diff --git a/src/script/data/indentation/cstyle.js b/src/script/data/indentation/cstyle.js
--- a/src/script/data/indentation/cstyle.js
+++ b/src/script/data/indentation/cstyle.js
@@ -70,6 +70,7 @@
 function findLeftBrace(line, column)
 {
     var cursor = document.anchor(line, column, '{');
+    dbg(cursor);
     if (cursor.isValid()) {
         var parenthesisCursor = tryParenthesisBeforeBrace(cursor.line, cursor.column);
         if (parenthesisCursor.isValid())
@@ -751,9 +752,10 @@
     if (!cursor)
         return -2;
 
-    var column = cursor.column;
-    var firstPos = document.firstColumn(line);
-    var lastPos = document.lastColumn(line);
+    var column       = cursor.column;
+    var firstPos     = document.firstColumn(line);
+    var prevFirstPos = document.firstColumn(line - 1);
+    var lastPos      = document.lastColumn(line);
 
      dbg("firstPos: " + firstPos);
      dbg("column..: " + column);
@@ -771,11 +773,16 @@
             filler = -2;
 
         return filler;
-    } else if (firstPos == column - 1 && c == '}') {
+    } else if (firstPos == column - 1 && c == '}' && document.charAt(line, column - 1) == '}') {
+        // unindent after closing brace, but not when brace is auto inserted (i.e., behind cursor)
         var indentation = findLeftBrace(line, firstPos);
         if (indentation == -1)
             indentation = -2;
         return indentation;
+    } else if (firstPos == column - 1 && c == '}'  && firstPos > prevFirstPos) {
+        // align indentation to previous line when creating new block with auto brackets enabled
+        // prevents over-indentation for if blocks and loops
+        return prevFirstPos;
     } else if (cfgSnapSlash && c == '/' && lastPos == column - 1) {
         // try to snap the string "* /" to "*/"
         var currentString = document.line(line);