diff --git a/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetExpressionParsing.java b/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetExpressionParsing.java
index 3ff1a189452..76407e8783b 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetExpressionParsing.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/parsing/JetExpressionParsing.java
@@ -137,7 +137,7 @@ public class JetExpressionParsing extends AbstractJetParsing {
                     TokenSet.create(EOL_OR_SEMICOLON));
 
     /*package*/ static final TokenSet EXPRESSION_FOLLOW = TokenSet.create(
-            SEMICOLON, ARROW, COMMA, LBRACE, RBRACE, RPAR, RBRACKET
+            SEMICOLON, ARROW, COMMA, RBRACE, RPAR, RBRACKET
     );
 
     @SuppressWarnings({"UnusedDeclaration"})
@@ -887,8 +887,7 @@ public class JetExpressionParsing extends AbstractJetParsing {
             advance(); // ELSE_KEYWORD
 
             if (!at(ARROW)) {
-                errorUntil("Expecting '->'", TokenSet.create(ARROW, LBRACE,
-                                                             RBRACE, EOL_OR_SEMICOLON));
+                errorUntil("Expecting '->'", TokenSet.create(ARROW, LBRACE, RBRACE, EOL_OR_SEMICOLON));
             }
 
             if (at(ARROW)) {
@@ -901,7 +900,10 @@ public class JetExpressionParsing extends AbstractJetParsing {
                     parseExpressionPreferringBlocks();
                 }
             }
-            else if (!atSet(WHEN_CONDITION_RECOVERY_SET) && !at(LBRACE)) {
+            else if (at(LBRACE)) { // no arrow, probably it's simply missing
+                parseExpressionPreferringBlocks();
+            }
+            else if (!atSet(WHEN_CONDITION_RECOVERY_SET)) {
                 errorAndAdvance("Expecting '->'");
             }
         }
diff --git a/compiler/testData/psi/recovery/IncompleteWhenElse.txt b/compiler/testData/psi/recovery/IncompleteWhenElse.txt
index 98504513314..e0fb02f5490 100644
--- a/compiler/testData/psi/recovery/IncompleteWhenElse.txt
+++ b/compiler/testData/psi/recovery/IncompleteWhenElse.txt
@@ -43,24 +43,18 @@ JetFile: IncompleteWhenElse.kt
               PsiElement(else)('else')
               PsiErrorElement:Expecting '->'
                 <empty list>
-            PsiWhiteSpace(' ')
-            WHEN_ENTRY
-              WHEN_CONDITION_WITH_EXPRESSION
-                FUNCTION_LITERAL_EXPRESSION
-                  FUNCTION_LITERAL
-                    PsiElement(LBRACE)('{')
-                    PsiWhiteSpace(' ')
-                    BLOCK
-                      CALL_EXPRESSION
-                        REFERENCE_EXPRESSION
-                          PsiElement(IDENTIFIER)('doIt')
-                        VALUE_ARGUMENT_LIST
-                          PsiElement(LPAR)('(')
-                          PsiElement(RPAR)(')')
-                    PsiWhiteSpace(' ')
-                    PsiElement(RBRACE)('}')
-              PsiErrorElement:Expecting '->'
-                <empty list>
+              PsiWhiteSpace(' ')
+              BLOCK
+                PsiElement(LBRACE)('{')
+                PsiWhiteSpace(' ')
+                CALL_EXPRESSION
+                  REFERENCE_EXPRESSION
+                    PsiElement(IDENTIFIER)('doIt')
+                  VALUE_ARGUMENT_LIST
+                    PsiElement(LPAR)('(')
+                    PsiElement(RPAR)(')')
+                PsiWhiteSpace(' ')
+                PsiElement(RBRACE)('}')
             PsiWhiteSpace('\n    ')
             PsiElement(RBRACE)('}')
           PsiWhiteSpace('\n\n    ')