diff --git a/src/lexer.l b/src/lexer.l
index bdc00f0..3e6e9c7 100644
--- a/src/lexer.l
+++ b/src/lexer.l
@@ -1,7 +1,7 @@
 %option c++
 %option noyywrap
 %option yyclass="Scanner"
-%x STRING_DQ STRING_SQ STRING_TDQ STRING_TSQ
+%x STRING_DQ STRING_SQ STRING_TDQ STRING_TSQ NEWLINE
 
 %{
 #include "scanner.hpp"
@@ -10,11 +10,15 @@
 %}
 
 %%
+
+<NEWLINE>^[ \t]*\r?\n            { /* Ignore lines containing whitespace only */ }
+<NEWLINE>^[ \t]*#.*\n            { /* Ignore comment-only lines */ }
 ^[ \t]*\r?\n            { /* Ignore lines containing whitespace only */ }
 ^[ \t]*#.*\n            { /* Ignore comment-only lines */ }
 
 
-^[ \t]+ {
+<NEWLINE>[ \t]+ {
+    BEGIN(INITIAL);
     int col = indent_stack.calculateColumn(yytext, yyleng);
     auto action = indent_stack.updateIndentation(col);
 
@@ -22,14 +26,16 @@
     if (action == IndentAction::Dedent) return yy::parser::token::TOK_DEDENT;
 }
 
-^. {
+<NEWLINE>. {
+    BEGIN(INITIAL);
     // Line starts with non-whitespace (column 0)
     auto action = indent_stack.updateIndentation(0);
     yyless(0);  
+    if (action == IndentAction::Indent) return yy::parser::token::TOK_INDENT;
     if (action == IndentAction::Dedent) return yy::parser::token::TOK_DEDENT;
 }
 
-\n                      { return yy::parser::token::TOK_NEWLINE; }
+\n                      { BEGIN(NEWLINE);return yy::parser::token::TOK_NEWLINE; }
 
 def                     { return yy::parser::token::TOK_KW_DEF; }
 if                      { return yy::parser::token::TOK_KW_IF; }