diff --git a/spec/editor-spec.coffee b/spec/editor-spec.coffee
index 4a2cce174..704d062fb 100644
--- a/spec/editor-spec.coffee
+++ b/spec/editor-spec.coffee
@@ -1616,6 +1616,13 @@ describe "Editor", ->
         expect(editor.lineForBufferRow(1)).toBe '  '
         expect(editor.lineForBufferRow(2)).toBe '}'
 
+    describe "when a new line is appended before a closing tag (e.g. by pressing enter before a selection)", ->
+      it "moves the line down and keeps the indentation level the same when editor.autoIndent is true", ->
+        atom.config.set('editor.autoIndent', true)
+        editor.setCursorBufferPosition([9,2])
+        editor.insertNewline()
+        expect(editor.lineForBufferRow(10)).toBe '  };'
+        
     describe ".backspace()", ->
       describe "when there is a single cursor", ->
         changeScreenRangeHandler = null
diff --git a/src/selection.coffee b/src/selection.coffee
index e3eeb15a3..0c3161837 100644
--- a/src/selection.coffee
+++ b/src/selection.coffee
@@ -305,7 +305,10 @@ class Selection extends Model
     if options.autoIndent
       @editor.autoIndentBufferRow(row) for row in newBufferRange.getRows()
     else if options.autoIndentNewline and text == '\n'
+      currentIndentation = @editor.indentationForBufferRow(newBufferRange.start.row)
       @editor.autoIndentBufferRow(newBufferRange.end.row, preserveLeadingWhitespace: true)
+      if @editor.indentationForBufferRow(newBufferRange.end.row) < currentIndentation
+        @editor.setIndentationForBufferRow(newBufferRange.end.row, currentIndentation)
     else if options.autoDecreaseIndent and /\S/.test text
       @editor.autoDecreaseIndentForBufferRow(newBufferRange.start.row)