diff --git a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt
index 438ba9c78c5..d1e2d17d459 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt
@@ -906,7 +906,17 @@ private val INDENT_RULES = arrayOf(
     strategy("Indent for block content")
         .within(BLOCK, CLASS_BODY, FUNCTION_LITERAL)
         .notForType(RBRACE, LBRACE, BLOCK)
-        .set(Indent.getNormalIndent(false)),
+        .set(Indent.getNormalIndent()),
+
+    strategy("Indent for template content")
+        .within(LONG_STRING_TEMPLATE_ENTRY)
+        .notForType(LONG_TEMPLATE_ENTRY_START, LONG_TEMPLATE_ENTRY_END)
+        .set(Indent.getNormalIndent()),
+
+    strategy("No indent for braces in template")
+        .within(LONG_STRING_TEMPLATE_ENTRY)
+        .forType(LONG_TEMPLATE_ENTRY_START, LONG_TEMPLATE_ENTRY_END)
+        .set(Indent.getNoneIndent()),
 
     strategy("Indent for property accessors")
         .within(PROPERTY).forType(PROPERTY_ACCESSOR)
@@ -1006,7 +1016,7 @@ private val INDENT_RULES = arrayOf(
     strategy("Colon of delegation list")
         .within(CLASS, OBJECT_DECLARATION)
         .forType(COLON)
-        .set(Indent.getNormalIndent(false)),
+        .set(Indent.getNormalIndent()),
 
     strategy("Delegation list")
         .within(SUPER_TYPE_LIST)
diff --git a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
index a4372c34154..755ceecc549 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
@@ -240,6 +240,9 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
                 else
                     null
             }
+
+            inPosition(parent = LONG_STRING_TEMPLATE_ENTRY, right = LONG_TEMPLATE_ENTRY_END).lineBreakIfLineBreakInParent(0)
+            inPosition(parent = LONG_STRING_TEMPLATE_ENTRY, left = LONG_TEMPLATE_ENTRY_START).lineBreakIfLineBreakInParent(0)
         }
 
         simple {
@@ -396,9 +399,6 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
             betweenInside(LPAR, DESTRUCTURING_DECLARATION, FOR).spaces(0)
             betweenInside(LOOP_RANGE, RPAR, FOR).spaces(0)
 
-            after(LONG_TEMPLATE_ENTRY_START).spaces(0)
-            before(LONG_TEMPLATE_ENTRY_END).spaces(0)
-
             afterInside(ANNOTATION_ENTRY, ANNOTATED_EXPRESSION).spaces(1)
 
