diff --git a/src/services/formatting.ts b/src/services/formatting.ts
index c8d3d1bb52f..9ff26129f8b 100644
--- a/src/services/formatting.ts
+++ b/src/services/formatting.ts
@@ -620,14 +620,21 @@ module ts.formatting {
 
                 var tokenStart = sourceFile.getLineAndCharacterFromPosition(currentTokenInfo.token.pos);
                 if (isTokenInRange) {
+                    var rangeHasError = rangeContainsError(currentTokenInfo.token);
                     // save prevStartLine since processRange will overwrite this value with current ones
                     var prevStartLine = previousRangeStartLine;
                     lineAdded = processRange(currentTokenInfo.token, tokenStart, parent, childContextNode, dynamicIndentation);
-                    if (lineAdded !== undefined) {
-                        indentToken = lineAdded;
+                    if (rangeHasError) {
+                        // do not indent comments\token if token range overlaps with some error
+                        indentToken = false;
                     }
                     else {
-                        indentToken = lastTriviaWasNewLine && tokenStart.line !== prevStartLine;
+                        if (lineAdded !== undefined) {
+                            indentToken = lineAdded;
+                        }
+                        else {
+                            indentToken = lastTriviaWasNewLine && tokenStart.line !== prevStartLine;
+                        }
                     }
                 }
 
diff --git a/src/services/smartIndenter.ts b/src/services/smartIndenter.ts
index c6b92310c2e..d7f40d8bba7 100644
--- a/src/services/smartIndenter.ts
+++ b/src/services/smartIndenter.ts
@@ -340,6 +340,7 @@ 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/formattingCommentsBeforeErrors.ts b/tests/cases/fourslash/formattingCommentsBeforeErrors.ts
new file mode 100644
index 00000000000..bb7e616b267
--- /dev/null
+++ b/tests/cases/fourslash/formattingCommentsBeforeErrors.ts
@@ -0,0 +1,20 @@
+/// <reference path='fourslash.ts' />
+
+////module A {
+////    interface B {
+////        // a
+////        // b
+////        baz();
+/////*0*/        // d /*1*/asd a
+////        // e
+////        foo();
+////        // f asd
+////        // g as
+////        bar();
+////    }
+////}
+
+goTo.marker("1");
+edit.insert("\n");
+goTo.marker("0");
+verify.currentLineContentIs("        // d ");
\ No newline at end of file
diff --git a/tests/cases/fourslash/formattingConditionals.ts b/tests/cases/fourslash/formattingConditionals.ts
new file mode 100644
index 00000000000..cb6edfcd56b
--- /dev/null
+++ b/tests/cases/fourslash/formattingConditionals.ts
@@ -0,0 +1,44 @@
+/// <reference path='fourslash.ts' />
+
+
+////var v =
+/////*0*/a === b
+/////*1*/? c
+/////*2*/: d;
+
+////var v = a === b
+/////*3*/? c
+/////*4*/: d;
+
+////var x =
+/////*5*/a
+/////*6*/? function(){
+/////*7*/var z = 1
+/////*8*/}
+/////*9*/: function(){
+/////*10*/var z = 2
+/////*11*/}
+    
+
+
+
+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;");
+
+verifyLine("5",  "    a");
+verifyLine("6",  "        ? function() {");
+verifyLine("7",  "            var z = 1");
+verifyLine("8",  "        }");
+verifyLine("9",  "        : function() {");
+verifyLine("10", "            var z = 2");
+verifyLine("11", "        }");