diff --git a/crates/fmt/foundry.toml b/crates/fmt/foundry.toml
new file mode 100644
index 0000000000000..81be16870a0b6
--- /dev/null
+++ b/crates/fmt/foundry.toml
@@ -0,0 +1,3 @@
+[fmt]
+line_length = 80
+wrap_comments = true
diff --git a/crates/fmt/src/formatter.rs b/crates/fmt/src/formatter.rs
index c0fcbdfc65fb8..eea4b1e95cb5e 100644
--- a/crates/fmt/src/formatter.rs
+++ b/crates/fmt/src/formatter.rs
@@ -587,6 +587,40 @@ impl<'a, W: Write> Formatter<'a, W> {
         Ok(())
     }
 
+    /// Returns false if line starts new semantic block (NatSpec, markdown, etc.)
+    fn should_merge_comment_line(line: &str) -> bool {
+        let trimmed = line.trim();
+
+        // Don't merge NatSpec tags
+        if trimmed.starts_with('@') {
+            return false;
+        }
+
+        // Don't merge markdown structure
+        if trimmed.starts_with("- ")
+            || trimmed.starts_with("* ")
+            || trimmed.starts_with("> ")
+            || trimmed.starts_with("+ ")
+        {
+            return false;
+        }
+
+        // Don't merge numbered lists
+        if let Some(first_word) = trimmed.split_whitespace().next()
+            && first_word.ends_with('.')
+            && first_word[..first_word.len() - 1].chars().all(|c| c.is_ascii_digit())
+        {
+            return false;
+        }
+
+        // Don't merge empty lines
+        if trimmed.is_empty() {
+            return false;
+        }
+
+        true
+    }
+
     /// Write a comment line that might potentially overflow the maximum line length
     /// and, if configured, will be wrapped to the next line.
     fn write_comment_line(&mut self, comment: &CommentWithMetadata, line: &str) -> Result<bool> {
@@ -621,12 +655,11 @@ impl<'a, W: Write> Formatter<'a, W> {
 
             if let Some(next) = words.peek() {
                 if !word.is_empty() && !self.will_it_fit(next) {
-                    // the next word doesn't fit on this line,
-                    // write remaining words on the next
+                    let remaining_text = words.join(" ");
+                    // Wrap remaining text on next line
                     self.write_whitespace_separator(true)?;
-                    // write newline wrap token
                     write!(self.buf(), "{}", comment.wrap_token())?;
-                    self.write_comment_line(comment, &words.join(" "))?;
+                    self.write_comment_line(comment, &remaining_text)?;
                     return Ok(true);
                 }
 
