           # We're at the end of a non-empty line.
           # Insert a new line, and base our indentation off of the next line
           prefix = '\n'
+          skipInitialIndent = false
           nextLine = @aceEditor.session.getLine(pos.row + 1)
           indentation = leadingWhitespaceRegex.exec(nextLine)[0]
-        else
 
         # Call prepareNode, which may append with a semicolon
         @prepareNode @draggingBlock, null


      if @trackerPointIsInAce position
        leadingWhitespaceRegex = /^(\s*)/
        # Get the line of text we're dropping into
        pos = @aceEditor.renderer.screenToTextCoordinates position.x, position.y
        line = @aceEditor.session.getLine pos.row
        currentIndentation = leadingWhitespaceRegex.exec(line)[0]

        prefix = ''
        indentation = currentIndentation
        suffix = ''

        if @dropIntoAceAtLineStart
          pos = @adjustPosToLineStart pos

        if currentIndentation.length == line.length or currentIndentation.length == pos.column
          # line is whitespace only or we're inserting at the beginning of a line
          # Append with a newline
          suffix = '\n' + indentation

        # Indent each line, unless it's the first line and wasn't placed on
        # a newline
        text = text.split('\n').map((line, index) =>
          return (if index == 0 and skipInitialIndent then '' else indentation) + line
        ).join('\n')

        text = prefix + text + suffix
