diff --git a/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/WhenMustHaveElseRule.kt b/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/WhenMustHaveElseRule.kt
index ea140db0e7..2bca16ead9 100644
--- a/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/WhenMustHaveElseRule.kt
+++ b/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/WhenMustHaveElseRule.kt
@@ -7,17 +7,17 @@ import com.pinterest.ktlint.core.ast.ElementType.BLOCK
 import com.pinterest.ktlint.core.ast.ElementType.ELSE_KEYWORD
 import com.pinterest.ktlint.core.ast.ElementType.EOL_COMMENT
 import com.pinterest.ktlint.core.ast.ElementType.EQ
-import com.pinterest.ktlint.core.ast.ElementType.FUN
 import com.pinterest.ktlint.core.ast.ElementType.FUNCTION_LITERAL
 import com.pinterest.ktlint.core.ast.ElementType.LBRACE
+import com.pinterest.ktlint.core.ast.ElementType.OPERATION_REFERENCE
 import com.pinterest.ktlint.core.ast.ElementType.PROPERTY
 import com.pinterest.ktlint.core.ast.ElementType.RBRACE
 import com.pinterest.ktlint.core.ast.ElementType.RETURN
 import com.pinterest.ktlint.core.ast.ElementType.WHEN_ENTRY
+import com.pinterest.ktlint.core.ast.prevSibling
 import org.cqfn.diktat.common.config.rules.RulesConfig
 import org.cqfn.diktat.ruleset.constants.Warnings
 import org.cqfn.diktat.ruleset.utils.appendNewlineMergingWhiteSpace
-import org.cqfn.diktat.ruleset.utils.hasChildOfType
 import org.cqfn.diktat.ruleset.utils.hasParent
 import org.cqfn.diktat.ruleset.utils.isBeginByNewline
 import org.jetbrains.kotlin.com.intellij.lang.ASTNode
@@ -73,15 +73,21 @@ class WhenMustHaveElseRule(private val configRules: List<RulesConfig>) : Rule("n
             return false
         }
 
-        if (node.treeParent.elementType == BLOCK && node.treeParent.treeParent.elementType == FUNCTION_LITERAL) {
-            if (node.treeParent.lastChildNode == node) {
-                return false
-            }
+        // Checks if `when` is the last statement in lambda body
+        if (node.treeParent.elementType == BLOCK && node.treeParent.treeParent.elementType == FUNCTION_LITERAL &&
+            node.treeParent.lastChildNode == node) {
+            return false
+        }
+
+        if (node.treeParent.elementType == WHEN_ENTRY && node.prevSibling { it.elementType == ARROW } != null) {
+            // `when` is used as a branch in another `when`
+            return false
         }
 
-        if (node.treeParent.elementType == FUN && node.treeParent.hasChildOfType(EQ))
+        if (node.prevSibling { it.elementType == EQ || it.elementType == OPERATION_REFERENCE && it.firstChildNode.elementType == EQ } != null) {
+            // `when` is used in an assignment or in a function with expression body
             return false
-        else {
+        } else {
             return !node.hasParent(PROPERTY)
         }
     }
diff --git a/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/chapter3/WhenMustHaveElseWarnTest.kt b/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/chapter3/WhenMustHaveElseWarnTest.kt
index 97bbc76aba..17b940c064 100644
--- a/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/chapter3/WhenMustHaveElseWarnTest.kt
+++ b/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/chapter3/WhenMustHaveElseWarnTest.kt
@@ -73,4 +73,21 @@ class WhenMustHaveElseWarnTest : LintTestBase(::WhenMustHaveElseRule) {
                 """.trimMargin()
         )
     }
+
+    @Test
+    @Tag(WarningNames.WHEN_WITHOUT_ELSE)
+    fun `regression - shouldn't check when in when branches and assignments`() {
+        lintMethod(
+            """
+                    |fun foo() {
+                    |    var x: Int
+                    |    x = when(it) {
+                    |        1 -> when (x) {
+                    |            2 -> foo()
+                    |        }
+                    |    }
+                    |}
+                """.trimMargin()
+        )
+    }
 }