diff --git a/lib/coffee_script/lexer.rb b/lib/coffee_script/lexer.rb
index 9dc9ec97..5f5fcbf8 100644
--- a/lib/coffee_script/lexer.rb
+++ b/lib/coffee_script/lexer.rb
@@ -63,6 +63,7 @@ module CoffeeScript
       close_indentation
       remove_mid_expression_newlines
       move_commas_outside_outdents
+      add_implicit_indentation
       ensure_balance(*BALANCED_PAIRS)
       rewrite_closing_parens
       @tokens
@@ -243,6 +244,25 @@ module CoffeeScript
         @tokens.insert(i - 1, token)
       end
     end
+    
+    # Because our grammar is LALR(1), it can't handle some single-line 
+    # expressions that lack ending delimiters. Use the lexer to add the implicit
+    # blocks, so it doesn't need to.
+    def add_implicit_indentation
+      scan_tokens do |prev, token, post, i|
+        if token[0] == :ELSE && post[0] != :INDENT
+          line = token[1].line
+          @tokens.insert(i + 1, [:INDENT, Value.new(2, line)])
+          loop do
+            i += 1
+            if !@tokens[i] || ["\n", ")", :OUTDENT].include?(@tokens[i][0])
+              @tokens.insert(i, [:OUTDENT, Value.new(2, line)])
+              break
+            end
+          end
+        end
+      end
+    end
 
     # Ensure that all listed pairs of tokens are correctly balanced throughout
     # the course of the token stream.
diff --git a/lib/coffee_script/nodes.rb b/lib/coffee_script/nodes.rb
index e82e9f1a..5aa5d277 100644
--- a/lib/coffee_script/nodes.rb
+++ b/lib/coffee_script/nodes.rb
@@ -694,7 +694,7 @@ module CoffeeScript
 
     # Rewrite a chain of IfNodes to add a default case as the final else.
     def add_else(expressions)
-      chain? ? @else_body.add_else(expressions) : @else_body = expressions
+      chain? ? @else_body.add_else(expressions) : @else_body = expressions.unwrap
       self
     end