diff --git a/src/services/formatting/smartIndenter.ts b/src/services/formatting/smartIndenter.ts
index 7f41a2701b8c3..9f2564d3fd688 100644
--- a/src/services/formatting/smartIndenter.ts
+++ b/src/services/formatting/smartIndenter.ts
@@ -654,7 +654,6 @@ export namespace SmartIndenter {
             case SyntaxKind.VariableStatement:
             case SyntaxKind.ExportAssignment:
             case SyntaxKind.ReturnStatement:
-            case SyntaxKind.ConditionalExpression:
             case SyntaxKind.ArrayBindingPattern:
             case SyntaxKind.ObjectBindingPattern:
             case SyntaxKind.JsxOpeningElement:
@@ -695,6 +694,15 @@ export namespace SmartIndenter {
                     return true;
                 }
                 break;
+            case SyntaxKind.ConditionalExpression:
+                if (child && sourceFile) {
+                    const childStartLine = sourceFile.getLineAndCharacterOfPosition(skipTrivia(sourceFile.text, child.pos)).line;
+                    const childEndLine = sourceFile.getLineAndCharacterOfPosition(skipTrivia(sourceFile.text, child.end)).line;
+                    if (!rangeIsOnOneLine(sourceFile, parent) && childStartLine !== childEndLine && childKind !== SyntaxKind.ParenthesizedExpression) {
+                        return false;
+                    }
+                }
+                return true;
             case SyntaxKind.DoStatement:
             case SyntaxKind.WhileStatement:
             case SyntaxKind.ForInStatement:
diff --git a/tests/cases/fourslash/formattingConditionalsWithNestedFalseBranches.ts b/tests/cases/fourslash/formattingConditionalsWithNestedFalseBranches.ts
new file mode 100644
index 0000000000000..0e118c9a50eb0
--- /dev/null
+++ b/tests/cases/fourslash/formattingConditionalsWithNestedFalseBranches.ts
@@ -0,0 +1,43 @@
+/// <reference path='fourslash.ts' />
+
+////var v =
+/////*1*/0 ? 1 :
+/////*2*/2 ? 3 :
+/////*3*/4;
+
+////var x =
+/////*4*/a ? b :
+/////*5*/c ? d :
+/////*6*/e;
+
+////var opacity =
+/////*7*/depth == 0 ? 1 :
+/////*8*/depth == 1 ? .7 :
+/////*9*/depth == 2 ? .5 :
+/////*10*/depth == 3 ? .4 : .3;
+
+format.document();
+goTo.marker('1');
+verify.indentationIs(4);
+goTo.marker('2');
+verify.indentationIs(4);
+goTo.marker('3');
+verify.indentationIs(4);
+
+format.document();
+goTo.marker('4');
+verify.indentationIs(4);
+goTo.marker('5');
+verify.indentationIs(4);
+goTo.marker('6');
+verify.indentationIs(4);
+
+format.document();
+goTo.marker('7');
+verify.indentationIs(4);
+goTo.marker('8');
+verify.indentationIs(4);
+goTo.marker('9');
+verify.indentationIs(4);
+goTo.marker('10');
+verify.indentationIs(4);
\ No newline at end of file