diff --git a/src/charset.c b/src/charset.c
index 0b9f4b8..83a6850 100644
--- a/src/charset.c
+++ b/src/charset.c
@@ -1120,7 +1120,6 @@
     if (wp->w_p_lbr
 	    && vim_isbreak(c)
 	    && !vim_isbreak(s[1])
-	    && !wp->w_p_list
 	    && wp->w_p_wrap
 # ifdef FEAT_VERTSPLIT
 	    && wp->w_width != 0
diff --git a/src/screen.c b/src/screen.c
index 65aadc4..5dec4ab 100644
--- a/src/screen.c
+++ b/src/screen.c
@@ -2843,6 +2843,7 @@
     char_u	extra[18];		/* "%ld" and 'fdc' must fit in here */
     int		n_extra = 0;		/* number of extra chars */
     char_u	*p_extra = NULL;	/* string of extra chars, plus NUL */
+    char_u	*p_extra_free = NULL;   /* p_extra needs to be freed */
     int		c_extra = NUL;		/* extra chars, all the same */
     int		extra_attr = 0;		/* attributes when n_extra != 0 */
     static char_u *at_end_str = (char_u *)""; /* used for p_extra when
@@ -4053,6 +4054,11 @@
 	}
 	else
 	{
+	    if (p_extra_free != NULL)
+	    {
+		vim_free(p_extra_free);
+		p_extra_free = NULL;
+	    }
 	    /*
 	     * Get a character from the line itself.
 	     */
@@ -4424,8 +4430,7 @@
 		/*
 		 * Found last space before word: check for line break.
 		 */
-		if (wp->w_p_lbr && vim_isbreak(c) && !vim_isbreak(*ptr)
-							     && !wp->w_p_list)
+		if (wp->w_p_lbr && vim_isbreak(c) && !vim_isbreak(*ptr))
 		{
 		    char_u *p = ptr - (
 # ifdef FEAT_MBYTE
@@ -4433,7 +4438,7 @@
 # endif
 				1);
 		    /* TODO: is passing p for start of the line OK? */
-		    n_extra = win_lbr_chartabsize(wp, p, p, (colnr_T)vcol,
+		    n_extra = win_lbr_chartabsize(wp, line, p, (colnr_T)vcol,
 								    NULL) - 1;
 		    c_extra = ' ';
 		    if (vim_iswhite(c))
@@ -4443,7 +4448,8 @@
 			    /* See "Tab alignment" below. */
 			    FIX_FOR_BOGUSCOLS;
 #endif
-			c = ' ';
+			if (!wp->w_p_list)
+			    c = ' ';
 		    }
 		}
 #endif
@@ -4483,9 +4489,50 @@
 		 */
 		if (c == TAB && (!wp->w_p_list || lcs_tab1))
 		{
+		    int tab_len = 0;
 		    /* tab amount depends on current column */
-		    n_extra = (int)wp->w_buffer->b_p_ts
+		    tab_len = (int)wp->w_buffer->b_p_ts
 					- vcol % (int)wp->w_buffer->b_p_ts - 1;
+#ifdef FEAT_LINEBREAK
+		    if (!wp->w_p_lbr)
+#endif
+		    /* tab amount depends on current column */
+			n_extra = tab_len;
+#ifdef FEAT_LINEBREAK
+		    else
+		    {
+			char_u *p;
+			int	len = n_extra;
+			int	i;
+			int	saved_nextra = n_extra;
+
+			/* if n_extra > 0, it gives the number of chars, to
+			 * use for a tab, else we need to calculate the width
+			 * for a tab */
+#ifdef FEAT_MBYTE
+			len = (tab_len * mb_char2len(lcs_tab2));
+			if (n_extra > 0)
+			    len += n_extra - tab_len;
+#endif
+			c = lcs_tab1;
+			p = alloc((unsigned)(len + 1));
+			vim_memset(p, ' ', len);
+			p[len] = NUL;
+			p_extra_free = p;
+			for (i = 0; i < tab_len; i++)
+			{
+#ifdef FEAT_MBYTE
+			    mb_char2bytes(lcs_tab2, p);
+			    p += mb_char2len(lcs_tab2);
+			    n_extra += mb_char2len(lcs_tab2)
+						 - (saved_nextra > 0 ? 1 : 0);
+#else
+			    p[i] = lcs_tab2;
+#endif
+			}
+			p_extra = p_extra_free;
+		    }
+#endif
 #ifdef FEAT_CONCEAL
 		    /* Tab alignment should be identical regardless of
 		     * 'conceallevel' value. So tab compensates of all
@@ -4501,8 +4548,13 @@
 		    if (wp->w_p_list)
 		    {
 			c = lcs_tab1;
-			c_extra = lcs_tab2;
-			n_attr = n_extra + 1;
+#ifdef FEAT_LINEBREAK
+			if (wp->w_p_lbr)
+			    c_extra = NUL; /* using p_extra from above */
+			else
+#endif
+			    c_extra = lcs_tab2;
+			n_attr = tab_len + 1;
 			extra_attr = hl_attr(HLF_8);
 			saved_attr2 = char_attr; /* save current attr */
 #ifdef FEAT_MBYTE
@@ -4598,9 +4650,25 @@
 		    if ((dy_flags & DY_UHEX) && wp->w_p_rl)
 			rl_mirror(p_extra);	/* reverse "<12>" */
 #endif
-		    n_extra = byte2cells(c) - 1;
 		    c_extra = NUL;
-		    c = *p_extra++;
+#ifdef FEAT_LINEBREAK
+		    if (wp->w_p_lbr)
+		    {
+			char_u *p;
+
+			c = *p_extra;
+			p = alloc((unsigned)n_extra + 1);
+			vim_memset(p, ' ', n_extra);
+			STRNCPY(p, p_extra + 1, STRLEN(p_extra) - 1);
+			p[n_extra] = NUL;
+			p_extra_free = p_extra = p;
+		    }
+		    else
+#endif
+		    {
+			n_extra = byte2cells(c) - 1;
+			c = *p_extra++;
+		    }
 		    if (!attr_pri)
 		    {
 			n_attr = n_extra + 1;
diff --git a/src/testdir/Make_amiga.mak b/src/testdir/Make_amiga.mak
index d9b0612..1226f83 100644
--- a/src/testdir/Make_amiga.mak
+++ b/src/testdir/Make_amiga.mak
@@ -38,6 +38,7 @@
 		test104.out test105.out test106.out test107.out \
 		test_autoformat_join.out \
 		test_breakindent.out \
+		test_listlbr.out \
 		test_eval.out \
 		test_options.out
 
