diff --git a/local/recipes/tui/tlc/source/src/editor/handlers.rs b/local/recipes/tui/tlc/source/src/editor/handlers.rs
index e4d84d0280..423ea8a8e2 100644
--- a/local/recipes/tui/tlc/source/src/editor/handlers.rs
+++ b/local/recipes/tui/tlc/source/src/editor/handlers.rs
@@ -453,7 +453,7 @@ impl Editor {
             return EditorResult::Running;
         }
         if key == Key::TAB {
-            self.insert_char('\t');
+            self.insert_tab_with_indent();
             return EditorResult::Running;
         }
         if key.code == 0x09 && key.mods.contains(Modifiers::ALT) {
diff --git a/local/recipes/tui/tlc/source/src/editor/mod.rs b/local/recipes/tui/tlc/source/src/editor/mod.rs
index 770a3c7af2..6fd45b8e2e 100644
--- a/local/recipes/tui/tlc/source/src/editor/mod.rs
+++ b/local/recipes/tui/tlc/source/src/editor/mod.rs
@@ -865,6 +865,46 @@ bracket_flash: None,
         self.modified = true;
     }
 
+    /// Insert a Tab with indent-aware behavior (MC parity).
+    ///
+    /// When the cursor is positioned at or before the first
+    /// non-whitespace character on its line, insert enough spaces to
+    /// advance to the next `tab_width` boundary (the indent context).
+    /// Otherwise (cursor is mid-line or past all whitespace) insert
+    /// a single literal `\t` character (the column-alignment
+    /// context).
+    ///
+    /// The cursor's `visual_column` is tab-expanded; we use it to
+    /// decide which context applies.
+    pub fn insert_tab_with_indent(&mut self) {
+        self.completer.cancel();
+        let col = self.cursor.visual_column();
+        let next_boundary = ((col / self.tab_width) + 1) * self.tab_width;
+        if self.is_in_indent_zone() {
+            let spaces = next_boundary.saturating_sub(col).max(1);
+            self.buffer.insert_str(&" ".repeat(spaces));
+        } else {
+            self.buffer.insert_char('\t');
+        }
+        self.cursor.set_position(self.buffer.cursor(), &self.buffer);
+        self.modified = true;
+    }
+
+    /// True if the cursor is on a line where all characters before
+    /// the cursor are whitespace. Used to decide between Tab-as-indent
+    /// and Tab-as-column-align.
+    fn is_in_indent_zone(&self) -> bool {
+        let cursor_byte = self.cursor.position();
+        let line_idx = self.buffer_line_of(cursor_byte);
+        let line_start = self.buffer.line_offset(line_idx);
+        if cursor_byte <= line_start {
+            return true;
+        }
+        let bytes = self.buffer.to_bytes();
+        let prefix = bytes.get(line_start..cursor_byte).unwrap_or(&[]);
+        prefix.iter().all(|&b| b == b' ' || b == b'\t')
+    }
+
     /// Backspace at the cursor.
     pub fn delete_back(&mut self) {
         self.buffer.delete_back();
@@ -3135,5 +3175,70 @@ mod tests {
         e.sort_block("-r");
         assert_eq!(e.buffer().as_string(), "c\nb\na\n");
     }
+
+    #[test]
+    fn tab_at_col_0_indents_to_next_boundary() {
+        let mut e = make_empty();
+        e.insert_tab_with_indent();
+        // tab_width=4 → 4 spaces inserted at col 0.
+        assert_eq!(e.buffer().as_string(), "    ");
+        assert_eq!(e.cursor.visual_column(), 4);
+    }
+
+    #[test]
+    fn tab_at_col_4_indents_to_next_boundary() {
+        let mut e = make_empty();
+        e.insert_str("    ");
+        e.insert_tab_with_indent();
+        assert_eq!(e.buffer().as_string(), "        ");
+        assert_eq!(e.cursor.visual_column(), 8);
+    }
+
+    #[test]
+    fn tab_mid_line_inserts_literal_tab() {
+        let mut e = make_empty();
+        e.insert_str("hello world");
+        // Move cursor to position 0 (start of line).
+        e.buffer.set_cursor(0);
+        e.cursor.set_position(0, &e.buffer);
+        e.insert_tab_with_indent();
+        // Cursor is at the indent zone (only whitespace before), so
+        // the algorithm still pads to next boundary.
+        assert_eq!(e.buffer().as_string(), "    hello world");
+    }
+
+    #[test]
+    fn tab_after_non_whitespace_inserts_literal_tab() {
+        let mut e = make_empty();
+        e.insert_str("hi");
+        // Cursor is right after "hi" — not in indent zone.
+        e.insert_tab_with_indent();
+        assert_eq!(e.buffer().as_string(), "hi\t");
+        assert_eq!(e.cursor.visual_column(), 3);
+    }
+
+    #[test]
+    fn tab_after_whitespace_runs_continues_indent() {
+        let mut e = make_empty();
+        e.insert_str("  ");
+        // Cursor at col 2 — all-whitespace prefix, indent zone.
+        e.insert_tab_with_indent();
+        // col 2 → next boundary col 4 → 2 more spaces.
+        assert_eq!(e.buffer().as_string(), "    ");
+        assert_eq!(e.cursor.visual_column(), 4);
+    }
+
+    #[test]
+    fn tab_inside_word_inserts_literal_tab() {
+        let mut e = make_empty();
+        e.insert_str("foo bar");
+        // Move cursor to byte 3 (between foo and space).
+        e.buffer.set_cursor(3);
+        e.cursor.set_position(3, &e.buffer);
+        e.insert_tab_with_indent();
+        // Cursor is at col 3, before "bar". Prefix is "foo" which
+        // contains a non-whitespace byte → not in indent zone → literal tab.
+        assert_eq!(e.buffer().as_string(), "foo\t bar");
+    }
 }