diff --git a/test/test_files/basic_yaml_block.yaml b/test/test_files/basic_yaml_block.yaml
index 632feafc..aa536c38 100644
--- a/test/test_files/basic_yaml_block.yaml
+++ b/test/test_files/basic_yaml_block.yaml
@@ -2,7 +2,7 @@
   - Boston Red Sox
   - Detroit Tigers
   - New York
-    Yankees
+     Yankees
 national:
   - New York Mets
   - Chicago Cubs
diff --git a/yaml/parser/scalar.hpp b/yaml/parser/scalar.hpp
index 6796c318..b886a949 100644
--- a/yaml/parser/scalar.hpp
+++ b/yaml/parser/scalar.hpp
@@ -36,6 +36,7 @@ namespace omd { namespace parser
     template <typename Iterator>
     struct unicode_string : qi::grammar<Iterator, std::string()>
     {
+        std::size_t indent;
         unicode_string();
 
         qi::rule<Iterator, void(std::string&)> char_esc;
diff --git a/yaml/parser/scalar_def.hpp b/yaml/parser/scalar_def.hpp
index e5244fd9..bd29b735 100644
--- a/yaml/parser/scalar_def.hpp
+++ b/yaml/parser/scalar_def.hpp
@@ -54,21 +54,41 @@ namespace omd { namespace parser
                 }
             }
         };
+
+        //~ struct fold_plain_string
+        //~ {
+            //~ template <typename String, typename Range>
+            //~ struct result { typedef void type; };
+
+            //~ template <typename String, typename Range>
+            //~ void operator()(String& utf8, Range const& rng) const
+            //~ {
+                //~ BOOST_FOREACH(typename Range::value_type c, rng)
+                //~ {
+                //~ }
+            //~ }
+        //~ };
     }
 
     template <typename Iterator>
     unicode_string<Iterator>::unicode_string()
-      : unicode_string::base_type(unicode_start)
+      : unicode_string::base_type(unicode_start),
+        indent(0)
     {
         qi::char_type char_;
         qi::_val_type _val;
         qi::_r1_type _r1;
         qi::_1_type _1;
+        qi::_2_type _2;
         qi::lit_type lit;
-        qi::raw_type raw;
+        qi::blank_type blank;
+        qi::eol_type eol;
+        qi::repeat_type repeat;
+        qi::inf_type inf;
 
         using boost::spirit::qi::uint_parser;
         using boost::phoenix::function;
+        using boost::phoenix::ref;
 
         uint_parser<uchar, 16, 4, 4> hex4;
         uint_parser<uchar, 16, 8, 8> hex8;
@@ -98,15 +118,17 @@ namespace omd { namespace parser
             > '\''
             ;
 
-        auto space = char_(" \r\n\t");
+        auto space = blank | (eol >> repeat(ref(indent)+1, inf)[blank]);
         auto safe_first = ~char_(unsafe_first);
         auto safe_plain = ~char_(unsafe_plain);
 
         unquoted =
-            raw[
-                    safe_first
-                >>  *((+space >> safe_plain) | safe_plain)
-            ];
+                safe_first[_val = _1]
+            >>  *(
+                        (+space >> safe_plain)    [_val += ' ', _val += _2]
+                    |   safe_plain                [_val += _1]
+                )
+            ;
 
         unicode_start =
               double_quoted
diff --git a/yaml/parser/yaml.hpp b/yaml/parser/yaml.hpp
index 2991ff44..a42101d0 100644
--- a/yaml/parser/yaml.hpp
+++ b/yaml/parser/yaml.hpp
@@ -28,7 +28,7 @@ namespace omd { namespace parser
         flow_t flow_g;
 
         qi::rule<Iterator, std::size_t()> indent;
-        qi::rule<Iterator, ast::value_t()> blocks;
+        qi::rule<Iterator, ast::value_t(), qi::locals<std::size_t> > blocks;
         qi::rule<Iterator, ast::array_t(), qi::locals<std::size_t> > block_seq;
         qi::rule<Iterator, ast::value_t(std::size_t)> block_seq_entry;
         qi::rule<Iterator, ast::object_t(), qi::locals<std::size_t> > block_map;
diff --git a/yaml/parser/yaml_def.hpp b/yaml/parser/yaml_def.hpp
index a124534d..c77885bc 100644
--- a/yaml/parser/yaml_def.hpp
+++ b/yaml/parser/yaml_def.hpp
@@ -48,6 +48,7 @@ namespace omd { namespace parser
         qi::char_type char_;
         qi::omit_type omit;
         qi::_pass_type _pass;
+        qi::eps_type eps;
 
         qi::blank_type blank;
         auto blank_line = *blank >> eol;
@@ -68,15 +69,37 @@ namespace omd { namespace parser
             |   flow_value
             ;
 
-        blocks =
+        std::size_t& indent_var =
+            flow_g.scalar_value.string_value.indent
+            ;
+
+        auto save_indent =
+            eps[_a = phx::ref(indent_var)]
+            ;
+
+        auto restore_indent =
+            eps[phx::ref(indent_var) = _a]
+            ;
+
+        auto block_main =
                 block_seq
             |   block_map
             ;
 
+        blocks %=
+                save_indent
+            >>  (block_main | restore_indent)
+            >>  restore_indent
+            ;
+
         indent = (*blank)[_val = count_chars(_1)];
 
+        auto start_indent =
+            indent[ _a = _1, phx::ref(indent_var) = _1 ]
+            ;
+
         auto block_seq_indicator =                    //  Lookahead and see if we have a
-            &(indent[_a = _1] >> '-' >> blank)        //  sequence indicator. Save the indent
+            &(start_indent >> '-' >> blank)           //  sequence indicator. Save the indent
             ;                                         //  in local variable _a
 
         block_seq =
@@ -92,9 +115,9 @@ namespace omd { namespace parser
             ;
 
         auto block_map_indicator =                    //  Lookahead and see if we have a
-            &(      indent[_a = _1]                   //  map indicator. Save the indent
-                >>  flow_scalar                       //  in local variable _a
-                >>  skip(space)[':']
+            &(  start_indent                          //  map indicator. Save the indent
+            >>  flow_scalar                           //  in local variable _a
+            >>  skip(space)[':']
             )
             ;