diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 721ac0441f..a31733823d 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -1101,6 +1101,12 @@ pub enum MultibufferSelectionMode {
     All,
 }
 
+#[derive(Clone, Copy, Debug, Default)]
+pub struct RewrapOptions {
+    pub override_language_settings: bool,
+    pub preserve_existing_whitespace: bool,
+}
+
 impl Editor {
     pub fn single_line(window: &mut Window, cx: &mut Context<Self>) -> Self {
         let buffer = cx.new(|cx| Buffer::local("", cx));
@@ -3246,7 +3252,13 @@ impl Editor {
                         .line_len(MultiBufferRow(latest.start.row))
                         == latest.start.column
                 {
-                    this.rewrap_impl(true, cx)
+                    this.rewrap_impl(
+                        RewrapOptions {
+                            override_language_settings: true,
+                            preserve_existing_whitespace: true,
+                        },
+                        cx,
+                    )
                 }
             }
             this.trigger_completion_on_input(&text, trigger_in_words, window, cx);
@@ -9172,10 +9184,10 @@ impl Editor {
     }
 
     pub fn rewrap(&mut self, _: &Rewrap, _: &mut Window, cx: &mut Context<Self>) {
-        self.rewrap_impl(false, cx)
+        self.rewrap_impl(RewrapOptions::default(), cx)
     }
 
-    pub fn rewrap_impl(&mut self, override_language_settings: bool, cx: &mut Context<Self>) {
+    pub fn rewrap_impl(&mut self, options: RewrapOptions, cx: &mut Context<Self>) {
         let buffer = self.buffer.read(cx).snapshot(cx);
         let selections = self.selections.all::<Point>(cx);
         let mut selections = selections.iter().peekable();
@@ -9249,7 +9261,7 @@ impl Editor {
                 RewrapBehavior::Anywhere => true,
             };
 
-            let should_rewrap = override_language_settings
+            let should_rewrap = options.override_language_settings
                 || allow_rewrap_based_on_language
                 || self.hard_wrap.is_some();
             if !should_rewrap {
@@ -9306,15 +9318,16 @@ impl Editor {
             });
             let wrapped_text = wrap_with_prefix(
                 line_prefix,
-                lines_without_prefixes.join(" "),
+                lines_without_prefixes.join("\n"),
                 wrap_column,
                 tab_size,
+                options.preserve_existing_whitespace,
             );
 
             // TODO: should always use char-based diff while still supporting cursor behavior that
             // matches vim.
             let mut diff_options = DiffOptions::default();
-            if override_language_settings {
+            if options.override_language_settings {
                 diff_options.max_word_diff_len = 0;
                 diff_options.max_word_diff_line_count = 0;
             } else {
@@ -17280,10 +17293,10 @@ fn should_stay_with_preceding_ideograph(text: &str) -> bool {
 }
 
 #[derive(PartialEq, Eq, Debug, Clone, Copy)]
-struct WordBreakToken<'a> {
-    token: &'a str,
-    grapheme_len: usize,
-    is_whitespace: bool,
+enum WordBreakToken<'a> {
+    Word { token: &'a str, grapheme_len: usize },
+    InlineWhitespace { token: &'a str, grapheme_len: usize },
+    Newline,
 }
 
 impl<'a> Iterator for WordBreakingTokenizer<'a> {
@@ -17299,16 +17312,17 @@ impl<'a> Iterator for WordBreakingTokenizer<'a> {
 
