diff --git a/Cargo.lock b/Cargo.lock
index 48928bcea0ff0fe5b9b9da256f265588e81f32ad..d7e645131d982ee10f25e5e84e558d54c0ab0b76 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -4830,6 +4830,7 @@ dependencies = [
  "tree-sitter-python",
  "tree-sitter-rust",
  "tree-sitter-typescript",
+ "tree-sitter-yaml",
  "ui",
  "unicode-script",
  "unicode-segmentation",
diff --git a/crates/editor/Cargo.toml b/crates/editor/Cargo.toml
index bea83b1df826a3dac1cf4afe14a0dd7b417b972b..4d6939567eb8150883a4eb5e4e9e5b0949a421a0 100644
--- a/crates/editor/Cargo.toml
+++ b/crates/editor/Cargo.toml
@@ -109,6 +109,7 @@ theme = { workspace = true, features = ["test-support"] }
 tree-sitter-html.workspace = true
 tree-sitter-rust.workspace = true
 tree-sitter-typescript.workspace = true
+tree-sitter-yaml.workspace = true
 unindent.workspace = true
 util = { workspace = true, features = ["test-support"] }
 workspace = { workspace = true, features = ["test-support"] }
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 8615ff2a97de676b593e46d15811ad43f1a93706..ade9a9322bcdbe38ad33fe9611820c43e2ea5809 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -3468,6 +3468,70 @@ async fn test_indent_outdent(cx: &mut TestAppContext) {
     "});
 }
 
+#[gpui::test]
+async fn test_indent_yaml_comments_with_multiple_cursors(cx: &mut TestAppContext) {
+    // This is a regression test for issue #33761
+    init_test(cx, |_| {});
+
+    let mut cx = EditorTestContext::new(cx).await;
+    let yaml_language = languages::language("yaml", tree_sitter_yaml::LANGUAGE.into());
+    cx.update_buffer(|buffer, cx| buffer.set_language(Some(yaml_language), cx));
+
+    cx.set_state(
+        r#"ˇ#     ingress:
+ˇ#         api:
+ˇ#             enabled: false
+ˇ#             pathType: Prefix
+ˇ#           console:
+ˇ#               enabled: false
+ˇ#               pathType: Prefix
+"#,
+    );
+
+    // Press tab to indent all lines
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+
+    cx.assert_editor_state(
+        r#"    ˇ#     ingress:
+    ˇ#         api:
+    ˇ#             enabled: false
+    ˇ#             pathType: Prefix
+    ˇ#           console:
+    ˇ#               enabled: false
+    ˇ#               pathType: Prefix
+"#,
+    );
+}
+
+#[gpui::test]
+async fn test_indent_yaml_non_comments_with_multiple_cursors(cx: &mut TestAppContext) {
+    // This is a test to make sure our fix for issue #33761 didn't break anything
+    init_test(cx, |_| {});
+
+    let mut cx = EditorTestContext::new(cx).await;
+    let yaml_language = languages::language("yaml", tree_sitter_yaml::LANGUAGE.into());
+    cx.update_buffer(|buffer, cx| buffer.set_language(Some(yaml_language), cx));
+
+    cx.set_state(
+        r#"ˇingress:
+ˇ  api:
+ˇ    enabled: false
+ˇ    pathType: Prefix
+"#,
+    );
+
+    // Press tab to indent all lines
+    cx.update_editor(|e, window, cx| e.tab(&Tab, window, cx));
+
+    cx.assert_editor_state(
+        r#"ˇingress:
+    ˇapi:
+        ˇenabled: false
+        ˇpathType: Prefix
+"#,
+    );
+}
+
 #[gpui::test]
 async fn test_indent_outdent_with_hard_tabs(cx: &mut TestAppContext) {
     init_test(cx, |settings| {
diff --git a/crates/languages/src/yaml/config.toml b/crates/languages/src/yaml/config.toml
index cf3d9e1181a3844987afd7b017a8c905b3bb5691..4dfb890c5481c3814722b9d143c17d7d8399b478 100644
--- a/crates/languages/src/yaml/config.toml
+++ b/crates/languages/src/yaml/config.toml
@@ -12,6 +12,6 @@ brackets = [
 
 auto_indent_on_paste = false
 auto_indent_using_last_non_empty_line = false
-increase_indent_pattern = ":\\s*[|>]?\\s*$"
+increase_indent_pattern = "^[^#]*:\\s*[|>]?\\s*$"
 prettier_parser_name = "yaml"
 tab_size = 2