diff --git a/src/parse.rs b/src/parse.rs
index 2273196..6750db6 100644
--- a/src/parse.rs
+++ b/src/parse.rs
@@ -1,4 +1,7 @@
-use typst_syntax::ast::{self, AstNode, Expr};
+use typst_syntax::{
+    ast::{self, AstNode, Expr},
+    is_newline,
+};
 
 use crate::Block;
 
@@ -68,12 +71,28 @@ pub fn parse(source: &str) -> Vec<Block> {
             // ---- inline elements (accumulate into paragraph) ----
             Expr::Space(_) => {
                 let text = node_text(&expr);
-                // Two consecutive Space("\n") nodes arise only when a LineComment
-                // was dropped between them (bare \n\n is always a Parbreak token,
-                // never two Space nodes). Skip the second \n to avoid producing
-                // \n\n in the reconstructed source, which Typst would treat as a
-                // paragraph break.
-                if !(text == "\n" && paragraph_buf.ends_with('\n')) {
+                // Two consecutive Space nodes spanning a newline arise only when
+                // a comment was dropped between them (bare \n\n is always a
+                // Parbreak token, never two Space nodes). Reconstructing them
+                // verbatim would leave a blank or whitespace-only line, which
+                // Typst treats as a paragraph break. Drop the buffer's trailing
+                // indent and the duplicate newline so the two lines stay in one
+                // paragraph. The buffer may end in a newline plus indent when
+                // the dropped comment was itself indented.
+                let joined = match strip_newline_prefix(&text) {
+                    Some(rest) => {
+                        let line_start = paragraph_buf.trim_end_matches([' ', '\t']);
+                        if line_start.chars().next_back().is_some_and(is_newline) {
+                            paragraph_buf.truncate(line_start.len());
+                            paragraph_buf.push_str(rest);
+                            true
+                        } else {
+                            false
+                        }
+                    }
+                    None => false,
+                };
+                if !joined {
                     paragraph_buf.push_str(&text);
                 }
             }
@@ -139,6 +158,16 @@ fn node_text(expr: &Expr<'_>) -> String {
     }
 }
 
+/// Strip one Typst newline, treating CRLF as a single sequence.
+fn strip_newline_prefix(text: &str) -> Option<&str> {
+    let first = text.chars().next().filter(|&c| is_newline(c))?;
+    let mut len = first.len_utf8();
+    if first == '\r' && text[len..].starts_with('\n') {
+        len += '\n'.len_utf8();
+    }
+    Some(&text[len..])
+}
+
 /// Flush the paragraph buffer into blocks if non-empty.
 fn flush_paragraph(buf: &mut String, blocks: &mut Vec<Block>) {
     let trimmed = buf.trim();
@@ -240,6 +269,67 @@ mod tests {
         }
     }
 
+    #[test]
+    fn test_parse_line_comment_keeps_single_paragraph() {
+        let blocks = parse("First.\n// a comment\nSecond.\n");
+        assert_eq!(blocks.len(), 1, "expected 1 block, got: {blocks:?}");
+        assert!(
+            matches!(&blocks[0], Block::Paragraph { source_text } if source_text == "First.\nSecond.")
+        );
+    }
+
+    #[test]
+    fn test_parse_indented_line_comment_keeps_single_paragraph() {
+        let blocks = parse("First.\n  // indented comment\nSecond.\n");
+        assert_eq!(blocks.len(), 1, "expected 1 block, got: {blocks:?}");
+        assert!(
+            matches!(&blocks[0], Block::Paragraph { source_text } if source_text == "First.\nSecond.")
+        );
+    }
+
+    #[test]
+    fn test_parse_indented_line_comment_with_each_newline_form() {
+        for newline in [
+            "\n", "\x0B", "\x0C", "\r", "\r\n", "\u{0085}", "\u{2028}", "\u{2029}",
+        ] {
+            let source = format!("First.{newline}  // indented comment{newline}Second.{newline}");
+            let blocks = parse(&source);
+            let expected = format!("First.{newline}Second.");
+            assert_eq!(
+                blocks,
+                vec![Block::Paragraph {
+                    source_text: expected,
+                }],
+                "newline: {newline:?}"
+            );
+        }
+    }
+
+    #[test]
+    fn test_parse_consecutive_indented_comments_keep_single_paragraph() {
+        let blocks = parse("First.\n  // c1\n  // c2\nSecond.\n");
+        assert_eq!(blocks.len(), 1, "expected 1 block, got: {blocks:?}");
+        assert!(
+            matches!(&blocks[0], Block::Paragraph { source_text } if source_text == "First.\nSecond.")
+        );
+    }
+
+    #[test]
+    fn test_parse_blank_line_before_comment_keeps_paragraph_break() {
+        let blocks = parse("First.\n\n// a comment\nSecond.\n");
+        assert!(
+            blocks
+                .iter()
+                .any(|b| matches!(b, Block::Paragraph { source_text } if source_text == "First."))
+        );
+        assert!(blocks.iter().any(|b| matches!(b, Block::Parbreak)));
+        assert!(
+            blocks
+                .iter()
+                .any(|b| matches!(b, Block::Paragraph { source_text } if source_text == "Second."))
+        );
+    }
+
     #[test]
     fn test_parse_label_at_paragraph_start_as_own_block() {
         let blocks = parse("= Sample\n\n<sample-anchor>\nAlpha beta.\n");
diff --git a/tests/integration.rs b/tests/integration.rs
index f52c925..dacad43 100644
--- a/tests/integration.rs
+++ b/tests/integration.rs
@@ -198,3 +198,14 @@ after the field log was reconciled.
     assert!(output.contains("#ref(<sec-bridge-ledger>, supplement: [])"));
     assert!(!output.contains("#ref(\\<sec-bridge-ledger>"));
 }
+
+#[test]
+fn test_indented_line_comment_does_not_split_paragraph() {
+    let old = "First sentence.\n  // indented comment\nSecond sentence.\n";
+    let new = "First sentence.\n  // indented comment\nSecond sentence changed.\n";
+    let output = run_diff(old, new);
+
+    assert!(output.contains("First sentence.\nSecond sentence"));
+    // A whitespace-only line would be treated as a paragraph break by Typst.
+    assert!(!output.contains("\n  \n"));
+}