diff --git a/src/grammar.rs b/src/grammar.rs
index d2f4150fd..bed8c3b62 100644
--- a/src/grammar.rs
+++ b/src/grammar.rs
@@ -4,38 +4,6 @@
 #[grammar = "grammar.pest"]
 pub struct HandlebarsParser;
 
-#[inline]
-pub(crate) fn whitespace_matcher(c: char) -> bool {
-    c == ' ' || c == '\t'
-}
-
-#[inline]
-pub(crate) fn newline_matcher(c: char) -> bool {
-    c == '\n' || c == '\r'
-}
-
-#[inline]
-pub(crate) fn strip_first_newline(s: &str) -> &str {
-    if let Some(s) = s.strip_prefix("\r\n") {
-        s
-    } else if let Some(s) = s.strip_prefix('\n') {
-        s
-    } else {
-        s
-    }
-}
-
-pub(crate) fn ends_with_empty_line(text: &str) -> bool {
-    let s = text.trim_end_matches(whitespace_matcher);
-    // also matches when text is just whitespaces
-    s.ends_with(newline_matcher) || s.is_empty()
-}
-
-pub(crate) fn starts_with_empty_line(text: &str) -> bool {
-    text.trim_start_matches(whitespace_matcher)
-        .starts_with(newline_matcher)
-}
-
 #[cfg(test)]
 mod test {
     use super::{HandlebarsParser, Rule};
diff --git a/src/partial.rs b/src/partial.rs
index 401449546..72bce5379 100644
--- a/src/partial.rs
+++ b/src/partial.rs
@@ -113,6 +113,9 @@ pub fn expand_partial<'reg: 'rc, 'rc>(
             local_rc.push_partial_block(pb);
         }
 
+        // indent
+        local_rc.set_indent_string(d.indent());
+
         let result = t.render(r, ctx, &mut local_rc, out);
 
         // cleanup
@@ -454,13 +457,13 @@ foofoofoo"#,
 
         assert_eq!(
             result,
-            r#"name: inner_solo
+            r#"                name: inner_solo
 
-name: hello
-name: there
+                name: hello
+                name: there
 
-name: hello
-name: there
+        name: hello
+        name: there
 "#
         );
     }
@@ -542,4 +545,77 @@ Template:test
             hb.render("t1", &data).unwrap()
         );
     }
+
+    #[test]
+    fn test_multiline_partial_indent() {
+        let mut hb = Registry::new();
+
+        hb.register_template_string(
+            "t1",
+            r#"{{#*inline "thepartial"}}
+  inner first line
+  inner second line
+{{/inline}}
+  {{> thepartial}}
+outer third line"#,
+        )
+        .unwrap();
+        assert_eq!(
+            r#"    inner first line
+    inner second line
+outer third line"#,
+            hb.render("t1", &()).unwrap()
+        );
+
+        hb.register_template_string(
+            "t2",
+            r#"{{#*inline "thepartial"}}inner first line
+inner second line
+{{/inline}}
+  {{> thepartial}}
+outer third line"#,
+        )
+        .unwrap();
+        assert_eq!(
+            r#"  inner first line
+  inner second line
+outer third line"#,
+            hb.render("t2", &()).unwrap()
+        );
+
+        hb.register_template_string(
+            "t3",
+            r#"{{#*inline "thepartial"}}{{a}}{{/inline}}
+  {{> thepartial}}
+outer third line"#,
+        )
+        .unwrap();
+        assert_eq!(
+            r#"
+  inner first line
+  inner second lineouter third line"#,
+            hb.render("t3", &json!({"a": "inner first line\ninner second line"}))
+                .unwrap()
+        );
+
+        let mut hb2 = Registry::new();
+        hb2.set_prevent_indent(true);
+
+        hb2.register_template_string(
+            "t1",
+            r#"{{#*inline "thepartial"}}
+  inner first line
+  inner second line
+{{/inline}}
+  {{> thepartial}}
+outer third line"#,
+        )
+        .unwrap();
+        assert_eq!(
+            r#"    inner first line
+  inner second line
+outer third line"#,
+            hb2.render("t1", &()).unwrap()
+        )
+    }
 }
diff --git a/src/render.rs b/src/render.rs
index 19303c950..90533601a 100644
--- a/src/render.rs
+++ b/src/render.rs
@@ -14,6 +14,7 @@ use crate::json::value::{JsonRender, PathAndJson, ScopedJson};
 use crate::output::{Output, StringOutput};
 use crate::partial;
 use crate::registry::Registry;
+use crate::support;
 use crate::template::TemplateElement::*;
 use crate::template::{
     BlockParam, DecoratorTemplate, HelperTemplate, Parameter, Template, TemplateElement,
@@ -47,10 +48,11 @@ pub struct RenderContextInner<'reg: 'rc, 'rc> {
     /// root template name
     root_template: Option<&'reg String>,
     disable_escape: bool,
+    indent_string: Option<&'reg String>,
 }
 
