diff --git a/lib/ace/mode/behaviour/xml.js b/lib/ace/mode/behaviour/xml.js
index bd0574c6..fc46a240 100644
--- a/lib/ace/mode/behaviour/xml.js
+++ b/lib/ace/mode/behaviour/xml.js
@@ -3,7 +3,7 @@
  *
  * Copyright (c) 2010, Ajax.org B.V.
  * All rights reserved.
- * 
+ *
  * Redistribution and use in source and binary forms, with or without
  * modification, are permitted provided that the following conditions are met:
  *     * Redistributions of source code must retain the above copyright
@@ -14,7 +14,7 @@
  *     * Neither the name of Ajax.org B.V. nor the
  *       names of its contributors may be used to endorse or promote products
  *       derived from this software without specific prior written permission.
- * 
+ *
  * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS" AND
  * ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
  * WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
@@ -34,6 +34,7 @@ define(function(require, exports, module) {
 var oop = require("../../lib/oop");
 var Behaviour = require("../behaviour").Behaviour;
 var TokenIterator = require("../../token_iterator").TokenIterator;
+var lang = require("../../lib/lang");
 
 function is(token, type) {
     return token.type.lastIndexOf(type + ".xml") > -1;
@@ -140,29 +141,59 @@ var XmlBehaviour = function () {
                  return;
 
             return {
-               text: '>' + '</' + element + '>',
+               text: ">" + "</" + element + ">",
                selection: [1, 1]
             };
         }
     });
 
-    this.add('autoindent', 'insertion', function (state, action, editor, session, text) {
+    this.add("autoindent", "insertion", function (state, action, editor, session, text) {
         if (text == "\n") {
             var cursor = editor.getCursorPosition();
             var line = session.getLine(cursor.row);
-            var rightChars = line.substring(cursor.column, cursor.column + 2);
-            if (rightChars == '</') {
-                var next_indent = this.$getIndent(line);
-                var indent = next_indent + session.getTabString();
+            var iterator = new TokenIterator(session, cursor.row, cursor.column);
+            var token = iterator.getCurrentToken();
 
-                return {
-                    text: '\n' + indent + '\n' + next_indent,
-                    selection: [1, indent.length, 1, indent.length]
-                };
+            if (token && token.type.indexOf("tag-close") !== -1) {
+                //get tag name
+                while (token && token.type.indexOf("tag-name") === -1) {
+                    token = iterator.stepBackward();
+                }
+
+                if (!token) {
+                    return;
+                }
+
+                var tag = token.value;
+                var row = iterator.getCurrentTokenRow();
+
+                //don't indent after closing tag
+                token = iterator.stepBackward();
+                if (!token || token.type.indexOf("end-tag") !== -1) {
+                    return;
+                }
+
+                if (this.voidElements && !this.voidElements[tag]) {
+                    var nextToken = session.getTokenAt(cursor.row, cursor.column+1);
+                    var line = session.getLine(row);
+                    var nextIndent = this.$getIndent(line);
+                    var indent = nextIndent + session.getTabString();
+
+                    if (nextToken && nextToken.value === "</") {
+                        return {
+                            text: "\n" + indent + "\n" + nextIndent,
+                            selection: [1, indent.length, 1, indent.length]
+                        };
+                    } else {
+                        return {
+                            text: "\n" + indent
+                        };
+                    }
+                }
             }
         }
     });
-    
+
 };
 
 oop.inherits(XmlBehaviour, Behaviour);