diff --git a/applications/admin/controllers/default.py b/applications/admin/controllers/default.py
index 9b3a0772..8cdd0cb6 100644
--- a/applications/admin/controllers/default.py
+++ b/applications/admin/controllers/default.py
@@ -563,7 +563,7 @@ def edit():
     # Load json only if it is ajax edited...
     app = get_app(request.vars.app)
     app_path = apath(app, r=request)
-    editor_defaults={'theme':'web2py', 'editor': 'default', 'closetag': 'true', 'codefolding': 'false'}
+    editor_defaults={'theme':'web2py', 'editor': 'default', 'closetag': 'true', 'codefolding': 'false', 'tabwidth':'4', 'indentwithtabs':'false'}
     config = Config(os.path.join(request.folder, 'settings.cfg'),
                     section='editor', default_values=editor_defaults)
     preferences = config.read()
@@ -580,7 +580,7 @@ def edit():
                 response.headers["web2py-component-flash"] = T('Preferences saved correctly')
             else:
                 response.headers["web2py-component-flash"] = T('Preferences saved on session only')
-            response.headers["web2py-component-command"] = "update_editor('%(theme)s', '%(editor)s', %(closetag)s, %(codefolding)s);jQuery('a[href=#editor_settings] button.close').click();" % (config.read())
+            response.headers["web2py-component-command"] = "update_editor(%s);jQuery('a[href=#editor_settings] button.close').click();" % response.json(config.read())
             return
         else:
             details = {'filename':'settings', 'id':'editor_settings', 'force': False}
diff --git a/applications/admin/views/default/edit.html b/applications/admin/views/default/edit.html
index e33115a5..61525612 100644
--- a/applications/admin/views/default/edit.html
+++ b/applications/admin/views/default/edit.html
@@ -57,6 +57,8 @@ var current_editor = "{{=editor_settings['editor']}}";  //Default editor
     var current_closetag = false;  //Default closetag
 {{pass}}
 var current_codefolding = {{=editor_settings['codefolding']}};  //Default codefolding
+var current_indentwithtabs = {{=editor_settings['indentwithtabs']}};
+var current_tabwidth = {{=editor_settings['tabwidth']}};
 
 var current_font_incr = 0; // Default font-size, 0 means don't set
 jQuery(document).on('shown click', 'a[data-toggle="tab"]', function (e) {
@@ -110,8 +112,8 @@ jQuery(document).on('click', 'a.editor_filelink, a#editor_settingslink', functio
     load_file(url);
 });
 
-function update_editor(editor_theme, editor_name, editor_closetag, editor_codefolding) {
-    var href = "{{="%s/theme/" % cm}}" + editor_theme + ".css";
+function update_editor(config) {
+    var href = "{{="%s/theme/" % cm}}" + config.theme + ".css";
     var link = jQuery("<link>");
     link.attr({
         type: 'text/css',
@@ -119,8 +121,8 @@ function update_editor(editor_theme, editor_name, editor_closetag, editor_codefo
         href: href
     });
     jQuery("head").append( link );
-    if (editor_name !='default'){
-        var src = "{{='%s/keymap/' % cm}}" + editor_name + ".js";
+    if ( config.editor != 'default'){
+        var src = "{{='%s/keymap/' % cm}}" + config.editor + ".js";
         //var src = "/admin/static/codemirror/keymap/" + editor_name + ".js";
         var script = jQuery("<script>");
         script.attr({
@@ -128,16 +130,22 @@ function update_editor(editor_theme, editor_name, editor_closetag, editor_codefo
         });
         jQuery("head").append( script );
     }
-    current_theme = editor_theme;
-    current_editor = editor_name;
-    current_codefolding = editor_codefolding;
-    current_closetag = editor_closetag;
+    current_theme = config.theme;
+    current_editor = config.editor;
+    current_codefolding = (config.codefolding === 'true');
+    current_closetag = (config.closetag === 'true');
+    current_indentwithtabs = (config.indentwithtabs === 'true');
+    current_tabwidth = parseInt(config.tabwidth);
+
     jQuery('textarea[name="data"]') .each(function(id, ta) {
         editor = jQuery(ta).data('editor');
         editor.setOption("theme", current_theme);
         editor.setOption("keyMap", current_editor);
         editor.setOption("autoCloseTags", current_closetag);
         editor.setOption("foldGutter", current_codefolding);
+        editor.setOption("indentUnit", current_tabwidth);
+        editor.setOption("tabSize", current_tabwidth);
+        editor.setOption("indentWithTabs", current_indentwithtabs);
     });
 }
 
diff --git a/applications/admin/views/default/edit_js.html b/applications/admin/views/default/edit_js.html
index 59bccbbe..2ad62560 100644
--- a/applications/admin/views/default/edit_js.html
+++ b/applications/admin/views/default/edit_js.html
@@ -48,11 +48,12 @@
         mode: { name: '{{=filetype}}'{{if filetype=='python':}},version: 2,singleLineStringErrors: false, {{pass}} },
     {{pass}}
         lineNumbers: true,
-        indentUnit: 4,
+        indentUnit: current_tabwidth,
+        indentWithTabs: current_indentwithtabs,
+        tabSize: current_tabwidth,
         styleActiveLine: true,
         autoCloseTags: current_closetag,
         theme: current_theme,
-        tabMode: "shift",
         lineWrapping: true,
         foldGutter: current_codefolding,
         gutters: ["CodeMirror-linenumbers", "breakpoints", "CodeMirror-foldgutter"],
diff --git a/applications/admin/views/default/editor_settings.html b/applications/admin/views/default/editor_settings.html
index 64e8514b..920c9702 100644
--- a/applications/admin/views/default/editor_settings.html
+++ b/applications/admin/views/default/editor_settings.html
@@ -26,6 +26,14 @@
 		<label class="control-label" for="codefolding">{{=T('Enable Code Folding')}}</label>
 		<div class="controls">{{=SELECT(booleanOptions, value=editor_settings['codefolding'], _name="codefolding" )}}</div>
 	</div>
+	<div class="control-group">
+		<label class="control-label" for="codefolding">{{=T('Tab width (# characters)')}}</label>
+		<div class="controls">{{=SELECT(range(1,9, 1), value=editor_settings['tabwidth'], _name="tabwidth" )}}</div>
+	</div>
+	<div class="control-group">
+		<label class="control-label" for="codefolding">{{=T('Indent with tabs')}}</label>
+		<div class="controls">{{=SELECT(booleanOptions, value=editor_settings['indentwithtabs'], _name="indentwithtabs" )}}</div>
+	</div>
 	<div class="control-group">
 		<div class="controls"><button type="submit" class="disabled btn btn-primary">{{=T('Save')}}</button></div>
 	</div>