@@ -652,28 +685,133 @@ impl<'a, W: Write> Formatter<'a, W> {
         &mut self,
         comments: impl IntoIterator<Item = &'b CommentWithMetadata>,
     ) -> Result<()> {
-        let mut comments = comments.into_iter().peekable();
-        let mut last_byte_written = match comments.peek() {
-            Some(comment) => comment.loc.start(),
-            None => return Ok(()),
-        };
-        let mut is_first = true;
-        for comment in comments {
-            let unwritten_whitespace_loc =
-                Loc::File(comment.loc.file_no(), last_byte_written, comment.loc.start());
-            if self.inline_config.is_disabled(unwritten_whitespace_loc) {
-                self.write_raw(&self.source[unwritten_whitespace_loc.range()])?;
-                self.write_raw_comment(comment)?;
-                last_byte_written = if comment.is_line() {
-                    self.find_next_line(comment.loc.end()).unwrap_or_else(|| comment.loc.end())
+        let comments: Vec<_> = comments.into_iter().collect();
+
+        let mut i = 0;
+        while i < comments.len() {
+            let comment = comments[i];
+
+            if comment.ty == CommentType::DocLine && self.config.wrap_comments {
+                let mut continuation_comments = vec![comment];
+                let mut j = i + 1;
+
+                while j < comments.len()
+                    && comments[j].ty == CommentType::DocLine
+                    && Self::should_merge_comment_line(comments[j].contents())
+                {
+                    continuation_comments.push(comments[j]);
+                    j += 1;
+                }
+
+                self.write_comment_with_overflow_handling(&continuation_comments)?;
+                i = j;
+            } else {
+                self.write_comment(comment, i == 0)?;
+                i += 1;
+            }
+        }
+        Ok(())
+    }
+
+    /// Write comment with overflow to continuation lines
+    fn write_comment_with_overflow_handling(
+        &mut self,
+        comments: &[&CommentWithMetadata],
+    ) -> Result<()> {
+        if comments.is_empty() {
+            return Ok(());
+        }
+
+        let first_comment = comments[0];
+
+        // Collect text from continuation comments
+        let mut all_text = first_comment.contents().to_string();
+        for &comment in &comments[1..] {
+            all_text.push(' ');
+            all_text.push_str(comment.contents());
+        }
+
+        // Create merged comment for wrapping
+        let mut merged_comment = first_comment.clone();
+        merged_comment.comment = format!("/// {all_text}");
+
+        self.write_comment_with_strategic_wrapping(&merged_comment)?;
+        Ok(())
+    }
+
+    /// Write comment with wrapping to prevent orphaned words
+    fn write_comment_with_strategic_wrapping(
+        &mut self,
+        comment: &CommentWithMetadata,
+    ) -> Result<()> {
+        if comment.is_line() && comment.has_newline_before && !self.is_beginning_of_line() {
+            self.write_whitespace_separator(true)?;
+        }
+
+        let content = comment.contents();
+        let prefix = comment.start_token();
+
+        // Break text into words for optimal line distribution
+        let words: Vec<&str> = content.split_whitespace().collect();
+        if words.is_empty() {
+            write!(self.buf(), "{}", comment.comment)?;
+            return Ok(());
+        }
+
+        let mut current_line = String::new();
+        let mut word_index = 0;
+        let mut is_first_line = true;
+
+        while word_index < words.len() {
+            let line_prefix = if is_first_line {
+                format!("{prefix} ")
+            } else {
+                format!("{} ", comment.wrap_token())
+            };
+
+            // Calculate available width for this line
+            let available_width = self.config.line_length.saturating_sub(if is_first_line {
+                self.buf.current_indent_len() + line_prefix.len()
+            } else {
+                self.buf.current_indent_len() + comment.wrap_token().len()
+            });
+
+            current_line.clear();
+            let mut line_len = 0;
+
+            while word_index < words.len() {
+                let word = words[word_index];
+                let space_needed = if current_line.is_empty() { 0 } else { 1 };
+                let word_len = word.len();
+
+                if line_len + space_needed + word_len <= available_width {
+                    // Word fits on current line
+                    if !current_line.is_empty() {
+                        current_line.push(' ');
+                        line_len += 1;
+                    }
+                    current_line.push_str(word);
+                    line_len += word_len;
+                    word_index += 1;
                 } else {
-                    comment.loc.end()
-                };
+                    // Word doesn't fit, break to next line
+                    break;
+                }
+            }
+
+            if is_first_line {
+                write!(self.buf(), "{line_prefix}{current_line}")?;
+                is_first_line = false;
             } else {
-                self.write_comment(comment, is_first)?;
+                self.write_whitespace_separator(true)?;
+                write!(self.buf(), "{}{current_line}", comment.wrap_token())?;
             }
-            is_first = false;
         }
+
+        if comment.is_line() {
+            self.write_whitespace_separator(true)?;
+        }
+
         Ok(())
     }
 
