diff --git a/python/src/com/jetbrains/python/formatter/PythonFormattingModelBuilder.java b/python/src/com/jetbrains/python/formatter/PythonFormattingModelBuilder.java
index 69469754d770..515c00ccbbfd 100644
--- a/python/src/com/jetbrains/python/formatter/PythonFormattingModelBuilder.java
+++ b/python/src/com/jetbrains/python/formatter/PythonFormattingModelBuilder.java
@@ -99,6 +99,8 @@ public class PythonFormattingModelBuilder implements FormattingModelBuilderEx, C
       .afterInside(RARROW, ANNOTATION).spaces(1)
 
       .between(allButLambda(), PARAMETER_LIST).spaceIf(commonSettings.SPACE_BEFORE_METHOD_PARENTHESES)
+      .afterInside(LBRACE, DICT_LITERAL_EXPRESSION).spaceIf(pySettings.SPACE_WITHIN_BRACES, pySettings.DICT_NEW_LINE_AFTER_LEFT_BRACE)
+      .beforeInside(RBRACE, DICT_LITERAL_EXPRESSION).spaceIf(pySettings.SPACE_WITHIN_BRACES, pySettings.DICT_NEW_LINE_BEFORE_RIGHT_BRACE)
 
       .before(COLON).spaceIf(pySettings.SPACE_BEFORE_PY_COLON)
       .after(COMMA).spaceIf(commonSettings.SPACE_AFTER_COMMA)
@@ -115,8 +117,6 @@ public class PythonFormattingModelBuilder implements FormattingModelBuilderEx, C
       .withinPairInside(LPAR, RPAR, PARENTHESIZED_EXPRESSION).spaces(0)
       .before(LBRACKET).spaceIf(pySettings.SPACE_BEFORE_LBRACKET)
 
-      .afterInside(LBRACE, DICT_LITERAL_EXPRESSION).spaceIf(pySettings.SPACE_WITHIN_BRACES, pySettings.DICT_NEW_LINE_AFTER_LEFT_BRACE)
-      .beforeInside(RBRACE, DICT_LITERAL_EXPRESSION).spaceIf(pySettings.SPACE_WITHIN_BRACES, pySettings.DICT_NEW_LINE_BEFORE_RIGHT_BRACE)
       .withinPair(LBRACE, RBRACE).spaceIf(pySettings.SPACE_WITHIN_BRACES)
       .withinPair(LBRACKET, RBRACKET).spaceIf(commonSettings.SPACE_WITHIN_BRACKETS)
 
diff --git a/python/testData/formatter/forceNewLineBeforeRightBraceInDictAfterColon.py b/python/testData/formatter/forceNewLineBeforeRightBraceInDictAfterColon.py
new file mode 100644
index 000000000000..f50b6b44d780
--- /dev/null
+++ b/python/testData/formatter/forceNewLineBeforeRightBraceInDictAfterColon.py
@@ -0,0 +1,11 @@
+incoming_invite_post_schema = {
+    "definitions": {
+        "player": {
+            "type": "object",
+            "properties": {
+                "id": {
+                    "type": "integer"
+                }
+            },}
+    }
+}
diff --git a/python/testData/formatter/forceNewLineBeforeRightBraceInDictAfterColon_after.py b/python/testData/formatter/forceNewLineBeforeRightBraceInDictAfterColon_after.py
new file mode 100644
index 000000000000..5efe39606c35
--- /dev/null
+++ b/python/testData/formatter/forceNewLineBeforeRightBraceInDictAfterColon_after.py
@@ -0,0 +1,12 @@
+incoming_invite_post_schema = {
+    "definitions": {
+        "player": {
+            "type": "object",
+            "properties": {
+                "id": {
+                    "type": "integer"
+                }
+            },
+        }
+    }
+}
diff --git a/python/testSrc/com/jetbrains/python/PyFormatterTest.java b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
index 9520cf90f0a3..575abfd664be 100644
--- a/python/testSrc/com/jetbrains/python/PyFormatterTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
@@ -612,6 +612,12 @@ public class PyFormatterTest extends PyTestCase {
     getPythonCodeStyleSettings().DICT_NEW_LINE_BEFORE_RIGHT_BRACE = true;
     doTest();
   }
+  
+  // PY-17674
+  public void testForceNewLineBeforeRightBraceInDictAfterColon() {
+    getPythonCodeStyleSettings().DICT_NEW_LINE_BEFORE_RIGHT_BRACE = true;
+    doTest();
+  }
 
   // PY-16393
   public void testHangingIndentDetectionIgnoresComments() {