diff --git a/src/services/formatting/rules.ts b/src/services/formatting/rules.ts
index f609edb0501..56290800c0d 100644
--- a/src/services/formatting/rules.ts
+++ b/src/services/formatting/rules.ts
@@ -227,11 +227,13 @@ namespace ts.formatting {
         public SpaceBetweenTagAndTemplateString: Rule;
         public NoSpaceBetweenTagAndTemplateString: Rule;
 
-        // Union type
+        // Type operation
         public SpaceBeforeBar: Rule;
         public NoSpaceBeforeBar: Rule;
         public SpaceAfterBar: Rule;
         public NoSpaceAfterBar: Rule;
+        public SpaceBeforeAmpersand: Rule;
+        public SpaceAfterAmpersand: Rule;
 
         constructor() {
             ///
@@ -394,12 +396,13 @@ namespace ts.formatting {
             this.SpaceBetweenTagAndTemplateString = new Rule(RuleDescriptor.create3(SyntaxKind.Identifier, Shared.TokenRange.FromTokens([SyntaxKind.NoSubstitutionTemplateLiteral, SyntaxKind.TemplateHead])), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Space));
             this.NoSpaceBetweenTagAndTemplateString = new Rule(RuleDescriptor.create3(SyntaxKind.Identifier, Shared.TokenRange.FromTokens([SyntaxKind.NoSubstitutionTemplateLiteral, SyntaxKind.TemplateHead])), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
 
-            // union type
+            // type operation
             this.SpaceBeforeBar = new Rule(RuleDescriptor.create3(SyntaxKind.BarToken, Shared.TokenRange.Any), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Space));
             this.NoSpaceBeforeBar = new Rule(RuleDescriptor.create3(SyntaxKind.BarToken, Shared.TokenRange.Any), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
             this.SpaceAfterBar = new Rule(RuleDescriptor.create2(Shared.TokenRange.Any, SyntaxKind.BarToken), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Space));
             this.NoSpaceAfterBar = new Rule(RuleDescriptor.create2(Shared.TokenRange.Any, SyntaxKind.BarToken), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Delete));
-
+            this.SpaceBeforeAmpersand = new Rule(RuleDescriptor.create3(SyntaxKind.AmpersandToken, Shared.TokenRange.Any), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Space));
+            this.SpaceAfterAmpersand = new Rule(RuleDescriptor.create2(Shared.TokenRange.Any, SyntaxKind.AmpersandToken), RuleOperation.create2(new RuleOperationContext(Rules.IsSameLineTokenContext), RuleAction.Space));
 
             // These rules are higher in priority than user-configurable rules.
             this.HighPriorityCommonRules =
@@ -432,6 +435,7 @@ namespace ts.formatting {
                 this.SpaceAfterTypeKeyword, this.NoSpaceAfterTypeKeyword,
                 this.SpaceBetweenTagAndTemplateString, this.NoSpaceBetweenTagAndTemplateString,
                 this.SpaceBeforeBar, this.NoSpaceBeforeBar, this.SpaceAfterBar, this.NoSpaceAfterBar,
+                this.SpaceBeforeAmpersand, this.SpaceAfterAmpersand,
 
                 // TypeScript-specific rules
                 this.NoSpaceAfterConstructor, this.NoSpaceAfterModuleImport,
diff --git a/src/services/formatting/smartIndenter.ts b/src/services/formatting/smartIndenter.ts
index ebbf09e9feb..9c341dca5ff 100644
--- a/src/services/formatting/smartIndenter.ts
+++ b/src/services/formatting/smartIndenter.ts
@@ -436,7 +436,6 @@ namespace ts.formatting {
                 case SyntaxKind.Parameter:
                 case SyntaxKind.FunctionType:
                 case SyntaxKind.ConstructorType:
-                case SyntaxKind.UnionType:
                 case SyntaxKind.ParenthesizedType:
                 case SyntaxKind.TaggedTemplateExpression:
                 case SyntaxKind.AwaitExpression:
diff --git a/tests/cases/fourslash/formatTypeOperation.ts b/tests/cases/fourslash/formatTypeOperation.ts
new file mode 100644
index 00000000000..8708ef34d5c
--- /dev/null
+++ b/tests/cases/fourslash/formatTypeOperation.ts
@@ -0,0 +1,26 @@
+/// <reference path="fourslash.ts"/>
+
+////type   Union = number  |  {}/*formatBarOperator*/
+/////*indent*/
+////|string/*autoformat*/
+////type  Intersection   =   Foo    &    Bar;/*formatAmpersandOperator*/
+////type Complexed =
+////    Foo&
+////    Bar|/*unionTypeNoIndent*/
+////    Baz;/*intersectionTypeNoIndent*/
+
+format.document();
+
+goTo.marker("formatBarOperator");
+verify.currentLineContentIs("type Union = number | {}");
+goTo.marker("indent");
+verify.indentationIs(4);
+goTo.marker("autoformat");
+verify.currentLineContentIs("    | string");
+goTo.marker("formatAmpersandOperator");
+verify.currentLineContentIs("type Intersection = Foo & Bar;");
+
+goTo.marker("unionTypeNoIndent");
+verify.currentLineContentIs("Bar |");
+goTo.marker("intersectionTypeNoIndent");
+verify.currentLineContentIs("Baz;");
\ No newline at end of file
diff --git a/tests/cases/fourslash/formatTypeUnion.ts b/tests/cases/fourslash/formatTypeUnion.ts
deleted file mode 100644
index 267ba656612..00000000000
--- a/tests/cases/fourslash/formatTypeUnion.ts
+++ /dev/null
@@ -1,14 +0,0 @@
-/// <reference path="fourslash.ts"/>
-
-////type   Union = number  |  {}/*formatOperator*/
-/////*indent*/
-////|string/*autoformat*/
-
-format.document();
-
-goTo.marker("formatOperator");
-verify.currentLineContentIs("type Union = number | {}");
-goTo.marker("indent");
-verify.indentationIs(4);
-goTo.marker("autoformat");
-verify.currentLineContentIs("    | string");
\ No newline at end of file