diff --git a/python/src/META-INF/python-plugin-common.xml b/python/src/META-INF/python-plugin-common.xml
index d587328ebc2a..8f2edb44912a 100644
--- a/python/src/META-INF/python-plugin-common.xml
+++ b/python/src/META-INF/python-plugin-common.xml
@@ -23,6 +23,7 @@
     <annotator language="Python" implementationClass="com.jetbrains.python.validation.PyDumbAwareAnnotator"/>
     <backspaceHandlerDelegate implementation="com.jetbrains.python.editor.PythonBackspaceHandler"/>
     <quoteHandler fileType="Python" className="com.jetbrains.python.editor.PythonQuoteHandler"/>
+    <enterHandlerDelegate implementation="com.jetbrains.python.editor.PythonEnterHandler"/>
     <sdkType implementation="com.jetbrains.python.sdk.PythonSdkType"/>
     <gotoClassContributor implementation="com.jetbrains.python.PyGotoClassContributor"/>
     <gotoSymbolContributor implementation="com.jetbrains.python.PyGotoSymbolContributor"/>
diff --git a/python/src/com/jetbrains/python/editor/PythonEnterHandler.java b/python/src/com/jetbrains/python/editor/PythonEnterHandler.java
new file mode 100644
index 000000000000..266bbdc3dc17
--- /dev/null
+++ b/python/src/com/jetbrains/python/editor/PythonEnterHandler.java
@@ -0,0 +1,121 @@
+package com.jetbrains.python.editor;
+
+import com.intellij.codeInsight.editorActions.TypedHandler;
+import com.intellij.codeInsight.editorActions.enter.EnterHandlerDelegate;
+import com.intellij.ide.DataManager;
+import com.intellij.openapi.actionSystem.DataContext;
+import com.intellij.openapi.editor.Document;
+import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.editor.actionSystem.EditorActionHandler;
+import com.intellij.openapi.util.Ref;
+import com.intellij.psi.*;
+import com.intellij.psi.util.PsiTreeUtil;
+import com.jetbrains.python.psi.*;
+import org.jetbrains.annotations.Nullable;
+
+/**
+ * @author yole
+ */
+public class PythonEnterHandler implements EnterHandlerDelegate {
+  private static final Class[] IMPLICIT_WRAP_CLASSES = new Class[]{
+    PsiComment.class,
+    PyStringLiteralExpression.class,
+    PyParenthesizedExpression.class,
+    PyListCompExpression.class,
+    PyDictCompExpression.class,
+    PySetCompExpression.class,
+    PyDictLiteralExpression.class,
+    PySetLiteralExpression.class,
+    PyListLiteralExpression.class,
+    PyArgumentList.class,
+    PyParameterList.class};
+
+  @Override
+  public Result preprocessEnter(PsiFile file,
+                                Editor editor,
+                                Ref<Integer> caretOffset,
+                                Ref<Integer> caretAdvance,
+                                DataContext dataContext,
+                                EditorActionHandler originalHandler) {
+    if (!(file instanceof PyFile)) {
+      return Result.Continue;
+    }
+    Document doc = editor.getDocument();
+    PsiDocumentManager.getInstance(file.getProject()).commitDocument(doc);
+    final int offset = caretOffset.get();
+    final PsiElement element = file.findElementAt(offset);
+    if (element == null) {
+      return Result.Continue;
+    }
+    PsiElement statementBefore = findStatementBeforeCaret(file, offset);
+    PsiElement statementAfter = findStatementAfterCaret(file, offset);
+    if (statementBefore != statementAfter) {  // Enter pressed at statement break
+      return Result.Continue;
+    }
+
+    if (statementBefore != null && PsiTreeUtil.hasErrorElements(statementBefore)) {
+      final Boolean autoWrapping = DataManager.getInstance().loadFromDataContext(dataContext, TypedHandler.AUTO_WRAP_LINE_IN_PROGRESS_KEY);
+      if (autoWrapping == null) {
+        // code is already bad, don't mess it up even further