@@ -165,5 +166,6 @@
 test107.out: test107.in
 test_autoformat_join.out: test_autoformat_join.in
 test_breakindent.out: test_breakindent.in
+test_listlbr.out: test_listlbr.in
 test_eval.out: test_eval.in
 test_options.out: test_options.in
diff --git a/src/testdir/Make_dos.mak b/src/testdir/Make_dos.mak
index 59e28bd..3c0682b 100644
--- a/src/testdir/Make_dos.mak
+++ b/src/testdir/Make_dos.mak
@@ -37,6 +37,7 @@
 		test105.out test106.out  test107.out\
 		test_autoformat_join.out \
 		test_breakindent.out \
+		test_listlbr \
 		test_eval.out \
 		test_options.out
 
diff --git a/src/testdir/Make_ming.mak b/src/testdir/Make_ming.mak
index 02cbfbf..603fe80 100644
--- a/src/testdir/Make_ming.mak
+++ b/src/testdir/Make_ming.mak
@@ -57,6 +57,7 @@
 		test105.out test106.out test107.out \
 		test_autoformat_join.out \
 		test_breakindent.out \
+		test_listlbr.out \
 		test_eval.out \
 		test_options.out
 
diff --git a/src/testdir/Make_os2.mak b/src/testdir/Make_os2.mak
index 129736c..3de77d2 100644
--- a/src/testdir/Make_os2.mak
+++ b/src/testdir/Make_os2.mak
@@ -40,6 +40,7 @@
 		test_autoformat_join.out \
 		test_eval.out \
 		test_breakindent.out \
+		test_listlbr.out \
 		test_options.out
 
 .SUFFIXES: .in .out
diff --git a/src/testdir/Make_vms.mms b/src/testdir/Make_vms.mms
index 4a8cfa9..a506233 100644
--- a/src/testdir/Make_vms.mms
+++ b/src/testdir/Make_vms.mms
@@ -98,6 +98,7 @@
 	 test105.out test106.out test107.out \
 	 test_autoformat_join.out \
 	 test_breakindent.out \
+	 test_listlbr.out \
 	 test_eval.out \
 	 test_options.out
 
diff --git a/src/testdir/Makefile b/src/testdir/Makefile
index a325e4e..49bd80a 100644
--- a/src/testdir/Makefile
+++ b/src/testdir/Makefile
@@ -35,6 +35,7 @@
 		test104.out test105.out test106.out test107.out \
 		test_autoformat_join.out \
 		test_breakindent.out \
+		test_listlbr.out \
 		test_eval.out \
 		test_options.out
 
