diff --git a/src/components/CodeEmbed/index.jsx b/src/components/CodeEmbed/index.jsx
index d0b39fe557..d3b8f07740 100644
--- a/src/components/CodeEmbed/index.jsx
+++ b/src/components/CodeEmbed/index.jsx
@@ -1,44 +1,37 @@
 import { useState, useEffect, useRef } from "preact/hooks";
-import { useLiveRegion } from '../hooks/useLiveRegion';
+import { useLiveRegion } from "../hooks/useLiveRegion";
 import CodeMirror, { EditorView } from "@uiw/react-codemirror";
 import { javascript } from "@codemirror/lang-javascript";
+import { keymap } from "@codemirror/view";
+import { Prec, EditorState } from "@codemirror/state";
+import { insertTab } from "@codemirror/commands";
 import { cdnLibraryUrl, cdnSoundUrl } from "@/src/globals/globals";
 
 import { CodeFrame } from "./frame";
 import { CopyCodeButton } from "../CopyCodeButton";
 import CircleButton from "../CircleButton";
 import { Icon } from "../Icon";
+
 /*
  * A more featured code embed component that uses CodeMirror
- *
- * Props: {
- *   initialValue?: string;
- *   editable: boolean;
- *   previewable: boolean;
- *   previewHeight?: number;
- *   previewWidth?: number;
- *   base?: string;
- *   lazyLoad?: boolean;
- *   TODO: refactor this prop behavior
- *   allowSideBySide?: boolean
- *   fullWidth?: boolean
- *   includeSound?: boolean
- * }
  */
 export const CodeEmbed = (props) => {
   const { ref: liveRegionRef, announce } = useLiveRegion();
   const [rendered, setRendered] = useState(false);
+  const [enableTabIndent, setEnableTabIndent] = useState(false);
+
   const initialCode = props.initialValue ?? "";
-  // Source code from Google Docs sometimes uses a unicode non-breaking space
-  // instead of a normal one, but these break the code frame, so we replace them here.
-  // We also replace them in CodeFrame, but replacing here too ensures people don't
-  // accidentally copy-and-paste them out of the embedded editor.
   const [codeString, setCodeString] = useState(
     initialCode.replace(/\u00A0/g, " "),
   );
 
   let { previewWidth, previewHeight } = props;
-  const canvasMatch = /createCanvas\(\s*(\d+),\s*(\d+)\s*(?:,\s*(?:P2D|WEBGL)\s*)?\)/m.exec(initialCode);
+
+  const canvasMatch =
+    /createCanvas\(\s*(\d+),\s*(\d+)\s*(?:,\s*(?:P2D|WEBGL)\s*)?\)/m.exec(
+      initialCode,
+    );
+
   if (canvasMatch) {
     previewWidth = previewWidth || parseFloat(canvasMatch[1]);
     previewHeight = previewHeight || parseFloat(canvasMatch[2]);
@@ -46,13 +39,15 @@ export const CodeEmbed = (props) => {
 
   const largeSketch = previewWidth && previewWidth > 770 - 60;
 
-  // Quick hack to make room for DOM that gets added below the canvas by default
-  const domMatch = /create(Button|Select|P|Div|Input|ColorPicker)/.exec(initialCode);
+  const domMatch =
+    /create(Button|Select|P|Div|Input|ColorPicker)/.exec(initialCode);
+
   if (domMatch && previewHeight) {
     previewHeight += 100;
   }
 
   const codeFrameRef = useRef(null);
+  const [previewCodeString, setPreviewCodeString] = useState(codeString);
 
   const updateOrReRun = () => {
     if (codeString === previewCodeString) {
@@ -64,12 +59,9 @@ export const CodeEmbed = (props) => {
     announce("Sketch is running");
   };
 
-  const [previewCodeString, setPreviewCodeString] = useState(codeString);
-
   useEffect(() => {
     setRendered(true);
 
