diff --git a/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt b/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt
index 794d67344cc..0fac52037ce 100644
--- a/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt
+++ b/idea/src/org/jetbrains/jet/plugin/formatter/KotlinSpacingBuilder.kt
@@ -183,10 +183,6 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
             between(VALUE_ARGUMENT_LIST, FUNCTION_LITERAL_EXPRESSION).spaces(1)
             beforeInside(ARROW, FUNCTION_LITERAL).spaceIf(jetSettings.SPACE_BEFORE_LAMBDA_ARROW)
 
-            //when
-            aroundInside(ARROW, WHEN_ENTRY).spaceIf(jetSettings.SPACE_AROUND_WHEN_ARROW)
-            beforeInside(LBRACE, WHEN).spacing(1, 1, 0, true, 0)          //omit blank lines before '{' in 'when' statement
-
             aroundInside(ARROW, FUNCTION_TYPE).spaceIf(jetSettings.SPACE_AROUND_FUNCTION_TYPE_ARROW)
 
             betweenInside(REFERENCE_EXPRESSION, FUNCTION_LITERAL_EXPRESSION, CALL_EXPRESSION).spaces(1)
@@ -197,8 +193,8 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
 
             fun spacingForLeftBrace(block: ASTNode?, blockType: IElementType = BLOCK): Spacing? {
                 if (block != null && block.getElementType() == blockType) {
-                    val leftBrace = block.getFirstChildNode()
-                    if (leftBrace != null && leftBrace.getElementType() == LBRACE) {
+                    val leftBrace = block.findChildByType(LBRACE)
+                    if (leftBrace != null) {
                         val previousLeaf = FormatterUtil.getPreviousNonWhitespaceLeaf(leftBrace)
                         val isAfterEolComment = previousLeaf != null && (previousLeaf.getElementType() == EOL_COMMENT)
                         val keepLineBreaks = jetSettings.LBRACE_ON_NEXT_LINE || isAfterEolComment
@@ -234,6 +230,12 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
 
             inPosition(right = CLASS_BODY).customRule(leftBraceRule(blockType = CLASS_BODY))
 
