diff --git a/editors/vscode/package.json b/editors/vscode/package.json
index 29c4e6fb..93db8744 100644
--- a/editors/vscode/package.json
+++ b/editors/vscode/package.json
@@ -2,7 +2,7 @@
   "name": "wrnexus",
   "displayName": "WRNexus Language Support",
   "description": "Syntax highlighting, formatting, diagnostics, snippets and completions for WrNexus .wrn files.",
-  "version": "0.2.2",
+  "version": "0.2.3",
   "publisher": "wrnexus",
   "private": true,
   "license": "SEE LICENSE IN LICENSE",
diff --git a/editors/vscode/src/extension.js b/editors/vscode/src/extension.js
index a85b0af3..bf3b6d43 100644
--- a/editors/vscode/src/extension.js
+++ b/editors/vscode/src/extension.js
@@ -2,7 +2,7 @@
 "use strict";
 
 const vscode = require("vscode");
-const { formatWrn } = require("./formatter.js");
+const { formatWrn } = require("./formatter");
 
 // The .wrn compiler, bundled to CJS by `bun run build:compiler`. Loaded
 // defensively so the rest of the extension (highlighting, snippets, completion)
@@ -115,13 +115,17 @@ function activate(context) {
   context.subscriptions.push(
     vscode.languages.registerDocumentFormattingEditProvider("wrn", {
       provideDocumentFormattingEdits(document, options) {
-        if (!vscode.workspace.getConfiguration("wrnexus").get("format.enable", true)) return [];
-        const formatted = formatWrn(document.getText(), options);
-        if (formatted === document.getText()) return [];
-        const end = document.positionAt(document.getText().length);
-        return [
-          vscode.TextEdit.replace(new vscode.Range(new vscode.Position(0, 0), end), formatted),
-        ];
+        const source = document.getText();
+
+        const formatted = formatWrn(source, {
+          tabSize: options.tabSize,
+          insertSpaces: options.insertSpaces,
+          printWidth: 100,
+        });
+
+        const range = new vscode.Range(document.positionAt(0), document.positionAt(source.length));
+
+        return [vscode.TextEdit.replace(range, formatted)];
       },
     }),
     vscode.languages.registerCompletionItemProvider(
diff --git a/editors/vscode/src/formatter.js b/editors/vscode/src/formatter.js
index d5398dab..d5e9a92d 100644
--- a/editors/vscode/src/formatter.js
+++ b/editors/vscode/src/formatter.js
@@ -17,152 +17,271 @@ const VOID_ELEMENTS = new Set([
   "wbr",
 ]);
 
-/** Count structural curly braces while ignoring quoted strings and line comments. */
-function curlyDelta(line, state) {
-  let delta = 0;
+function findOpeningTagEnd(value) {
   let quote = null;
-  let escaped = false;
 
-  for (let index = 0; index < line.length; index++) {
-    const char = line[index];
-    const next = line[index + 1];
+  for (let index = 0; index < value.length; index += 1) {
+    const char = value[index];
 
-    if (state.blockComment) {
-      if (char === "*" && next === "/") {
-        state.blockComment = false;
-        index++;
+    if (quote !== null) {
+      if (char === quote && value[index - 1] !== "\\") {
+        quote = null;
       }
+
       continue;
     }
-    if (state.template) {
-      if (!escaped && char === "`") state.template = false;
-      escaped = !escaped && char === "\\";
-      if (char !== "\\") escaped = false;
-      continue;
-    }
-    if (quote) {
-      if (!escaped && char === quote) quote = null;
-      escaped = !escaped && char === "\\";
-      if (char !== "\\") escaped = false;
-      continue;
-    }
-    if (char === "/" && next === "*") {
-      state.blockComment = true;
-      index++;
-    } else if (char === "/" && next === "/") {
-      break;
-    } else if (char === "`") {
-      state.template = true;
-    } else if (char === '"' || char === "'") {
+
+    if (char === '"' || char === "'") {
       quote = char;
-    } else if (char === "{") {
-      delta++;
-    } else if (char === "}") {
-      delta--;
+      continue;
+    }
+
+    if (char === ">") {
+      return index;
     }
   }
-  return delta;
+
+  return -1;
 }
 
-/** Return the net nesting introduced by HTML-like tags on this line. */
-function htmlDelta(line) {
-  let delta = 0;
-  const tags = line.matchAll(/<\s*(\/?)\s*([A-Za-z][\w:-]*)\b[^>]*>/g);
-  for (const match of tags) {
-    const full = match[0];
-    const closing = match[1] === "/";
-    const name = match[2].toLowerCase();
-    if (closing) delta--;
-    else if (!VOID_ELEMENTS.has(name) && !/\/\s*>$/.test(full)) delta++;
-  }
-  return delta;
-}
+function parseAttributes(value) {
+  const attributes = [];
+  const pattern =
+    /[^\s"'=<>`]+(?:\s*=\s*(?:"[^"]*"|'[^']*'|[^\s"'=<>`]+))?/g;
 
