diff --git a/CHANGELOG.md b/CHANGELOG.md
index 83555f5b..4aca2c99 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,9 @@
 ### Changed
 - Changed snippet (autocomplete) content and behavior [issue#471].
 
+### Fixed
+- Fixed auto-indent not working [issue#470].
+
 ## [1.1.0-beta.2] - 2021-07-06
 
 ## Changed
@@ -38,6 +41,7 @@ Prerelease changes are documented at [support#48].
 
 
 <!-- let's try to keep this list sorted -->
+[issue#470]: https://github.com/pybricks/pybricks-code/issues/470
 [issue#471]: https://github.com/pybricks/pybricks-code/issues/471
 [support#48]: https://github.com/pybricks/support/issues/48
 [support#378]: https://github.com/pybricks/support/issues/378
diff --git a/src/editor/Editor.tsx b/src/editor/Editor.tsx
index acb0794c..ef54576a 100644
--- a/src/editor/Editor.tsx
+++ b/src/editor/Editor.tsx
@@ -42,6 +42,10 @@ monaco.languages.register({ id: pybricksMicroPythonId });
 
 const toDispose = new Array<IDisposable>();
 toDispose.push(
+    monaco.languages.setLanguageConfiguration(
+        pybricksMicroPythonId,
+        pybricksMicroPython.conf,
+    ),
     monaco.languages.setMonarchTokensProvider(
         pybricksMicroPythonId,
         pybricksMicroPython.language,
diff --git a/src/editor/pybricksMicroPython.ts b/src/editor/pybricksMicroPython.ts
index 83bce69b..f1e6c085 100644
--- a/src/editor/pybricksMicroPython.ts
+++ b/src/editor/pybricksMicroPython.ts
@@ -1,4 +1,4 @@
-// Copied from https://github.com/microsoft/monaco-languages/blob/main/src/python/python.ts
+// Copied from https://github.com/microsoft/monaco-languages/blob/d7cc098c481059f63d51ce3753975c8ca8ab6030/src/python/python.ts
 
 /*---------------------------------------------------------------------------------------------
  *  Copyright (c) Microsoft Corporation. All rights reserved.
@@ -7,6 +7,47 @@
 
 import { monaco } from 'react-monaco-editor';
 
+export const conf: monaco.languages.LanguageConfiguration = {
+    comments: {
+        lineComment: '#',
+        blockComment: ["'''", "'''"],
+    },
+    brackets: [
+        ['{', '}'],
+        ['[', ']'],
+        ['(', ')'],
+    ],
+    autoClosingPairs: [
+        { open: '{', close: '}' },
+        { open: '[', close: ']' },
+        { open: '(', close: ')' },
+        { open: '"', close: '"', notIn: ['string'] },
+        { open: "'", close: "'", notIn: ['string', 'comment'] },
+    ],
+    surroundingPairs: [
+        { open: '{', close: '}' },
+        { open: '[', close: ']' },
+        { open: '(', close: ')' },
+        { open: '"', close: '"' },
+        { open: "'", close: "'" },
+    ],
+    onEnterRules: [
+        {
+            beforeText: new RegExp(
+                '^\\s*(?:def|class|for|if|elif|else|while|try|with|finally|except|async).*?:\\s*$',
+            ),
+            action: { indentAction: monaco.languages.IndentAction.Indent },
+        },
+    ],
+    folding: {
+        offSide: true,
+        markers: {
+            start: new RegExp('^\\s*#region\\b'),
+            end: new RegExp('^\\s*#endregion\\b'),
+        },
+    },
+};
+
 export const language = <monaco.languages.IMonarchLanguage>{
     defaultToken: '',
     tokenPostfix: '.python',