+        return Result.Continue;
+      }
+      // if we're in middle of typing, it's expected that we will have error elements
+    }
+
+    PsiElement wrappableBefore = findBeforeCaret(file, offset, IMPLICIT_WRAP_CLASSES);
+    PsiElement wrappableAfter = findAfterCaret(file, offset, IMPLICIT_WRAP_CLASSES);
+    while (wrappableBefore != null) {
+      PsiElement next = PsiTreeUtil.getParentOfType(wrappableBefore, IMPLICIT_WRAP_CLASSES);
+      if (next == null) {
+        break;
+      }
+      wrappableBefore = next;
+    }
+    while (wrappableAfter != null) {
+      PsiElement next = PsiTreeUtil.getParentOfType(wrappableAfter, IMPLICIT_WRAP_CLASSES);
+      if (next == null) {
+        break;
+      }
+      wrappableAfter = next;
+    }
+    if (wrappableAfter == null || wrappableBefore != wrappableAfter) {
+      doc.insertString(offset, "\\");
+      caretOffset.set(offset+1);
+    }
+    return Result.Continue;
+  }
+
+  @Nullable
+  private static PsiElement findStatementBeforeCaret(PsiFile file, int offset) {
+    return findBeforeCaret(file, offset, PyStatement.class);
+  }
+
+  @Nullable
+  private static PsiElement findStatementAfterCaret(PsiFile file, int offset) {
+    return findAfterCaret(file, offset, PyStatement.class);
+  }
+
+  @Nullable
+  private static PsiElement findBeforeCaret(PsiFile file, int offset, Class<? extends PsiElement>... classes) {
+    while(offset > 0) {
+      offset--;
+      final PsiElement element = file.findElementAt(offset);
+      if (!(element instanceof PsiWhiteSpace)) {
+        return PsiTreeUtil.getParentOfType(element, classes);
+      }
+    }
+    return null;
+  }
+
+  @Nullable
+  private static PsiElement findAfterCaret(PsiFile file, int offset, Class<? extends PsiElement>... classes) {
+    while(offset < file.getTextLength()) {
+      final PsiElement element = file.findElementAt(offset);
+      if (!(element instanceof PsiWhiteSpace)) {
+        return PsiTreeUtil.getParentOfType(element, classes);
+      }
+      offset++;
+    }
+    return null;
+  }
+}
diff --git a/python/testData/wrap/BackslashOnWrap.after.py b/python/testData/wrap/BackslashOnWrap.after.py
new file mode 100644
index 000000000000..279565e6743f
--- /dev/null
+++ b/python/testData/wrap/BackslashOnWrap.after.py
@@ -0,0 +1,4 @@
+def copy_location(new_node, old_node):
+    for attr in 'lineno', 'col_offset':
+        if attr in old_node._attributes and attr in new_node._attributes and \
+           hasattr(old_node, attr):
\ No newline at end of file
diff --git a/python/testData/wrap/BackslashOnWrap.py b/python/testData/wrap/BackslashOnWrap.py
new file mode 100644
index 000000000000..4361dc9e8247
--- /dev/null
+++ b/python/testData/wrap/BackslashOnWrap.py
@@ -0,0 +1,3 @@
+def copy_location(new_node, old_node):
+    for attr in 'lineno', 'col_offset':
+        if attr in old_node._attributes and attr in new_node._attributes <caret>
\ No newline at end of file
diff --git a/python/testData/wrap/WrapInComment.after.py b/python/testData/wrap/WrapInComment.after.py
new file mode 100644
index 000000000000..f444f557dfb0
--- /dev/null
+++ b/python/testData/wrap/WrapInComment.after.py
@@ -0,0 +1,2 @@
+# Gallia est omnis divisa in partes tres, quarum unam incolumnt Belgae, aliam
+# Aquitani
diff --git a/python/testData/wrap/WrapInComment.py b/python/testData/wrap/WrapInComment.py
new file mode 100644
index 000000000000..7ec5072cc13f
--- /dev/null
+++ b/python/testData/wrap/WrapInComment.py
@@ -0,0 +1 @@
+# Gallia est omnis divisa in partes tres, quarum unam incolumnt Belgae, aliam <caret>
diff --git a/python/testSrc/com/jetbrains/python/PyEditingTest.java b/python/testSrc/com/jetbrains/python/PyEditingTest.java