         let mut iter = self.input.graphemes(true).peekable();
         let mut offset = 0;
-        let mut graphemes = 0;
+        let mut grapheme_len = 0;
         if let Some(first_grapheme) = iter.next() {
+            let is_newline = first_grapheme == "\n";
             let is_whitespace = is_grapheme_whitespace(first_grapheme);
             offset += first_grapheme.len();
-            graphemes += 1;
+            grapheme_len += 1;
             if is_grapheme_ideographic(first_grapheme) && !is_whitespace {
                 if let Some(grapheme) = iter.peek().copied() {
                     if should_stay_with_preceding_ideograph(grapheme) {
                         offset += grapheme.len();
-                        graphemes += 1;
+                        grapheme_len += 1;
                     }
                 }
             } else {
@@ -17321,27 +17335,29 @@ impl<'a> Iterator for WordBreakingTokenizer<'a> {
                     if next_word_bound.map_or(false, |(i, _)| i == offset) {
                         break;
                     };
-                    if is_grapheme_whitespace(grapheme) != is_whitespace {
+                    if is_grapheme_whitespace(grapheme) != is_whitespace
+                        || (grapheme == "\n") != is_newline
+                    {
                         break;
                     };
                     offset += grapheme.len();
-                    graphemes += 1;
+                    grapheme_len += 1;
                     iter.next();
                 }
             }
             let token = &self.input[..offset];
             self.input = &self.input[offset..];
-            if is_whitespace {
-                Some(WordBreakToken {
-                    token: " ",
-                    grapheme_len: 1,
-                    is_whitespace: true,
+            if token == "\n" {
+                Some(WordBreakToken::Newline)
+            } else if is_whitespace {
+                Some(WordBreakToken::InlineWhitespace {
+                    token,
+                    grapheme_len,
                 })
             } else {
-                Some(WordBreakToken {
+                Some(WordBreakToken::Word {
                     token,
-                    grapheme_len: graphemes,
-                    is_whitespace: false,
+                    grapheme_len,
                 })
             }
         } else {
@@ -17352,66 +17368,75 @@ impl<'a> Iterator for WordBreakingTokenizer<'a> {
 
 #[test]
 fn test_word_breaking_tokenizer() {
-    let tests: &[(&str, &[(&str, usize, bool)])] = &[
+    let tests: &[(&str, &[WordBreakToken<'static>])] = &[
         ("", &[]),
-        ("  ", &[(" ", 1, true)]),
-        ("Ʒ", &[("Ʒ", 1, false)]),
-        ("Ǽ", &[("Ǽ", 1, false)]),
-        ("⋑", &[("⋑", 1, false)]),
-        ("⋑⋑", &[("⋑⋑", 2, false)]),
+        ("  ", &[whitespace("  ", 2)]),
+        ("Ʒ", &[word("Ʒ", 1)]),
+        ("Ǽ", &[word("Ǽ", 1)]),
+        ("⋑", &[word("⋑", 1)]),
+        ("⋑⋑", &[word("⋑⋑", 2)]),
         (
             "原理，进而",
-            &[
-                ("原", 1, false),
-                ("理，", 2, false),
-                ("进", 1, false),
-                ("而", 1, false),
-            ],
+            &[word("原", 1), word("理，", 2), word("进", 1), word("而", 1)],
         ),
         (
             "hello world",
-            &[("hello", 5, false), (" ", 1, true), ("world", 5, false)],
+            &[word("hello", 5), whitespace(" ", 1), word("world", 5)],
         ),
         (
             "hello, world",
-            &[("hello,", 6, false), (" ", 1, true), ("world", 5, false)],
+            &[word("hello,", 6), whitespace(" ", 1), word("world", 5)],
         ),
         (
             "  hello world",
             &[
-                (" ", 1, true),
-                ("hello", 5, false),
-                (" ", 1, true),
-                ("world", 5, false),
+                whitespace("  ", 2),
+                word("hello", 5),
+                whitespace(" ", 1),
+                word("world", 5),
             ],
         ),
         (
             "这是什么 \n 钢笔",
             &[
-                ("这", 1, false),
-                ("是", 1, false),
-                ("什", 1, false),
-                ("么", 1, false),
-                (" ", 1, true),
-                ("钢", 1, false),
-                ("笔", 1, false),
+                word("这", 1),
+                word("是", 1),
+                word("什", 1),
+                word("么", 1),
+                whitespace(" ", 1),
+                newline(),
+                whitespace(" ", 1),
+                word("钢", 1),
+                word("笔", 1),
             ],
         ),
-        (" mutton", &[(" ", 1, true), ("mutton", 6, false)]),
+        (" mutton", &[whitespace(" ", 1), word("mutton", 6)]),
     ];
 
