diff --git a/tools/lsp/common.rs b/tools/lsp/common.rs
index 2ca646a824f..72bad51ec1b 100644
--- a/tools/lsp/common.rs
+++ b/tools/lsp/common.rs
@@ -174,7 +174,7 @@ pub struct ComponentAddition {
     pub component_type: String,
     pub import_path: Option<String>, // Url fails to convert reliably:-/
     pub insert_position: VersionedPosition,
-    pub properties: Vec<(String, String)>,
+    pub component_text: String,
 }
 
 #[allow(unused)]
diff --git a/tools/lsp/language.rs b/tools/lsp/language.rs
index eac6c7b32a6..32280ad76f0 100644
--- a/tools/lsp/language.rs
+++ b/tools/lsp/language.rs
@@ -10,15 +10,15 @@ mod goto;
 mod properties;
 mod semantic_tokens;
 #[cfg(test)]
-mod test;
+pub mod test;
 
 use crate::common::{
     create_workspace_edit, create_workspace_edit_from_source_file, LspToPreviewMessage,
     PreviewComponent, PreviewConfig, Result, VersionedUrl,
 };
-use crate::language::properties::find_element_indent;
 use crate::util::{
-    lookup_current_element_type, map_node, map_position, map_range, map_token, to_lsp_diag,
+    find_element_indent, lookup_current_element_type, map_node, map_position, map_range, map_token,
+    to_lsp_diag,
 };
 
 #[cfg(target_arch = "wasm32")]
@@ -1377,28 +1377,20 @@ pub fn add_component(
         edits.push(edit);
     }
 
-    let new_text = if component.properties.is_empty() {
-        format!("{} {{ }}\n", component.component_type)
-    } else {
-        let mut to_insert = format!("{} {{\n", component.component_type);
-        for (k, v) in &component.properties {
-            to_insert += &format!("    {k}: {v};\n");
-        }
-        to_insert += "}\n";
-        to_insert
-    };
-
     let source_file = doc.node.as_ref().unwrap().source_file.clone();
 
     let ip = map_position(&source_file, component.insert_position.offset().into());
-    edits.push(TextEdit { range: lsp_types::Range::new(ip.clone(), ip), new_text });
+    edits.push(TextEdit {
+        range: lsp_types::Range::new(ip.clone(), ip),
+        new_text: component.component_text,
+    });
 
     create_workspace_edit_from_source_file(&source_file, edits)
         .ok_or("Could not create workspace edit".into())
 }
 
 #[cfg(test)]
-mod tests {
+pub mod tests {
     use super::*;
 
     use lsp_types::WorkspaceEdit;
diff --git a/tools/lsp/language/properties.rs b/tools/lsp/language/properties.rs
index 6c4af2de666..2b002dd1902 100644
--- a/tools/lsp/language/properties.rs
+++ b/tools/lsp/language/properties.rs
@@ -4,8 +4,8 @@
 use super::DocumentCache;
 use crate::common::{create_workspace_edit, Error, Result};
 use crate::util::{
-    map_node, map_node_and_url, map_position, map_range, to_lsp_diag, with_property_lookup_ctx,
-    ExpressionContextInfo,
+    find_element_indent, map_node, map_node_and_url, map_position, map_range, to_lsp_diag,
+    with_property_lookup_ctx, ExpressionContextInfo,
 };
 
 use i_slint_compiler::diagnostics::{BuildDiagnostics, SourceFileVersion, Spanned};
@@ -602,20 +602,6 @@ fn set_binding_on_known_property(
     ))
 }
 
-// Find the indentation of the element itself as well as the indentation of properties inside the
-// element. Returns the element indent followed by the block indent
-pub fn find_element_indent(element: &ElementRc) -> Option<String> {
-    let mut token =
-        element.borrow().node.first().and_then(|n| n.first_token()).and_then(|t| t.prev_token());
-    while let Some(t) = token {
-        if t.kind() == SyntaxKind::Whitespace && t.text().contains('\n') {
-            return t.text().split('\n').last().map(|s| s.to_owned());
-        }
-        token = t.prev_token();
-    }
-    None
-}
-
 pub(crate) fn set_binding(
     document_cache: &mut DocumentCache,
     uri: &lsp_types::Url,
@@ -853,27 +839,6 @@ mod tests {
         assert_eq!(r.end.character, 13);
     }
 
