diff --git a/editor/code_editor.cpp b/editor/code_editor.cpp
index e09145c05bd..8c153d27456 100644
--- a/editor/code_editor.cpp
+++ b/editor/code_editor.cpp
@@ -1079,6 +1079,7 @@ void CodeTextEditor::update_editor_settings() {
 	text_editor->set_scroll_pass_end_of_file(EditorSettings::get_singleton()->get("text_editor/cursor/scroll_past_end_of_file"));
 	text_editor->set_indent_using_spaces(EditorSettings::get_singleton()->get("text_editor/indent/type"));
 	text_editor->set_indent_size(EditorSettings::get_singleton()->get("text_editor/indent/size"));
+	text_editor->set_auto_indent(EditorSettings::get_singleton()->get("text_editor/indent/auto_indent"));
 	text_editor->set_draw_tabs(EditorSettings::get_singleton()->get("text_editor/indent/draw_tabs"));
 	text_editor->set_show_line_numbers(EditorSettings::get_singleton()->get("text_editor/line_numbers/show_line_numbers"));
 	text_editor->set_line_numbers_zero_padded(EditorSettings::get_singleton()->get("text_editor/line_numbers/line_numbers_zero_padded"));
diff --git a/editor/editor_settings.cpp b/editor/editor_settings.cpp
index 3bc85e84681..9c9eef848a1 100644
--- a/editor/editor_settings.cpp
+++ b/editor/editor_settings.cpp
@@ -616,6 +616,7 @@ void EditorSettings::_load_defaults(Ref<ConfigFile> p_extra_config) {
 	hints["text_editor/indent/type"] = PropertyInfo(Variant::INT, "text_editor/indent/type", PROPERTY_HINT_ENUM, "Tabs,Spaces");
 	set("text_editor/indent/size", 4);
 	hints["text_editor/indent/size"] = PropertyInfo(Variant::INT, "text_editor/indent/size", PROPERTY_HINT_RANGE, "1, 64, 1"); // size of 0 crashes.
+	set("text_editor/indent/auto_indent", true);
 	set("text_editor/indent/convert_indent_on_save", false);
 	set("text_editor/indent/draw_tabs", true);
 
diff --git a/editor/plugins/shader_editor_plugin.cpp b/editor/plugins/shader_editor_plugin.cpp
index 8672892b5a2..13b0391a871 100644
--- a/editor/plugins/shader_editor_plugin.cpp
+++ b/editor/plugins/shader_editor_plugin.cpp
@@ -280,6 +280,7 @@ void ShaderEditor::_editor_settings_changed() {
 	shader_editor->get_text_edit()->set_scroll_pass_end_of_file(EditorSettings::get_singleton()->get("text_editor/cursor/scroll_past_end_of_file"));
 	shader_editor->get_text_edit()->set_indent_size(EditorSettings::get_singleton()->get("text_editor/indent/size"));
 	shader_editor->get_text_edit()->set_indent_using_spaces(EditorSettings::get_singleton()->get("text_editor/indent/type"));
+	shader_editor->get_text_edit()->set_auto_indent(EditorSettings::get_singleton()->get("text_editor/indent/auto_indent"));
 	shader_editor->get_text_edit()->set_draw_tabs(EditorSettings::get_singleton()->get("text_editor/indent/draw_tabs"));
 	shader_editor->get_text_edit()->set_show_line_numbers(EditorSettings::get_singleton()->get("text_editor/line_numbers/show_line_numbers"));
 	shader_editor->get_text_edit()->set_syntax_coloring(EditorSettings::get_singleton()->get("text_editor/highlighting/syntax_highlighting"));