diff --git a/src/drawline.c b/src/drawline.c
index 4328c06..72dff66 100644
--- a/src/drawline.c
+++ b/src/drawline.c
@@ -1945,7 +1945,6 @@
 		    --bcol;
 # endif
 		int display_text_first = FALSE;
-		int active_before = text_props_active;
 
 		// Add any text property that starts in this column.
 		// With 'nowrap' and not in the first screen line only "below"
@@ -1963,21 +1962,6 @@
 			      : bcol >= text_props[text_prop_next].tp_col - 1))
 		{
 		    if (text_props[text_prop_next].tp_col == MAXCOL
-			     && *ptr == NUL
-			     && ((wp->w_p_list && lcs_eol_one > 0)
-				 || (ptr == line
-					&& !did_line
-					&& (text_props[text_prop_next].tp_flags
-						       & TP_FLAG_ALIGN_BELOW))))
-		    {
-			// first display the '$' after the line or display an
-			// empty line
-			text_prop_follows = TRUE;
-			if (text_props_active == active_before)
-			    display_text_first = TRUE;
-			break;
-		    }
-		    if (text_props[text_prop_next].tp_col == MAXCOL
 			    || bcol <= text_props[text_prop_next].tp_col - 1
 					   + text_props[text_prop_next].tp_len)
 			text_prop_idxs[text_props_active++] = text_prop_next;
@@ -2028,6 +2012,24 @@
 						| TP_FLAG_ALIGN_BELOW)) == 0
 				    && wlv.col >= wp->w_width))
 			{
+			    if (tp->tp_col == MAXCOL
+				     && *ptr == NUL
+				     && ((wp->w_p_list && lcs_eol_one > 0
+					     && (tp->tp_flags
+						   & TP_FLAG_ALIGN_ABOVE) == 0)
+					 || (ptr == line
+						&& !did_line
+						&& (tp->tp_flags
+						      & TP_FLAG_ALIGN_BELOW))))
+			    {
+				// skip this prop, first display the '$' after
+				// the line or display an empty line
+				text_prop_follows = TRUE;
+				if (used_tpi < 0)
+				    display_text_first = TRUE;
+				continue;
+			    }
+
 			    if (pt->pt_hl_id > 0)
 				used_attr = syn_id2attr(pt->pt_hl_id);
 			    text_prop_type = pt;
@@ -2038,6 +2040,7 @@
 			    text_prop_flags = pt->pt_flags;
 			    text_prop_id = tp->tp_id;
 			    used_tpi = tpi;
+			    display_text_first = FALSE;
 			}
 		    }
 		    if (text_prop_id < 0 && used_tpi >= 0
@@ -3104,6 +3107,7 @@
 		    }
 		}
 		else if (c == NUL
+			&& wlv.n_extra == 0
 			&& (wp->w_p_list
 			    || ((wlv.fromcol >= 0 || fromcol_prev >= 0)
 				&& wlv.tocol > wlv.vcol
diff --git a/src/testdir/dumps/Test_prop_above_below_empty_2.dump b/src/testdir/dumps/Test_prop_above_below_empty_2.dump
new file mode 100644
index 0000000..3954a4b
--- /dev/null
+++ b/src/testdir/dumps/Test_prop_above_below_empty_2.dump
@@ -0,0 +1,16 @@
+| +0#af5f00255#ffffff0@3|-+0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@1|1| |1+0#0000000&@7|$+0#4040ff13&| +0#0000000&@46
+| +0#af5f00255&@3|++0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@3|-+0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@1|2| |$+0#4040ff13&| +0#0000000&@54
+| +0#af5f00255&@3|++0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@3|-+0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@1|3| |3+0#0000000&@8|$+0#4040ff13&| +0#0000000&@45
+| +0#af5f00255&@3|++0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@3|-+0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@1|4| |$+0#4040ff13&| +0#0000000&@54
+| +0#af5f00255&@3|++0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@3|-+0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+| +0#af5f00255&@1|5| >5+0#0000000&@10|$+0#4040ff13&| +0#0000000&@43
+| +0#af5f00255&@3|++0#0000001#ffff4012@2| +0#0000000#ffffff0@52
+|:|s|e|t| |l|i|s|t| @32|5|,|1|-|5|7| @7|A|l@1| 
diff --git a/src/testdir/test_textprop.vim b/src/testdir/test_textprop.vim
index b628c82..f3d53f7 100644
--- a/src/testdir/test_textprop.vim
+++ b/src/testdir/test_textprop.vim
@@ -2798,6 +2798,9 @@
   let buf = RunVimInTerminal('-S XscriptPropAboveBelowEmpty', #{rows: 16, cols: 60})
   call VerifyScreenDump(buf, 'Test_prop_above_below_empty_1', {})
 
+  call term_sendkeys(buf, ":set list\<CR>")
+  call VerifyScreenDump(buf, 'Test_prop_above_below_empty_2', {})
+
   call StopVimInTerminal(buf)
 endfunc
 
diff --git a/src/version.c b/src/version.c
index 470940a..26e8ab5 100644
--- a/src/version.c
+++ b/src/version.c
@@ -696,6 +696,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1304,
+/**/
     1303,
 /**/
     1302,