diff --git a/src/testdir/test_listlbr.in b/src/testdir/test_listlbr.in
new file mode 100644
index 0000000..0d50d4b
--- /dev/null
+++ b/src/testdir/test_listlbr.in
@@ -0,0 +1,62 @@
+Test for linebreak and list option
+
+STARTTEST
+:so small.vim
+:if !exists("+linebreak") | e! test.ok | w! test.out | qa! | endif
+:10new|:vsp|:vert resize 20
+:put =\"\tabcdef hijklmn\tpqrstuvwxyz\u00a01060ABCDEFGHIJKLMNOP \"
+:norm! zt
+:set ts=4 sw=4 sts=4 linebreak sbr=+ wrap
+:fu! ScreenChar(width)
+:	let c=''
+:	for j in range(1,4)
+:	    for i in range(1,a:width)
+:	    	let c.=nr2char(screenchar(j, i))
+:	    endfor
+:           let c.="\n"
+:	endfor
+:	return c
+:endfu
+:fu! DoRecordScreen()
+:	wincmd l
+:	$put =printf(\"\n%s\", g:test)
+:	$put =g:line
+:	wincmd p
+:endfu
+:let g:test="Test 1: set linebreak"
+:redraw!
+:let line=ScreenChar(winwidth(0))
+:call DoRecordScreen()
+:let g:test="Test 2: set linebreak + set list"
+:set linebreak list listchars=
+:redraw!
+:let line=ScreenChar(winwidth(0))
+:call DoRecordScreen()
+:let g:test ="Test 3: set linebreak + set list + fancy listchars"
+:exe "set linebreak list listchars=nbsp:\u2423,tab:\u2595\u2014,trail:\u02d1,eol:\ub6"
+:redraw!
+:let line=ScreenChar(winwidth(0))
+:call DoRecordScreen()
+:let g:test ="Test 4: set linebreak nolist"
+:set nolist linebreak
+:redraw!
+:let line=ScreenChar(winwidth(0))
+:call DoRecordScreen()
+:let g:test ="Test 5: set nolinebreak list"
+:set list nolinebreak
+:redraw!
+:let line=ScreenChar(winwidth(0))
+:call DoRecordScreen()
+:let g:test ="Test 6: set linebreak with tab and 1 line as long as screen: should break!"
+:set nolist linebreak ts=8
+:let line="1\t".repeat('a', winwidth(0)-2)
+:$put =line
+:$
+:norm! zt
+:redraw!
+:let line=ScreenChar(winwidth(0))
+:call DoRecordScreen()
+:%w! test.out
+:qa!
+ENDTEST
+dummy text
diff --git a/src/testdir/test_listlbr.ok b/src/testdir/test_listlbr.ok
new file mode 100644
index 0000000..f391d50
--- /dev/null
+++ b/src/testdir/test_listlbr.ok
@@ -0,0 +1,39 @@
+
+	abcdef hijklmn	pqrstuvwxyz 1060ABCDEFGHIJKLMNOP 
+
+Test 1: set linebreak
+    abcdef          
++hijklmn            
++pqrstuvwxyz 1060ABC
++DEFGHIJKLMNOP      
+
+Test 2: set linebreak + set list
+^Iabcdef hijklmn^I  
++pqrstuvwxyz 1060ABC
++DEFGHIJKLMNOP      
+                    
+
+Test 3: set linebreak + set list + fancy listchars
+▕———abcdef          
++hijklmn▕———        
++pqrstuvwxyz␣1060ABC
++DEFGHIJKLMNOPˑ¶    
+
+Test 4: set linebreak nolist
+    abcdef          
++hijklmn            
++pqrstuvwxyz 1060ABC
++DEFGHIJKLMNOP      
+
+Test 5: set nolinebreak list
+▕———abcdef hijklmn▕—
++pqrstuvwxyz␣1060ABC
++DEFGHIJKLMNOPˑ¶    
+¶                   
+1	aaaaaaaaaaaaaaaaaa
+
+Test 6: set linebreak with tab and 1 line as long as screen: should break!
+1                   
++aaaaaaaaaaaaaaaaaa 
+~                   
+~                   
diff --git a/src/version.c b/src/version.c
index 2fd9dfb..74b4fad 100644
--- a/src/version.c
+++ b/src/version.c
@@ -735,6 +735,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    353,
+/**/
     352,
 /**/
     351,