diff --git a/src/main/java/org/intellij/xquery/braces/FunctionDeclarationBracesBodyHandler.java b/src/main/java/org/intellij/xquery/braces/FunctionDeclarationBracesBodyHandler.java
new file mode 100644
index 00000000..d709b411
--- /dev/null
+++ b/src/main/java/org/intellij/xquery/braces/FunctionDeclarationBracesBodyHandler.java
@@ -0,0 +1,68 @@
+/*
+ * Copyright 2013-2015 Grzegorz Ligas <ligasgr@gmail.com> and other contributors
+ * (see the CONTRIBUTORS file).
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.intellij.xquery.braces;
+
+import com.intellij.codeInsight.editorActions.TypedHandlerDelegate;
+import com.intellij.lang.ASTNode;
+import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.editor.EditorModificationUtil;
+import com.intellij.openapi.project.Project;
+import com.intellij.psi.FileViewProvider;
+import com.intellij.psi.PsiDocumentManager;
+import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiFile;
+import org.intellij.xquery.XQueryLanguage;
+import org.intellij.xquery.psi.XQueryFunctionBody;
+import org.jetbrains.annotations.NotNull;
+
+public class FunctionDeclarationBracesBodyHandler extends TypedHandlerDelegate {
+
+    @Override
+    public Result charTyped(char c, Project project, @NotNull Editor editor, @NotNull PsiFile editedFile) {
+        if ((editedFile.getLanguage() instanceof XQueryLanguage) && (c == '{' || c == '}')) {
+            PsiDocumentManager.getInstance(project).commitAllDocuments();
+            PsiFile file = PsiDocumentManager.getInstance(project).getPsiFile(editor.getDocument());
+            if (file == null) return Result.CONTINUE;
+            FileViewProvider provider = file.getViewProvider();
+            final int offset = editor.getCaretModel().getOffset();
+            PsiElement element = provider.findElementAt(offset - 1, XQueryLanguage.class);
+            if (element == null) return Result.CONTINUE;
+            if (!(element.getLanguage() instanceof XQueryLanguage)) return Result.CONTINUE;
+            ASTNode prevLeaf = element.getNode();
+            if (prevLeaf == null) return Result.CONTINUE;
+            final String prevLeafText = prevLeaf.getText();
+
+            if (isInFunctionBodyAfterInsertionOfMatchingRightBrace(element, prevLeafText)) {
+                if (c == '{') {
+                    editor.getDocument().insertString(offset + 1, ";");
+                } else {
+                    EditorModificationUtil.insertStringAtCaret(editor, ";", false);
+                }
+            }
+
+        }
+
+        return Result.CONTINUE;
+    }
+
+    private boolean isInFunctionBodyAfterInsertionOfMatchingRightBrace(PsiElement element, String prevLeafText) {
+        return ("{".equals(prevLeafText) || "}".equals(prevLeafText)) && element.getParent() != null
+                && element.getParent().getParent() != null
+                && element.getParent().getParent() instanceof XQueryFunctionBody;
+    }
+}
diff --git a/src/main/resources/META-INF/plugin.xml b/src/main/resources/META-INF/plugin.xml
index c11fb4d5..0ec38eb2 100644
--- a/src/main/resources/META-INF/plugin.xml
+++ b/src/main/resources/META-INF/plugin.xml
@@ -66,6 +66,7 @@
         <quoteHandler fileType="XQuery file" className="org.intellij.xquery.quotes.XQueryQuoteHandler"/>
         <typedHandler implementation="org.intellij.xquery.completion.xml.XQueryXmlSlashTypedHandler" id="xqueryXmlSlash"/>
         <typedHandler implementation="org.intellij.xquery.completion.xml.XQueryXmlGtTypedHandler" id="xqueryXmlGt"/>
+        <typedHandler implementation="org.intellij.xquery.braces.FunctionDeclarationBracesBodyHandler" id="xqueryFunDeclBraces"/>
         <declarationRangeHandler key="org.intellij.xquery.psi.XQueryFunctionDecl" implementationClass="org.intellij.xquery.structure.XQueryFunctionDeclarationRangeHandler"/>
         <annotator language="XQuery" implementationClass="org.intellij.xquery.annotator.XQueryAnnotator"/>
         <additionalTextAttributes scheme="Default" file="colorSchemes/Default.xml"/>
diff --git a/src/testFunctional/java/org/intellij/xquery/braces/FunctionDeclarationBracesBodyHandlerTest.java b/src/testFunctional/java/org/intellij/xquery/braces/FunctionDeclarationBracesBodyHandlerTest.java
new file mode 100644
index 00000000..279fa5b1
--- /dev/null
+++ b/src/testFunctional/java/org/intellij/xquery/braces/FunctionDeclarationBracesBodyHandlerTest.java
@@ -0,0 +1,54 @@
+/*
+ * Copyright 2013-2015 Grzegorz Ligas <ligasgr@gmail.com> and other contributors
+ * (see the CONTRIBUTORS file).
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.intellij.xquery.braces;
+
+import org.intellij.xquery.BaseFunctionalTestCase;
+import org.intellij.xquery.XQueryFileType;
+
+public class FunctionDeclarationBracesBodyHandlerTest extends BaseFunctionalTestCase {
+
+    public void testAddsSemicolonAfterCompletingOpeningBrace() {
+        myFixture.configureByText(XQueryFileType.INSTANCE, "declare function foo() <caret>");
+        myFixture.type("{");
+        myFixture.checkResult("declare function foo() {<caret>};");
+    }
+
+    public void testAddsSemicolonAfterCompletingClosingBrace() {
+        myFixture.configureByText(XQueryFileType.INSTANCE, "declare function foo() {<caret>");
+        myFixture.type("}");
+        myFixture.checkResult("declare function foo() {};<caret>");
+    }
+
+    public void testAddsSemicolonAfterCompletingClosingBraceWithSomeMethodBody() {
+        myFixture.configureByText(XQueryFileType.INSTANCE, "declare function foo() {(),'abc'<caret>");
+        myFixture.type("}");
+        myFixture.checkResult("declare function foo() {(),'abc'};<caret>");
+    }
+
+    public void testDoesNotAddSemicolonAfterCompletingClosingBraceWithinMethodBody() {
+        myFixture.configureByText(XQueryFileType.INSTANCE, "declare function fun($sdfsdf) {(), 'abc', element abc {'safsdf'<caret>");
+        myFixture.type("}");
+        myFixture.checkResult("declare function fun($sdfsdf) {(), 'abc', element abc {'safsdf'}<caret>");
+    }
+
+    public void testAddaSemicolonAfterCompletingClosingBraceWhenMethodBodyContainsBraces() {
+        myFixture.configureByText(XQueryFileType.INSTANCE, "declare function fun($sdfsdf) {(), 'abc', element abc {'safsdf'}<caret>");
+        myFixture.type("}");
+        myFixture.checkResult("declare function fun($sdfsdf) {(), 'abc', element abc {'safsdf'}};<caret>");
+    }
+}
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