diff --git a/elixir-smie.el b/elixir-smie.el
index d7974bc5..fb54eb1c 100644
--- a/elixir-smie.el
+++ b/elixir-smie.el
@@ -515,8 +515,16 @@
       ;;   ....
       ((elixir-smie-last-line-end-with-block-operator-p)
        (smie-rule-parent elixir-smie-indent-basic))
-      (t
-       (smie-rule-parent))))
+      ;; Indent if inside else
+      ;;
+      ;; Example:
+      ;;
+      ;; else
+      ;;   if condition, do: :bar <-
+      ;; end
+      ((smie-rule-parent-p "else")
+       (smie-rule-parent elixir-smie-indent-basic))
+      (t (smie-rule-parent))))
     (`(:before . "->")
      (cond
       ;; Example
diff --git a/test/elixir-mode-indentation-test.el b/test/elixir-mode-indentation-test.el
index 5b1d9d67..5b14de7b 100644
--- a/test/elixir-mode-indentation-test.el
+++ b/test/elixir-mode-indentation-test.el
@@ -350,8 +350,7 @@ end")
 
 
 (elixir-def-indentation-test indent-if-else/2
-                             ;; https://github.com/elixir-lang/emacs-elixir/issues/288
-                             (:expected-result :failed :tags '(indentation))
+                             (:tags '(indentation))
   "
 if condition do
 :foo