+    fn word(token: &'static str, grapheme_len: usize) -> WordBreakToken<'static> {
+        WordBreakToken::Word {
+            token,
+            grapheme_len,
+        }
+    }
+
+    fn whitespace(token: &'static str, grapheme_len: usize) -> WordBreakToken<'static> {
+        WordBreakToken::InlineWhitespace {
+            token,
+            grapheme_len,
+        }
+    }
+
+    fn newline() -> WordBreakToken<'static> {
+        WordBreakToken::Newline
+    }
+
     for (input, result) in tests {
         assert_eq!(
-            WordBreakingTokenizer::new(input).collect::<Vec<_>>(),
-            result
-                .iter()
-                .copied()
-                .map(|(token, grapheme_len, is_whitespace)| WordBreakToken {
-                    token,
-                    grapheme_len,
-                    is_whitespace,
-                })
+            WordBreakingTokenizer::new(input)
                 .collect::<Vec<_>>()
+                .as_slice(),
+            *result,
         );
     }
 }
@@ -17421,6 +17446,7 @@ fn wrap_with_prefix(
     unwrapped_text: String,
     wrap_column: usize,
     tab_size: NonZeroU32,
+    preserve_existing_whitespace: bool,
 ) -> String {
     let line_prefix_len = char_len_with_expanded_tabs(0, &line_prefix, tab_size);
     let mut wrapped_text = String::new();
@@ -17428,27 +17454,68 @@ fn wrap_with_prefix(
 
     let tokenizer = WordBreakingTokenizer::new(&unwrapped_text);
     let mut current_line_len = line_prefix_len;
-    for WordBreakToken {
-        token,
-        grapheme_len,
-        is_whitespace,
-    } in tokenizer
-    {
-        if current_line_len + grapheme_len > wrap_column && current_line_len != line_prefix_len {
-            wrapped_text.push_str(current_line.trim_end());
-            wrapped_text.push('\n');
-            current_line.truncate(line_prefix.len());
-            current_line_len = line_prefix_len;
-            if !is_whitespace {
+    let mut in_whitespace = false;
+    for token in tokenizer {
+        let have_preceding_whitespace = in_whitespace;
+        match token {
+            WordBreakToken::Word {
+                token,
+                grapheme_len,
+            } => {
+                in_whitespace = false;
+                if current_line_len + grapheme_len > wrap_column
+                    && current_line_len != line_prefix_len
+                {
+                    wrapped_text.push_str(current_line.trim_end());
+                    wrapped_text.push('\n');
+                    current_line.truncate(line_prefix.len());
+                    current_line_len = line_prefix_len;
+                }
                 current_line.push_str(token);
                 current_line_len += grapheme_len;
             }
-        } else if !is_whitespace {
-            current_line.push_str(token);
-            current_line_len += grapheme_len;
-        } else if current_line_len != line_prefix_len {
-            current_line.push(' ');
-            current_line_len += 1;
+            WordBreakToken::InlineWhitespace {
+                mut token,
+                mut grapheme_len,
+            } => {
+                in_whitespace = true;
+                if have_preceding_whitespace && !preserve_existing_whitespace {
+                    continue;
+                }
+                if !preserve_existing_whitespace {
+                    token = " ";
+                    grapheme_len = 1;
+                }
+                if current_line_len + grapheme_len > wrap_column {
+                    wrapped_text.push_str(current_line.trim_end());
+                    wrapped_text.push('\n');
+                    current_line.truncate(line_prefix.len());
+                    current_line_len = line_prefix_len;
+                } else if current_line_len != line_prefix_len || preserve_existing_whitespace {
+                    current_line.push_str(token);
+                    current_line_len += grapheme_len;
+                }
+            }
+            WordBreakToken::Newline => {
+                in_whitespace = true;
+                if preserve_existing_whitespace {
+                    wrapped_text.push_str(current_line.trim_end());
+                    wrapped_text.push('\n');
+                    current_line.truncate(line_prefix.len());
+                    current_line_len = line_prefix_len;
+                } else if have_preceding_whitespace {
+                    continue;
+                } else if current_line_len + 1 > wrap_column && current_line_len != line_prefix_len
+                {
+                    wrapped_text.push_str(current_line.trim_end());
+                    wrapped_text.push('\n');
+                    current_line.truncate(line_prefix.len());
+                    current_line_len = line_prefix_len;
+                } else if current_line_len != line_prefix_len {
+                    current_line.push(' ');
+                    current_line_len += 1;
+                }
+            }
         }
     }
 