-    #[test]
-    fn test_find_element_indent() {
-        let (mut dc, url, _) = loaded_document_cache(
-            r#"component MainWindow inherits Window {
-    VerticalBox {
-        label := Text { text: "text"; }
-    }
-}"#
-            .to_string(),
-        );
-
-        let window = language::element_at_position(&mut dc, &url, &lsp_types::Position::new(0, 30));
-        assert_eq!(find_element_indent(&window.unwrap()), None);
-
-        let vbox = language::element_at_position(&mut dc, &url, &lsp_types::Position::new(1, 4));
-        assert_eq!(find_element_indent(&vbox.unwrap()), Some("    ".to_string()));
-
-        let label = language::element_at_position(&mut dc, &url, &lsp_types::Position::new(2, 17));
-        assert_eq!(find_element_indent(&label.unwrap()), Some("        ".to_string()));
-    }
-
     fn delete_range_test(
         content: String,
         pos_l: u32,
diff --git a/tools/lsp/preview/drop_location.rs b/tools/lsp/preview/drop_location.rs
index 72e65c5a5a0..2b49b69e81d 100644
--- a/tools/lsp/preview/drop_location.rs
+++ b/tools/lsp/preview/drop_location.rs
@@ -90,10 +90,26 @@ pub fn drop_at(
         }
     };
 
+    let indentation = format!(
+        "{}    ",
+        crate::util::find_element_indent(&drop_info.target_element).unwrap_or_default()
+    );
+
+    let component_text = if properties.is_empty() {
+        format!("{}{} {{ }}\n", indentation, component_type)
+    } else {
+        let mut to_insert = format!("{}{} {{\n", indentation, component_type);
+        for (k, v) in &properties {
+            to_insert += &format!("{}    {k}: {v};\n", indentation);
+        }
+        to_insert += &format!("{}}}\n", indentation);
+        to_insert
+    };
+
     Some(crate::common::ComponentAddition {
         component_type,
+        component_text,
         import_path: if import_path.is_empty() { None } else { Some(import_path) },
         insert_position: drop_info.insertion_position,
-        properties,
     })
 }
diff --git a/tools/lsp/util.rs b/tools/lsp/util.rs
index 09976656b8d..a64cbdf416a 100644
--- a/tools/lsp/util.rs
+++ b/tools/lsp/util.rs
@@ -6,7 +6,7 @@ use super::DocumentCache;
 use i_slint_compiler::diagnostics::{DiagnosticLevel, SourceFile, Spanned};
 use i_slint_compiler::langtype::{ElementType, Type};
 use i_slint_compiler::lookup::LookupCtx;
-use i_slint_compiler::object_tree;
+use i_slint_compiler::object_tree::{self, ElementRc};
 use i_slint_compiler::parser::{syntax_nodes, SyntaxKind, SyntaxNode, SyntaxToken};
 use i_slint_compiler::parser::{TextRange, TextSize};
 use i_slint_compiler::typeregister::TypeRegister;
@@ -57,6 +57,20 @@ pub fn last_non_ws_token(node: &SyntaxNode) -> Option<SyntaxToken> {
     last_non_ws
 }
 
+// Find the indentation of the element itself as well as the indentation of properties inside the
+// element. Returns the element indent followed by the block indent
+pub fn find_element_indent(element: &ElementRc) -> Option<String> {
+    let mut token =
+        element.borrow().node.first().and_then(|n| n.first_token()).and_then(|t| t.prev_token());
+    while let Some(t) = token {
+        if t.kind() == SyntaxKind::Whitespace && t.text().contains('\n') {
+            return t.text().split('\n').last().map(|s| s.to_owned());
+        }
+        token = t.prev_token();
+    }
+    None
+}
+
 /// Given a node within an element, return the Type for the Element under that node.
 /// (If node is an element, return the Type for that element, otherwise the type of the element under it)
 /// Will return `Foo` in the following example where `|` is the cursor.
@@ -276,3 +290,32 @@ fn to_lsp_diag_level(level: DiagnosticLevel) -> lsp_types::DiagnosticSeverity {
         _ => lsp_types::DiagnosticSeverity::INFORMATION,
     }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    use crate::language;
+    use crate::language::test::loaded_document_cache;
+
+    #[test]
+    fn test_find_element_indent() {
+        let (mut dc, url, _) = loaded_document_cache(
+            r#"component MainWindow inherits Window {
+    VerticalBox {
+        label := Text { text: "text"; }
+    }
+}"#
+            .to_string(),
+        );
+
+        let window = language::element_at_position(&mut dc, &url, &lsp_types::Position::new(0, 30));
+        assert_eq!(find_element_indent(&window.unwrap()), None);
+
+        let vbox = language::element_at_position(&mut dc, &url, &lsp_types::Position::new(1, 4));
+        assert_eq!(find_element_indent(&vbox.unwrap()), Some("    ".to_string()));
+
+        let label = language::element_at_position(&mut dc, &url, &lsp_types::Position::new(2, 17));
+        assert_eq!(find_element_indent(&label.unwrap()), Some("        ".to_string()));
+    }
+}