diff --git a/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java b/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
index 2f6cd5b0f22..f5ae2ea66bc 100644
--- a/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
+++ b/idea/src/org/jetbrains/jet/lang/parsing/JetParsing.java
@@ -118,11 +118,16 @@ public class JetParsing extends AbstractJetParsing {
         parseModifierList();
 
         if (at(NAMESPACE_KEYWORD)) {
-            firstEntry.drop();
             advance(); // NAMESPACE_KEYWORD
 
             parseNamespaceName();
 
+            if (at(LBRACE)) {
+                firstEntry.rollbackTo();
+                return;
+            }
+            firstEntry.drop();
+
             consumeIf(SEMICOLON);
         } else {
             firstEntry.rollbackTo();
diff --git a/idea/testData/psi/NamespaceBlockFirst.jet b/idea/testData/psi/NamespaceBlockFirst.jet
new file mode 100644
index 00000000000..d3324536a1a
--- /dev/null
+++ b/idea/testData/psi/NamespaceBlockFirst.jet
@@ -0,0 +1,4 @@
+namespace foobar {
+  val a = 1
+  val b = foobar.a
+}
diff --git a/idea/testData/psi/NamespaceBlockFirst.txt b/idea/testData/psi/NamespaceBlockFirst.txt
new file mode 100644
index 00000000000..a115f637a28
--- /dev/null
+++ b/idea/testData/psi/NamespaceBlockFirst.txt
@@ -0,0 +1,36 @@
+JetFile: NamespaceBlockFirst.jet
+  NAMESPACE
+    NAMESPACE
+      PsiElement(namespace)('namespace')
+      PsiWhiteSpace(' ')
+      NAMESPACE_NAME
+        PsiElement(IDENTIFIER)('foobar')
+      PsiWhiteSpace(' ')
+      PsiElement(LBRACE)('{')
+      PsiWhiteSpace('\n  ')
+      NAMESPACE_BODY
+        PROPERTY
+          PsiElement(val)('val')
+          PsiWhiteSpace(' ')
+          PsiElement(IDENTIFIER)('a')
+          PsiWhiteSpace(' ')
+          PsiElement(EQ)('=')
+          PsiWhiteSpace(' ')
+          INTEGER_CONSTANT
+            PsiElement(INTEGER_LITERAL)('1')
+        PsiWhiteSpace('\n  ')
+        PROPERTY
+          PsiElement(val)('val')
+          PsiWhiteSpace(' ')
+          PsiElement(IDENTIFIER)('b')
+          PsiWhiteSpace(' ')
+          PsiElement(EQ)('=')
+          PsiWhiteSpace(' ')
+          DOT_QUALIFIED_EXPRESSION
+            REFERENCE_EXPRESSION
+              PsiElement(IDENTIFIER)('foobar')
+            PsiElement(DOT)('.')
+            REFERENCE_EXPRESSION
+              PsiElement(IDENTIFIER)('a')
+      PsiWhiteSpace('\n')
+      PsiElement(RBRACE)('}')
\ No newline at end of file