-    // Includes p5.min.js script to be used by `CodeFrame` iframe(s)
     if (!document.getElementById("p5ScriptTag")) {
       const p5ScriptElement = document.createElement("script");
       p5ScriptElement.id = "p5ScriptTag";
@@ -80,13 +72,31 @@ export const CodeEmbed = (props) => {
 
   if (!rendered) return <div className="code-placeholder" />;
 
+  const escToBlur = EditorView.domEventHandlers({
+    keydown(event, view) {
+      if (event.key === "Escape") {
+        view.contentDOM.blur();
+        return true;
+      }
+      return false;
+    },
+  });
+
   return (
     <div
-      className={`my-md flex w-full flex-col gap-[20px] overflow-hidden ${props.allowSideBySide ? "lg:flex-row" : ""} ${props.fullWidth ? "full-width" : ""}`}
+      className={`my-md flex w-full flex-col gap-[20px] overflow-hidden ${
+        props.allowSideBySide ? "lg:flex-row" : ""
+      } ${props.fullWidth ? "full-width" : ""}`}
     >
       {props.previewable ? (
         <div
-          className={`ml-0 flex w-fit gap-[20px] ${largeSketch ? "flex-col" : (props.allowSideBySide ? "" : "flex-col lg:flex-row")}`}
+          className={`ml-0 flex w-fit gap-[20px] ${
+            largeSketch
+              ? "flex-col"
+              : props.allowSideBySide
+              ? ""
+              : "flex-col lg:flex-row"
+          }`}
         >
           <div>
             <CodeFrame
@@ -99,7 +109,11 @@ export const CodeEmbed = (props) => {
               scripts={props.includeSound ? [cdnSoundUrl] : []}
             />
           </div>
-          <div className={`flex gap-2.5 ${largeSketch ? "flex-row" : "md:flex-row lg:flex-col"}`}>
+          <div
+            className={`flex gap-2.5 ${
+              largeSketch ? "flex-row" : "md:flex-row lg:flex-col"
+            }`}
+          >
             <CircleButton
               className="bg-bg-gray-40"
               onClick={updateOrReRun}
@@ -120,6 +134,24 @@ export const CodeEmbed = (props) => {
           </div>
         </div>
       ) : null}
+
+      {/* Tab indentation toggle */}
+      <label
+        style={{
+          display: "flex",
+          alignItems: "center",
+          gap: "0.5rem",
+          marginBottom: "0.5rem",
+        }}
+      >
+        <input
+          type="checkbox"
+          checked={enableTabIndent}
+          onChange={(e) => setEnableTabIndent(e.target.checked)}
+        />
+        <b>Enable tab indentation</b>
+      </label>
+
       <div className="code-editor-container relative w-full">
         <CodeMirror
           value={codeString}
@@ -138,14 +170,35 @@ export const CodeEmbed = (props) => {
             foldGutter: false,
             autocompletion: false,
           }}
-          indentWithTab={false}
-          extensions={[javascript(), EditorView.lineWrapping]}
+          extensions={[
+            javascript(),
+            EditorView.lineWrapping,
+            EditorState.tabSize.of(4),
+
+            Prec.high(
+              keymap.of([
+                {
+                  key: "Tab",
+                  run: (view) => {
+                    if (!enableTabIndent) {
+                      view.contentDOM.blur();
+                      return true;
+                    }
+                    return insertTab(view);
+                  },
+                },
+              ]),
+            ),
+
+            escToBlur,
+          ]}
           onChange={(val) => setCodeString(val)}
           editable={props.editable}
           onCreateEditor={(editorView) =>
             (editorView.contentDOM.ariaLabel = "Code Editor")
           }
         />
+
         <div className="absolute right-0 top-0 flex flex-col gap-xs p-xs md:flex-row">
           <CopyCodeButton textToCopy={codeString || initialCode} />
           <CircleButton
@@ -161,6 +214,7 @@ export const CodeEmbed = (props) => {
           </CircleButton>
         </div>
       </div>
+
       <span ref={liveRegionRef} aria-live="polite" class="sr-only" />
     </div>
   );