diff --git a/packages/plugin-ext/src/common/plugin-api-rpc.ts b/packages/plugin-ext/src/common/plugin-api-rpc.ts
index 07e9ad9b0dfb7..c837b9fd9915a 100644
--- a/packages/plugin-ext/src/common/plugin-api-rpc.ts
+++ b/packages/plugin-ext/src/common/plugin-api-rpc.ts
@@ -1241,6 +1241,10 @@ export interface ApplyEditsOptions extends UndoStopOptions {
     setEndOfLine: EndOfLine | undefined;
 }
 
+export interface SnippetEditOptions extends UndoStopOptions {
+    keepWhitespace?: boolean;
+}
+
 export interface ThemeColor {
     id: string;
 }
@@ -1345,7 +1349,7 @@ export interface TextEditorsMain {
     $trySetSelections(id: string, selections: Selection[]): Promise<void>;
     $tryApplyEdits(id: string, modelVersionId: number, edits: SingleEditOperation[], opts: ApplyEditsOptions): Promise<boolean>;
     $tryApplyWorkspaceEdit(workspaceEditDto: WorkspaceEditDto, metadata?: WorkspaceEditMetadataDto): Promise<boolean>;
-    $tryInsertSnippet(id: string, template: string, selections: Range[], opts: UndoStopOptions): Promise<boolean>;
+    $tryInsertSnippet(id: string, template: string, selections: Range[], opts: SnippetEditOptions): Promise<boolean>;
     $save(uri: UriComponents): PromiseLike<UriComponents | undefined>;
     $saveAs(uri: UriComponents): PromiseLike<UriComponents | undefined>;
     $saveAll(includeUntitled?: boolean): Promise<boolean>;
@@ -1545,7 +1549,7 @@ export interface WorkspaceFileEditDto {
 export interface WorkspaceTextEditDto {
     resource: UriComponents;
     modelVersionId?: number;
-    textEdit: TextEdit & { insertAsSnippet?: boolean };
+    textEdit: TextEdit & { insertAsSnippet?: boolean, keepWhitespace?: boolean };
     metadata?: WorkspaceEditEntryMetadataDto;
 }
 export namespace WorkspaceTextEditDto {
diff --git a/packages/plugin-ext/src/main/browser/text-editor-main.ts b/packages/plugin-ext/src/main/browser/text-editor-main.ts
index 0ce4f478ed8a7..67ac7ccaa3907 100644
--- a/packages/plugin-ext/src/main/browser/text-editor-main.ts
+++ b/packages/plugin-ext/src/main/browser/text-editor-main.ts
@@ -26,7 +26,7 @@ import {
     TextEditorRevealType,
     SingleEditOperation,
     ApplyEditsOptions,
-    UndoStopOptions,
+    SnippetEditOptions,
     DecorationOptions
 } from '../../common/plugin-api-rpc';
 import { Range } from '../../common/plugin-api-rpc-model';
@@ -281,7 +281,7 @@ export class TextEditorMain implements Disposable {
         return true;
     }
 
-    insertSnippet(template: string, ranges: Range[], opts: UndoStopOptions): boolean {
+    insertSnippet(template: string, ranges: Range[], opts: SnippetEditOptions): boolean {
         const snippetController: SnippetController2 | null | undefined = this.editor?.getControl().getContribution('snippetController2');
 
         if (!snippetController || !this.editor) { return false; }
@@ -290,7 +290,13 @@ export class TextEditorMain implements Disposable {
         this.editor.getControl().setSelections(selections);
         this.editor.focus();
 
-        snippetController.insert(template, 0, 0, opts.undoStopBefore, opts.undoStopAfter);
+        snippetController.insert(template, {
+            undoStopBefore: opts.undoStopBefore,
+            undoStopAfter: opts.undoStopAfter,
+            adjustWhitespace: !opts.keepWhitespace,
+            overwriteBefore: 0,
+            overwriteAfter: 0
+        });
 
         return true;
     }
@@ -324,11 +330,17 @@ export class TextEditorMain implements Disposable {
     }
 }
 
