diff --git a/matlab-shell.el b/matlab-shell.el
index e95cc95..f41c8f6 100644
--- a/matlab-shell.el
+++ b/matlab-shell.el
@@ -728,7 +728,9 @@ Returns a list of the form:
 				limit
 				t)
 	(save-excursion
-	  (setq beginning (match-beginning 0))
+	  (setq beginning (save-excursion (goto-char (match-beginning 0))
+					  (back-to-indentation)
+					  (point)))
 	  (goto-char (match-end 0))
 	  (dolist (EXP matlab-shell-error-location-expression)
 	    (when (looking-at EXP)
diff --git a/tests/buggy.m b/tests/buggy.m
index 05a25b5..cda8483 100644
--- a/tests/buggy.m
+++ b/tests/buggy.m
@@ -23,7 +23,18 @@ function buggy(input,n)
         else
             buggy('stack',n-1);
         end
+
+      case 'indented'
+        % Test errors that are captured, but then reported up
+        % but indented.
+        disp('	In buggy.m (TestPoint_foo) at 36')
         
     end
     
 end
+
+function TestPoint_foo
+    
+    message('A test point');
+    
+end
\ No newline at end of file