diff --git a/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/optimizations/UseStringBufferForStringAppendsRule.java b/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/optimizations/UseStringBufferForStringAppendsRule.java
index fc74c9f453f..4f15d90bfde 100644
--- a/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/optimizations/UseStringBufferForStringAppendsRule.java
+++ b/pmd-java/src/main/java/net/sourceforge/pmd/lang/java/rule/optimizations/UseStringBufferForStringAppendsRule.java
@@ -6,6 +6,8 @@
 import net.sourceforge.pmd.lang.ast.Node;
 import net.sourceforge.pmd.lang.java.ast.ASTArgumentList;
 import net.sourceforge.pmd.lang.java.ast.ASTAssignmentOperator;
+import net.sourceforge.pmd.lang.java.ast.ASTConditionalExpression;
+import net.sourceforge.pmd.lang.java.ast.ASTEqualityExpression;
 import net.sourceforge.pmd.lang.java.ast.ASTLocalVariableDeclaration;
 import net.sourceforge.pmd.lang.java.ast.ASTName;
 import net.sourceforge.pmd.lang.java.ast.ASTPrimaryExpression;
@@ -37,6 +39,16 @@ public Object visit(ASTVariableDeclaratorId node, Object data) {
                 // used in method call
                 continue;
             }
+            ASTEqualityExpression equality = name.getFirstParentOfType(ASTEqualityExpression.class);
+            if (equality != null && equality.getFirstParentOfType(ASTStatementExpression.class) == statement) {
+                // used in condition
+                continue;
+            }
+            ASTConditionalExpression conditional = name.getFirstParentOfType(ASTConditionalExpression.class);
+            if (conditional != null && name.jjtGetParent().jjtGetParent().jjtGetParent() == conditional && conditional.getFirstParentOfType(ASTStatementExpression.class) == statement) {
+                // is used in ternary as only option (not appendend to other string)
+                continue;
+            }
             if (statement.jjtGetNumChildren() > 0 && statement.jjtGetChild(0) instanceof ASTPrimaryExpression) {
                 ASTName astName = statement.jjtGetChild(0).getFirstDescendantOfType(ASTName.class);
                 if(astName != null){
diff --git a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/optimizations/xml/UseStringBufferForStringAppends.xml b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/optimizations/xml/UseStringBufferForStringAppends.xml
index eb055a35a05..d32b2de1283 100644
--- a/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/optimizations/xml/UseStringBufferForStringAppends.xml
+++ b/pmd-java/src/test/resources/net/sourceforge/pmd/lang/java/rule/optimizations/xml/UseStringBufferForStringAppends.xml
@@ -135,15 +135,32 @@ public class Foo {
      ]]></code>
     </test-code>
     <test-code>
-        <description>#1340 UseStringBufferForStringAppends False Positive with ternary operator</description>
+        <description>#1340 UseStringBufferForStringAppends False Positive with ternary operator (used in condition) </description>
         <expected-problems>0</expected-problems>
         <code><![CDATA[
 public class UseStringBuffer {
     public void foo() {
-        String country = (country == null || "".equals(country))
+        String value = "";
+        value = (value != null) ? "1" : "0";
+    }
+}
+        ]]></code>
+    </test-code>
+    <test-code>
+        <description>#1340 UseStringBufferForStringAppends False Positive with ternary operator (used both in condition and options)</description>
+        <expected-problems>0</expected-problems>
+        <code><![CDATA[
+public class UseStringBuffer {
+    public void foo() {
+        String country = "";
+        country = (country == null || "".equals(country))
                 ? ((String) getCountry())
                 : country;
     }
+    public void foo2() {
+        String country = request.getParameter("country");
+        country = (country == null) ? "USA" : country;
+    }
 }
         ]]></code>
     </test-code>
diff --git a/src/site/markdown/overview/changelog.md b/src/site/markdown/overview/changelog.md
index 518bf64ed81..b8729ce3315 100644
--- a/src/site/markdown/overview/changelog.md
+++ b/src/site/markdown/overview/changelog.md
@@ -23,6 +23,7 @@
 *   [#79](https://github.com/pmd/pmd/pull/79): do not flag public static void main(String[]) as UseVarargs; ignore @Override for UseVarargs
 *   [#80](https://github.com/pmd/pmd/pull/80): Update mvn-plugin.md
 *   [#83](https://github.com/pmd/pmd/pull/83): Adds new Code Climate-compliant JSON renderer
+*   [#85](https://github.com/pmd/pmd/pull/85): #1340 UseStringBufferForStringAppends False Positive with Ternary Operator
 
 **Bugfixes:**
 
@@ -38,6 +39,8 @@
     *   [#1465](https://sourceforge.net/p/pmd/bugs/1465/): False Positve UnusedImports with javadoc @link
 *   java-junit/TestClassWithoutTestCases:
     *   [#1453](https://sourceforge.net/p/pmd/bugs/1453/): Test Class Without Test Cases gives false positive
+*   java-optimizations/UseStringBufferForStringAppends:
+    *   [#1340](https://sourceforge.net/p/pmd/bugs/1340/): UseStringBufferForStringAppends False Positive with ternary operator
 *   java-unusedcode/UnusedFormalParameter:
     *   [#1456](https://sourceforge.net/p/pmd/bugs/1456/): UnusedFormalParameter should ignore overriding methods
 *   General