diff --git a/src/services/smartIndenter.ts b/src/services/smartIndenter.ts
index cafd92a7551..758c06226a4 100644
--- a/src/services/smartIndenter.ts
+++ b/src/services/smartIndenter.ts
@@ -342,6 +342,7 @@ module ts.formatting {
                 case SyntaxKind.VariableDeclaration:
                 case SyntaxKind.ExportAssignment:
                 case SyntaxKind.ReturnStatement:
+                case SyntaxKind.ConditionalExpression:
                     return true;
             }
             return false;
diff --git a/tests/cases/fourslash/formattingConditionals.ts b/tests/cases/fourslash/formattingConditionals.ts
new file mode 100644
index 00000000000..65029134b87
--- /dev/null
+++ b/tests/cases/fourslash/formattingConditionals.ts
@@ -0,0 +1,23 @@
+/// <reference path='fourslash.ts' />
+
+
+////var v =
+/////*0*/a === b
+/////*1*/? c
+/////*2*/: d;
+
+////var v = a === b
+/////*3*/? c
+/////*4*/: d;
+
+function verifyLine(marker: string, content: string) {
+    goTo.marker(marker);
+    verify.currentLineContentIs(content);
+}
+
+format.document();
+verifyLine("0", "    a === b");
+verifyLine("1", "        ? c");
+verifyLine("2", "        : d;");
+verifyLine("3", "    ? c");
+verifyLine("4", "    : d;");