diff --git a/clang/docs/ClangFormatStyleOptions.rst b/clang/docs/ClangFormatStyleOptions.rst
index fea52679585a6..5ebb8c82b3049 100644
--- a/clang/docs/ClangFormatStyleOptions.rst
+++ b/clang/docs/ClangFormatStyleOptions.rst
@@ -3788,8 +3788,8 @@ the configuration (without a prefix: ``Auto``).
            });
 
   * ``LBI_OuterScope`` (in configuration: ``OuterScope``)
-    Align lambda body relative to the indentation level of the outer scope
-    the lambda signature resides in.
+    For statements within block scope, align lambda body relative to the
+    indentation level of the outer scope the lambda signature resides in.
 
     .. code-block:: c++
 
diff --git a/clang/include/clang/Format/Format.h b/clang/include/clang/Format/Format.h
index e78aa62f93cff..2707ea608c74e 100644
--- a/clang/include/clang/Format/Format.h
+++ b/clang/include/clang/Format/Format.h
@@ -2879,8 +2879,8 @@ struct FormatStyle {
     ///        });
     /// \endcode
     LBI_Signature,
-    /// Align lambda body relative to the indentation level of the outer scope
-    /// the lambda signature resides in.
+    /// For statements within block scope, align lambda body relative to the
+    /// indentation level of the outer scope the lambda signature resides in.
     /// \code
     ///    someMethod(
     ///        [](SomeReallyLongLambdaSignatureArgument foo) {
diff --git a/clang/lib/Format/ContinuationIndenter.cpp b/clang/lib/Format/ContinuationIndenter.cpp
index deb3e554fdc12..70abef1169751 100644
--- a/clang/lib/Format/ContinuationIndenter.cpp
+++ b/clang/lib/Format/ContinuationIndenter.cpp
@@ -1955,7 +1955,8 @@ void ContinuationIndenter::moveStatePastScopeCloser(LineState &State) {
 
 void ContinuationIndenter::moveStateToNewBlock(LineState &State) {
   if (Style.LambdaBodyIndentation == FormatStyle::LBI_OuterScope &&
-      State.NextToken->is(TT_LambdaLBrace)) {
+      State.NextToken->is(TT_LambdaLBrace) &&
+      !State.Line->MightBeFunctionDecl) {
     State.Stack.back().NestedBlockIndent = State.FirstIndent;
   }
   unsigned NestedBlockIndent = State.Stack.back().NestedBlockIndent;
diff --git a/clang/unittests/Format/FormatTest.cpp b/clang/unittests/Format/FormatTest.cpp
index 0d0fbdb84e327..6c67c4253254d 100644
--- a/clang/unittests/Format/FormatTest.cpp
+++ b/clang/unittests/Format/FormatTest.cpp
@@ -22537,10 +22537,12 @@ TEST_F(FormatTest, FormatsLambdas) {
                "  }\n"
                "}",
                Style);
-  verifyFormat("std::sort(v.begin(), v.end(),\n"
-               "          [](const auto &foo, const auto &bar) {\n"
-               "  return foo.baz < bar.baz;\n"
-               "});",
+  verifyFormat("void test() {\n"
+               "  std::sort(v.begin(), v.end(),\n"
+               "            [](const auto &foo, const auto &bar) {\n"
+               "    return foo.baz < bar.baz;\n"
+               "  });\n"
+               "};",
                Style);
   verifyFormat("void test() {\n"
                "  (\n"
@@ -22566,6 +22568,12 @@ TEST_F(FormatTest, FormatsLambdas) {
                "        xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx);            \\\n"
                "  }",
                Style);
+  verifyFormat("#define SORT(v)                                            \\\n"
+               "  std::sort(v.begin(), v.end(),                            \\\n"
+               "            [](const auto &foo, const auto &bar) {         \\\n"
+               "    return foo.baz < bar.baz;                              \\\n"
+               "  });",
+               Style);
   verifyFormat("void foo() {\n"
                "  aFunction(1, b(c(foo, bar, baz, [](d) {\n"
                "    auto f = e(d);\n"
@@ -22589,9 +22597,40 @@ TEST_F(FormatTest, FormatsLambdas) {
   verifyFormat("Namespace::Foo::Foo(LongClassName bar,\n"
                "                    AnotherLongClassName baz)\n"
                "    : baz{baz}, func{[&] {\n"
-               "  auto qux = bar;\n"
-               "  return aFunkyFunctionCall(qux);\n"
-               "}} {}",
+               "        auto qux = bar;\n"
+               "        return aFunkyFunctionCall(qux);\n"
+               "      }} {}",
+               Style);
+  verifyFormat("void foo() {\n"
+               "  class Foo {\n"
+               "  public:\n"
+               "    Foo()\n"
+               "        : qux{[](int quux) {\n"
+               "            auto tmp = quux;\n"
+               "            return tmp;\n"
+               "          }} {}\n"
+               "\n"
+               "  private:\n"
+               "    std::function<void(int quux)> qux;\n"
+               "  };\n"
+               "}",
+               Style);
+  Style.BreakConstructorInitializers = FormatStyle::BCIS_AfterColon;
+  verifyFormat("Namespace::Foo::Foo(LongClassName bar,\n"
+               "                    AnotherLongClassName baz) :\n"
+               "    baz{baz}, func{[&] {\n"
+               "      auto qux = bar;\n"
+               "      return aFunkyFunctionCall(qux);\n"
+               "    }} {}",
+               Style);
+  Style.PackConstructorInitializers = FormatStyle::PCIS_Never;
+  verifyFormat("Namespace::Foo::Foo(LongClassName bar,\n"
+               "                    AnotherLongClassName baz) :\n"
+               "    baz{baz},\n"
+               "    func{[&] {\n"
+               "      auto qux = bar;\n"
+               "      return aFunkyFunctionCall(qux);\n"
+               "    }} {}",
                Style);
   Style.AlignAfterOpenBracket = FormatStyle::BAS_AlwaysBreak;
   // FIXME: The following test should pass, but fails at the time of writing.