 impl<'reg: 'rc, 'rc> RenderContext<'reg, 'rc> {
-    /// Create a render context from a `Write`
+    /// Create a render context
     pub fn new(root_template: Option<&'reg String>) -> RenderContext<'reg, 'rc> {
         let inner = Rc::new(RenderContextInner {
             partials: BTreeMap::new(),
@@ -60,6 +62,7 @@ impl<'reg: 'rc, 'rc> RenderContext<'reg, 'rc> {
             current_template: None,
             root_template,
             disable_escape: false,
+            indent_string: None,
         });
 
         let mut blocks = VecDeque::with_capacity(5);
@@ -73,7 +76,6 @@ impl<'reg: 'rc, 'rc> RenderContext<'reg, 'rc> {
         }
     }
 
-    // TODO: better name
     pub(crate) fn new_for_block(&self) -> RenderContext<'reg, 'rc> {
         let inner = self.inner.clone();
 
@@ -200,6 +202,15 @@ impl<'reg: 'rc, 'rc> RenderContext<'reg, 'rc> {
         }
     }
 
+    pub(crate) fn set_indent_string(&mut self, indent: Option<&'reg String>) {
+        self.inner_mut().indent_string = indent;
+    }
+
+    #[inline]
+    pub(crate) fn get_indent_string(&self) -> Option<&'reg String> {
+        self.inner.indent_string
+    }
+
     /// Remove a registered partial
     pub fn remove_partial(&mut self, name: &str) {
         self.inner_mut().partials.remove(name);
@@ -443,6 +454,7 @@ pub struct Decorator<'reg, 'rc> {
     params: Vec<PathAndJson<'reg, 'rc>>,
     hash: BTreeMap<&'reg str, PathAndJson<'reg, 'rc>>,
     template: Option<&'reg Template>,
+    indent: Option<&'reg String>,
 }
 
 impl<'reg: 'rc, 'rc> Decorator<'reg, 'rc> {
@@ -471,6 +483,7 @@ impl<'reg: 'rc, 'rc> Decorator<'reg, 'rc> {
             params: pv,
             hash: hm,
             template: dt.template.as_ref(),
+            indent: dt.indent.as_ref(),
         })
     }
 
@@ -503,6 +516,10 @@ impl<'reg: 'rc, 'rc> Decorator<'reg, 'rc> {
     pub fn template(&self) -> Option<&'reg Template> {
         self.template
     }
+
+    pub fn indent(&self) -> Option<&'reg String> {
+        self.indent
+    }
 }
 
 /// Render trait
@@ -755,6 +772,20 @@ pub(crate) fn do_escape(r: &Registry<'_>, rc: &RenderContext<'_, '_>, content: S
     }
 }
 
