diff --git a/src/Makefile b/src/Makefile
index a294ec0..e7d0b38 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -2127,6 +2127,7 @@
 	test_autocmd \
 	test_autoload \
 	test_backspace_opt \
+	test_blockedit \
 	test_breakindent \
 	test_bufline \
 	test_bufwintabinfo \
diff --git a/src/ops.c b/src/ops.c
index b1c1d36..fe29e8a 100644
--- a/src/ops.c
+++ b/src/ops.c
@@ -1093,7 +1093,7 @@
 
     if (Recording == FALSE)	    /* start recording */
     {
-			/* registers 0-9, a-z and " are allowed */
+	/* registers 0-9, a-z and " are allowed */
 	if (c < 0 || (!ASCII_ISALNUM(c) && c != '"'))
 	    retval = FAIL;
 	else
@@ -2702,6 +2702,7 @@
     if (oap->block_mode)
     {
 	struct block_def	bd2;
+	int			did_indent = FALSE;
 
 	/* If indent kicked in, the firstline might have changed
 	 * but only do that, if the indent actually increased. */
@@ -2710,11 +2711,14 @@
 	{
 	    bd.textcol += ind_post - ind_pre;
 	    bd.start_vcol += ind_post - ind_pre;
+	    did_indent = TRUE;
 	}
 
 	/* The user may have moved the cursor before inserting something, try
-	 * to adjust the block for that. */
-	if (oap->start.lnum == curbuf->b_op_start_orig.lnum && !bd.is_MAX)
+	 * to adjust the block for that.  But only do it, if the difference
+	 * does not come from indent kicking in. */
+	if (oap->start.lnum == curbuf->b_op_start_orig.lnum
+						  && !bd.is_MAX && !did_indent)
 	{
 	    if (oap->op_type == OP_INSERT
 		    && oap->start.col
diff --git a/src/testdir/Make_all.mak b/src/testdir/Make_all.mak
index 159bf1e..b0bfe26 100644
--- a/src/testdir/Make_all.mak
+++ b/src/testdir/Make_all.mak
@@ -72,6 +72,7 @@
 	    test_autocmd.res \
 	    test_autoload.res \
 	    test_backspace_opt.res \
+	    test_blockedit.res \
 	    test_breakindent.res \
 	    test_bufwintabinfo.res \
 	    test_cdo.res \
diff --git a/src/testdir/test_blockedit.vim b/src/testdir/test_blockedit.vim
new file mode 100644
index 0000000..4a8d599
--- /dev/null
+++ b/src/testdir/test_blockedit.vim
@@ -0,0 +1,20 @@
+" Test for block inserting
+"
+" TODO: rewrite test39.in into this new style test
+
+func Test_blockinsert_indent()
+  new
+  filetype plugin indent on
+  setlocal sw=2 et ft=vim
+  call setline(1, ['let a=[', '  ''eins'',', '  ''zwei'',', '  ''drei'']'])
+  call cursor(2, 3)
+  exe "norm! \<c-v>2jI\\ \<esc>"
+  call assert_equal(['let a=[', '      \ ''eins'',', '      \ ''zwei'',', '      \ ''drei'']'],
+        \ getline(1,'$'))
+  " reset to sane state
+  filetype off
+  bwipe!
+endfunc
+
+
+" vim: shiftwidth=2 sts=2 expandtab
diff --git a/src/version.c b/src/version.c
index d162de5..7cd61f3 100644
--- a/src/version.c
+++ b/src/version.c
@@ -763,6 +763,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1682,
+/**/
     1681,
 /**/
     1680,