diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java
index 1e98bf863dbe..f745f83d5ee8 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java
@@ -344,8 +344,9 @@ public class SoftWrapApplianceManager implements Dumpable {
     String placeholder = foldRegion.getPlaceholderText();
     int placeholderWidthInPixels = 0;
     for (int i = 0; i < placeholder.length(); i++) {
-      placeholderWidthInPixels += SoftWrapModelImpl.getEditorTextRepresentationHelper(myEditor)
-        .charWidth(placeholder.charAt(i), myContext.fontType);
+      char c = placeholder.charAt(i);
+      if (myEditor.myUseNewRendering && c == '\n') c = ' '; // we display \n as space (see com.intellij.openapi.editor.impl.view.EditorView.getFoldRegionLayout)
+      placeholderWidthInPixels += SoftWrapModelImpl.getEditorTextRepresentationHelper(myEditor).charWidth(c, myContext.fontType);
     }
 
     if (myContext.delayedSoftWrap == null) {
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/view/EditorView.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/view/EditorView.java
index 88a620ca5ac9..eb1740cdfed8 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/view/EditorView.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/view/EditorView.java
@@ -30,6 +30,7 @@ import com.intellij.openapi.editor.impl.TextDrawingCallback;
 import com.intellij.openapi.editor.markup.TextAttributes;
 import com.intellij.openapi.util.Disposer;
 import com.intellij.openapi.util.Key;
+import com.intellij.openapi.util.text.StringUtil;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.TestOnly;
 
@@ -472,7 +473,7 @@ public class EditorView implements TextDrawingCallback, Disposable, Dumpable {
     LineLayout layout = foldRegion.getUserData(FOLD_REGION_TEXT_LAYOUT);
     if (layout == null) {
       TextAttributes placeholderAttributes = myEditor.getFoldingModel().getPlaceholderAttributes();
-      layout = LineLayout.create(this, foldRegion.getPlaceholderText(), 
+      layout = LineLayout.create(this, StringUtil.replace(foldRegion.getPlaceholderText(), "\n", " "),
                               placeholderAttributes == null ? Font.PLAIN : placeholderAttributes.getFontType());
       foldRegion.putUserData(FOLD_REGION_TEXT_LAYOUT, layout);
     }