diff --git a/src/indent.c b/src/indent.c
index dfc481a..486259e 100644
--- a/src/indent.c
+++ b/src/indent.c
@@ -1197,7 +1197,8 @@
     int		temp;
 
     // do some very smart indenting when entering '{' or '}'
-    if (((did_si || can_si_back) && c == '{') || (can_si && c == '}'))
+    if (((did_si || can_si_back) && c == '{')
+	    || (can_si && c == '}' && inindent(0)))
     {
 	// for '}' set indent equal to indent of line containing matching '{'
 	if (c == '}' && (pos = findmatch(NULL, '{')) != NULL)
diff --git a/src/testdir/test_smartindent.vim b/src/testdir/test_smartindent.vim
index edfec9a..9bb7b9c 100644
--- a/src/testdir/test_smartindent.vim
+++ b/src/testdir/test_smartindent.vim
@@ -140,6 +140,11 @@
   call setline(1, 'foo foot')
   call feedkeys("o  f\<C-X>\<C-N>#", 'tx')
   call assert_equal('  foo#', getline(2))
+
+  call setline(2, '')
+  call feedkeys("1Go  f\<C-X>\<C-N>}", 'tx')
+  call assert_equal('  foo}', getline(2))
+
   bwipe!
 endfunc
 
diff --git a/src/version.c b/src/version.c
index 9017eeb..81bbdf9 100644
--- a/src/version.c
+++ b/src/version.c
@@ -747,6 +747,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    4953,
+/**/
     4952,
 /**/
     4951,