diff --git a/idea/src/org/jetbrains/jet/plugin/JetFoldingBuilder.java b/idea/src/org/jetbrains/jet/plugin/JetFoldingBuilder.java
index aa01f8b61bc..c09fc0e52ce 100644
--- a/idea/src/org/jetbrains/jet/plugin/JetFoldingBuilder.java
+++ b/idea/src/org/jetbrains/jet/plugin/JetFoldingBuilder.java
@@ -1,11 +1,12 @@
 package org.jetbrains.jet.plugin;
 
 import com.intellij.lang.ASTNode;
-import com.intellij.lang.folding.FoldingBuilder;
+import com.intellij.lang.folding.FoldingBuilderEx;
 import com.intellij.lang.folding.FoldingDescriptor;
 import com.intellij.openapi.editor.Document;
 import com.intellij.openapi.project.DumbAware;
 import com.intellij.openapi.util.TextRange;
+import com.intellij.psi.PsiElement;
 import com.intellij.psi.tree.IElementType;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.JetNodeTypes;
@@ -18,24 +19,29 @@ import java.util.List;
 /**
  * @author yole
  */
-public class JetFoldingBuilder implements FoldingBuilder, DumbAware {
+public class JetFoldingBuilder extends FoldingBuilderEx implements DumbAware {
     @NotNull
     @Override
-    public FoldingDescriptor[] buildFoldRegions(@NotNull ASTNode node, @NotNull Document document) {
+    public FoldingDescriptor[] buildFoldRegions(@NotNull PsiElement root, @NotNull Document document, boolean quick) {
         List<FoldingDescriptor> descriptors = new ArrayList<FoldingDescriptor>();
-        appendDescriptors(node, document, descriptors);
+        appendDescriptors(root.getNode(), document, descriptors);
         return descriptors.toArray(new FoldingDescriptor[descriptors.size()]);
     }
 
-    private void appendDescriptors(ASTNode node, Document document, List<FoldingDescriptor> descriptors) {
+    private static void appendDescriptors(ASTNode node, Document document, List<FoldingDescriptor> descriptors) {
         TextRange textRange = node.getTextRange();
         IElementType type = node.getElementType();
         if ((type == JetNodeTypes.BLOCK || type == JetNodeTypes.CLASS_BODY) &&
             !isOneLine(textRange, document)) {
             descriptors.add(new FoldingDescriptor(node, textRange));
-        } else if (type == JetNodeTypes.PARENTHESIZED && node.getFirstChildNode().getElementType() == JetTokens.IDE_TEMPLATE_START) {
-            if (node.getTreeParent().getTextLength() > 0) {
-                descriptors.add(new FoldingDescriptor(node, textRange, null, Collections.<Object>emptySet(), true));
+        } else if (node.getElementType() == JetTokens.IDE_TEMPLATE_START) {
+            ASTNode next = node.getTreeNext();
+            if (next != null) {
+                ASTNode nextNext = next.getTreeNext();
+                if (nextNext.getElementType() == JetTokens.IDE_TEMPLATE_END) {
+                    TextRange range = new TextRange(node.getStartOffset(), nextNext.getStartOffset() + nextNext.getTextLength());
+                    descriptors.add(new FoldingDescriptor(next, range, null, Collections.<Object>emptySet(), true));
+                }
             }
         }
         ASTNode child = node.getFirstChildNode();
@@ -50,14 +56,21 @@ public class JetFoldingBuilder implements FoldingBuilder, DumbAware {
     }
 
     @Override
-    public String getPlaceholderText(@NotNull ASTNode astNode) {
-        if (astNode.getElementType() == JetNodeTypes.PARENTHESIZED && astNode.getFirstChildNode().getElementType() == JetTokens.IDE_TEMPLATE_START) {
-            ASTNode placeholderExpression = astNode.getFirstChildNode().getTreeNext();
-            return placeholderExpression.getText();
+    public String getPlaceholderText(@NotNull ASTNode astNode, @NotNull TextRange range) {
+        ASTNode prev = astNode.getTreePrev();
+        ASTNode next = astNode.getTreeNext();
+        if (prev != null && next != null && prev.getElementType() == JetTokens.IDE_TEMPLATE_START
+                && next.getElementType() == JetTokens.IDE_TEMPLATE_END) {
+            return astNode.getText();
         }
         return "{...}";
     }
 
+    @Override
+    public String getPlaceholderText(@NotNull ASTNode node) {
+        return "{...}";
+    }
+
     @Override
     public boolean isCollapsedByDefault(@NotNull ASTNode astNode) {
         return false;