diff --git a/src/babel/generation/index.js b/src/babel/generation/index.js
index 11d8fdc458..49faa50453 100644
--- a/src/babel/generation/index.js
+++ b/src/babel/generation/index.js
@@ -149,11 +149,12 @@ class CodeGenerator {
     return print;
   }
 
-  catchUp(node, parent) {
+  catchUp(node, parent, leftParenPrinted) {
     // catch up to this nodes newline if we're behind
     if (node.loc && this.format.retainLines && this.buffer.buf) {
       var needsParens = false;
-      if (parent && this.position.line < node.loc.start.line && t.isTerminatorless(parent)) {
+      if (!leftParenPrinted && parent &&
+          this.position.line < node.loc.start.line && t.isTerminatorless(parent)) {
         needsParens = true;
         this._push("(");
       }
@@ -216,7 +217,7 @@ class CodeGenerator {
 
       this.printLeadingComments(node, parent);
 
-      var needsParensFromCatchup = this.catchUp(node, parent);
+      var needsParensFromCatchup = this.catchUp(node, parent, needsParens);
 
       newline(true);
 
diff --git a/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/actual.js b/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/actual.js
new file mode 100644
index 0000000000..2a0e91f010
--- /dev/null
+++ b/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/actual.js
@@ -0,0 +1,6 @@
+function foo(l) {
+  return (
+    // hi
+    l
+  );
+}
diff --git a/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/expected.js b/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/expected.js
new file mode 100644
index 0000000000..042f71356d
--- /dev/null
+++ b/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/expected.js
@@ -0,0 +1,4 @@
+function foo(l){
+return (
+
+l);}
diff --git a/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/options.json b/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/options.json
new file mode 100644
index 0000000000..87138b0d7e
--- /dev/null
+++ b/test/core/fixtures/generation/edgecase/return-with-retainlines-and-compact-option/options.json
@@ -0,0 +1,4 @@
+{
+  "retainLines": true,
+  "compact": true
+}