-function leadingClosers(line) {
-  let count = /^\s*}/.test(line) ? 1 : 0;
-  const tags = line.match(/^\s*((?:<\/\s*[A-Za-z][\w:-]*\s*>\s*)+)/);
-  if (tags) count += [...tags[1].matchAll(/<\//g)].length;
-  return count;
-}
+  let match;
 
-function formatOpeningTag(source, unit, baseDepth) {
-  if (
-    !source.startsWith("<") ||
-    source.startsWith("</") ||
-    source.startsWith("<!--") ||
-    source.length <= 100
-  ) {
-    return source;
+  while ((match = pattern.exec(value)) !== null) {
+    attributes.push(match[0].trim());
   }
 
-  const match = /^<([A-Za-z][\w:-]*)([\s\S]*?)(\/?)>$/.exec(source);
+  return attributes;
+}
+
+function parseOpeningTag(value) {
+  const endIndex = findOpeningTagEnd(value);
+
+  if (endIndex === -1) {
+    return null;
+  }
+
+  const openingPart = value.slice(0, endIndex + 1);
+  const remainder = value.slice(endIndex + 1).trim();
+
+  const match = /^<([A-Za-z][\w:-]*)([\s\S]*?)(\/?)>$/.exec(openingPart);
 
   if (!match) {
-    return source;
+    return null;
   }
 
-  const tag = match[1];
-  const rawAttributes = match[2].trim();
+  const tagName = match[1];
+  const attributes = parseAttributes(match[2].trim());
   const selfClosing = match[3] === "/";
+  const inlineClosing = remainder === `</${tagName}>`;
 
-  if (!rawAttributes) {
-    return source;
-  }
-
-  const attributes = [];
-  const pattern = /(?:[^\s"'=<>`]+)(?:\s*=\s*(?:"[^"]*"|'[^']*'))?/g;
-
-  for (const attribute of rawAttributes.matchAll(pattern)) {
-    attributes.push(attribute[0]);
-  }
-
-  if (attributes.length < 2) {
-    return source;
-  }
-
-  const base = unit.repeat(baseDepth);
-  const child = unit.repeat(baseDepth + 1);
-
-  return [
-    `${base}<${tag}`,
-    ...attributes.map((attribute) => `${child}${attribute}`),
-    `${base}${selfClosing ? "/>" : ">"}`,
-  ].join("\n");
+  return {
+    tagName,
+    attributes,
+    selfClosing,
+    inlineClosing,
+    remainder,
+  };
 }
 
-/**
- * Format WRN source conservatively: normalize structural indentation and
- * trailing whitespace without rewriting expressions, HTML, CSS, or JS.
- */
-function formatWrn(text, options = {}) {
-  const tabSize = Math.max(1, Number(options.tabSize) || 2);
-  const unit = options.insertSpaces === false ? "\t" : " ".repeat(tabSize);
-  const hadFinalNewline = /\r?\n$/.test(text);
-  const lines = text.replace(/\r\n/g, "\n").split("\n");
-  if (hadFinalNewline) lines.pop();
+function formatOpeningTag(value, unit, depth, printWidth = 100) {
+  const parsed = parseOpeningTag(value);
 
-  let depth = 0;
-  const state = { blockComment: false, template: false };
-  const formatted = lines.map((original) => {
-    const line = original.trimEnd();
-    if (!line.trim()) return "";
+  if (!parsed) {
+    return {
+      lines: [`${unit.repeat(depth)}${value.trim()}`],
+      opensElement: false,
+    };
+  }
 
-    // Preserve multiline template-string content because its whitespace can be data.
-    const wasTemplate = state.template;
-    const trimmed = line.trimStart();
-    const indent = Math.max(0, depth - leadingClosers(trimmed));
-    const formattedLine = formatOpeningTag(trimmed, unit, indent);
+  const baseIndent = unit.repeat(depth);
+  const attributeIndent = unit.repeat(depth + 1);
+  const normalizedSingleLine = value.replace(/\s+/g, " ").trim();
 
-    const output = wasTemplate
-      ? line
-      : formattedLine.startsWith(unit.repeat(indent))
-        ? formattedLine
-        : unit.repeat(indent) + formattedLine;
-    depth = Math.max(0, depth + curlyDelta(trimmed, state) + htmlDelta(trimmed));
-    return output;
-  });
+  const shouldBreak =
+    parsed.attributes.length > 1 ||
+    normalizedSingleLine.length > printWidth ||
+    value.includes("\n");
 