+#[inline]
+fn indent_aware_write(
+    v: &str,
+    rc: &mut RenderContext<'_, '_>,
+    out: &mut dyn Output,
+) -> Result<(), RenderError> {
+    if let Some(indent) = rc.get_indent_string() {
+        out.write(support::str::with_indent(v.as_ref(), indent).as_ref())?;
+    } else {
+        out.write(v.as_ref())?;
+    }
+    Ok(())
+}
+
 impl Renderable for TemplateElement {
     fn render<'reg: 'rc, 'rc>(
         &'reg self,
@@ -763,11 +794,8 @@ impl Renderable for TemplateElement {
         rc: &mut RenderContext<'reg, 'rc>,
         out: &mut dyn Output,
     ) -> Result<(), RenderError> {
-        match *self {
-            RawString(ref v) => {
-                out.write(v.as_ref())?;
-                Ok(())
-            }
+        match self {
+            RawString(ref v) => indent_aware_write(v.as_ref(), rc, out),
             Expression(ref ht) | HtmlExpression(ref ht) => {
                 let is_html_expression = matches!(self, HtmlExpression(_));
                 if is_html_expression {
@@ -797,8 +825,7 @@ impl Renderable for TemplateElement {
                         } else {
                             let rendered = context_json.value().render();
                             let output = do_escape(registry, rc, rendered);
-                            out.write(output.as_ref())?;
-                            Ok(())
+                            indent_aware_write(output.as_ref(), rc, out)
                         }
                     }
                 } else {
diff --git a/src/support.rs b/src/support.rs
index bd5564d32..aced51739 100644
--- a/src/support.rs
+++ b/src/support.rs
@@ -57,6 +57,64 @@ pub mod str {
         output
     }
 
+    /// add indent for lines but last
+    pub fn with_indent<'a>(s: &'a str, indent: &String) -> String {
+        let mut output = String::new();
+
+        let mut it = s.chars().peekable();
+        while let Some(c) = it.next() {
+            output.push(c);
+            // check if c is not the last character, we don't append
+            // indent for last line break
+            if c == '\n' && it.peek().is_some() {
+                output.push_str(indent);
+            }
+        }
+
+        output
+    }
+
+    #[inline]
+    pub(crate) fn whitespace_matcher(c: char) -> bool {
+        c == ' ' || c == '\t'
+    }
+
+    #[inline]
+    pub(crate) fn newline_matcher(c: char) -> bool {
+        c == '\n' || c == '\r'
+    }
+
+    #[inline]
+    pub(crate) fn strip_first_newline(s: &str) -> &str {
+        if let Some(s) = s.strip_prefix("\r\n") {
+            s
+        } else if let Some(s) = s.strip_prefix('\n') {
+            s
+        } else {
+            s
+        }
+    }
+
+    pub(crate) fn find_trailing_whitespace_chars(s: &str) -> Option<&str> {
+        let trimmed = s.trim_end_matches(whitespace_matcher);
+        if trimmed.len() == s.len() {
+            None
+        } else {
+            Some(&s[trimmed.len()..])
+        }
+    }
+
+    pub(crate) fn ends_with_empty_line(text: &str) -> bool {
+        let s = text.trim_end_matches(whitespace_matcher);
+        // also matches when text is just whitespaces
+        s.ends_with(newline_matcher) || s.is_empty()
+    }
+
+    pub(crate) fn starts_with_empty_line(text: &str) -> bool {
+        text.trim_start_matches(whitespace_matcher)
+            .starts_with(newline_matcher)
+    }
+
     #[cfg(test)]
     mod test {
         use crate::support::str::StringWriter;
diff --git a/src/template.rs b/src/template.rs
index 39d24590e..2f6068499 100644
--- a/src/template.rs
+++ b/src/template.rs
@@ -9,8 +9,9 @@ use pest::{Parser, Position, Span};
 use serde_json::value::Value as Json;
 
 use crate::error::{TemplateError, TemplateErrorReason};
-use crate::grammar::{self, HandlebarsParser, Rule};
+use crate::grammar::{HandlebarsParser, Rule};
 use crate::json::path::{parse_json_path_from_iter, Path};
+use crate::support;
 
 use self::TemplateElement::*;
 
