diff --git a/spec/atom/editor-spec.coffee b/spec/atom/editor-spec.coffee
index 0704eeff2..8e3551ed3 100644
--- a/spec/atom/editor-spec.coffee
+++ b/spec/atom/editor-spec.coffee
@@ -50,15 +50,21 @@ describe "Editor", ->
         buffer.insert([1,0], "/*")
         expect(editor.lines.find('.line:eq(2) span:eq(0)')).toMatchSelector '.comment'
 
-    describe "when soft-wrap is enabled", ->
+    fdescribe "when soft-wrap is enabled", ->
       beforeEach ->
         editor.attachToDom()
         editor.width(editor.charWidth * 50)
         editor.setSoftWrap(true)
 
-      it "wraps lines that are too long to fit within the editor's width", ->
-        expect(editor.lines.find('pre:eq(3)').text()).toBe "    var pivot = items.shift(), current, left = [],"
-        expect(editor.lines.find('pre:eq(4)').text()).toBe " right = [];"
+      it "wraps lines that are too long to fit within the editor's width, adjusting cursor positioning accordingly", ->
+        expect(editor.lines.find('pre:eq(3)').text()).toBe "    var pivot = items.shift(), current, left = [], "
+        expect(editor.lines.find('pre:eq(4)').text()).toBe "right = [];"
+
+        editor.cursor.setPosition([3, 52])
+        expect(editor.cursor.position()).toEqual(editor.lines.find('pre:eq(4)').position())
+
+        editor.cursor.setPosition([4, 0])
+        expect(editor.cursor.position()).toEqual(editor.lines.find('pre:eq(5)').position())
 
   describe "cursor movement", ->
     describe ".setCursorPosition({row, column})", ->
diff --git a/spec/atom/line-wrapper-spec.coffee b/spec/atom/line-wrapper-spec.coffee
new file mode 100644
index 000000000..eac57df53
--- /dev/null
+++ b/spec/atom/line-wrapper-spec.coffee
@@ -0,0 +1,51 @@
+Buffer = require 'buffer'
+LineWrapper = require 'line-wrapper'
+Highlighter = require 'highlighter'
+_ = require 'underscore'
+
+fdescribe "LineWrapper", ->
+  [wrapper, buffer] = []
+
+  beforeEach ->
+    buffer = new Buffer(require.resolve('fixtures/sample.js'))
+    wrapper = new LineWrapper(50, new Highlighter(buffer))
+
+  describe ".segmentsForRow(row)", ->
+    describe "when the line does not need to wrap", ->
+      it "returns tokens for a single segment", ->
+        line = buffer.getLine(0)
+        expect(line.length).toBeLessThan(50)
+        segments = wrapper.segmentsForRow(0)
+        expect(segments.length).toBe 1
+        expect(segments[0].lastIndex).toBe line.length
+
+    describe "when the line needs to wrap once", ->
+      it "breaks the line into 2 segments at the beginning of the first word that exceeds the max length", ->
+        line = buffer.getLine(6)
+        expect(line.length).toBeGreaterThan 50
+        segments = wrapper.segmentsForRow(6)
+        expect(segments.length).toBe 2
+        expect(segments[0].lastIndex).toBe 45
+        expect(segments[0].map((t) -> t.value).join('')).toBe '      current < pivot ? left.push(current) : '
+
+        expect(segments[1].lastIndex).toBe 65
+        expect(segments[1].map((t) -> t.value).join('')).toBe 'right.push(current);'
+
+    describe "when the line needs to wrap more than once", ->
+      it "breaks the line into multiple segments", ->
+        wrapper.setMaxLength(30)
+        segments = wrapper.segmentsForRow(6)
+
+        expect(segments.length).toBe 3
+
+        expect(segments[0].lastIndex).toBe 24
+        expect(_.pluck(segments[0], 'value').join('')).toBe '      current < pivot ? '
+
+        expect(segments[1].lastIndex).toBe 45
+        expect(_.pluck(segments[1], 'value').join('')).toBe 'left.push(current) : '
+
+        expect(segments[2].lastIndex).toBe 65
+        expect(_.pluck(segments[2], 'value').join('')).toBe 'right.push(current);'
+
+  describe "when the buffer changes", ->
+    
diff --git a/src/atom/editor.coffee b/src/atom/editor.coffee
index 272bf610a..07cf5c310 100644
--- a/src/atom/editor.coffee
+++ b/src/atom/editor.coffee
@@ -4,6 +4,7 @@ Point = require 'point'
 Cursor = require 'cursor'
 Selection = require 'selection'
 Highlighter = require 'highlighter'
+LineWrapper = require 'line-wrapper'
 UndoManager = require 'undo-manager'
 Range = require 'range'
 
