diff --git a/elixir-smie.el b/elixir-smie.el
index a96d641b..74e118bd 100644
--- a/elixir-smie.el
+++ b/elixir-smie.el
@@ -294,6 +294,10 @@ Return non-nil if any line breaks were skipped."
 
 (defun elixir-smie-rules (kind token)
   (pcase (cons kind token)
+    (`(:after . "STRING")
+     (if (smie-rule-prev-p "do:")
+         (smie-rule-parent 0)
+       nil))
     (`(:elem . basic)
      (if (smie-rule-hanging-p)
          0
diff --git a/test/elixir-mode-indentation-tests.el b/test/elixir-mode-indentation-tests.el
index a3a23ceb..88965142 100644
--- a/test/elixir-mode-indentation-tests.el
+++ b/test/elixir-mode-indentation-tests.el
@@ -125,7 +125,7 @@ defmodule FooBar do
   end
 end")
 
-(elixir-def-indentation-test indents-do-blocks-with-space-after-inline (:expected-result :failed)
+(elixir-def-indentation-test indents-do-blocks-with-space-after-inline ()
   "defmodule Foo do
 def foobar do
 if true, do: IO.puts \"yay\"