diff --git a/runtime/indent/sh.vim b/runtime/indent/sh.vim
index ae4f4b5..fd9a6a9 100644
--- a/runtime/indent/sh.vim
+++ b/runtime/indent/sh.vim
@@ -3,10 +3,11 @@
 " Maintainer:          Christian Brabandt <cb@256bit.org>
 " Previous Maintainer: Peter Aronoff <telemachus@arpinum.org>
 " Original Author:     Nikolai Weibull <now@bitwi.se>
-" Latest Revision:     2017-05-02
+" Latest Revision:     2017-08-08
 " License:             Vim (see :h license)
 " Repository:          https://github.com/chrisbra/vim-sh-indent
 " Changelog:
+"          20170808: - better indent of line continuation
 "          20170502: - get rid of buffer-shiftwidth function
 "          20160912: - preserve indentation of here-doc blocks
 "          20160627: - detect heredocs correctly
@@ -117,7 +118,8 @@
 endfunction
 
 function! s:is_continuation_line(line)
-  return a:line =~ '\%(\%(^\|[^\\]\)\\\|&&\|||\)$'
+  return a:line =~ '\%(\%(^\|[^\\]\)\\\|&&\|||\||\)' .
+                 \ '\s*\({\s*\)\=\(#.*\)\=$'
 endfunction
 
 function! s:find_continued_lnum(lnum)