@@ -20,12 +21,14 @@ class Editor extends View
   vScrollMargin: 2
   hScrollMargin: 10
   softWrap: false
-  cursor: null
-  buffer: null
-  undoManager: null
-  selection: null
   lineHeight: null
   charWidth: null
+  cursor: null
+  selection: null
+  buffer: null
+  highlighter: null
+  lineWrapper: null
+  undoManager: null
 
   initialize: () ->
     requireStylesheet 'editor.css'
@@ -111,26 +114,8 @@ class Editor extends View
     @on 'mousemove', moveHandler
     $(document).one 'mouseup', => @off 'mousemove', moveHandler
 
-
   buildLineElement: (row) ->
-    maxSegmentLength =
-      if @softWrap
-        Math.floor(@width() / @charWidth)
-      else
-        Infinity
-    currentSegmentLength = 0
-    currentSegment = []
-    segments = [currentSegment]
-
-    for token in @highlighter.tokensForRow(row)
-      if (currentSegmentLength + token.value.length) <= maxSegmentLength
-        currentSegmentLength += token.value.length
-        currentSegment.push(token)
-      else
-        currentSegment = [token]
-        currentSegmentLength = token.value.length
-        segments.push(currentSegment)
-
+    segments = @lineWrapper.segmentsForRow(row)
     $$ ->
       for segment in segments
         @pre class: 'line', =>
@@ -148,6 +133,7 @@ class Editor extends View
 
   setBuffer: (@buffer) ->
     @highlighter = new Highlighter(@buffer)
+    @lineWrapper = new LineWrapper(Infinity, @highlighter)
     @undoManager = new UndoManager(@buffer)
     @renderLines()
     @setCursorPosition(row: 0, column: 0)
@@ -186,6 +172,13 @@ class Editor extends View
     @lines.find("pre.line:eq(#{row})")
 
   setSoftWrap: (@softWrap) ->
+    maxLength =
+      if @softWrap
+        Math.floor(@width() / @charWidth)
+      else
+        infinity
+
+    @lineWrapper.setMaxLength(maxLength)
     @renderLines()
 
   clipPosition: ({row, column}) ->
@@ -199,7 +192,17 @@ class Editor extends View
     new Point(row, column)
 
   pixelPositionFromPoint: ({row, column}) ->
-    { top: row * @lineHeight, left: column * @charWidth }
+    segmentsAbove = 0
+    segmentsAbove += @lineWrapper.segmentsForRow(i).length for i in [0...row]
+
+    for segment in @lineWrapper.segmentsForRow(row)
+      if column > segment.lastIndex
+        segmentsAbove++
+        column -= segment.textLength
+      else
+        break
+
+    { top: segmentsAbove * @lineHeight, left: column * @charWidth }
 
   pointFromPixelPosition: ({top, left}) ->
     { row: Math.floor(top / @lineHeight), column: Math.floor(left / @charWidth) }
diff --git a/src/atom/line-wrapper.coffee b/src/atom/line-wrapper.coffee
new file mode 100644
index 000000000..d6e44325e
--- /dev/null
+++ b/src/atom/line-wrapper.coffee
@@ -0,0 +1,52 @@
+getWordRegex = -> /\b[^\s]+/g
+
+module.exports =
+class LineWrapper
+  constructor: (@maxLength, @highlighter) ->
+    @buffer = @highlighter.buffer
+    @segmentBuffer()
+
+  setMaxLength: (@maxLength) ->
+    @segmentBuffer()
+
+  segmentBuffer: ->
+    @lines = @segmentRows(0, @buffer.lastRow())
+
+  segmentsForRow: (row) ->
+    @lines[row]
+
+  segmentRows: (start, end) ->
+    for row in [start..end]
+      @segmentRow(row)
+
+  segmentRow: (row) ->
+    wordRegex = getWordRegex()
+    line = @buffer.getLine(row)
+
+    breakIndices = []
+    lastBreakIndex = 0
+
+    while match = wordRegex.exec(line)
+      startIndex = match.index
+      endIndex = startIndex + match[0].length
+      if endIndex - lastBreakIndex > @maxLength
+        breakIndices.push(startIndex)
+        lastBreakIndex = startIndex
+
+    currentSegment = []
+    currentSegment.lastIndex = 0
+    segments = [currentSegment]
+    nextBreak = breakIndices.shift()
+    for token in @highlighter.tokensForRow(row)
+      if currentSegment.lastIndex >= nextBreak
+        nextBreak = breakIndices.shift()
+        newSegment = []
+        newSegment.lastIndex = currentSegment.lastIndex
+        newSegment.textLength = 0
+        segments.push(newSegment)
+        currentSegment = newSegment
+      currentSegment.push token
+      currentSegment.lastIndex += token.value.length
+      currentSegment.textLength += token.value.length
+
+    segments