diff --git a/presentation-compiler/src/main/dotty/tools/pc/PcInlineValueProvider.scala b/presentation-compiler/src/main/dotty/tools/pc/PcInlineValueProvider.scala
index eafac513c7e1..6fd2ecd58a02 100644
--- a/presentation-compiler/src/main/dotty/tools/pc/PcInlineValueProvider.scala
+++ b/presentation-compiler/src/main/dotty/tools/pc/PcInlineValueProvider.scala
@@ -128,16 +128,13 @@ final class PcInlineValueProvider(
     end for
   end defAndRefs
 
-  private def stripIndentPrefix(rhs: String, refIndent: String, defIndent: String): String =
+  private def stripIndentPrefix(rhs: String, refIndent: String, defIndent: String, hasNextLineAfterEqualsSign: Boolean): String =
     val rhsLines = rhs.split("\n").toList
     rhsLines match
       case h :: Nil => rhs
       case h :: t =>
-        val noPrefixH = h.stripPrefix(refIndent)
-        if noPrefixH.startsWith("{") then
-          noPrefixH ++ t.map(refIndent ++ _.stripPrefix(defIndent)).mkString("\n","\n", "")
-        else
-          (("  " ++ h) :: t).map(refIndent ++ _.stripPrefix(defIndent)).mkString("\n", "\n", "")
+        val header = if !hasNextLineAfterEqualsSign then h else "\n" ++ refIndent ++ "  " ++ h
+        header ++ t.map(refIndent ++ _.stripPrefix(defIndent)).mkString("\n", "\n", "")
       case Nil => rhs
 
   private def definitionRequiresBrackets(tree: Tree)(using Context): Boolean =
@@ -232,7 +229,7 @@ final class PcInlineValueProvider(
       var idx = source.startOfLine(offset)
       val pad = new StringBuilder
       while (idx != offset && idx < source.content().length && source.content()(idx).isWhitespace) {
-        pad.append(if (idx < source.content().length && source.content()(idx) == '\t') '\t' else ' ')
+        pad.append(source.content()(idx))
         idx += 1
       }
       pad.result()
@@ -258,6 +255,8 @@ final class PcInlineValueProvider(
             case _ => false
         }
         .map(_.fullNameBackticked)
+      val hasNextLineAfterEqualsSign =
+        definition.tree.sourcePos.startLine != definition.tree.rhs.sourcePos.startLine
       if conflictingSymbols.isEmpty then
         Right(
           Reference(
@@ -265,7 +264,8 @@ final class PcInlineValueProvider(
             stripIndentPrefix(
               extendWithSurroundingParens(definition.tree.rhs.sourcePos),
               occurrence.tree.startPos.startColumnIndentPadding,
-              definition.tree.startPos.startColumnIndentPadding
+              definition.tree.startPos.startColumnIndentPadding,
+              hasNextLineAfterEqualsSign
             ),
             occurrence.parent.map(p =>
               RangeOffset(p.sourcePos.start, p.sourcePos.end)
diff --git a/presentation-compiler/test/dotty/tools/pc/tests/edit/InlineValueSuite.scala b/presentation-compiler/test/dotty/tools/pc/tests/edit/InlineValueSuite.scala
index 541340bd3f38..74af1d1c2a08 100644
--- a/presentation-compiler/test/dotty/tools/pc/tests/edit/InlineValueSuite.scala
+++ b/presentation-compiler/test/dotty/tools/pc/tests/edit/InlineValueSuite.scala
@@ -430,6 +430,25 @@ class InlineValueSuite extends BaseCodeActionSuite with CommonMtagsEnrichments:
     )
 
   @Test def `i7137a` =
+    checkEdit(
+      """|def foo = {
+         |  val newValue =
+         |    val x = true
+         |    x
+         |  def bar =
+         |    val xx =new<<V>>alue
+         |}
+         |""".stripMargin,
+      """|def foo = {
+         |  def bar =
+         |    val xx =
+         |      val x = true
+         |      x
+         |}
+         |""".stripMargin
+    )
+
+  @Test def `i7137b` =
       checkEdit(
         """|object O {
             |  def foo = {
@@ -454,6 +473,31 @@ class InlineValueSuite extends BaseCodeActionSuite with CommonMtagsEnrichments:
             |""".stripMargin
       )
 
+  @Test def `no-new-line` =
+    checkEdit(
+      """|object O {
+         |  val i: Option[Int] = ???
+         |  def foo = {
+         |    val newValue = i match
+         |      case Some(x) => x
+         |      case None => 0
+         |    def bar =
+         |      val xx = new<<V>>alue
+         |  }
+         |}
+         |""".stripMargin,
+      """|object O {
+         |  val i: Option[Int] = ???
+         |  def foo = {
+         |    def bar =
+         |      val xx = i match
+         |        case Some(x) => x
+         |        case None => 0
+         |  }
+         |}
+         |""".stripMargin
+    )
+
   def checkEdit(
       original: String,
       expected: String,