diff --git a/crates/ide-assists/src/handlers/generate_function.rs b/crates/ide-assists/src/handlers/generate_function.rs
index e26c76da189..f67cc924409 100644
--- a/crates/ide-assists/src/handlers/generate_function.rs
+++ b/crates/ide-assists/src/handlers/generate_function.rs
@@ -174,10 +174,11 @@ fn add_func_to_accumulator(
     label: String,
 ) -> Option<()> {
     acc.add(AssistId("generate_function", AssistKind::Generate), label, text_range, |builder| {
-        let function_template = function_builder.render();
+        let indent = IndentLevel::from_node(function_builder.target.syntax());
+        let function_template = function_builder.render(adt_name.is_some());
         let mut func = function_template.to_string(ctx.config.snippet_cap);
         if let Some(name) = adt_name {
-            func = format!("\nimpl {} {{\n{}\n}}", name, func);
+            func = format!("\n{}impl {} {{\n{}\n{}}}", indent, name, func, indent);
         }
         builder.edit_file(file);
         match ctx.config.snippet_cap {
@@ -307,7 +308,7 @@ impl FunctionBuilder {
         })
     }
 
-    fn render(self) -> FunctionTemplate {
+    fn render(self, is_method: bool) -> FunctionTemplate {
         let placeholder_expr = make::ext::expr_todo();
         let fn_body = make::block_expr(vec![], Some(placeholder_expr));
         let visibility = if self.needs_pub { Some(make::visibility_pub_crate()) } else { None };
@@ -325,8 +326,14 @@ impl FunctionBuilder {
 
         match self.target {
             GeneratedFunctionTarget::BehindItem(it) => {
-                let indent = IndentLevel::from_node(&it);
-                leading_ws = format!("\n\n{}", indent);
+                let mut indent = IndentLevel::from_node(&it);
+                if is_method {
+                    indent = indent + 1;
+                    leading_ws = format!("{}", indent);
+                } else {
+                    leading_ws = format!("\n\n{}", indent);
+                }
+
                 fn_def = fn_def.indent(indent);
                 trailing_ws = String::new();
             }
@@ -1470,11 +1477,9 @@ fn foo() {S.bar$0();}
 struct S;
 fn foo() {S.bar();}
 impl S {
-
-
-fn bar(&self) ${0:-> _} {
-    todo!()
-}
+    fn bar(&self) ${0:-> _} {
+        todo!()
+    }
 }
 ",
         )
@@ -1516,14 +1521,12 @@ fn foo() {s::S.bar$0();}
             r"
 mod s {
     pub struct S;
-impl S {
-
-
-    pub(crate) fn bar(&self) ${0:-> _} {
-        todo!()
+    impl S {
+        pub(crate) fn bar(&self) ${0:-> _} {
+            todo!()
+        }
     }
 }
-}
 fn foo() {s::S.bar();}
 ",
         )
@@ -1550,11 +1553,9 @@ mod s {
     }
 }
 impl S {
-
-
-fn bar(&self) ${0:-> _} {
-    todo!()
-}
+    fn bar(&self) ${0:-> _} {
+        todo!()
+    }
 }
 
 ",
@@ -1573,11 +1574,9 @@ fn foo() {$0S.bar();}
 struct S;
 fn foo() {S.bar();}
 impl S {
-
-
-fn bar(&self) ${0:-> _} {
-    todo!()
-}
+    fn bar(&self) ${0:-> _} {
+        todo!()
+    }
 }
 ",
         )
@@ -1595,11 +1594,9 @@ fn foo() {S::bar$0();}
 struct S;
 fn foo() {S::bar();}
 impl S {
-
-
-fn bar() ${0:-> _} {
-    todo!()
-}
+    fn bar() ${0:-> _} {
+        todo!()
+    }
 }
 ",
         )
@@ -1641,14 +1638,12 @@ fn foo() {s::S::bar$0();}
             r"
 mod s {
     pub struct S;
-impl S {
-
-
-    pub(crate) fn bar() ${0:-> _} {
-        todo!()
+    impl S {
+        pub(crate) fn bar() ${0:-> _} {
+            todo!()
+        }
     }
 }
-}
 fn foo() {s::S::bar();}
 ",
         )
@@ -1666,11 +1661,9 @@ fn foo() {$0S::bar();}
 struct S;
 fn foo() {S::bar();}
 impl S {
-
-
-fn bar() ${0:-> _} {
-    todo!()
-}
+    fn bar() ${0:-> _} {
+        todo!()
+    }
 }
 ",
         )
@@ -1845,11 +1838,9 @@ fn main() {
     Foo::new();
 }
 impl Foo {
-
-
-fn new() ${0:-> _} {
-    todo!()
-}
+    fn new() ${0:-> _} {
+        todo!()
+    }
 }
 ",
         )