@@ -161,6 +162,20 @@ pub struct DecoratorTemplate {
     pub params: Vec<Parameter>,
     pub hash: HashMap<String, Parameter>,
     pub template: Option<Template>,
+    // for partial indent
+    pub indent: Option<String>,
+}
+
+impl DecoratorTemplate {
+    pub fn new(exp: ExpressionSpec) -> DecoratorTemplate {
+        DecoratorTemplate {
+            name: exp.name,
+            params: exp.params,
+            hash: exp.hash,
+            template: None,
+            indent: None,
+        }
+    }
 }
 
 impl Parameter {
@@ -400,27 +415,34 @@ impl Template {
         }
     }
 
+    // in handlebars, the whitespaces around statement are
+    // automatically trimed.
+    // this function checks if current span has both leading and
+    // trailing whitespaces, which we treat as a standalone statement.
+    //
+    //
     fn process_standalone_statement(
         template_stack: &mut VecDeque<Template>,
         source: &str,
         current_span: &Span<'_>,
         prevent_indent: bool,
     ) -> bool {
-        let with_trailing_newline = grammar::starts_with_empty_line(&source[current_span.end()..]);
+        let with_trailing_newline =
+            support::str::starts_with_empty_line(&source[current_span.end()..]);
 
         if with_trailing_newline {
             let with_leading_newline =
-                grammar::ends_with_empty_line(&source[..current_span.start()]);
+                support::str::ends_with_empty_line(&source[..current_span.start()]);
 
             // prevent_indent: a special toggle for partial expression
-            // (>) that leading whitespaces are kept, default to false
+            // (>) that leading whitespaces are kept
             if prevent_indent && with_leading_newline {
                 let t = template_stack.front_mut().unwrap();
                 // check the last element before current
                 if let Some(RawString(ref mut text)) = t.elements.last_mut() {
                     // trim leading space for standalone statement
                     *text = text
-                        .trim_end_matches(grammar::whitespace_matcher)
+                        .trim_end_matches(support::str::whitespace_matcher)
                         .to_owned();
                 }
             }
@@ -467,8 +489,8 @@ impl Template {
         if trim_start {
             RawString(s.trim_start().to_owned())
         } else if trim_start_line {
-            let s = s.trim_start_matches(grammar::whitespace_matcher);
-            RawString(grammar::strip_first_newline(s).to_owned())
+            let s = s.trim_start_matches(support::str::whitespace_matcher);
+            RawString(support::str::strip_first_newline(s).to_owned())
         } else {
             RawString(s)
         }
@@ -603,12 +625,7 @@ impl Template {
                                 helper_stack.push_front(helper_template);
                             }
                             Rule::decorator_block_start | Rule::partial_block_start => {
-                                let decorator = DecoratorTemplate {
-                                    name: exp.name,
-                                    params: exp.params,
-                                    hash: exp.hash,
-                                    template: None,
-                                };
+                                let decorator = DecoratorTemplate::new(exp.clone());
                                 decorator_stack.push_front(decorator);
                             }
                             _ => unreachable!(),
@@ -705,8 +722,7 @@ impl Template {
                             Rule::decorator_expression | Rule::partial_expression => {
                                 // do not auto trim ident spaces for
                                 // partial_expression(>)
-                                let prevent_indent =
-                                    options.prevent_indent || rule != Rule::partial_expression;
+                                let prevent_indent = rule != Rule::partial_expression;
                                 trim_line_required = Template::process_standalone_statement(
                                     &mut template_stack,
                                     source,
@@ -714,12 +730,17 @@ impl Template {
                                     prevent_indent,
                                 );
 
-                                let decorator = DecoratorTemplate {
-                                    name: exp.name,
-                                    params: exp.params,
-                                    hash: exp.hash,
-                                    template: None,
-                                };
+                                // indent for partial expression >
+                                let mut indent = None;
+                                if rule == Rule::partial_expression && !options.prevent_indent {
+                                    indent = support::str::find_trailing_whitespace_chars(
+                                        &source[..span.start()],
+                                    );
+                                }
+
+                                let mut decorator = DecoratorTemplate::new(exp.clone());
+                                decorator.indent = indent.map(|s| s.to_owned());
+
                                 let el = if rule == Rule::decorator_expression {
                                     DecoratorExpression(Box::new(decorator))
                                 } else {