diff --git a/CHANGELOG.md b/CHANGELOG.md
index 675f5ccab1..99a62d2e8a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -20,6 +20,7 @@ This project adheres to [Semantic Versioning](http://semver.org/).
 - Fix false positive after `else` keyword (`argument-list-wrapping`) ([#1047](https://github.com/pinterest/ktlint/issues/1047))
 - Fix formatting with comments (`colon-spacing`) ([#1057](https://github.com/pinterest/ktlint/issues/1057))
 - Fix IndexOutOfBoundsException in `argument-list-wrapping-rule` formatting file with many corrections ([#1081](https://github.com/pinterest/ktlint/issues/1081))
+- Fix formatting in arguments (`multiline-if-else`) ([#1079](https://github.com/pinterest/ktlint/issues/1079))
 
 ### Changed
 - Update Gradle shadow plugin to `6.1.0` version
diff --git a/ktlint-ruleset-experimental/src/main/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRule.kt b/ktlint-ruleset-experimental/src/main/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRule.kt
index 549c82e7b3..9e11d82dd1 100644
--- a/ktlint-ruleset-experimental/src/main/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRule.kt
+++ b/ktlint-ruleset-experimental/src/main/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRule.kt
@@ -7,7 +7,8 @@ import com.pinterest.ktlint.core.ast.ElementType.LBRACE
 import com.pinterest.ktlint.core.ast.ElementType.RBRACE
 import com.pinterest.ktlint.core.ast.ElementType.RPAR
 import com.pinterest.ktlint.core.ast.ElementType.THEN
-import com.pinterest.ktlint.core.ast.isWhiteSpaceWithNewline
+import com.pinterest.ktlint.core.ast.isPartOfComment
+import com.pinterest.ktlint.core.ast.isWhiteSpaceWithoutNewline
 import com.pinterest.ktlint.core.ast.prevLeaf
 import org.jetbrains.kotlin.com.intellij.lang.ASTNode
 import org.jetbrains.kotlin.com.intellij.psi.PsiWhiteSpace
@@ -45,7 +46,8 @@ class MultiLineIfElseRule : Rule("multiline-if-else") {
     private fun autocorrect(node: ASTNode) {
         val prevLeaves =
             node.leaves(forward = false).takeWhile { it.elementType !in listOf(RPAR, ELSE_KEYWORD) }.toList().reversed()
-        val nextLeaves = node.leaves(forward = true).takeWhile { !it.isWhiteSpaceWithNewline() }.toList()
+        val nextLeaves =
+            node.leaves(forward = true).takeWhile { it.isWhiteSpaceWithoutNewline() || it.isPartOfComment() }.toList()
         val rightBraceIndent = node.treeParent
             .prevLeaf { it is PsiWhiteSpace && it.textContains('\n') }?.text.orEmpty()
             .let { "\n${it.substringAfterLast("\n")}" }
diff --git a/ktlint-ruleset-experimental/src/test/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRuleTest.kt b/ktlint-ruleset-experimental/src/test/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRuleTest.kt
index 1203490fb2..6ab67b4313 100644
--- a/ktlint-ruleset-experimental/src/test/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRuleTest.kt
+++ b/ktlint-ruleset-experimental/src/test/kotlin/com/pinterest/ktlint/ruleset/experimental/MultiLineIfElseRuleTest.kt
@@ -416,6 +416,38 @@ class MultiLineIfElseRuleTest {
         )
     }
 
+    // https://github.com/pinterest/ktlint/issues/1079
+    @Test
+    fun testInArgument() {
+        val actual = format(
+            """
+            fun foo(x: Int, y: Int, z: Int) {}
+            fun test(a: Int, b: Int, c: Int, d: Int, bar: Boolean) {
+                foo(
+                    a,
+                    if (bar) b else
+                        c,
+                    d
+                )
+            }
+            """.trimIndent()
+        )
+        assertThat(actual).isEqualTo(
+            """
+            fun foo(x: Int, y: Int, z: Int) {}
+            fun test(a: Int, b: Int, c: Int, d: Int, bar: Boolean) {
+                foo(
+                    a,
+                    if (bar) b else {
+                        c
+                    },
+                    d
+                )
+            }
+            """.trimIndent()
+        )
+    }
+
     private fun assertOK(kotlinScript: String) {
         assertThat(format(kotlinScript)).isEqualTo(kotlinScript)
         assertThat(lint(kotlinScript)).isEqualTo(emptyList<LintError>())