diff --git a/src/services/formatting/smartIndenter.ts b/src/services/formatting/smartIndenter.ts
index c6ed975a1a516..7f41a2701b8c3 100644
--- a/src/services/formatting/smartIndenter.ts
+++ b/src/services/formatting/smartIndenter.ts
@@ -729,6 +729,11 @@ export namespace SmartIndenter {
                     return false;
                 }
                 break;
+            case SyntaxKind.TryStatement:
+                if (childKind === SyntaxKind.Block) {
+                    return false;
+                }
+                break;
         }
         // No explicit rule for given nodes so the result will follow the default value argument
         return indentByDefault;
diff --git a/tests/cases/fourslash/formatTryFinally.ts b/tests/cases/fourslash/formatTryFinally.ts
new file mode 100644
index 0000000000000..d81cd45e79366
--- /dev/null
+++ b/tests/cases/fourslash/formatTryFinally.ts
@@ -0,0 +1,15 @@
+/// <reference path="fourslash.ts"/>
+
+////if (true) try  {
+////    // ...
+////}   finally    {
+////    // ...
+////}
+
+format.document();
+verify.currentFileContentIs(
+`if (true) try {
+    // ...
+} finally {
+    // ...
+}`);