diff --git a/client/src/language/beautify.ts b/client/src/language/beautify.ts
index b98d965..89e352b 100644
--- a/client/src/language/beautify.ts
+++ b/client/src/language/beautify.ts
@@ -1,145 +1,202 @@
-import { FormattingOptions } from 'vscode';
+import { FormattingOptions } from "vscode";
 import { FormattingLiterals, FormattingTags } from "../interfaces";
 import { CONFIG } from "../configuration";
 
 const beautify = require("../js-beautify").html;
 
 export class BeautifySmarty {
-
-	private literals: FormattingLiterals = {
-		strings: /"(?:\\.|[^"\\])*"|'(?:\\.|[^'\\])*'|`(?:\\.|[^`\\])*`/,
-		smartyComment: /{\*[\s\S]*?\*}/,
-		htmlComment: /<!--[\s\S]*?-->/,
-		cssComment: /\/\*[\s\S]*?\*\//,
-		scriptTemplate: /<script .*?type=['"]text\/template['"].*?>[\s\S]*?<\/script>/
-	};
-
-	private tags: FormattingTags = {
-		start: new Set(["block", "capture", "for", "foreach", "function", "if", "literal", "section", "setfilter", "strip", "while"]),
-		middle: new Set(["else", "elseif", "foreachelse"]),
-		end: new Set(["block", "capture", "for", "foreach", "function", "if", "literal", "section", "setfilter", "strip", "while"])
-	};
-
-	public beautify(docText: String, options: FormattingOptions): string {
-		const embeddedRegExp: RegExp = /(<(?:script|style)[\s\S]*?>)([\s\S]*?)(<\/(?:script|style)>)/g;
-		const smartyRegExp: RegExp = /^(?:\t| )*(.*{{?[^}\n\s]}?.*)$/gm;
-
-		// escape smarty literals in script and style
-		let isEscaped: boolean = false;
-		docText = docText.replace(embeddedRegExp, (match, start, content, end) => {
-			if (!content.trim()) {
-				return match;
-			}
-			isEscaped = true;
-			return start + content.replace(smartyRegExp, "/* beautify ignore:start */$1/* beautify ignore:end */") + end;
-		});
-
-		// format using js-beautify
-		const beautifyConfig = this.beautifyConfig(options);
-		let formatted = beautify(docText, beautifyConfig);
-
-		// split into lines
-		const literalPattern: string = Object.values(this.literals).map(r => r.source).join("|");
-		const linkPattern: RegExp = new RegExp(`${literalPattern}|(?<linebreak>\r?\n)|(?<end>$)`, "gm");
-
-		let start: number;
-		let lines: string[] = [];
-		let match: RegExpExecArray;
-		while (match = linkPattern.exec(formatted)) {
-			if (match.groups.linebreak !== undefined) {
-				lines.push(formatted.substring(start + match.groups.linebreak.length || 0, match.index));
-				start = match.index;
-			} else if (match.groups.end !== undefined) {
-				lines.push(formatted.substring(start, formatted.length).trimLeft());
-				break;
-			}
-		}
-
-		const indent_char = beautifyConfig.indent_with_tabs ? "\t" : " ".repeat(beautifyConfig.indent_size);
-		const region = /{{?(\/?)(\w+).*?}}?/g;
-
-		const startedRegions = [];
-		let i = 0;
-
-		while (i < lines.length) {
-			let line = lines[i];
-
-			// detect smarty tags
-			let reapeat = startedRegions.length;
-
-			let startMatch = [];
-			let middleMatch = [];
-			let endMatch = [];
-
-			let match: RegExpExecArray;
-			while (match = region.exec(line)) {
-				let [fullmatch, close, tag] = match;
-
-				if (!close && this.tags.start.has(tag)) {
-					startMatch.push(fullmatch, tag);
-				} else if (!close && this.tags.middle.has(tag)) {
-					middleMatch.push(fullmatch, tag);
-				} else if (close && this.tags.end.has(tag)) {
-					endMatch.push(fullmatch, tag);
-				}
-			}
-
-			if (startMatch.length) {
-				startedRegions.push(startMatch[0]);
-			} else if (middleMatch.length) {
-				reapeat--;
-			} else if (endMatch.length) {
-				startedRegions.pop();
-				reapeat--;
-			}
-
-			// indent smarty block
-			if (startMatch[1] && (startMatch[1] == endMatch[1])) {
-				startedRegions.pop();
-			} else if ((startMatch.length + middleMatch.length + endMatch.length) > 2) {
-				let iter = 0;
-
-				const spaces = line.replace(/^([ \t]+).*/s, "$1");
-				const newLines = line.replace(region, (match: string) => (iter++ ? "\n" + spaces : "") + match).split("\n");
-				lines.splice(i, 1, ...newLines);
-			}
-
-			lines[i] = indent_char.repeat(Math.max(0, reapeat)) + lines[i];
-			i += 1;
-		}
-
-		formatted = lines.join("\n").replace(/^[ \t]+$/gm, "");
-
-		// unescape smarty literals in script and style
