diff --git a/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/CodeFormatterVisitor.java b/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/CodeFormatterVisitor.java
index 2b6728147cc..c49b4840b67 100644
--- a/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/CodeFormatterVisitor.java
+++ b/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/CodeFormatterVisitor.java
@@ -239,7 +239,7 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 		scribe.initializeScanner(compilationUnitSource);
 		scribe.setSkipPositions(collectInactiveCodePositions(unit));
 
-		fStatus= new MultiStatus(CCorePlugin.PLUGIN_ID, 0, "Formatting problem(s)", null); //$NON-NLS-1$
+		fStatus= new MultiStatus(CCorePlugin.PLUGIN_ID, 0, "Formatting problem(s) in '"+unit.getFilePath()+"'", null); //$NON-NLS-1$ //$NON-NLS-2$
 		try {
 			unit.accept(this);
 		} catch (RuntimeException e) {
@@ -1391,6 +1391,11 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 		if (scribe.printModifiers()) {
 			scribe.space();
 		}
+		
+		// consider macro expansion
+		if (withinMacroExpansion(node, scribe.scanner.getCurrentPosition())) {
+			continueNode(node);
+		}
 
 		switch (node.getKey()) {
 		case IASTCompositeTypeSpecifier.k_struct:
@@ -1438,6 +1443,11 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 		}
 		final int headerIndent= scribe.numberOfIndentations;
 
+		// consider macro expansion
+		if (withinMacroExpansion(node, scribe.scanner.getCurrentPosition())) {
+			continueNode(node);
+		}
+
 		switch (node.getKey()) {
 		case IASTCompositeTypeSpecifier.k_struct:
 			scribe.printNextToken(Token.t_struct, false);
@@ -2149,6 +2159,9 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 	}
 
 	private int visit(IASTBinaryExpression node) {
+		if (enclosedInMacroExpansion(node)) {
+			return PROCESS_SKIP;
+		}
 		if (isAssignment(node)) {
 			return formatAssignment(node);
 		}
@@ -2667,7 +2680,7 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 		}
 
 		if (elseStatement != null) {
-			if (!startsWithMacroExpansion(elseStatement)) {
+			if (peekNextToken() == Token.t_else) {
 				if (thenStatementIsBlock) {
 					scribe.printNextToken(Token.t_else, preferences.insert_space_after_closing_brace_in_block);
 				} else {
@@ -3202,6 +3215,7 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 		}
 		return false;
 	}
+	
 	private static boolean endsWithMacroExpansion(IASTNode node) {
 		IASTNodeLocation[] locations= node.getNodeLocations();
 		if (locations.length == 0) {
@@ -3217,6 +3231,25 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 		return locations.length == 1 && locations[0] instanceof IASTMacroExpansionLocation;
 	}
 
+	private static boolean withinMacroExpansion(IASTNode node, int offset) {
+		IASTNodeLocation[] locations= node.getNodeLocations();
+		for (IASTNodeLocation location : locations) {
+			if (location instanceof IASTMacroExpansionLocation) {
+				IASTFileLocation fileLocation = location.asFileLocation();
+				if (fileLocation != null) {
+					final int nodeOffset = fileLocation.getNodeOffset();
+					final int endOffset = nodeOffset + fileLocation.getNodeLength();
+					if (offset >= nodeOffset && offset < endOffset) {
+						return true;
+					} else if (offset < nodeOffset) {
+						return false;
+					}
+				}
+			}
+		}
+		return false;
+	}
+
 	private void formatBlock(IASTCompoundStatement block, String block_brace_position, boolean insertSpaceBeforeOpeningBrace, boolean indentStatements) {
 		final boolean startsWithMacroExpansion= startsWithMacroExpansion(block);
 		if (!startsWithMacroExpansion) {
@@ -3301,6 +3334,7 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 				skipToNode(statements.get(1));
 			}
 			final boolean previousStatementIsNullStmt= previousStatement instanceof IASTNullStatement;
+			final int indentLevel= scribe.indentationLevel;
 			for (int i = 1; i < statementsLength - 1; i++) {
 				final IASTStatement statement= statements.get(i);
 				if (!startNode(statement)) {
@@ -3313,11 +3347,18 @@ public class CodeFormatterVisitor extends ASTVisitor implements ICPPASTVisitor,
 				}
 				try {
 					statement.accept(this);
-				} catch (ASTProblemException e) {
+				} catch (RuntimeException e) {
 					if (i < statementsLength - 1) {
-						final IASTStatement nextStatement= statements.get(i + 1);
-						skipToNode(nextStatement);
-					}
+						reportFormattingProblem(e);
+						exitAlignments();
+						skipToNode(statements.get(i + 1));
+						while (scribe.indentationLevel < indentLevel) {
+							scribe.indent();
+						}
+						while (scribe.indentationLevel > indentLevel) {
+							scribe.unIndent();
+						}
+					} else throw e;
 				}
 				previousStatement= statement;
 			}
diff --git a/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/Scribe.java b/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/Scribe.java
index 8c20b54aaf6..34fc136802a 100644
--- a/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/Scribe.java
+++ b/core/org.eclipse.cdt.core/src/org/eclipse/cdt/internal/formatter/Scribe.java
@@ -1237,7 +1237,7 @@ public class Scribe {
 	}
 
 	public void printNewLine(int insertPosition) {
-		if (shouldSkip(insertPosition - 1)) {
+		if (shouldSkip(scanner.getCurrentPosition())) {
 			return;
 		}
 		if (lastNumberOfNewLines >= 1) {
diff --git a/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CodeFormatterTest.java b/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CodeFormatterTest.java
index f26f87e6cf7..81dd235ffa8 100644
--- a/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CodeFormatterTest.java
+++ b/core/org.eclipse.cdt.ui.tests/ui/org/eclipse/cdt/ui/tests/text/CodeFormatterTest.java
@@ -1466,4 +1466,54 @@ public class CodeFormatterTest extends BaseUITestCase {
 				Integer.toString(Alignment.M_COMPACT_SPLIT | Alignment.M_INDENT_ON_COLUMN));
 		assertFormatterResult();
 	}
+	
+	//#define m() f()
+	//void f() {
+	//if (1) f();
+	//else m();
+	//}
+
+	//#define m() f()
+	//void f() {
+	//	if (1)
+	//		f();
+	//	else
+	//		m();
+	//}
+	public void testMacroAfterElse() throws Exception {
+		assertFormatterResult();
+	}
+
+	//#define M union { double u; void *s; long l; }
+	//typedef M m_t;
+
+	//#define M union { double u; void *s; long l; }
+	//typedef M m_t;
+	public void testMacroWithinTypedef() throws Exception {
+		assertFormatterResult();
+	}
+
+	//#define B() { if (1+2) b(); }
+	//void g() {
+	//	if (1) {
+	//		B();
+	//	} else {
+	//		x();
+	//	}
+	//	z();
+	//}
+
+	//#define B() { if (1+2) b(); }
+	//void g() {
+	//	if (1) {
+	//		B();
+	//	} else {
+	//		x();
+	//	}
+	//	z();
+	//}
+	public void testBinaryExpressionInMacro() throws Exception {
+		assertFormatterResult();
+	}
+
 }