diff --git a/python/src/com/jetbrains/python/formatter/PyBlock.java b/python/src/com/jetbrains/python/formatter/PyBlock.java
index 228a0870ce0d..018fc36c278e 100644
--- a/python/src/com/jetbrains/python/formatter/PyBlock.java
+++ b/python/src/com/jetbrains/python/formatter/PyBlock.java
@@ -185,7 +185,7 @@ public class PyBlock implements ASTBlock {
     IElementType type1 = childNode1.getElementType();
     IElementType type2 = childNode2.getElementType();
 
-    if (type1 == PyElementTypes.FUNCTION_DECLARATION) {
+    if (type1 == PyElementTypes.FUNCTION_DECLARATION || (type2 == PyElementTypes.FUNCTION_DECLARATION && type1 == PyElementTypes.CLASS_DECLARATION)) {
       int blankLines = mySettings.BLANK_LINES_AROUND_METHOD + 1;
       return Spacing.createSpacing(0, 0, blankLines, mySettings.KEEP_LINE_BREAKS, mySettings.KEEP_BLANK_LINES_IN_DECLARATIONS);
     }
diff --git a/python/testData/formatter/blankLineBetweenMethods.py b/python/testData/formatter/blankLineBetweenMethods.py
index 54dab3e9134c..2f18aaa72111 100644
--- a/python/testData/formatter/blankLineBetweenMethods.py
+++ b/python/testData/formatter/blankLineBetweenMethods.py
@@ -1,3 +1,5 @@
+class C:
+    pass
 def foo():
     pass
 def bar():
diff --git a/python/testData/formatter/blankLineBetweenMethods_after.py b/python/testData/formatter/blankLineBetweenMethods_after.py
index ccd6736bb022..89a633f6165e 100644
--- a/python/testData/formatter/blankLineBetweenMethods_after.py
+++ b/python/testData/formatter/blankLineBetweenMethods_after.py
@@ -1,3 +1,6 @@
+class C:
+    pass
+
 def foo():
     pass
 
diff --git a/python/testSrc/com/jetbrains/python/PyFormatterTest.java b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
index e1e4aac7706c..7681cdd2313b 100644
--- a/python/testSrc/com/jetbrains/python/PyFormatterTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
@@ -9,6 +9,10 @@ import com.jetbrains.python.fixtures.PyLightFixtureTestCase;
  */
 public class PyFormatterTest extends PyLightFixtureTestCase {
   public void testBlankLineBetweenMethods() throws Exception {
+    doTest();
+  }
+
+  private void doTest() throws Exception {
     myFixture.configureByFile("formatter/" + getTestName(true) + ".py");
     ApplicationManager.getApplication().runWriteAction(new Runnable() {
       public void run() {