@@ -17465,7 +17532,8 @@ fn test_wrap_with_prefix() {
             "# ".to_string(),
             "abcdefg".to_string(),
             4,
-            NonZeroU32::new(4).unwrap()
+            NonZeroU32::new(4).unwrap(),
+            false,
         ),
         "# abcdefg"
     );
@@ -17474,7 +17542,8 @@ fn test_wrap_with_prefix() {
             "".to_string(),
             "\thello world".to_string(),
             8,
-            NonZeroU32::new(4).unwrap()
+            NonZeroU32::new(4).unwrap(),
+            false,
         ),
         "hello\nworld"
     );
@@ -17483,7 +17552,8 @@ fn test_wrap_with_prefix() {
             "// ".to_string(),
             "xx \nyy zz aa bb cc".to_string(),
             12,
-            NonZeroU32::new(4).unwrap()
+            NonZeroU32::new(4).unwrap(),
+            false,
         ),
         "// xx yy zz\n// aa bb cc"
     );
@@ -17492,7 +17562,8 @@ fn test_wrap_with_prefix() {
             String::new(),
             "这是什么 \n 钢笔".to_string(),
             3,
-            NonZeroU32::new(4).unwrap()
+            NonZeroU32::new(4).unwrap(),
+            false,
         ),
         "这是什\n么 钢\n笔"
     );
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index e9c48a11cc..735489dfcd 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -2,8 +2,10 @@ use super::*;
 use crate::{
     scroll::scroll_amount::ScrollAmount,
     test::{
-        assert_text_with_selections, build_editor, editor_lsp_test_context::EditorLspTestContext,
-        editor_test_context::EditorTestContext, select_ranges,
+        assert_text_with_selections, build_editor,
+        editor_lsp_test_context::{git_commit_lang, EditorLspTestContext},
+        editor_test_context::EditorTestContext,
+        select_ranges,
     },
     JoinLines,
 };
@@ -4746,6 +4748,7 @@ async fn test_hard_wrap(cx: &mut TestAppContext) {
     init_test(cx, |_| {});
     let mut cx = EditorTestContext::new(cx).await;
 
+    cx.update_buffer(|buffer, cx| buffer.set_language(Some(git_commit_lang()), cx));
     cx.update_editor(|editor, _, cx| {
         editor.set_hard_wrap(Some(14), cx);
     });
@@ -4764,6 +4767,69 @@ async fn test_hard_wrap(cx: &mut TestAppContext) {
         fourˇ
         "
     ));
+
+    cx.update_editor(|editor, window, cx| {
+        editor.newline(&Default::default(), window, cx);
+    });
+    cx.run_until_parked();
+    cx.assert_editor_state(indoc!(
+        "
+        one two three
+        four
+        ˇ
+        "
+    ));
+
+    cx.simulate_input("five");
+    cx.run_until_parked();
+    cx.assert_editor_state(indoc!(
+        "
+        one two three
+        four
+        fiveˇ
+        "
+    ));
+
+    cx.update_editor(|editor, window, cx| {
+        editor.newline(&Default::default(), window, cx);
+    });
+    cx.run_until_parked();
+    cx.simulate_input("# ");
+    cx.run_until_parked();
+    cx.assert_editor_state(indoc!(
+        "
+        one two three
+        four
+        five
+        # ˇ
+        "
+    ));
+
+    cx.update_editor(|editor, window, cx| {
+        editor.newline(&Default::default(), window, cx);
+    });
+    cx.run_until_parked();
+    cx.assert_editor_state(indoc!(
+        "
+        one two three
+        four
+        five
+        #\x20
+        #ˇ
+        "
+    ));
+
+    cx.simulate_input(" 6");
+    cx.run_until_parked();
+    cx.assert_editor_state(indoc!(
+        "
+        one two three
+        four
+        five
+        #
+        # 6ˇ
+        "
+    ));
 }
 