+interface SnippetInsertOptions {
+    overwriteBefore: number,
+    overwriteAfter: number,
+    undoStopBefore: boolean,
+    undoStopAfter: boolean,
+    adjustWhitespace: boolean
+}
+
 // TODO move to monaco typings!
 interface SnippetController2 extends monaco.editor.IEditorContribution {
-    insert(template: string,
-        overwriteBefore: number, overwriteAfter: number,
-        undoStopBefore: boolean, undoStopAfter: boolean): void;
+    insert(template: string, options?: Partial<SnippetInsertOptions>): void;
     finish(): void;
     cancel(): void;
     dispose(): void;
diff --git a/packages/plugin-ext/src/main/browser/text-editors-main.ts b/packages/plugin-ext/src/main/browser/text-editors-main.ts
index 93c2d820c54ef..262a704a75048 100644
--- a/packages/plugin-ext/src/main/browser/text-editors-main.ts
+++ b/packages/plugin-ext/src/main/browser/text-editors-main.ts
@@ -23,7 +23,6 @@ import {
     TextEditorRevealType,
     SingleEditOperation,
     ApplyEditsOptions,
-    UndoStopOptions,
     DecorationRenderOptions,
     ThemeDecorationInstanceRenderOptions,
     DecorationOptions,
@@ -31,6 +30,7 @@ import {
     WorkspaceNotebookCellEditDto,
     DocumentsMain,
     WorkspaceEditMetadataDto,
+    SnippetEditOptions,
 } from '../../common/plugin-api-rpc';
 import { Range, TextDocumentShowOptions } from '../../common/plugin-api-rpc-model';
 import { EditorsAndDocumentsMain } from './editors-and-documents-main';
@@ -157,7 +157,7 @@ export class TextEditorsMainImpl implements TextEditorsMain, Disposable {
         }
     }
 
-    $tryInsertSnippet(id: string, template: string, ranges: Range[], opts: UndoStopOptions): Promise<boolean> {
+    $tryInsertSnippet(id: string, template: string, ranges: Range[], opts: SnippetEditOptions): Promise<boolean> {
         if (!this.editorsAndDocuments.getEditor(id)) {
             return Promise.reject(disposed(`TextEditor(${id})`));
         }
diff --git a/packages/plugin-ext/src/plugin/type-converters.ts b/packages/plugin-ext/src/plugin/type-converters.ts
index b3be5296552cb..8f8124611909c 100644
--- a/packages/plugin-ext/src/plugin/type-converters.ts
+++ b/packages/plugin-ext/src/plugin/type-converters.ts
@@ -342,11 +342,12 @@ export function fromTextEdit(edit: theia.TextEdit): model.TextEdit {
     };
 }
 
-function fromSnippetTextEdit(edit: theia.SnippetTextEdit): model.TextEdit & { insertAsSnippet?: boolean } {
+function fromSnippetTextEdit(edit: theia.SnippetTextEdit): model.TextEdit & { insertAsSnippet?: boolean, keepWhitespace?: boolean } {
     return {
         text: edit.snippet.value,
         range: fromRange(edit.range),
-        insertAsSnippet: true
+        insertAsSnippet: true,
+        keepWhitespace: edit.keepWhitespace
     };
 }
 
diff --git a/packages/plugin-ext/src/plugin/types-impl.ts b/packages/plugin-ext/src/plugin/types-impl.ts
index 881b9edc58cd1..4d6c42d228e6c 100644
--- a/packages/plugin-ext/src/plugin/types-impl.ts
+++ b/packages/plugin-ext/src/plugin/types-impl.ts
@@ -1341,6 +1341,7 @@ export class NotebookRange implements theia.NotebookRange {
 export class SnippetTextEdit implements theia.SnippetTextEdit {
     range: Range;
     snippet: SnippetString;
+    keepWhitespace?: boolean;
 
     static isSnippetTextEdit(thing: unknown): thing is SnippetTextEdit {
         return thing instanceof SnippetTextEdit || isObject<SnippetTextEdit>(thing)
diff --git a/packages/plugin/src/theia.d.ts b/packages/plugin/src/theia.d.ts
index d2ca6164f250f..a8e3377f28f83 100644
--- a/packages/plugin/src/theia.d.ts
+++ b/packages/plugin/src/theia.d.ts
@@ -1146,7 +1146,20 @@ export module '@theia/plugin' {
          * @return A promise that resolves with a value indicating if the snippet could be inserted. Note that the promise does not signal
          * that the snippet is completely filled-in or accepted.
          */
-        insertSnippet(snippet: SnippetString, location?: Position | Range | Position[] | Range[], options?: { undoStopBefore: boolean; undoStopAfter: boolean; }): Thenable<boolean>;
+        insertSnippet(snippet: SnippetString, location?: Position | Range | Position[] | Range[], options?: {
+            /**
+             * Add undo stop before making the edits.
+             */
+            readonly undoStopBefore: boolean;
+            /**
+             * Add undo stop after making the edits.
+             */
+            readonly undoStopAfter: boolean;
+            /**
+             * Keep whitespace of the {@link SnippetString.value} as is.
+             */
+            readonly keepWhitespace?: boolean;
+        }): Thenable<boolean>;
 
         /**
          * Adds a set of decorations to the text editor. If a set of decorations already exists with
@@ -16299,6 +16312,11 @@ export module '@theia/plugin' {
          */
         snippet: SnippetString;
 
+        /**
+         * Whether the snippet edit should be applied with existing whitespace preserved.
+         */
+        keepWhitespace?: boolean;
+
         /**
          * Create a new snippet edit.
          *