diff --git a/src/misc1.c b/src/misc1.c
index f1ab848..0959e2a 100644
--- a/src/misc1.c
+++ b/src/misc1.c
@@ -5482,8 +5482,8 @@
  * Recognize a line that starts with '{' or '}', or ends with ';', ',', '{' or
  * '}'.
  * Don't consider "} else" a terminated line.
- * Don't consider a line where there are unmatched opening braces before '}',
- * ';' or ',' a terminated line.
+ * If a line begins with an "else", only consider it terminated if no unmatched
+ * opening braces follow (handle "else { foo();" correctly).
  * Return the character terminating the line (ending char's have precedence if
  * both apply in order to determine initializations).
  */
@@ -5493,21 +5493,25 @@
     int		incl_open;	/* include '{' at the end as terminator */
     int		incl_comma;	/* recognize a trailing comma */
 {
-    char_u found_start = 0;
-    unsigned n_open = 0;
+    char_u	found_start = 0;
+    unsigned	n_open = 0;
+    int		is_else = FALSE;
 
     s = cin_skipcomment(s);
 
     if (*s == '{' || (*s == '}' && !cin_iselse(s)))
 	found_start = *s;
 
+    if (!found_start)
+	is_else = cin_iselse(s);
+
     while (*s)
     {
 	/* skip over comments, "" strings and 'c'haracters */
 	s = skip_string(cin_skipcomment(s));
 	if (*s == '}' && n_open > 0)
 	    --n_open;
-	if (n_open == 0
+	if ((!is_else || n_open == 0)
 		&& (*s == ';' || *s == '}' || (incl_comma && *s == ','))
 		&& cin_nocode(s + 1))
 	    return *s;
diff --git a/src/testdir/test3.in b/src/testdir/test3.in
index 56a1dc8..05efa98 100644
--- a/src/testdir/test3.in
+++ b/src/testdir/test3.in
Binary files differ
diff --git a/src/testdir/test3.ok b/src/testdir/test3.ok
index 656b16e..2e62272 100644
--- a/src/testdir/test3.ok
+++ b/src/testdir/test3.ok
@@ -1216,6 +1216,34 @@
 	printf("Foo!\n");
 }
 
+void func1(void)
+{
+	char* tab[] = {"foo", "bar",
+		"baz", "quux",
+		"this line used", "to be indented incorrectly"};
+	foo();
+}
+
+void func2(void)
+{
+	int tab[] =
+	{1, 2,
+		3, 4,
+		5, 6};
+
+	printf("This line used to be indented incorrectly.\n");
+}
+
+void func3(void)
+{
+	int tab[] = {
+		1, 2,
+		3, 4,
+		5, 6};
+
+	printf("Don't you dare indent this line incorrectly!\n);
+}
+
 
 void func(void)
 {
diff --git a/src/version.c b/src/version.c
index b505c29..968bbb3 100644
--- a/src/version.c
+++ b/src/version.c
@@ -710,6 +710,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    195,
+/**/
     194,
 /**/
     193,