diff --git a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
index ab9a10aa251..10dbac21e46 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
@@ -251,6 +251,9 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
             betweenInside(TYPE_ARGUMENT_LIST, LAMBDA_ARGUMENT, CALL_EXPRESSION).spaces(1)
 
             between(WHEN_ENTRY, WHEN_ENTRY).lineBreakInCode()
+
+            around(BY_KEYWORD).spaces(1)
+            betweenInside(IDENTIFIER, PROPERTY_DELEGATE, PROPERTY).spaces(1)
         }
         custom {
 
diff --git a/idea/testData/formatter/By.after.kt b/idea/testData/formatter/By.after.kt
new file mode 100644
index 00000000000..0635a912b67
--- /dev/null
+++ b/idea/testData/formatter/By.after.kt
@@ -0,0 +1,4 @@
+class Bar(val r: Runnable) : Runnable by r
+class Foo {
+    val bar by lazy { "" }
+}
diff --git a/idea/testData/formatter/By.kt b/idea/testData/formatter/By.kt
new file mode 100644
index 00000000000..bba9825e8d2
--- /dev/null
+++ b/idea/testData/formatter/By.kt
@@ -0,0 +1,4 @@
+class Bar(val r: Runnable) : Runnable    by  r
+class Foo {
+    val bar   by    lazy { "" }
+}
diff --git a/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java b/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
index 68ecd44eb8a..5c73ebefa9d 100644
--- a/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
@@ -98,6 +98,12 @@ public class FormatterTestGenerated extends AbstractFormatterTest {
             doTest(fileName);
         }
 
+        @TestMetadata("By.after.kt")
+        public void testBy() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/formatter/By.after.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("Cast.after.kt")
         public void testCast() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/formatter/Cast.after.kt");