diff --git a/crates/fmt/testdata/WrapCommentOverflow/fmt.sol b/crates/fmt/testdata/WrapCommentOverflow/fmt.sol
new file mode 100644
index 0000000000000..f213e1800de7d
--- /dev/null
+++ b/crates/fmt/testdata/WrapCommentOverflow/fmt.sol
@@ -0,0 +1,50 @@
+// config: line_length = 80
+// config: wrap_comments = true
+pragma solidity ^0.8.13;
+
+contract WrapCommentOverflowTest {
+    /// @notice This is a very long single-line comment that should demonstrate
+    /// strategic overflow wrapping behavior without creating orphaned words
+    function singleLineOverflow() public {}
+
+    /// @notice Calculates the amount that the sender would be refunded if the
+    /// stream were canceled, denominated in units of the token's decimals.
+    function originalGitHubIssue() public {}
+
+    /// @notice Short comment that fits on one line
+    function singleLineNoWrap() public {}
+
+    /// @notice This is a notice section that is quite long and should wrap
+    /// nicely
+    /// @param value This parameter description should remain separate from the
+    /// notice above
+    /// @return result The return value description should also stay separate
+    function natspecBoundaries(uint256 value) public returns (uint256 result) {}
+
+    /// @notice Another example with multiple sections
+    /// @dev Implementation details that are separate from notice
+    /// @param amount Should not merge with dev section above
+    function multipleSections(uint256 amount) public {}
+
+    /// @notice Function with markdown list that should preserve structure:
+    /// - First item in the list should stay as a list item
+    /// - Second item should also remain properly formatted
+    /// - Third item completes the list structure
+    function markdownList() public {}
+
+    /// @notice Another markdown example:
+    /// 1. Numbered list item one
+    /// 2. Numbered list item two that is longer
+    /// 3. Final numbered item
+    function numberedList() public {}
+
+    /// @notice Block quote example:
+    /// > This is a block quote that should remain intact
+    /// > Second line of the block quote
+    function blockQuote() public {}
+
+    /// @notice First paragraph of documentation
+    ///
+    /// Second paragraph should remain separate due to empty line above
+    function emptyLineSeparation() public {}
+}
diff --git a/crates/fmt/testdata/WrapCommentOverflow/original.sol b/crates/fmt/testdata/WrapCommentOverflow/original.sol
new file mode 100644
index 0000000000000..465d21a268fa8
--- /dev/null
+++ b/crates/fmt/testdata/WrapCommentOverflow/original.sol
@@ -0,0 +1,44 @@
+pragma solidity ^0.8.13;
+
+contract WrapCommentOverflowTest {
+    /// @notice This is a very long single-line comment that should demonstrate strategic overflow wrapping behavior without creating orphaned words
+    function singleLineOverflow() public {}
+    
+    /// @notice Calculates the amount that the sender would be refunded if the stream were canceled, denominated in units of the token's decimals.
+    function originalGitHubIssue() public {}
+    
+    /// @notice Short comment that fits on one line
+    function singleLineNoWrap() public {}
+    
+    /// @notice This is a notice section that is quite long and should wrap nicely
+    /// @param value This parameter description should remain separate from the notice above
+    /// @return result The return value description should also stay separate
+    function natspecBoundaries(uint256 value) public returns (uint256 result) {}
+    
+    /// @notice Another example with multiple sections
+    /// @dev Implementation details that are separate from notice
+    /// @param amount Should not merge with dev section above
+    function multipleSections(uint256 amount) public {}
+    
+    /// @notice Function with markdown list that should preserve structure:
+    /// - First item in the list should stay as a list item
+    /// - Second item should also remain properly formatted
+    /// - Third item completes the list structure
+    function markdownList() public {}
+    
+    /// @notice Another markdown example:
+    /// 1. Numbered list item one
+    /// 2. Numbered list item two that is longer
+    /// 3. Final numbered item
+    function numberedList() public {}
+    
+    /// @notice Block quote example:
+    /// > This is a block quote that should remain intact
+    /// > Second line of the block quote
+    function blockQuote() public {}
+    
+    /// @notice First paragraph of documentation
+    ///
+    /// Second paragraph should remain separate due to empty line above
+    function emptyLineSeparation() public {}
+}
diff --git a/crates/fmt/tests/formatter.rs b/crates/fmt/tests/formatter.rs
index 132b73902d1d9..40dfee9fac70a 100644
--- a/crates/fmt/tests/formatter.rs
+++ b/crates/fmt/tests/formatter.rs
@@ -238,6 +238,7 @@ test_directories! {
     BlockComments,
     BlockCommentsFunction,
     EnumVariants,
+    WrapCommentOverflow,
 }
 
 test_dir!(SortedImports, TestConfig::skip_compare_ast_eq());