diff --git a/CodeSniffer/Standards/Generic/Sniffs/ControlStructures/InlineControlStructureSniff.php b/CodeSniffer/Standards/Generic/Sniffs/ControlStructures/InlineControlStructureSniff.php
index 894fb21691..5b2df9e3cd 100644
--- a/CodeSniffer/Standards/Generic/Sniffs/ControlStructures/InlineControlStructureSniff.php
+++ b/CodeSniffer/Standards/Generic/Sniffs/ControlStructures/InlineControlStructureSniff.php
@@ -87,8 +87,11 @@ public function process(PHP_CodeSniffer_File $phpcsFile, $stackPtr)
         }
 
         // Ignore the ELSE in ELSE IF. We'll process the IF part later.
-        if (($tokens[$stackPtr]['code'] === T_ELSE) && ($tokens[($stackPtr + 2)]['code'] === T_IF)) {
-            return;
+        if ($tokens[$stackPtr]['code'] === T_ELSE) {
+            $next = $phpcsFile->findNext(T_WHITESPACE, ($stackPtr + 1), null, true);
+            if ($tokens[$next]['code'] === T_IF) {
+                return;
+            }
         }
 
         if ($tokens[$stackPtr]['code'] === T_WHILE) {
diff --git a/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc b/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc
index d704a8746d..e7f3b125b1 100644
--- a/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc
+++ b/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc
@@ -98,3 +98,10 @@ if ($this->allowShopping !== true):
 else:
     echo 'foo';
 endif;
+
+// ELSE IF split over multiple lines (not inline)
+if ($test) {
+} else
+    if ($test) {
+    } else {
+    }
diff --git a/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc.fixed b/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc.fixed
index 0089aa3e0c..3a170fc81b 100644
--- a/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc.fixed
+++ b/CodeSniffer/Standards/Generic/Tests/ControlStructures/InlineControlStructureUnitTest.inc.fixed
@@ -99,3 +99,10 @@ if ($this->allowShopping !== true):
 else:
     echo 'foo';
 endif;
+
+// ELSE IF split over multiple lines (not inline)
+if ($test) {
+} else
+    if ($test) {
+    } else {
+    }
diff --git a/package.xml b/package.xml
index fbba5d6e1a..86e81d98d9 100644
--- a/package.xml
+++ b/package.xml
@@ -47,6 +47,7 @@ http://pear.php.net/dtd/package-2.0.xsd">
   - Fixed bug #527 : Closure inside IF statement is not tokenized correctly
   - Fixed bug #551 : Multiple catch blocks not checked in Squiz.ControlStructures.ControlSignature sniff
   - Fixed bug #554 : ScopeIndentSniff causes errors when encountering an unmatched parenthesis
+  - Fixed bug #558 : PHPCBF adds brace for ELSE IF split over multiple lines
  </notes>
  <contents>
   <dir name="/">