diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index f379d051e150f114227484dba380938f493ae550..d41db01368430b9273686dc9eff2d6d925410451 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -5303,8 +5303,9 @@ impl Editor {
                         let start_point = selection.start.to_point(&buffer);
                         let mut existing_indent =
                             buffer.indent_size_for_line(MultiBufferRow(start_point.row));
+                        let full_indent_len = existing_indent.len;
                         existing_indent.len = cmp::min(existing_indent.len, start_point.column);
-                        let start = selection.start;
+                        let mut start = selection.start;
                         let end = selection.end;
                         let selection_is_empty = start == end;
                         let language_scope = buffer.language_scope_at(start);
@@ -5454,6 +5455,19 @@ impl Editor {
                                     }
                                     new_text.extend(extra_indent.chars());
                                 }
+                                // Extend the edit to the beginning of the line
+                                // to clear auto-indent whitespace that would
+                                // otherwise remain as trailing whitespace. This
+                                // applies to blank lines and lines where only
+                                // indentation remains before the cursor.
+                                if selection_is_empty
+                                    && preserve_indent
+                                    && full_indent_len > 0
+                                    && start_point.column == full_indent_len
+                                {
+                                    start = buffer.point_to_offset(Point::new(start_point.row, 0));
+                                }
+
                                 (
                                     start,
                                     new_text,
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 297a943455f0b3b6acb26af7879c949d6b308afe..66c97276c34221f11cc2ddbab338f49626714f89 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -3553,6 +3553,81 @@ fn test_newline(cx: &mut TestAppContext) {
     });
 }
 
+#[gpui::test]
+fn test_newline_trailing_whitespace(cx: &mut TestAppContext) {
+    init_test(cx, |settings| {
+        settings.defaults.auto_indent = Some(settings::AutoIndentMode::PreserveIndent);
+    });
+
+    let buffer = cx.update(|cx| MultiBuffer::build_simple("    hello\n    world\n", cx));
+    let editor = cx.add_window(|window, cx| build_editor(buffer.clone(), window, cx));
+
+    editor
+        .update(cx, |editor, window, cx| {
+            editor.change_selections(SelectionEffects::no_scroll(), window, cx, |s| {
+                s.select_display_ranges([
+                    DisplayPoint::new(DisplayRow(0), 9)..DisplayPoint::new(DisplayRow(0), 9)
+                ])
+            });
+
+            editor.newline(&Newline, window, cx);
+            assert_eq!(editor.text(cx), "    hello\n    \n    world\n");
+
+            editor.newline(&Newline, window, cx);
+            assert_eq!(editor.text(cx), "    hello\n\n    \n    world\n");
+        })
+        .unwrap();
+
+    buffer.update(cx, |buffer, cx| {
+        let start = MultiBufferOffset(0);
+        let end = buffer.len(cx);
+        buffer.edit([(start..end, "    hello\n    world\n")], None, cx);
+    });
+
+    editor
+        .update(cx, |editor, window, cx| {
+            editor.change_selections(SelectionEffects::no_scroll(), window, cx, |s| {
+                s.select_display_ranges([
+                    DisplayPoint::new(DisplayRow(0), 7)..DisplayPoint::new(DisplayRow(0), 7)
+                ])
+            });
+
+            editor.newline(&Newline, window, cx);
+            assert_eq!(editor.text(cx), "    hel\n    lo\n    world\n");
+
+            editor.newline(&Newline, window, cx);
+            assert_eq!(editor.text(cx), "    hel\n\n    lo\n    world\n");
+        })
+        .unwrap();
+
+    update_test_language_settings(cx, &|settings| {
+        settings.defaults.tab_size = NonZeroU32::new(4);
+        settings.defaults.hard_tabs = Some(true);
+    });
+
+    buffer.update(cx, |buffer, cx| {
+        let start = MultiBufferOffset(0);
+        let end = buffer.len(cx);
+        buffer.edit([(start..end, "\thello\n\tworld\n")], None, cx);
+    });
+
+    editor
+        .update(cx, |editor, window, cx| {
+            editor.change_selections(SelectionEffects::no_scroll(), window, cx, |s| {
+                s.select_display_ranges([
+                    DisplayPoint::new(DisplayRow(0), 9)..DisplayPoint::new(DisplayRow(0), 9)
+                ])
+            });
+
+            editor.newline(&Newline, window, cx);
+            assert_eq!(editor.text(cx), "\thello\n\t\n\tworld\n");
+
+            editor.newline(&Newline, window, cx);
+            assert_eq!(editor.text(cx), "\thello\n\n\t\n\tworld\n");
+        })
+        .unwrap();
+}
+
 #[gpui::test]
 async fn test_newline_yaml(cx: &mut TestAppContext) {
     init_test(cx, |_| {});