.txt b/python/testData/psi/DecoratedAsyncDef.txt
new file mode 100644
index 000000000000..c8b35f5b486e
--- /dev/null
+++ b/python/testData/psi/DecoratedAsyncDef.txt
@@ -0,0 +1,69 @@
+PyFile:DecoratedAsyncDef.py
+  PyFunction('bar')
+    PyDecoratorList
+      PyDecorator: @foo
+        PsiElement(Py:AT)('@')
+        PyReferenceExpression: foo
+          PsiElement(Py:IDENTIFIER)('foo')
+        PyArgumentList
+          <empty list>
+    PsiWhiteSpace('\n')
+    PsiElement(Py:ASYNC_KEYWORD)('async')
+    PsiWhiteSpace(' ')
+    PsiElement(Py:DEF_KEYWORD)('def')
+    PsiWhiteSpace(' ')
+    PsiElement(Py:IDENTIFIER)('bar')
+    PyParameterList
+      PsiElement(Py:LPAR)('(')
+      PsiElement(Py:RPAR)(')')
+    PsiElement(Py:COLON)(':')
+    PsiWhiteSpace('\n    ')
+    PyStatementList
+      PyExpressionStatement
+        PyPrefixExpression
+          PsiElement(Py:AWAIT_KEYWORD)('await')
+          PsiWhiteSpace(' ')
+          PyReferenceExpression: x
+            PsiElement(Py:IDENTIFIER)('x')
+      PsiWhiteSpace('\n    ')
+      PyReturnStatement
+        PsiElement(Py:RETURN_KEYWORD)('return')
+        PsiWhiteSpace(' ')
+        PyNumericLiteralExpression
+          PsiElement(Py:INTEGER_LITERAL)('0')
+  PsiWhiteSpace('\n\n\n')
+  PyFunction('quux')
+    PyDecoratorList
+      PyDecorator: @baz
+        PsiElement(Py:AT)('@')
+        PyReferenceExpression: baz
+          PsiElement(Py:IDENTIFIER)('baz')
+        PyArgumentList
+          PsiElement(Py:LPAR)('(')
+          PyReferenceExpression: x
+            PsiElement(Py:IDENTIFIER)('x')
+          PsiElement(Py:COMMA)(',')
+          PsiWhiteSpace(' ')
+          PyReferenceExpression: y
+            PsiElement(Py:IDENTIFIER)('y')
+          PsiElement(Py:RPAR)(')')
+    PsiWhiteSpace('\n')
+    PsiElement(Py:ASYNC_KEYWORD)('async')
+    PsiWhiteSpace(' ')
+    PsiElement(Py:DEF_KEYWORD)('def')
+    PsiWhiteSpace(' ')
+    PsiElement(Py:IDENTIFIER)('quux')
+    PyParameterList
+      PsiElement(Py:LPAR)('(')
+      PsiElement(Py:RPAR)(')')
+    PsiElement(Py:COLON)(':')
+    PsiWhiteSpace('\n    ')
+    PyStatementList
+      PyReturnStatement
+        PsiElement(Py:RETURN_KEYWORD)('return')
+        PsiWhiteSpace(' ')
+        PyPrefixExpression
+          PsiElement(Py:AWAIT_KEYWORD)('await')
+          PsiWhiteSpace(' ')
+          PyReferenceExpression: x
+            PsiElement(Py:IDENTIFIER)('x')
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PythonParsingTest.java b/python/testSrc/com/jetbrains/python/PythonParsingTest.java
index 99172dce2e48..a96a6d2c5706 100644
--- a/python/testSrc/com/jetbrains/python/PythonParsingTest.java
+++ b/python/testSrc/com/jetbrains/python/PythonParsingTest.java
@@ -502,6 +502,10 @@ public class PythonParsingTest extends ParsingTestCase {
     doTest(LanguageLevel.PYTHON35);
   }
 
+  public void testDecoratedAsyncDef() {
+    doTest(LanguageLevel.PYTHON35);
+  }
+
   public void doTest(LanguageLevel languageLevel) {
     LanguageLevel prev = myLanguageLevel;
     myLanguageLevel = languageLevel;