diff --git a/src/js/parsers/section.js b/src/js/parsers/section.js
index c919ada7f..2ad7a8475 100644
--- a/src/js/parsers/section.js
+++ b/src/js/parsers/section.js
@@ -287,6 +287,13 @@ class SectionParser {
       trimSectionText(state.section);
       lastSection.items.append(state.section);
     } else {
+      // avoid creating empty markup sections, especially useful for indented source
+      if (state.section.isMarkerable && !state.section.text.trim()) {
+        state.section = null;
+        state.text = '';
+        return;
+      }
+
       // remove empty list sections before creating a new section
       if (lastSection && lastSection.isListSection && lastSection.items.length === 0) {
         sections.pop();
diff --git a/tests/unit/parsers/section-test.js b/tests/unit/parsers/section-test.js
index 4127385b8..1bd13f5f8 100644
--- a/tests/unit/parsers/section-test.js
+++ b/tests/unit/parsers/section-test.js
@@ -325,6 +325,29 @@ test('#parse handles insignificant whitespace', (assert) => {
   assert.equal(list.items.objectAt(0).text, 'One');
 });
 
+test('#parse handles insignificant whitespace (wrapped)', (assert) => {
+  let container = buildDOM(`
+    <div>
+      <ul>
+        <li>
+          One
+        </li>
+      </ul>
+    </div>
+  `);
+
+  let element = container.firstChild;
+  parser = new SectionParser(builder);
+  let sections = parser.parse(element);
+
+  assert.equal(sections.length, 1, '1 section');
+  let [list] = sections;
+  assert.equal(list.type, 'list-section');
+  assert.equal(list.items.length, 1, '1 list item');
+  assert.equal(list.items.objectAt(0).text, 'One');
+});
+
+
 test('#parse avoids empty paragraph around wrapped list', (assert) => {
   let container = buildDOM(`
     <div><ul><li>One</li></ul></div>