diff --git a/java/java-impl/src/com/intellij/ide/JavaLanguageCodeStyleSettingsProvider.java b/java/java-impl/src/com/intellij/ide/JavaLanguageCodeStyleSettingsProvider.java
index 35aa44340322..631b02079716 100644
--- a/java/java-impl/src/com/intellij/ide/JavaLanguageCodeStyleSettingsProvider.java
+++ b/java/java-impl/src/com/intellij/ide/JavaLanguageCodeStyleSettingsProvider.java
@@ -145,6 +145,7 @@ public class JavaLanguageCodeStyleSettingsProvider extends LanguageCodeStyleSett
                                    "BRACE_STYLE",
                                    "CLASS_BRACE_STYLE",
                                    "METHOD_BRACE_STYLE",
+                                   "LAMBDA_BRACE_STYLE",
                                    "USE_FLYING_GEESE_BRACES",
                                    "FLYING_GEESE_BRACES_GAP",
                                    "DO_NOT_INDENT_TOP_LEVEL_CLASS_MEMBERS",
diff --git a/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java b/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java
index 314e1f352126..45d84b017760 100644
--- a/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java
+++ b/java/java-impl/src/com/intellij/psi/formatter/java/JavaSpacePropertyProcessor.java
@@ -1301,12 +1301,12 @@ public class JavaSpacePropertyProcessor extends JavaElementVisitor {
     }
     else if (myRole1 == ChildRole.ARROW) {
       if (myRole2 == ChildRole.LBRACE) {
-        switch (mySettings.BRACE_STYLE) {
+        switch (mySettings.LAMBDA_BRACE_STYLE) {
           case NEXT_LINE:
           case NEXT_LINE_SHIFTED:
           case NEXT_LINE_SHIFTED2:
             int space = spaceAroundArrow ? 1 : 0;
-            myResult = Spacing.createSpacing(space, space, 1, false, 0);
+            myResult = Spacing.createSpacing(space, space, 1, mySettings.KEEP_LINE_BREAKS, 0);
             break;
           default:
             createSpaceInCode(spaceAroundArrow);
diff --git a/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterBracesTest.java b/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterBracesTest.java
index 0a5c29b688db..a1678336c6ea 100644
--- a/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterBracesTest.java
+++ b/java/java-tests/testSrc/com/intellij/psi/formatter/java/JavaFormatterBracesTest.java
@@ -374,7 +374,7 @@ public class JavaFormatterBracesTest extends AbstractJavaFormatterTest {
   }
   
   public void testLambdaBrace() {
-    getSettings().BRACE_STYLE = CommonCodeStyleSettings.NEXT_LINE;
+    getSettings().LAMBDA_BRACE_STYLE = CommonCodeStyleSettings.NEXT_LINE;
     doMethodTest(
       "Runnable r = () -> {\n" +
       "};",
@@ -383,5 +383,16 @@ public class JavaFormatterBracesTest extends AbstractJavaFormatterTest {
       "};"
     );
   }
+  
+  public void testLambdaBraceMoveToPrevLine() {
+    getSettings().LAMBDA_BRACE_STYLE = CommonCodeStyleSettings.END_OF_LINE;
+    getSettings().KEEP_LINE_BREAKS = false;
+    doMethodTest(
+      "Runnable r = () ->\n" + 
+      "{\n" +
+      "};", 
+      "Runnable r = () -> {\n" +
+      "};");
+  }
 