 #[gpui::test]
diff --git a/crates/editor/src/test/editor_lsp_test_context.rs b/crates/editor/src/test/editor_lsp_test_context.rs
index 45e28fa23a..34b722ddf0 100644
--- a/crates/editor/src/test/editor_lsp_test_context.rs
+++ b/crates/editor/src/test/editor_lsp_test_context.rs
@@ -79,6 +79,19 @@ pub(crate) fn rust_lang() -> Arc<Language> {
     .expect("Could not parse queries");
     Arc::new(language)
 }
+
+#[cfg(test)]
+pub(crate) fn git_commit_lang() -> Arc<Language> {
+    Arc::new(Language::new(
+        LanguageConfig {
+            name: "Git Commit".into(),
+            line_comments: vec!["#".into()],
+            ..Default::default()
+        },
+        None,
+    ))
+}
+
 impl EditorLspTestContext {
     pub async fn new(
         language: Language,
diff --git a/crates/vim/src/rewrap.rs b/crates/vim/src/rewrap.rs
index a889b0bf99..a7f5d939f7 100644
--- a/crates/vim/src/rewrap.rs
+++ b/crates/vim/src/rewrap.rs
@@ -1,6 +1,6 @@
 use crate::{motion::Motion, object::Object, state::Mode, Vim};
 use collections::HashMap;
-use editor::{display_map::ToDisplayPoint, scroll::Autoscroll, Bias, Editor};
+use editor::{display_map::ToDisplayPoint, scroll::Autoscroll, Bias, Editor, RewrapOptions};
 use gpui::{actions, Context, Window};
 use language::SelectionGoal;
 
@@ -14,7 +14,13 @@ pub(crate) fn register(editor: &mut Editor, cx: &mut Context<Vim>) {
         vim.update_editor(window, cx, |vim, editor, window, cx| {
             editor.transact(window, cx, |editor, window, cx| {
                 let mut positions = vim.save_selection_starts(editor, cx);
-                editor.rewrap_impl(true, cx);
+                editor.rewrap_impl(
+                    RewrapOptions {
+                        override_language_settings: true,
+                        ..Default::default()
+                    },
+                    cx,
+                );
                 editor.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
                     s.move_with(|map, selection| {
                         if let Some(anchor) = positions.remove(&selection.id) {
@@ -52,7 +58,13 @@ impl Vim {
                         motion.expand_selection(map, selection, times, false, &text_layout_details);
                     });
                 });
-                editor.rewrap_impl(true, cx);
+                editor.rewrap_impl(
+                    RewrapOptions {
+                        override_language_settings: true,
+                        ..Default::default()
+                    },
+                    cx,
+                );
                 editor.change_selections(None, window, cx, |s| {
                     s.move_with(|map, selection| {
                         let anchor = selection_starts.remove(&selection.id).unwrap();
@@ -83,7 +95,13 @@ impl Vim {
                         object.expand_selection(map, selection, around);
                     });
                 });
-                editor.rewrap_impl(true, cx);
+                editor.rewrap_impl(
+                    RewrapOptions {
+                        override_language_settings: true,
+                        ..Default::default()
+                    },
+                    cx,
+                );
                 editor.change_selections(None, window, cx, |s| {
                     s.move_with(|map, selection| {
                         let anchor = original_positions.remove(&selection.id).unwrap();