diff --git a/platform/lang-impl/src/com/intellij/codeInsight/editorActions/SelectionQuotingTypedHandler.java b/platform/lang-impl/src/com/intellij/codeInsight/editorActions/SelectionQuotingTypedHandler.java
index 308109eb210e..072eec52866c 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/editorActions/SelectionQuotingTypedHandler.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/editorActions/SelectionQuotingTypedHandler.java
@@ -63,9 +63,14 @@ public class SelectionQuotingTypedHandler extends TypedHandlerDelegate {
       final char c2 = getMatchingDelimiter(c);
       final String newText = String.valueOf(c) + selectedText + c2;
       EditorModificationUtil.insertStringAtCaret(editor, newText);
-      if (Registry.is("editor.smarterSelectionQuoting") && !replace) {
+      if (Registry.is("editor.smarterSelectionQuoting")) {
         myReplacedTextRange = new TextRange(caretOffset + 1, caretOffset + newText.length() - 1);
-        myCaretPosition += 1;
+        if (!replace || myCaretPosition == caretOffset) {
+          myCaretPosition++;
+        }
+        else if (myCaretPosition == caretOffset + newText.length()) {
+          myCaretPosition--;
+        }
       } else {
         myReplacedTextRange = new TextRange(caretOffset, caretOffset + newText.length());
       }
diff --git a/platform/platform-resources-en/src/misc/registry.properties b/platform/platform-resources-en/src/misc/registry.properties
index b501a5c6579e..619b4d4b42a9 100644
--- a/platform/platform-resources-en/src/misc/registry.properties
+++ b/platform/platform-resources-en/src/misc/registry.properties
@@ -97,7 +97,7 @@ editor.balloonHints=true
 editor.mouseSelectionStateResetTimeout=1000
 editor.mouseSelectionStateResetDeadzone=4
 editor.use.new.tabs=true
-editor.smarterSelectionQuoting=false
+editor.smarterSelectionQuoting=true
 
 ide.tabbedPane.bufferedPaint=true
 ide.tabbedPane.dragOutMultiplier=1.2
diff --git a/platform/platform-tests/testSrc/com/intellij/application/options/codeInsight/editor/quotes/SelectionQuotingTypedHandlerTest.java b/platform/platform-tests/testSrc/com/intellij/application/options/codeInsight/editor/quotes/SelectionQuotingTypedHandlerTest.java
index c9e15ccb0d54..6a5ec5d5ce2d 100644
--- a/platform/platform-tests/testSrc/com/intellij/application/options/codeInsight/editor/quotes/SelectionQuotingTypedHandlerTest.java
+++ b/platform/platform-tests/testSrc/com/intellij/application/options/codeInsight/editor/quotes/SelectionQuotingTypedHandlerTest.java
@@ -102,6 +102,30 @@ public class SelectionQuotingTypedHandlerTest extends LightPlatformCodeInsightFi
     doTest('[', "<selection><caret>\"aaa\"</selection>\nbbb\n\n", "[\"aaa\"]\nbbb\n\n");
   }
 
+  public void testReplaceBracketAndText() {
+    doTest("'a", "<selection><caret>\"b\"</selection>\nbbb\n\n", "'a<caret>'\nbbb\n\n");
+  }
+
+  public void testTripleEnquote() {
+    doTest("\"\"\"", "<selection>text<caret></selection>\nbbb\n\n", "\"\"\"<selection>text</selection>\"\"\"\nbbb\n\n");
+  }
+
+  private void doTest(@NotNull final String cs, @NotNull String before, @NotNull String expected) {
+    myFixture.configureByText(FileTypes.PLAIN_TEXT, before);
+    final TypedAction typedAction = EditorActionManager.getInstance().getTypedAction();
+
+    performAction(myFixture.getProject(), new Runnable() {
+      @Override
+      public void run() {
+        for (int i = 0, max = cs.length(); i < max; i++) {
+          final char c = cs.charAt(i);
+          typedAction.actionPerformed(myFixture.getEditor(), c, ((EditorEx)myFixture.getEditor()).getDataContext());
+        }
+      }
+    });
+    myFixture.checkResult(expected);
+  }
+
   public void testRuby7852ErrantEditor() {
     myFixture.configureByText(FileTypes.PLAIN_TEXT, "\"aaa\"\nbbb\n\n");
     myFixture.getEditor().getCaretModel().moveToOffset(0);