diff --git a/frontend/components/CellInput.js b/frontend/components/CellInput.js
index ebc107050e..acb0ac0d9b 100644
--- a/frontend/components/CellInput.js
+++ b/frontend/components/CellInput.js
@@ -48,7 +48,7 @@ import { markdown, html as htmlLang, javascript, sqlLang, python, julia_mixed }
 import { julia } from "../imports/CodemirrorPlutoSetup.js"
 import { pluto_autocomplete } from "./CellInput/pluto_autocomplete.js"
 import { NotebookpackagesFacet, pkgBubblePlugin } from "./CellInput/pkg_bubble_plugin.js"
-import { awesome_line_wrapping, get_start_tabs } from "./CellInput/awesome_line_wrapping.js"
+import { ARBITRARY_INDENT_LINE_WRAP_LIMIT, awesome_line_wrapping, get_leading_indent } from "./CellInput/awesome_line_wrapping.js"
 import { cell_movement_plugin, prevent_holding_a_key_from_doing_things_across_cells } from "./CellInput/cell_movement_plugin.js"
 import { pluto_paste_plugin } from "./CellInput/pluto_paste_plugin.js"
 import { bracketMatching } from "./CellInput/block_matcher_plugin.js"
@@ -1130,17 +1130,29 @@ const InputContextMenuItem = ({ contents, title, onClick, setOpen, tag }) =>
         </button>
     </li>`
 
+const generate_fake_deco_indent_text = (width) => {
+    const tab_size = 4
+    const max_indent_ch = ARBITRARY_INDENT_LINE_WRAP_LIMIT * tab_size
+    if (width <= max_indent_ch) return " ".repeat(width)
+
+    const left = width - max_indent_ch
+    return " ".repeat(max_indent_ch) + "⇥ ".repeat(Math.floor(left / 4)) + " ".repeat(left % 4)
+}
+
 const StaticCodeMirrorFaker = ({ value }) => {
+    const tab_size = 4
     const lines = value.split("\n").map((line, i) => {
-        const start_tabs = get_start_tabs(line)
+        const { text: indent_text, width: indent_width } = get_leading_indent(line, tab_size)
+        const max_indent_ch = ARBITRARY_INDENT_LINE_WRAP_LIMIT * tab_size
+        const offset = Math.min(indent_width, max_indent_ch)
 
         const tabbed_line =
-            start_tabs.length == 0
+            indent_text.length == 0
                 ? line
-                : html`<span class="awesome-wrapping-plugin-the-tabs"><span class="ͼo">${start_tabs}</span></span
-                      >${line.substring(start_tabs.length)}`
+                : html`<span class="awesome-wrapping-plugin-the-tabs"><span class="ͼo">${generate_fake_deco_indent_text(indent_width)}</span></span
+                      >${line.substring(indent_text.length)}`
 
-        return html`<div class="awesome-wrapping-plugin-the-line cm-line" style="--indented: ${4 * start_tabs.length}ch;">
+        return html`<div class="awesome-wrapping-plugin-the-line cm-line" style="--indented: ${offset}ch;">
             ${line.length === 0 ? html`<br />` : tabbed_line}
         </div>`
     })
diff --git a/frontend/components/CellInput/awesome_line_wrapping.js b/frontend/components/CellInput/awesome_line_wrapping.js
index e10b0175b1..78579f4f44 100644
--- a/frontend/components/CellInput/awesome_line_wrapping.js
+++ b/frontend/components/CellInput/awesome_line_wrapping.js
@@ -3,21 +3,26 @@ import { StateField, EditorView, Decoration } from "../../imports/CodemirrorPlut
 import { ReactWidget } from "./ReactWidget.js"
 import { html } from "../../imports/Preact.js"
 
-const ARBITRARY_INDENT_LINE_WRAP_LIMIT = 12
+export const ARBITRARY_INDENT_LINE_WRAP_LIMIT = 5
 
-export const get_start_tabs = (line) => /^\t*/.exec(line)?.[0] ?? ""
+export const get_leading_indent = (line, tabSize) => {
+    const text = /^[\t ]*/.exec(line)?.[0] ?? ""
+    let width = 0
+    for (const c of text) width += c === "\t" ? tabSize : 1
+    return { text, width }
+}
 
 const get_decorations = (/** @type {import("../../imports/CodemirrorPlutoSetup.js").EditorState} */ state) => {
     let decorations = []
+    const max_indent_ch = ARBITRARY_INDENT_LINE_WRAP_LIMIT * state.tabSize
 
     // TODO? Don't create new decorations when a line hasn't changed?
     for (let i of _.range(0, state.doc.lines)) {
         let line = state.doc.line(i + 1)
-        const num_tabs = get_start_tabs(line.text).length
-        if (num_tabs === 0) continue
+        const { text: indent_text, width: indent_width } = get_leading_indent(line.text, state.tabSize)
+        if (indent_width === 0) continue
 
-        const how_much_to_indent = Math.min(num_tabs, ARBITRARY_INDENT_LINE_WRAP_LIMIT)
-        const offset = how_much_to_indent * state.tabSize
+        const offset = Math.min(indent_width, max_indent_ch)
 
         const linerwapper = Decoration.line({
             attributes: {
@@ -28,21 +33,38 @@ const get_decorations = (/** @type {import("../../imports/CodemirrorPlutoSetup.j
         // Need to push before the tabs one else codemirror gets madddd
         decorations.push(linerwapper.range(line.from, line.from))
 
-        if (how_much_to_indent > 0) {
-            decorations.push(
-                Decoration.mark({
-                    class: "awesome-wrapping-plugin-the-tabs",
-                }).range(line.from, line.from + how_much_to_indent)
-            )
-        }
-        if (num_tabs > how_much_to_indent) {
-            for (let i of _.range(how_much_to_indent, num_tabs)) {
-                decorations.push(
-                    Decoration.replace({
+        decorations.push(
+            Decoration.mark({
+                class: "awesome-wrapping-plugin-the-tabs",
+            }).range(line.from, line.from + indent_text.length)
+        )
+
+        // For indent past the cap, replace remaining tabs with a faded ⇥ widget.
+        if (indent_width > max_indent_ch) {
+            let acc = 0
+
+            for (let j = 0; j < indent_text.length; j++) {
+                const c = indent_text[j]
+                const w = c === "\t" ? state.tabSize : 1
+                if (acc >= max_indent_ch) {
+                    const deco = Decoration.replace({
                         widget: new ReactWidget(html`<span style=${{ opacity: 0.2 }}>⇥ </span>`),
                         block: false,
-                    }).range(line.from + i, line.from + i + 1)
-                )
+                    })
+
+                    if (c === "\t") {
+                        decorations.push(deco.range(line.from + j, line.from + j + 1))
+                    } else if (c === " ") {
+                        // If 4 spaces are coming up...
+                        if (" ".repeat(state.tabSize) === indent_text.slice(j, j + state.tabSize)) {
+                            // ...then replace with single deco.
+                            decorations.push(deco.range(line.from + j, line.from + j + state.tabSize))
+                            // Skip to next indent unit
+                            j += state.tabSize - 1
+                        }
+                    }
+                }
+                acc += w
             }
         }
     }