diff --git a/spec/app/edit-session-spec.coffee b/spec/app/edit-session-spec.coffee
index 5169c0abe..799d2ad21 100644
--- a/spec/app/edit-session-spec.coffee
+++ b/spec/app/edit-session-spec.coffee
@@ -730,13 +730,14 @@ describe "EditSession", ->
 
               describe "when the cursor's current column is less than the suggested indent level", ->
                 it "indents all lines relative to the suggested indent", ->
-                  editSession.insertText('\n ')
+                  editSession.insertText('\n xx')
+                  editSession.setCursorBufferPosition([3, 1])
                   editSession.insertText(text, normalizeIndent: true)
 
                   expect(editSession.lineForBufferRow(3)).toBe "    while (true) {"
                   expect(editSession.lineForBufferRow(4)).toBe "      foo();"
                   expect(editSession.lineForBufferRow(5)).toBe "    }"
-                  expect(editSession.lineForBufferRow(6)).toBe "  bar();"
+                  expect(editSession.lineForBufferRow(6)).toBe "  bar();xx"
 
               describe "when the cursor's current column is greater than the suggested indent level", ->
                 it "preserves the current indent level, indenting all lines relative to it", ->
diff --git a/src/app/selection.coffee b/src/app/selection.coffee
index 23a2ebdb5..67298b380 100644
--- a/src/app/selection.coffee
+++ b/src/app/selection.coffee
@@ -159,10 +159,12 @@ class Selection
     textPrecedingCursor = @editSession.buffer.getTextInRange([[currentBufferRow, 0], [currentBufferRow, currentBufferColumn]])
     insideExistingLine = textPrecedingCursor.match(/\S/)
 
-    if insideExistingLine or not @editSession.autoIndent
+    if insideExistingLine
       desiredBase = @editSession.indentationForBufferRow(currentBufferRow)
-    else
+    else if @editSession.autoIndent
       desiredBase = @editSession.suggestedIndentForBufferRow(currentBufferRow)
+    else
+      desiredBase = currentBufferColumn
 
     currentBase = lines[0].match(/\s*/)[0].length
     delta = desiredBase - currentBase
@@ -172,7 +174,8 @@ class Selection
         if insideExistingLine
           firstLineDelta = -line.length # remove all leading whitespace
         else
-          firstLineDelta = delta - @editSession.indentationForBufferRow(currentBufferRow)
+          firstLineDelta = delta - currentBufferColumn
+
         normalizedLines.push(@adjustIndentationForLine(line, firstLineDelta))
       else
         normalizedLines.push(@adjustIndentationForLine(line, delta))