diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 7dbb1a7c1b..0e4be2058c 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -8779,15 +8779,13 @@ impl Editor {
                 continue;
             }
 
-            // If the selection is empty and the cursor is in the leading whitespace before the
-            // suggested indentation, then auto-indent the line.
             let cursor = selection.head();
             let current_indent = snapshot.indent_size_for_line(MultiBufferRow(cursor.row));
             if let Some(suggested_indent) =
                 suggested_indents.get(&MultiBufferRow(cursor.row)).copied()
             {
-                // If there exist any empty selection in the leading whitespace, then skip
-                // indent for selections at the boundary.
+                // Don't do anything if already at suggested indent
+                // and there is any other cursor which is not
                 if has_some_cursor_in_whitespace
                     && cursor.column == current_indent.len
                     && current_indent.len == suggested_indent.len
@@ -8795,6 +8793,8 @@ impl Editor {
                     continue;
                 }
 
+                // Adjust line and move cursor to suggested indent
+                // if cursor is not at suggested indent
                 if cursor.column < suggested_indent.len
                     && cursor.column <= current_indent.len
                     && current_indent.len <= suggested_indent.len
@@ -8811,6 +8811,14 @@ impl Editor {
                     }
                     continue;
                 }
+
+                // If current indent is more than suggested indent
+                // only move cursor to current indent and skip indent
+                if cursor.column < current_indent.len && current_indent.len > suggested_indent.len {
+                    selection.start = Point::new(cursor.row, current_indent.len);
+                    selection.end = selection.start;
+                    continue;
+                }
             }
 
             // Otherwise, insert a hard or soft tab.
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index f4ef0b899c..df82854d18 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -2871,7 +2871,8 @@ async fn test_tab_in_leading_whitespace_auto_indents_lines(cx: &mut TestAppConte
     );
     cx.update_buffer(|buffer, cx| buffer.set_language(Some(language), cx));
 
-    // when all cursors are to the left of the suggested indent, then auto-indent all.
+    // test when all cursors are not at suggested indent
+    // then simply move to their suggested indent location
     cx.set_state(indoc! {"
         const a: B = (
             c(
@@ -2888,9 +2889,8 @@ async fn test_tab_in_leading_whitespace_auto_indents_lines(cx: &mut TestAppConte
         );
     "});
 
-    // cursors that are already at the suggested indent level do not move
-    // until other cursors that are to the left of the suggested indent
-    // auto-indent.
+    // test cursor already at suggested indent not moving when
+    // other cursors are yet to reach their suggested indents
     cx.set_state(indoc! {"
         ˇ
         const a: B = (
@@ -2914,8 +2914,7 @@ async fn test_tab_in_leading_whitespace_auto_indents_lines(cx: &mut TestAppConte
             ˇ)
         );
     "});
-    // once all multi-cursors are at the suggested
-    // indent level, they all insert a soft tab together.
+    // test when all cursors are at suggested indent then tab is inserted
     cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
     cx.assert_editor_state(indoc! {"
             ˇ
@@ -2929,6 +2928,112 @@ async fn test_tab_in_leading_whitespace_auto_indents_lines(cx: &mut TestAppConte
         );
     "});
 
+    // test when current indent is less than suggested indent,
+    // we adjust line to match suggested indent and move cursor to it
+    //
+    // when no other cursor is at word boundary, all of them should move
+    cx.set_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+        ˇ
+        ˇ   )
+        ˇ   )
+        );
+    "});
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+    cx.assert_editor_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+                    ˇ
+                ˇ)
+            ˇ)
+        );
+    "});
+
+    // test when current indent is less than suggested indent,
+    // we adjust line to match suggested indent and move cursor to it
+    //
+    // when some other cursor is at word boundary, it should not move
+    cx.set_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+        ˇ
+        ˇ   )
+           ˇ)
+        );
+    "});
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+    cx.assert_editor_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+                    ˇ
+                ˇ)
+            ˇ)
+        );
+    "});
+
+    // test when current indent is more than suggested indent,
+    // we just move cursor to current indent instead of suggested indent
+    //
+    // when no other cursor is at word boundary, all of them should move
+    cx.set_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+        ˇ
+        ˇ                )
+        ˇ   )
+        );
+    "});
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+    cx.assert_editor_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+                    ˇ
+                        ˇ)
+            ˇ)
+        );
+    "});
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+    cx.assert_editor_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+                        ˇ
+                            ˇ)
+                ˇ)
+        );
+    "});
+
+    // test when current indent is more than suggested indent,
+    // we just move cursor to current indent instead of suggested indent
+    //
+    // when some other cursor is at word boundary, it doesn't move
+    cx.set_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+        ˇ
+        ˇ                )
+            ˇ)
+        );
+    "});
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+    cx.assert_editor_state(indoc! {"
+        const a: B = (
+            c(
+                d(
+                    ˇ
+                        ˇ)
+            ˇ)
+        );
+    "});
+
     // handle auto-indent when there are multiple cursors on the same line
     cx.set_state(indoc! {"
         const a: B = (