diff --git a/idea/src/org/jetbrains/jet/plugin/completion/handlers/JetFunctionInsertHandler.java b/idea/src/org/jetbrains/jet/plugin/completion/handlers/JetFunctionInsertHandler.java
index 69b62b2f075..1409c43edb7 100644
--- a/idea/src/org/jetbrains/jet/plugin/completion/handlers/JetFunctionInsertHandler.java
+++ b/idea/src/org/jetbrains/jet/plugin/completion/handlers/JetFunctionInsertHandler.java
@@ -104,6 +104,10 @@ public class JetFunctionInsertHandler implements InsertHandler<LookupElement> {
         if (openingBracketIndex == -1) {
             // Insert ()/{} if it's not already exist
             if (braces) {
+                if (context.getCompletionChar() == ' ') {
+                    context.setAddCompletionChar(false);
+                }
+
                 if (isInsertSpacesInOneLineFunctionEnabled(offsetElement.getProject())) {
                     document.insertString(offset, " {  }");
                     inBracketsShift = 1;
diff --git a/idea/testData/completion/handlers/FunctionLiteralInsertOnSpace.kt b/idea/testData/completion/handlers/FunctionLiteralInsertOnSpace.kt
new file mode 100644
index 00000000000..cbd9d8f7e88
--- /dev/null
+++ b/idea/testData/completion/handlers/FunctionLiteralInsertOnSpace.kt
@@ -0,0 +1,7 @@
+class Some
+fun <T> Some.filter(predicate : (T) -> jet.Boolean) = throw UnsupportedOperationException()
+
+fun main(args: Array<String>) {
+    Some().fil<caret>
+}
+
diff --git a/idea/testData/completion/handlers/FunctionLiteralInsertOnSpace.kt.after b/idea/testData/completion/handlers/FunctionLiteralInsertOnSpace.kt.after
new file mode 100644
index 00000000000..cd457bc2117
--- /dev/null
+++ b/idea/testData/completion/handlers/FunctionLiteralInsertOnSpace.kt.after
@@ -0,0 +1,7 @@
+class Some
+fun <T> Some.filter(predicate : (T) -> jet.Boolean) = throw UnsupportedOperationException()
+
+fun main(args: Array<String>) {
+    Some().filter { <caret> }
+}
+
diff --git a/idea/tests/org/jetbrains/jet/completion/handlers/CompletionHandlerTest.java b/idea/tests/org/jetbrains/jet/completion/handlers/CompletionHandlerTest.java
index e1a092f032d..5174a927dbd 100644
--- a/idea/tests/org/jetbrains/jet/completion/handlers/CompletionHandlerTest.java
+++ b/idea/tests/org/jetbrains/jet/completion/handlers/CompletionHandlerTest.java
@@ -38,7 +38,7 @@ import java.io.File;
 public class CompletionHandlerTest extends LightCompletionTestCase {
 
     public void testClassCompletionImport() {
-        doTest(CompletionType.BASIC, 2, "SortedSet", null);
+        doTest(CompletionType.BASIC, 2, "SortedSet", null, '\n');
     }
 
     public void testDoNotInsertImportForAlreadyImported() {
@@ -46,7 +46,7 @@ public class CompletionHandlerTest extends LightCompletionTestCase {
     }
 
     public void testNonStandardArray() {
-        doTest(CompletionType.BASIC, 2, "Array", "java.lang.reflect");
+        doTest(CompletionType.BASIC, 2, "Array", "java.lang.reflect", '\n');
     }
 
     public void testNoParamsFunction() {
@@ -79,6 +79,10 @@ public class CompletionHandlerTest extends LightCompletionTestCase {
         doTest();
     }
 
+    public void testFunctionLiteralInsertOnSpace() {
+        doTest(' ');
+    }
+
     public void testFunctionLiteralInsertWhenNoSpacesForBraces() {
         CodeStyleSettings settings = CodeStyleSettingsManager.getSettings(getProject());
         JetCodeStyleSettings jetSettings = settings.getCustomSettings(JetCodeStyleSettings.class);
@@ -96,14 +100,18 @@ public class CompletionHandlerTest extends LightCompletionTestCase {
     }
 
     public void testHigherOrderFunctionWithArg() {
-        doTest(CompletionType.BASIC, 2, "filterNot", null);
+        doTest(CompletionType.BASIC, 2, "filterNot", null, '\n');
     }
 
     public void doTest() {
-        doTest(CompletionType.BASIC, 2, null, null);
+        doTest('\n');
     }
 
-    public void doTest(CompletionType type, int time, @Nullable String lookupString, @Nullable String tailText) {
+    public void doTest(char completionChar) {
+        doTest(CompletionType.BASIC, 2, null, null, completionChar);
+    }
+
+    public void doTest(CompletionType type, int time, @Nullable String lookupString, @Nullable String tailText, char completionChar) {
         try {
             configureByFileNoComplete(getBeforeFileName());
             setType(type);
@@ -113,7 +121,7 @@ public class CompletionHandlerTest extends LightCompletionTestCase {
 
                 LookupElement item = getExistentLookupElement(lookupString, tailText);
                 if (item != null) {
-                    selectItem(item, '\n');
+                    selectItem(item, completionChar);
                 }
             }
             else {