+            inPosition(parent = WHEN_ENTRY, right = BLOCK).customRule(leftBraceRule())
+            inPosition(parent = WHEN, right = LBRACE).customRule {
+                parent, left, right ->
+                spacingForLeftBrace(block = parent.getNode(), blockType = WHEN)
+            }
+
             val spacesInSimpleFunction = if (jetSettings.INSERT_WHITESPACES_IN_SIMPLE_ONE_LINE_METHOD) 1 else 0
             inPosition(parent = FUNCTION_LITERAL,
                        left = LBRACE,
@@ -273,6 +275,9 @@ fun createSpacingBuilder(settings: CodeStyleSettings): KotlinSpacingBuilder {
             beforeInside(RBRACE, CLASS_BODY).lineBreakInCode()
             beforeInside(RBRACE, BLOCK).lineBreakInCode()
             between(RPAR, BODY).spaces(1)
+
+            // if when entry has block, spacing after arrow should be set by lbrace rule
+            aroundInside(ARROW, WHEN_ENTRY).spaceIf(jetSettings.SPACE_AROUND_WHEN_ARROW)
         }
     }
 }
diff --git a/idea/testData/formatter/WhenEntryExpr.after.kt b/idea/testData/formatter/WhenEntryExpr.after.kt
index 3985aebde7f..9820936150c 100644
--- a/idea/testData/formatter/WhenEntryExpr.after.kt
+++ b/idea/testData/formatter/WhenEntryExpr.after.kt
@@ -24,44 +24,36 @@ fun some(x: Any) {
         }
     }
     when (x) {
-        is Int ->
-        {
+        is Int -> {
             0
         }
-        3 ->
-        {
+        3 -> {
             2
         }
-        in 0..3 ->
-        {
+        in 0..3 -> {
             2
         }
-        else ->
-        {
+        else -> {
             1
         }
     }
     when (x) {
         is
         Int
-        ->
-        {
+        -> {
             0
         }
         3
-        ->
-        {
+        -> {
             2
         }
         in
         0..3
-        ->
-        {
+        -> {
             2
         }
         else
-        ->
-        {
+        -> {
             1
         }
     }
diff --git a/idea/testData/formatter/WhenLineBreak.after.inv.kt b/idea/testData/formatter/WhenLineBreak.after.inv.kt
new file mode 100644
index 00000000000..5b2f584704e
--- /dev/null
+++ b/idea/testData/formatter/WhenLineBreak.after.inv.kt
@@ -0,0 +1,39 @@
+fun f() {
+    when(c) {
+        a -> {
+        }
+        b -> j
+        else -> {
+        }
+    }
+
+    when(c) {
+        a -> {
+        }
+        b -> j
+        else -> {
+        }
+    }
+
+    when(c) {
+        a -> {
+        }
+        b -> j
+        else -> {
+        }
+    }
+
+    when(c) //eol comment
+    {
+        a -> //eol comment
+        {
+        }
+        b -> j
+        else -> //eol comment
+        {
+        }
+    }
+}
+
+
+// SET_TRUE: LBRACE_ON_NEXT_LINE
diff --git a/idea/testData/formatter/WhenLineBreak.after.kt b/idea/testData/formatter/WhenLineBreak.after.kt
new file mode 100644
index 00000000000..f466b541adf
--- /dev/null
+++ b/idea/testData/formatter/WhenLineBreak.after.kt
@@ -0,0 +1,49 @@
+fun f()
+{
+    when(c)
+    {
+        a ->
+        {
+        }
+        b -> j
+        else ->
+        {
+        }
+    }
+
+    when(c)
+    {
+        a ->
+        {
+        }
+        b -> j
+        else ->
+        {
+        }
+    }
+
+    when(c)
+    {
+        a ->
+        {
+        }
+        b -> j
+        else ->
+        {
+        }
+    }
+
+    when(c) //eol comment
+    {
+        a -> //eol comment
+        {
+        }
+        b -> j
+        else -> //eol comment
+        {
+        }
+    }
+}
+
+
+// SET_TRUE: LBRACE_ON_NEXT_LINE
diff --git a/idea/testData/formatter/WhenLineBreak.kt b/idea/testData/formatter/WhenLineBreak.kt
new file mode 100644
index 00000000000..d1b87bb95ac
--- /dev/null
+++ b/idea/testData/formatter/WhenLineBreak.kt
@@ -0,0 +1,49 @@
+fun f()
+{
+    when(c) {
+        a -> {
+        }
+        b -> j
+        else -> {
+        }
+    }
+
+    when(c)
+    {
+        a ->
+        {
+        }
+        b -> j
+        else ->
+        {
+        }
+    }
+
+    when(c)
+
+    {
+        a ->
+
+        {
+        }
+        b -> j
+        else ->
+
+        {
+        }
+    }
+
+    when(c) //eol comment
+    {
+        a -> //eol comment
+        {
+        }
+        b -> j
+        else -> //eol comment
+        {
+        }
+    }
+}
+
+
+// SET_TRUE: LBRACE_ON_NEXT_LINE
diff --git a/idea/testData/formatter/WhenLinesBeforeLbrace.after.kt b/idea/testData/formatter/WhenLinesBeforeLbrace.after.kt
index 1d9ad0a982d..ad6e8c21cfa 100644
--- a/idea/testData/formatter/WhenLinesBeforeLbrace.after.kt
+++ b/idea/testData/formatter/WhenLinesBeforeLbrace.after.kt
@@ -1,6 +1,5 @@
 fun f(x: Any): Int {
-    return when (x)
-    {
+    return when (x) {
         is Int -> 1
         else -> 0
     }
diff --git a/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java b/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java
index ea3f3e5a703..f477e26546c 100644
--- a/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java
+++ b/idea/tests/org/jetbrains/jet/formatter/JetFormatterTestGenerated.java
@@ -249,6 +249,11 @@ public class JetFormatterTestGenerated extends AbstractJetFormatterTest {
             doTest("idea/testData/formatter/WhenEntryExpr.after.kt");
         }
         
+        @TestMetadata("WhenLineBreak.after.kt")
+        public void testWhenLineBreak() throws Exception {
+            doTest("idea/testData/formatter/WhenLineBreak.after.kt");
+        }
+        
         @TestMetadata("WhenLinesBeforeLbrace.after.kt")
         public void testWhenLinesBeforeLbrace() throws Exception {
             doTest("idea/testData/formatter/WhenLinesBeforeLbrace.after.kt");
@@ -452,6 +457,11 @@ public class JetFormatterTestGenerated extends AbstractJetFormatterTest {
             doTestInverted("idea/testData/formatter/WhenArrow.after.inv.kt");
         }
         
+        @TestMetadata("WhenLineBreak.after.inv.kt")
+        public void testWhenLineBreak() throws Exception {
+            doTestInverted("idea/testData/formatter/WhenLineBreak.after.inv.kt");
+        }
+        
         @TestMetadata("WhileLineBreak.after.inv.kt")
         public void testWhileLineBreak() throws Exception {
             doTestInverted("idea/testData/formatter/WhileLineBreak.after.inv.kt");