diff --git a/extensions/positron-r/src/test/snapshots/indentation-cases.R b/extensions/positron-r/src/test/snapshots/indentation-cases.R
index 45888014f60..b37623f068d 100644
--- a/extensions/positron-r/src/test/snapshots/indentation-cases.R
+++ b/extensions/positron-r/src/test/snapshots/indentation-cases.R
@@ -60,7 +60,7 @@ data |>
 
 # ---
 # Continuing a one-liner pipeline (after a comment line)
-# FIXME (once we merge the sticky dedent PR)
+# FIXME
 data |>
 	fn1() |>
 	# foo
@@ -113,14 +113,12 @@ data |>
 # ---
 # Stickiness of dedent after pipeline
 # https://github.com/posit-dev/positron/issues/1727
-# FIXME
 data |>
 	fn()
 "<>"
 
 # ---
 # Stickiness of dedent after pipeline (trailing comment)
-# FIXME
 data |>
 	fn()
 "<>" # foo
diff --git a/extensions/positron-r/src/test/snapshots/indentation-snapshots.R b/extensions/positron-r/src/test/snapshots/indentation-snapshots.R
index 32006570dbb..632ffdc4b2c 100644
--- a/extensions/positron-r/src/test/snapshots/indentation-snapshots.R
+++ b/extensions/positron-r/src/test/snapshots/indentation-snapshots.R
@@ -97,7 +97,7 @@ data |>
 
 # ---
 # Continuing a one-liner pipeline (after a comment line)
-# FIXME (once we merge the sticky dedent PR)
+# FIXME
 data |>
 	fn1() |>
 	# foo
@@ -108,7 +108,7 @@ data |>
 	fn1() |>
 	# foo
   
-	"<>"
+"<>"
 
 # ---
 # Continuing a one-liner pipeline (longer pipeline)
@@ -198,7 +198,6 @@ data |>
 # ---
 # Stickiness of dedent after pipeline
 # https://github.com/posit-dev/positron/issues/1727
-# FIXME
 data |>
 	fn()
 "<>"
@@ -207,11 +206,10 @@ data |>
 data |>
 	fn()
 
-	"<>"
+"<>"
 
 # ---
 # Stickiness of dedent after pipeline (trailing comment)
-# FIXME
 data |>
 	fn()
 "<>" # foo
@@ -220,7 +218,7 @@ data |>
 data |>
 	fn()
 
-"<>"	# foo
+"<>"# foo
 
 # ---
 # Indent after function in call
diff --git a/src/vs/editor/common/languages/autoIndent.ts b/src/vs/editor/common/languages/autoIndent.ts
index 9ae3df974aa..bff68c1f193 100644
--- a/src/vs/editor/common/languages/autoIndent.ts
+++ b/src/vs/editor/common/languages/autoIndent.ts
@@ -75,7 +75,10 @@ export function getInheritIndentForLine(
 	model: IVirtualModel,
 	lineNumber: number,
 	honorIntentialIndent: boolean = true,
-	languageConfigurationService: ILanguageConfigurationService
+	// --- Start Positron ---
+	languageConfigurationService: ILanguageConfigurationService,
+	indentConverter: IIndentConverter | undefined = undefined
+	// --- End Positron ---
 ): { indentation: string; action: IndentAction | null; line?: number } | null {
 	if (autoIndent < EditorAutoIndentStrategy.Full) {
 		return null;
@@ -165,8 +168,33 @@ export function getInheritIndentForLine(
 		}
 
 		if (honorIntentialIndent) {
+			// --- Start Positron ---
+			// Patch from https://github.com/microsoft/vscode/pull/136593
+			// For https://github.com/posit-dev/positron/issues/1727
+
+			let indentation = strings.getLeadingWhitespace(model.getLineContent(precedingUnIgnoredLine));
+			// Check for onEnter rules that should decrease the indent
+			if (indentConverter) {
+				const richEditSupport = languageConfigurationService.getLanguageConfiguration(model.tokenization.getLanguageId());
+				if (richEditSupport) {
+					const previousLineText = precedingUnIgnoredLine < 1 ? '' : model.getLineContent(precedingUnIgnoredLine - 1);
+					const afterEnterText = '';
+					const enterResult = richEditSupport.onEnter(autoIndent, previousLineText, precedingUnIgnoredLineContent, afterEnterText);
+					if (enterResult) {
+						if (enterResult.indentAction === IndentAction.Outdent) {
+							indentation = indentConverter.unshiftIndent(indentation);
+						} else if (enterResult.removeText && indentation.length >= enterResult.removeText) {
+							indentation = indentation.substring(0, indentation.length - enterResult.removeText - 1);
+						}
+					}
+				}
+			}
+			// --- End Positron ---
+
 			return {
-				indentation: strings.getLeadingWhitespace(model.getLineContent(precedingUnIgnoredLine)),
+				// --- Start Positron ---
+				indentation,
+				// --- End Positron ---
 				action: null,
 				line: precedingUnIgnoredLine
 			};
@@ -235,7 +263,9 @@ export function getGoodIndentForLine(
 		return null;
 	}
 
-	const indent = getInheritIndentForLine(autoIndent, virtualModel, lineNumber, undefined, languageConfigurationService);
+	// --- Start Positron ---
+	const indent = getInheritIndentForLine(autoIndent, virtualModel, lineNumber, undefined, languageConfigurationService, indentConverter);
+	// --- End Positron ---
 	const lineContent = virtualModel.getLineContent(lineNumber);
 
 	if (indent) {
@@ -361,7 +391,9 @@ export function getIndentForEnter(
 	};
 
 	const currentLineIndent = strings.getLeadingWhitespace(lineTokens.getLineContent());
-	const afterEnterAction = getInheritIndentForLine(autoIndent, virtualModel, range.startLineNumber + 1, undefined, languageConfigurationService);
+	// --- Start Positron ---
+	const afterEnterAction = getInheritIndentForLine(autoIndent, virtualModel, range.startLineNumber + 1, undefined, languageConfigurationService, indentConverter);
+	// --- End Positron ---
 	if (!afterEnterAction) {
 		const beforeEnter = embeddedLanguage ? currentLineIndent : beforeEnterIndent;
 		return {
@@ -430,7 +462,9 @@ export function getIndentActionForType(
 	if (!indentRulesSupport.shouldDecrease(beforeTypeText + afterTypeText) && indentRulesSupport.shouldDecrease(beforeTypeText + ch + afterTypeText)) {
 		// after typing `ch`, the content matches decreaseIndentPattern, we should adjust the indent to a good manner.
 		// 1. Get inherited indent action
-		const r = getInheritIndentForLine(autoIndent, model, range.startLineNumber, false, languageConfigurationService);
+		// --- Start Positron ---
+		const r = getInheritIndentForLine(autoIndent, model, range.startLineNumber, false, languageConfigurationService, indentConverter);
+		// --- End Positron ---
 		if (!r) {
 			return null;
 		}