 }
diff --git a/platform/lang-api/src/com/intellij/psi/codeStyle/CodeStyleSettingsCustomizable.java b/platform/lang-api/src/com/intellij/psi/codeStyle/CodeStyleSettingsCustomizable.java
index e82ff61e6527..ffb1634077cf 100644
--- a/platform/lang-api/src/com/intellij/psi/codeStyle/CodeStyleSettingsCustomizable.java
+++ b/platform/lang-api/src/com/intellij/psi/codeStyle/CodeStyleSettingsCustomizable.java
@@ -188,6 +188,7 @@ public interface CodeStyleSettingsCustomizable {
     BRACE_STYLE,
     CLASS_BRACE_STYLE,
     METHOD_BRACE_STYLE,
+    LAMBDA_BRACE_STYLE,
     USE_FLYING_GEESE_BRACES,
     FLYING_GEESE_BRACES_GAP,
     DO_NOT_INDENT_TOP_LEVEL_CLASS_MEMBERS,
diff --git a/platform/lang-api/src/com/intellij/psi/codeStyle/CommonCodeStyleSettings.java b/platform/lang-api/src/com/intellij/psi/codeStyle/CommonCodeStyleSettings.java
index c7ad504d9247..fd51fdcd66c1 100644
--- a/platform/lang-api/src/com/intellij/psi/codeStyle/CommonCodeStyleSettings.java
+++ b/platform/lang-api/src/com/intellij/psi/codeStyle/CommonCodeStyleSettings.java
@@ -324,6 +324,7 @@ public class CommonCodeStyleSettings {
   @BraceStyleConstant public int BRACE_STYLE = END_OF_LINE;
   @BraceStyleConstant public int CLASS_BRACE_STYLE = END_OF_LINE;
   @BraceStyleConstant public int METHOD_BRACE_STYLE = END_OF_LINE;
+  @BraceStyleConstant public int LAMBDA_BRACE_STYLE = END_OF_LINE;
 
   /**
    * Defines if 'flying geese' style should be used for curly braces formatting, e.g. if we want to format code like
diff --git a/platform/lang-api/src/com/intellij/psi/codeStyle/presentation/CodeStyleSettingPresentation.java b/platform/lang-api/src/com/intellij/psi/codeStyle/presentation/CodeStyleSettingPresentation.java
index 1b002b412a78..a7a032b3586f 100644
--- a/platform/lang-api/src/com/intellij/psi/codeStyle/presentation/CodeStyleSettingPresentation.java
+++ b/platform/lang-api/src/com/intellij/psi/codeStyle/presentation/CodeStyleSettingPresentation.java
@@ -328,9 +328,10 @@ public class CodeStyleSettingPresentation {
       new CodeStyleSelectSettingPresentation("METHOD_BRACE_STYLE",
                                              ApplicationBundle.message("wrapping.brace.placement.method.declaration"),
                                              BRACE_PLACEMENT_VALUES, BRACE_PLACEMENT_OPTIONS),
+      new CodeStyleSelectSettingPresentation("LAMBDA_BRACE_STYLE", ApplicationBundle.message("wrapping.brace.placement.lambda"),
+                                             BRACE_PLACEMENT_VALUES, BRACE_PLACEMENT_OPTIONS),
       new CodeStyleSelectSettingPresentation("BRACE_STYLE", ApplicationBundle.message("wrapping.brace.placement.other"),
                                              BRACE_PLACEMENT_VALUES, BRACE_PLACEMENT_OPTIONS)
-
     ));
 
     putGroupTop(result, "EXTENDS_LIST_WRAP", WRAPPING_EXTENDS_LIST, WRAP_VALUES, WRAP_OPTIONS);
diff --git a/platform/platform-resources-en/src/messages/ApplicationBundle.properties b/platform/platform-resources-en/src/messages/ApplicationBundle.properties
index e23c2cba26ec..57ce58e9a482 100644
--- a/platform/platform-resources-en/src/messages/ApplicationBundle.properties
+++ b/platform/platform-resources-en/src/messages/ApplicationBundle.properties
@@ -165,6 +165,7 @@ wrapping.brace.placement=Braces placement
 wrapping.brace.placement.class.declaration=In class declaration
 wrapping.brace.placement.method.declaration=In method declaration
 wrapping.brace.placement.other=Other
+wrapping.brace.placement.lambda=In lambda declaration
 wrapping.brace.placement.end.of.line=End of line
 wrapping.brace.placement.next.line.if.wrapped=Next line if wrapped
 wrapping.brace.placement.next.line=Next line