-		if (isEscaped) {
-			formatted = formatted.replace(/\/\*\s+beautify\s+ignore:(start|end)\s+\*\//g, "");
-		}
-
-		return formatted;
-	}
-
-	private beautifyConfig(options: FormattingOptions) {
-		const config = {
-			indent_size: options.tabSize,
-			indent_with_tabs: !options.insertSpaces,
-			indent_handlebars: false,
-			indent_inner_html: CONFIG.indentInnerHtml,
-			max_preserve_newlines: CONFIG.maxPreserveNewLines,
-			preserve_newlines: CONFIG.preserveNewLines,
-			wrap_line_length: CONFIG.wrapLineLength,
-			wrap_attributes: CONFIG.wrapAttributes,
-			brace_style: "collapse,preserve-inline",
-			jslint_happy: false,
-			indent_empty_lines: true,
-			html: {
-				end_with_newline: CONFIG.endWithNewline,
-				js: { end_with_newline: false },
-				css: { end_with_newline: false },
-			},
-			templating: ["smarty"]
-		};
-
-		return config;
-	}
-
-}
\ No newline at end of file
+    private literals: FormattingLiterals = {
+        strings: /"(?:\\.|[^"\\])*"|'(?:\\.|[^'\\])*'|`(?:\\.|[^`\\])*`/,
+        smartyComment: /{\*[\s\S]*?\*}/,
+        htmlComment: /<!--[\s\S]*?-->/,
+        cssComment: /\/\*[\s\S]*?\*\//,
+        scriptTemplate: /<script .*?type=['"]text\/template['"].*?>[\s\S]*?<\/script>/,
+    };
+
+    private tags: FormattingTags = {
+        start: new Set([
+            "block",
+            "capture",
+            "for",
+            "foreach",
+            "function",
+            "if",
+            "literal",
+            "section",
+            "setfilter",
+            "strip",
+            "while",
+        ]),
+        middle: new Set(["else", "elseif", "foreachelse"]),
+        end: new Set([
+            "block",
+            "capture",
+            "for",
+            "foreach",
+            "function",
+            "if",
+            "literal",
+            "section",
+            "setfilter",
+            "strip",
+            "while",
+        ]),
+    };
+
+    public beautify(docText: String, options: FormattingOptions): string {
+        const embeddedRegExp: RegExp = /(<(?:script|style)[\s\S]*?>)([\s\S]*?)(<\/(?:script|style)>)/g;
+        const smartyRegExp: RegExp = /^(?:\t| )*(.*{{?[^}\n\s]}?.*)$/gm;
+
+        // escape smarty literals in script and style
+        let isEscaped: boolean = false;
+        docText = docText.replace(embeddedRegExp, (match, start, content, end) => {
+            if (!content.trim()) {
+                return match;
+            }
+            isEscaped = true;
+            return (
+                start + content.replace(smartyRegExp, "/* beautify ignore:start */$1/* beautify ignore:end */") + end
+            );
+        });
+
+        // format using js-beautify
+        const beautifyConfig = this.beautifyConfig(options);
+        let formatted = beautify(docText, beautifyConfig);
+
+        // beautify() breaks multiline smarty tags (adds extra indentations to the content)
+        // we need to remove the extra indentations
+        const multilineTagPattern = /^([ \t]+){(\w+)\s*\n([^{}]*\n+?\s*)}/gm;
+        formatted = formatted.replace(multilineTagPattern, (match, indent, tag, content) => {
+            const indentLevel = indent.length / 4;
+            const subIndentLevel = indentLevel + 1;
+            let lines = content.split("\n").map((line) => line.replace(/^[ \t]*/, " ".repeat(subIndentLevel * 4)));
+            if (lines[lines.length - 1].trim() === "") {
+                lines.pop();
+            }
+            return `${indent}{${tag}\n${lines.join("\n")}\n${indent}}`;
+        });
+
+        // split into lines
+        const literalPattern: string = Object.values(this.literals)
+            .map((r) => r.source)
+            .join("|");
+        const linkPattern: RegExp = new RegExp(`${literalPattern}|(?<linebreak>\r?\n)|(?<end>$)`, "gm");
+
+        let start: number;
+        let lines: string[] = [];
+        let match: RegExpExecArray;
+        while ((match = linkPattern.exec(formatted))) {
+            if (match.groups.linebreak !== undefined) {
+                let line = formatted.substring(start + match.groups.linebreak.length || 0, match.index);
+                // some lines are incorrectly split