             before(SEMICOLON).spaces(0)
diff --git a/idea/testData/formatter/MultilineStringEntry.after.kt b/idea/testData/formatter/MultilineStringEntry.after.kt
new file mode 100644
index 00000000000..b6e8784754f
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry.after.kt
@@ -0,0 +1,8 @@
+fun test() {
+    val message1 = "${
+        "sd"
+    }"
+    val message2 = {
+        "sd"
+    }()
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry.kt b/idea/testData/formatter/MultilineStringEntry.kt
new file mode 100644
index 00000000000..9e6da597179
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry.kt
@@ -0,0 +1,8 @@
+fun test() {
+    val message1 = "${
+    "sd"
+    }"
+    val message2 = {
+    "sd"
+    }()
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry2.after.kt b/idea/testData/formatter/MultilineStringEntry2.after.kt
new file mode 100644
index 00000000000..d84b49ea8b8
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry2.after.kt
@@ -0,0 +1,4 @@
+fun test() {
+    val message1 = "${"sd"}"
+    val message2 = { "sd" }()
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry2.kt b/idea/testData/formatter/MultilineStringEntry2.kt
new file mode 100644
index 00000000000..50e7336b67a
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry2.kt
@@ -0,0 +1,4 @@
+fun test() {
+    val message1 = "${"sd"}"
+    val message2 = {"sd"}()
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry3.after.kt b/idea/testData/formatter/MultilineStringEntry3.after.kt
new file mode 100644
index 00000000000..c516de2d28a
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry3.after.kt
@@ -0,0 +1,3 @@
+val message = "${
+    "sd"
+}"
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry3.kt b/idea/testData/formatter/MultilineStringEntry3.kt
new file mode 100644
index 00000000000..740d2762b0f
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry3.kt
@@ -0,0 +1,2 @@
+val message = "${"sd"
+}"
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry4.after.kt b/idea/testData/formatter/MultilineStringEntry4.after.kt
new file mode 100644
index 00000000000..e99df0cf0b0
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry4.after.kt
@@ -0,0 +1,5 @@
+fun test() {
+    val message = "start ${
+        "sd"
+    } end"
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry4.kt b/idea/testData/formatter/MultilineStringEntry4.kt
new file mode 100644
index 00000000000..c1276739676
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry4.kt
@@ -0,0 +1,4 @@
+fun test() {
+    val message = "start ${
+    "sd"} end"
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry5.after.kt b/idea/testData/formatter/MultilineStringEntry5.after.kt
new file mode 100644
index 00000000000..912fa8acd42
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry5.after.kt
@@ -0,0 +1,5 @@
+fun test() {
+    "start ${
+        println("sd")
+    } end"
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry5.kt b/idea/testData/formatter/MultilineStringEntry5.kt
new file mode 100644
index 00000000000..db6377fafcd
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry5.kt
@@ -0,0 +1,4 @@
+fun test() {
+    "start ${
+    println("sd")} end"
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry6.after.kt b/idea/testData/formatter/MultilineStringEntry6.after.kt
new file mode 100644
index 00000000000..450d05f14fc
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry6.after.kt
@@ -0,0 +1,7 @@
+fun test() {
+    "start ${
+        println(
+                "sd"
+        )
+    } end"
+}
\ No newline at end of file
diff --git a/idea/testData/formatter/MultilineStringEntry6.kt b/idea/testData/formatter/MultilineStringEntry6.kt
new file mode 100644
index 00000000000..1eeef156fd6
--- /dev/null
+++ b/idea/testData/formatter/MultilineStringEntry6.kt
@@ -0,0 +1,5 @@
+fun test() {
+    "start ${println(
+        "sd"
+    )} end"
+}
\ No newline at end of file
diff --git a/idea/testData/intentions/toOrdinaryStringLiteral/lineBreakInExpression.kt.after b/idea/testData/intentions/toOrdinaryStringLiteral/lineBreakInExpression.kt.after
index b71a9dc9c96..2e9f263a980 100644
--- a/idea/testData/intentions/toOrdinaryStringLiteral/lineBreakInExpression.kt.after
+++ b/idea/testData/intentions/toOrdinaryStringLiteral/lineBreakInExpression.kt.after
@@ -1,2 +1,4 @@
-val v = "${2 +
-        2}"
\ No newline at end of file
+val v = "${
+    2 +
+            2
+}"
\ No newline at end of file
diff --git a/idea/testData/refactoring/inline/inlineVariableOrProperty/stringTemplates/rawToNonRaw.kt.after b/idea/testData/refactoring/inline/inlineVariableOrProperty/stringTemplates/rawToNonRaw.kt.after
index e20ba0da300..8d6cea690bc 100644
--- a/idea/testData/refactoring/inline/inlineVariableOrProperty/stringTemplates/rawToNonRaw.kt.after
+++ b/idea/testData/refactoring/inline/inlineVariableOrProperty/stringTemplates/rawToNonRaw.kt.after
@@ -1,4 +1,6 @@
 fun foo() {
-    val y = "x=${"""ab
-    c"""}"
+    val y = "x=${
+        """ab
+        c"""
+    }"
 }
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java b/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
index 67f8aae42ed..3b1a059af4c 100644
--- a/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
@@ -545,6 +545,36 @@ public class FormatterTestGenerated extends AbstractFormatterTest {
             runTest("idea/testData/formatter/MultilineFunctionLiteralWithParams.after.kt");
         }
 
+        @TestMetadata("MultilineStringEntry.after.kt")
+        public void testMultilineStringEntry() throws Exception {
+            runTest("idea/testData/formatter/MultilineStringEntry.after.kt");
+        }
+
+        @TestMetadata("MultilineStringEntry2.after.kt")
+        public void testMultilineStringEntry2() throws Exception {
+            runTest("idea/testData/formatter/MultilineStringEntry2.after.kt");
+        }
+
+        @TestMetadata("MultilineStringEntry3.after.kt")
+        public void testMultilineStringEntry3() throws Exception {
+            runTest("idea/testData/formatter/MultilineStringEntry3.after.kt");
+        }
+
+        @TestMetadata("MultilineStringEntry4.after.kt")
+        public void testMultilineStringEntry4() throws Exception {
+            runTest("idea/testData/formatter/MultilineStringEntry4.after.kt");
+        }
+
+        @TestMetadata("MultilineStringEntry5.after.kt")
+        public void testMultilineStringEntry5() throws Exception {
+            runTest("idea/testData/formatter/MultilineStringEntry5.after.kt");
+        }
+
+        @TestMetadata("MultilineStringEntry6.after.kt")
+        public void testMultilineStringEntry6() throws Exception {
+            runTest("idea/testData/formatter/MultilineStringEntry6.after.kt");
+        }
+
         @TestMetadata("NewLineForRBrace.after.kt")
         public void testNewLineForRBrace() throws Exception {
             runTest("idea/testData/formatter/NewLineForRBrace.after.kt");