diff --git a/python/src/com/jetbrains/python/formatter/PyBlock.java b/python/src/com/jetbrains/python/formatter/PyBlock.java
index c40796b32336..584ba85dad95 100644
--- a/python/src/com/jetbrains/python/formatter/PyBlock.java
+++ b/python/src/com/jetbrains/python/formatter/PyBlock.java
@@ -352,7 +352,7 @@ public class PyBlock implements ASTBlock {
       if (type2 == PyElementTypes.STATEMENT_LIST) {
         return Spacing.createSpacing(1, Integer.MAX_VALUE, 0, true, 0);
       }
-      if (parentType == PyElementTypes.KEY_VALUE_EXPRESSION) {
+      if (parentType == PyElementTypes.KEY_VALUE_EXPRESSION || parentType == PyElementTypes.LAMBDA_EXPRESSION) {
         return getSpacingForOption(getPySettings().SPACE_AFTER_PY_COLON);
       }
     }
@@ -387,7 +387,7 @@ public class PyBlock implements ASTBlock {
     if (type2 == PyElementTypes.ARGUMENT_LIST) {
       return getSpacingForOption(mySettings.SPACE_BEFORE_METHOD_CALL_PARENTHESES);
     }
-    if (type2 == PyElementTypes.PARAMETER_LIST) {
+    if (type2 == PyElementTypes.PARAMETER_LIST && type1 != PyTokenTypes.LAMBDA_KEYWORD) {
       return getSpacingForOption(mySettings.SPACE_BEFORE_METHOD_PARENTHESES);
     }
 
diff --git a/python/testData/formatter/lambdaColon.py b/python/testData/formatter/lambdaColon.py
new file mode 100644
index 000000000000..b46986036c6b
--- /dev/null
+++ b/python/testData/formatter/lambdaColon.py
@@ -0,0 +1 @@
+lambda o:o.fullName()
diff --git a/python/testData/formatter/lambdaColon_after.py b/python/testData/formatter/lambdaColon_after.py
new file mode 100644
index 000000000000..497e4dc07ffa
--- /dev/null
+++ b/python/testData/formatter/lambdaColon_after.py
@@ -0,0 +1 @@
+lambda o: o.fullName()
diff --git a/python/testSrc/com/jetbrains/python/PyFormatterTest.java b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
index 814518e7d63b..e4e5b7ae80a7 100644
--- a/python/testSrc/com/jetbrains/python/PyFormatterTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
@@ -135,6 +135,10 @@ public class PyFormatterTest extends PyLightFixtureTestCase {
     CodeStyleSettingsManager.getInstance().getSettings(myFixture.getProject()).ALIGN_MULTILINE_PARAMETERS_IN_CALLS = true;
     doTest();
   }
+  
+  public void testLambdaColon() {
+    doTest();
+  }
 
   public void testPsiFormatting() { // IDEA-69724
     String initial =