+                // e.g., linebreak of a previous line leaks into the next line
+                if (line.match(/^\r?\n/)) {
+                    line = line.replace(/^\r?\n/, "");
+                }
+                // some line indentations are not correctly captured
+                // e.g. the indentation of the line right after a multiline tag opening
+                // needs compensation
+                let indentMatch = line.match(/^[ \t]+/);
+                if (indentMatch) {
+                    let remainder = indentMatch[0].length % 4;
+                    if (remainder) {
+                        line = line.replace(/^[ \t]+/, indentMatch[0] + " ".repeat(4 - remainder));
+                    }
+                }
+                lines.push(line);
+                start = match.index;
+            } else if (match.groups.end !== undefined) {
+                lines.push(formatted.substring(start, formatted.length).trimLeft());
+                break;
+            }
+        }
+
+        const indent_char = beautifyConfig.indent_with_tabs ? "\t" : " ".repeat(beautifyConfig.indent_size);
+        const region = /{{?(\/?)(\w+).*?}}?/g;
+
+        const startedRegions = [];
+        let i = 0;
+
+        while (i < lines.length) {
+            let line = lines[i];
+
+            // detect smarty tags
+            let repeat = startedRegions.length;
+
+            let startMatch = [];
+            let middleMatch = [];
+            let endMatch = [];
+
+            let match: RegExpExecArray;
+            while ((match = region.exec(line))) {
+                let [fullmatch, close, tag] = match;
+
+                if (!close && this.tags.start.has(tag)) {
+                    startMatch.push(fullmatch, tag);
+                } else if (!close && this.tags.middle.has(tag)) {
+                    middleMatch.push(fullmatch, tag);
+                } else if (close && this.tags.end.has(tag)) {
+                    endMatch.push(fullmatch, tag);
+                }
+            }
+
+            if (startMatch.length) {
+                startedRegions.push(startMatch[0]);
+            } else if (middleMatch.length) {
+                repeat--;
+            } else if (endMatch.length) {
+                startedRegions.pop();
+                repeat--;
+            }
+
+            // indent smarty block
+            if (startMatch[1] && startMatch[1] == endMatch[1]) {
+                startedRegions.pop();
+            } else if (startMatch.length + middleMatch.length + endMatch.length > 2) {
+                let iter = 0;
+
+                const spaces = line.replace(/^([ \t]+).*/s, "$1");
+                const newLines = line
+                    .replace(region, (match: string) => (iter++ ? "\n" + spaces : "") + match)
+                    .split("\n");
+                lines.splice(i, 1, ...newLines);
+            }
+
+            lines[i] = indent_char.repeat(Math.max(0, repeat)) + lines[i];
+            i += 1;
+        }
+
+        formatted = lines.join("\n").replace(/^[ \t]+$/gm, "");
+
+        // unescape smarty literals in script and style
+        if (isEscaped) {
+            formatted = formatted.replace(/\/\*\s+beautify\s+ignore:(start|end)\s+\*\//g, "");
+        }
+
+        return formatted;
+    }
+
+    private beautifyConfig(options: FormattingOptions) {
+        const config = {
+            indent_size: options.tabSize,
+            indent_with_tabs: !options.insertSpaces,
+            indent_handlebars: false,
+            indent_inner_html: CONFIG.indentInnerHtml,
+            max_preserve_newlines: CONFIG.maxPreserveNewLines,
+            preserve_newlines: CONFIG.preserveNewLines,
+            wrap_line_length: CONFIG.wrapLineLength,
+            wrap_attributes: CONFIG.wrapAttributes,
+            brace_style: "collapse,preserve-inline",
+            jslint_happy: false,
+            indent_empty_lines: true,
+            html: {
+                end_with_newline: CONFIG.endWithNewline,
+                js: { end_with_newline: false },
+                css: { end_with_newline: false },
+            },
+            templating: ["smarty"],
+        };
+
+        return config;
+    }
+}