-  return formatted.join("\n") + (hadFinalNewline ? "\n" : "");
+  const opensElement =
+    !parsed.selfClosing &&
+    !parsed.inlineClosing &&
+    !VOID_ELEMENTS.has(parsed.tagName.toLowerCase());
+
+  if (!shouldBreak) {
+    return {
+      lines: [`${baseIndent}${normalizedSingleLine}`],
+      opensElement,
+    };
+  }
+
+  const lines = [
+    `${baseIndent}<${parsed.tagName}`,
+    ...parsed.attributes.map(
+      (attribute) => `${attributeIndent}${attribute}`,
+    ),
+  ];
+
+  if (parsed.inlineClosing) {
+    lines.push(`${baseIndent}></${parsed.tagName}>`);
+  } else if (parsed.selfClosing) {
+    lines.push(`${baseIndent}/>`);
+  } else {
+    lines.push(`${baseIndent}>`);
+
+    if (parsed.remainder) {
+      lines.push(`${baseIndent}${parsed.remainder}`);
+    }
+  }
+
+  return {
+    lines,
+    opensElement,
+  };
 }
 
-module.exports = { formatWrn };
+function isMultilineOpeningTagStart(value) {
+  if (!value.startsWith("<")) {
+    return false;
+  }
+
+  if (
+    value.startsWith("</") ||
+    value.startsWith("<!--") ||
+    value.startsWith("<!") ||
+    value.startsWith("<?")
+  ) {
+    return false;
+  }
+
+  return findOpeningTagEnd(value) === -1;
+}
+
+function isClosingTag(value) {
+  return /^<\/[A-Za-z][\w:-]*\s*>/.test(value);
+}
+
+function isInlineElement(value) {
+  return /^<([A-Za-z][\w:-]*)\b[^>]*>[\s\S]*<\/\1\s*>$/.test(value);
+}
+
+function isWrnBlockClosing(value) {
+  return value === "}" || value.startsWith("} ");
+}
+
+function isWrnBlockOpening(value) {
+  if (!value.endsWith("{")) {
+    return false;
+  }
+
+  return !value.startsWith("{");
+}
+
+function formatWrn(source, options = {}) {
+  const unit =
+    options.insertSpaces === false
+      ? "\t"
+      : " ".repeat(options.tabSize || 4);
+
+  const printWidth = options.printWidth || 100;
+  const inputLines = source.replace(/\r\n/g, "\n").split("\n");
+  const output = [];
+
+  let wrnDepth = 0;
+  let htmlDepth = 0;
+  let index = 0;
+  let previousWasBlank = false;
+
+  while (index < inputLines.length) {
+    const originalLine = inputLines[index];
+    const trimmed = originalLine.trim();
+
+    if (trimmed === "") {
+      if (!previousWasBlank && output.length > 0) {
+        output.push("");
+      }
+
+      previousWasBlank = true;
+      index += 1;
+      continue;
+    }
+
+    previousWasBlank = false;
+
+    let value = trimmed;
+
+    if (isMultilineOpeningTagStart(value)) {
+      const collected = [value];
+      let cursor = index + 1;
+
+      while (cursor < inputLines.length) {
+        const nextPart = inputLines[cursor].trim();
+        collected.push(nextPart);
+
+        const joined = collected.join(" ");
+
+        if (findOpeningTagEnd(joined) !== -1) {
+          break;
+        }
+
+        cursor += 1;
+      }
+
+      value = collected.join(" ");
+      index = cursor;
+    }
+
+    if (isWrnBlockClosing(value)) {
+      wrnDepth = Math.max(0, wrnDepth - 1);
+    }
+
+    if (isClosingTag(value)) {
+      htmlDepth = Math.max(0, htmlDepth - 1);
+    }
+
+    const depth = wrnDepth + htmlDepth;
+
+    if (
+      value.startsWith("<") &&
+      !value.startsWith("</") &&
+      !value.startsWith("<!--") &&
+      !isInlineElement(value)
+    ) {
+      const formattedTag = formatOpeningTag(
+        value,
+        unit,
+        depth,
+        printWidth,
+      );
+
+      output.push(...formattedTag.lines);
+
+      if (formattedTag.opensElement) {
+        htmlDepth += 1;
+      }
+    } else {
+      output.push(`${unit.repeat(depth)}${value}`);
+    }
+
+    if (isWrnBlockOpening(value)) {
+      wrnDepth += 1;
+    }
+
+    index += 1;
+  }
+
+  while (output.length > 0 && output[output.length - 1] === "") {
+    output.pop();
+  }
+
+  return `${output.join("\n")}\n`;
+}
+
+module.exports = {
+  formatOpeningTag,
+  formatWrn,
+};
\ No newline at end of file
diff --git a/editors/vscode/wrnexus-0.2.2.vsix b/editors/vscode/wrnexus-0.2.2.vsix
index 46acb413..ab349418 100644
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diff --git a/editors/vscode/wrnexus-0.2.3.vsix b/editors/vscode/wrnexus-0.2.3.vsix
new file mode 100644
index 00000000..608866ad
Binary files /dev/null and b/editors/vscode/wrnexus-0.2.3.vsix differ