index 194fe23bb744..44e64f3ae60e 100644
--- a/python/testSrc/com/jetbrains/python/PyEditingTest.java
+++ b/python/testSrc/com/jetbrains/python/PyEditingTest.java
@@ -97,7 +97,33 @@ public class PyEditingTest extends PyLightFixtureTestCase {
   }
 
   public void testEnterInLineComment() {  // PY-1739
-    assertEquals("# foo\n# bar", doTestTyping("# foo bar", 5, '\n'));
+    doTestEnter("# foo <caret>bar", "# foo \n# bar");
+  }
+
+  public void testEnterInStatement() {
+    doTestEnter("if a <caret>and b: pass", "if a \\\nand b: pass");
+  }
+
+  public void testEnterBeforeStatement() {
+    doTestEnter("def foo(): <caret>pass", "def foo(): \n    pass");
+  }
+
+  public void testEnterInParameterList() {
+    doTestEnter("def foo(a,<caret>b): pass", "def foo(a,\n        b): pass");
+  }
+
+  public void testEnterInTuple() {
+    doTestEnter("for x in 'a', <caret>'b': pass", "for x in 'a', \\\n         'b': pass");
+  }
+
+  public void testEnterInCodeWithErrorElements() {
+    doTestEnter("z=1 <caret>2", "z=1 \n2");
+  }
+
+  private void doTestEnter(String before, final String after) {
+    int pos = before.indexOf("<caret>");
+    before = before.replace("<caret>", "");
+    assertEquals(after, doTestTyping(before, pos, '\n'));
   }
 
   private String doTestTyping(final String text, final int offset, final char character) {
diff --git a/python/testSrc/com/jetbrains/python/PyWrapTest.java b/python/testSrc/com/jetbrains/python/PyWrapTest.java
new file mode 100644
index 000000000000..4105ffb6e111
--- /dev/null
+++ b/python/testSrc/com/jetbrains/python/PyWrapTest.java
@@ -0,0 +1,45 @@
+package com.jetbrains.python;
+
+import com.intellij.psi.codeStyle.CodeStyleSettings;
+import com.intellij.psi.codeStyle.CodeStyleSettingsManager;
+import com.jetbrains.python.fixtures.PyLightFixtureTestCase;
+
+/**
+ * @author yole
+ */
+public class PyWrapTest extends PyLightFixtureTestCase {
+  private boolean myOldWrap;
+  private int myOldMargin;
+
+  @Override
+  protected void setUp() throws Exception {
+    super.setUp();
+    final CodeStyleSettings settings = CodeStyleSettingsManager.getInstance(myFixture.getProject()).getCurrentSettings();
+    myOldWrap = settings.WRAP_WHEN_TYPING_REACHES_RIGHT_MARGIN;
+    myOldMargin = settings.RIGHT_MARGIN;
+    settings.WRAP_WHEN_TYPING_REACHES_RIGHT_MARGIN = true;
+    settings.RIGHT_MARGIN = 80;
+  }
+
+  @Override
+  protected void tearDown() throws Exception {
+    final CodeStyleSettings settings = CodeStyleSettingsManager.getInstance(myFixture.getProject()).getCurrentSettings();
+    settings.WRAP_WHEN_TYPING_REACHES_RIGHT_MARGIN = myOldWrap;
+    settings.RIGHT_MARGIN = myOldMargin;
+    super.tearDown();
+  }
+
+  public void testBackslashOnWrap() {
+    doTest("and hasattr(old_node, attr):");
+  }
+
+  public void testWrapInComment() {
+    doTest("Aquitani");
+  }
+
+  private void doTest(final String textToType) {
+    myFixture.configureByFile("wrap/" + getTestName(false) + ".py");
+    myFixture.type(textToType);
+    myFixture.checkResultByFile("wrap/" + getTestName(false) + ".after.py");
+  }
+}
diff --git a/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java b/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java
index 51eb66b3725b..4e31b5437626 100644
--- a/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java
+++ b/python/testSrc/com/jetbrains/python/PythonAllTestsSuite.java
@@ -20,6 +20,7 @@ public class PythonAllTestsSuite {
     PythonParsingTest.class,
     PyStringLiteralTest.class,
     PyIndentTest.class,
+    PyWrapTest.class,
     PyStatementPartsTest.class,
     PythonHighlightingTest.class,
     PyStubsTest.class,