1 files changed, 6 insertions, 2 deletions

diff --git a/src/indent.c b/src/indent.c
index 67796ab8a8f..47358e17db8 100644
--- a/src/indent.c
+++ b/src/indent.c
@@ -2006,11 +2006,15 @@ whether or not it is currently displayed in some window.  */)
           const char *s = SSDATA (it.string);
           const char *e = s + SBYTES (it.string);
 
+          disp_string_at_start_p =
           /* If it.area is anything but TEXT_AREA, we need not bother
              about the display string, as it doesn't affect cursor
              positioning.  */
-          disp_string_at_start_p =
-            it.string_from_display_prop_p && it.area == TEXT_AREA;
+            it.area == TEXT_AREA
+            && it.string_from_display_prop_p
+            /* A display string on anything but buffer text (e.g., on
+               an overlay string) doesn't affect cursor positioning.  */
+            && (it.sp > 0 && it.stack[it.sp - 1].method == GET_FROM_BUFFER);
           while (s < e)
             {
               if (*s++ == '\n')