diff --git a/compiler/load/src/file.rs b/compiler/load/src/file.rs
index 1098e09004..10d06bae51 100644
--- a/compiler/load/src/file.rs
+++ b/compiler/load/src/file.rs
@@ -3382,7 +3382,6 @@ fn canonicalize_and_constrain<'a>(
 }
 
 fn parse<'a>(arena: &'a Bump, header: ModuleHeader<'a>) -> Result<Msg<'a>, LoadingProblem> {
-    println!("-------- parsing {:?}", header.module_id);
     let mut module_timing = header.module_timing;
     let parse_start = SystemTime::now();
     let parse_state = parser::State::new(&header.src, Attempting::Module);
diff --git a/compiler/parse/src/blankspace.rs b/compiler/parse/src/blankspace.rs
index 746719d79e..51cf024397 100644
--- a/compiler/parse/src/blankspace.rs
+++ b/compiler/parse/src/blankspace.rs
@@ -387,7 +387,9 @@ fn spaces<'a>(
                                         );
                                         if any_newlines {
                                             state = state.check_indent(min_indent).map_err(
-                                                |(fail, _)| (progress, fail, original_state),
+                                                |(fail, _)| {
+                                                    (progress, fail, original_state.clone())
+                                                },
                                             )?;
                                         }
 
diff --git a/compiler/parse/src/expr.rs b/compiler/parse/src/expr.rs
index d436984992..c84143b955 100644
--- a/compiler/parse/src/expr.rs
+++ b/compiler/parse/src/expr.rs
@@ -596,10 +596,13 @@ fn body<'a>(min_indent: u16) -> impl Parser<'a, Body<'a>> {
             equals_for_def(),
             // Spaces after the '=' (at a normal indentation level) and then the expr.
             // The expr itself must be indented more than the pattern and '='
-            space0_before(
-                loc!(move |arena, state| parse_expr(indented_more, arena, state)),
-                min_indent,
-            )
+            move |a, s| {
+                space0_before(
+                    loc!(move |arena, state| { parse_expr(indented_more, arena, state) }),
+                    min_indent,
+                )
+                .parse(a, s)
+            }
         )
     );
     result
@@ -1540,7 +1543,8 @@ pub fn if_expr<'a>(min_indent: u16) -> impl Parser<'a, Expr<'a>> {
                 ),
                 skip_first!(
                     parser::keyword(keyword::ELSE, min_indent),
-                    space1_around(
+                    // NOTE changed this from space1_around to space1_before
+                    space1_before(
                         loc!(move |arena, state| parse_expr(min_indent, arena, state)),
                         min_indent,
                     )
diff --git a/compiler/parse/tests/test_parse.rs b/compiler/parse/tests/test_parse.rs
index 3deb1ce30e..5c61ad9563 100644
--- a/compiler/parse/tests/test_parse.rs
+++ b/compiler/parse/tests/test_parse.rs
@@ -2819,6 +2819,31 @@ mod test_parse {
         assert!(actual.is_ok());
     }
 
+    #[test]
+    fn outdenting_newline_after_else() {
+        use roc_parse::ast::Def::*;
+
+        let arena = Bump::new();
+
+        // highlights a problem with the else branch demanding a newline after its expression
+        let src = indoc!(
+            r#"
+            main =
+                v = \y -> if x then y else z
+
+                1
+            "#
+        );
+
+        let actual = module_defs()
+            .parse(&arena, State::new(src.as_bytes(), Attempting::Module))
+            .map(|tuple| tuple.1);
+
+        dbg!(&actual);
+
+        assert!(actual.is_ok());
+    }
+
     #[test]
     fn newline_after_equals() {
         // Regression test for https://github.com/rtfeldman/roc/issues/51