diff --git a/build/package.json b/build/package.json
index 6961520fd..544b99fbc 100644
--- a/build/package.json
+++ b/build/package.json
@@ -20,6 +20,7 @@
     "grunt-download-atom-shell": "git+https://atom-bot:362295be4c5258d3f7b967bbabae662a455ca2a7@github.com/atom/grunt-download-atom-shell#v0.5.0",
     "grunt-lesslint": "0.13.0",
     "grunt-markdown": "~0.4.0",
+    "grunt-peg": "~1.1.0",
     "grunt-shell": "~0.3.1",
     "harmony-collections": "~0.3.8",
     "js-yaml": "~2.1.0",
@@ -29,7 +30,6 @@
     "rimraf": "~2.2.2",
     "unzip": "~0.1.9",
     "vm-compatibility-layer": "~0.1.0",
-    "walkdir": "0.0.7",
-    "grunt-peg": "~1.1.0"
+    "walkdir": "0.0.7"
   }
 }
diff --git a/package.json b/package.json
index 4ae171833..dd4ddf735 100644
--- a/package.json
+++ b/package.json
@@ -23,6 +23,7 @@
     "clear-cut": "0.2.0",
     "coffee-script": "1.6.3",
     "coffeestack": "0.6.0",
+    "delegato": "~0.4.0",
     "emissary": "0.31.0",
     "first-mate": "0.17.0",
     "fs-plus": "0.14.0",
@@ -34,25 +35,24 @@
     "mkdirp": "0.3.5",
     "keytar": "0.15.1",
     "less-cache": "0.10.0",
-    "serializable": "0.3.0",
+    "mixto": "~0.4.0",
     "nslog": "0.3.0",
     "oniguruma": "0.26.0",
     "optimist": "0.4.0",
     "pathwatcher": "0.14.2",
     "pegjs": "0.8.0",
+    "property-accessors": "~0.1.0",
     "q": "0.9.7",
     "scandal": "0.13.0",
     "season": "0.14.0",
     "semver": "1.1.4",
+    "serializable": "0.3.0",
     "space-pen": "3.1.0",
     "temp": "0.5.0",
     "text-buffer": "0.13.0",
-    "underscore-plus": "0.6.1",
-    "vm-compatibility-layer": "0.1.0",
     "theorist": "~0.14.0",
-    "delegato": "~0.4.0",
-    "mixto": "~0.4.0",
-    "property-accessors": "~0.1.0"
+    "underscore-plus": "0.6.1",
+    "vm-compatibility-layer": "0.1.0"
   },
   "packageDependencies": {
     "atom-dark-syntax": "0.10.0",
diff --git a/spec/editor-spec.coffee b/spec/editor-spec.coffee
index 96bca8bf3..ecd6e6d7a 100644
--- a/spec/editor-spec.coffee
+++ b/spec/editor-spec.coffee
@@ -2722,6 +2722,15 @@ describe "Editor", ->
         editor.moveCursorLeft()
         expect(editor.getCursorBufferPosition()).toEqual [0, 0]
 
+    describe ".setIndentationForBufferRow", ->
+      describe "when the editor uses soft tabs but the row has hard tabs", ->
+        it "only replaces whitespace charachters", ->
+          editor.setSoftWrap(true)
+          editor.setText("	1\n	2")
+          editor.setCursorBufferPosition([0, 0])
+          editor.setIndentationForBufferRow(0, 2)
+          expect(editor.getText()).toBe("    1\n	2")
+
   describe "when the editor's grammar has an injection selector", ->
     beforeEach ->
       atom.packages.activatePackage('language-text', sync: true)
diff --git a/src/editor.coffee b/src/editor.coffee
index 40615a4bf..698030e90 100644
--- a/src/editor.coffee
+++ b/src/editor.coffee
@@ -269,10 +269,9 @@ class Editor extends Model
   # * newLevel:
   #   A {Number} indicating the new indentation level.
   setIndentationForBufferRow: (bufferRow, newLevel) ->
-    currentLevel = @indentationForBufferRow(bufferRow)
-    currentIndentString = @buildIndentString(currentLevel)
+    currentIndentLength = @lineForBufferRow(bufferRow).match(/^\s*/)[0].length
     newIndentString = @buildIndentString(newLevel)
-    @buffer.change([[bufferRow, 0], [bufferRow, currentIndentString.length]], newIndentString)
+    @buffer.change([[bufferRow, 0], [bufferRow, currentIndentLength]], newIndentString)
 
   # Public: Returns the indentation level of the given line of text.
   #