diff --git a/diktat-rules/src/main/kotlin/com/saveourtool/diktat/ruleset/rules/chapter3/files/IndentationRule.kt b/diktat-rules/src/main/kotlin/com/saveourtool/diktat/ruleset/rules/chapter3/files/IndentationRule.kt
index 0f244675ad..5059c59dfb 100644
--- a/diktat-rules/src/main/kotlin/com/saveourtool/diktat/ruleset/rules/chapter3/files/IndentationRule.kt
+++ b/diktat-rules/src/main/kotlin/com/saveourtool/diktat/ruleset/rules/chapter3/files/IndentationRule.kt
@@ -226,8 +226,8 @@ class IndentationRule(configRules: List<RulesConfig>) : DiktatRule(
             addException(exceptionInitiatorNode, expectedIndent - indentError.expected, checkResult.includeLastChild)
         }
 
-        if (astNode.treeParent.elementType == LONG_STRING_TEMPLATE_ENTRY && indentError.expected != indentError.actual) {
-            addException(astNode.treeParent, abs(indentError.expected - indentError.actual), false)
+        if (astNode.treeParent.elementType == LONG_STRING_TEMPLATE_ENTRY && astNode.treeNext.elementType != LONG_TEMPLATE_ENTRY_END) {
+            addException(astNode.treeParent, SINGLE.level() * configuration.indentationSize, false)
         }
 
         val alignedOpeningAndClosingQuotes = hasAlignedOpeningAndClosingQuotes(astNode, indentError.actual)
diff --git a/diktat-rules/src/test/kotlin/com/saveourtool/diktat/ruleset/chapter3/spaces/IndentationRuleFixTest.kt b/diktat-rules/src/test/kotlin/com/saveourtool/diktat/ruleset/chapter3/spaces/IndentationRuleFixTest.kt
index 09e52578cc..eae8025ea7 100644
--- a/diktat-rules/src/test/kotlin/com/saveourtool/diktat/ruleset/chapter3/spaces/IndentationRuleFixTest.kt
+++ b/diktat-rules/src/test/kotlin/com/saveourtool/diktat/ruleset/chapter3/spaces/IndentationRuleFixTest.kt
@@ -18,7 +18,6 @@ import com.saveourtool.diktat.util.FixTestBase
 import generated.WarningNames
 import org.assertj.core.api.Assertions.assertThat
 import org.intellij.lang.annotations.Language
-import org.junit.jupiter.api.Disabled
 import org.junit.jupiter.api.Nested
 import org.junit.jupiter.api.Tag
 import org.junit.jupiter.api.Test
@@ -57,7 +56,6 @@ class IndentationRuleFixTest : FixTestBase("test/paragraph3/indentation",
         fixAndCompare("IndentationParametersExpected.kt", "IndentationParametersTest.kt")
     }
 
-    @Disabled("https://github.com/saveourtool/diktat/issues/1737")
     @Test
     @Tag(WarningNames.WRONG_INDENTATION)
     fun `indentation rule - example 1`() {