diff --git a/src/plugins/fakevim/fakevimplugin.cpp b/src/plugins/fakevim/fakevimplugin.cpp
index 4bb47b9c152..9924d09bc7e 100644
--- a/src/plugins/fakevim/fakevimplugin.cpp
+++ b/src/plugins/fakevim/fakevimplugin.cpp
@@ -288,7 +288,8 @@ void FakeVimOptionPage::copyTextEditorSettings()
     m_ui.checkBoxExpandTab->setChecked(ts.m_spacesForTabs);
     m_ui.spinBoxTabStop->setValue(ts.m_tabSize);
     m_ui.spinBoxShiftWidth->setValue(ts.m_indentSize);
-    m_ui.checkBoxSmartTab->setChecked(ts.m_smartBackspace);
+    m_ui.checkBoxSmartTab->setChecked(
+        ts.m_smartBackspaceBehavior == TabSettings::BackspaceFollowsPreviousIndents);
     m_ui.checkBoxAutoIndent->setChecked(true);
     m_ui.checkBoxSmartIndent->setChecked(ts.m_autoIndent);
     m_ui.checkBoxIncSearch->setChecked(true);
diff --git a/src/plugins/texteditor/basetexteditor.cpp b/src/plugins/texteditor/basetexteditor.cpp
index f08fa5ff1a0..b9a93ee844b 100644
--- a/src/plugins/texteditor/basetexteditor.cpp
+++ b/src/plugins/texteditor/basetexteditor.cpp
@@ -4529,12 +4529,12 @@ void BaseTextEditorWidget::handleBackspaceKey()
         return;
 
     bool handled = false;
-    if (!tabSettings.m_smartBackspace) {
+    if (tabSettings.m_smartBackspaceBehavior == TabSettings::BackspaceNeverIndents) {
         if (cursorWithinSnippet)
             cursor.beginEditBlock();
         cursor.deletePreviousChar();
         handled = true;
-    } else {
+    } else if (tabSettings.m_smartBackspaceBehavior == TabSettings::BackspaceFollowsPreviousIndents) {
         QTextBlock currentBlock = cursor.block();
         int positionInBlock = pos - currentBlock.position();
         const QString blockText = currentBlock.text();
@@ -4544,9 +4544,12 @@ void BaseTextEditorWidget::handleBackspaceKey()
             cursor.deletePreviousChar();
             handled = true;
         } else {
+            if (cursorWithinSnippet) {
+                d->m_snippetOverlay->clear();
+                cursorWithinSnippet = false;
+            }
             int previousIndent = 0;
             const int indent = tabSettings.columnAt(blockText, positionInBlock);
-
             for (QTextBlock previousNonEmptyBlock = currentBlock.previous();
                  previousNonEmptyBlock.isValid();
                  previousNonEmptyBlock = previousNonEmptyBlock.previous()) {
@@ -4554,8 +4557,8 @@ void BaseTextEditorWidget::handleBackspaceKey()
                 if (previousNonEmptyBlockText.trimmed().isEmpty())
                     continue;
                 previousIndent =
-                    tabSettings.columnAt(previousNonEmptyBlockText,
-                                         tabSettings.firstNonSpace(previousNonEmptyBlockText));
+                        tabSettings.columnAt(previousNonEmptyBlockText,
+                                             tabSettings.firstNonSpace(previousNonEmptyBlockText));
                 if (previousIndent < indent) {
                     cursor.beginEditBlock();
                     cursor.setPosition(currentBlock.position(), QTextCursor::KeepAnchor);
@@ -4566,6 +4569,19 @@ void BaseTextEditorWidget::handleBackspaceKey()
                 }
             }
         }
+    } else if (tabSettings.m_smartBackspaceBehavior == TabSettings::BackspaceUnindents) {
+        if (!pos || !characterAt(pos - 1).isSpace()) {
+            if (cursorWithinSnippet)
+                cursor.beginEditBlock();
+            cursor.deletePreviousChar();
+        } else {
+            if (cursorWithinSnippet) {
+                d->m_snippetOverlay->clear();
+                cursorWithinSnippet = false;
+            }
+            indentOrUnindent(false);
+        }
+        handled = true;
     }
 
     if (!handled) {
diff --git a/src/plugins/texteditor/tabsettings.cpp b/src/plugins/texteditor/tabsettings.cpp
index 447eeea534b..09c7bf04743 100644
--- a/src/plugins/texteditor/tabsettings.cpp
+++ b/src/plugins/texteditor/tabsettings.cpp
@@ -42,7 +42,7 @@
 
 static const char spacesForTabsKey[] = "SpacesForTabs";
 static const char autoSpacesForTabsKey[] = "AutoSpacesForTabs";
-static const char smartBackspaceKey[] = "SmartBackspace";
+static const char smartBackspaceBehaviorKey[] = "SmartBackspaceBehavior";
 static const char autoIndentKey[] = "AutoIndent";
 static const char tabSizeKey[] = "TabSize";
 static const char indentSizeKey[] = "IndentSize";
@@ -58,11 +58,11 @@ TabSettings::TabSettings() :
     m_spacesForTabs(true),
     m_autoSpacesForTabs(false),
     m_autoIndent(true),
-    m_smartBackspace(false),
     m_tabSize(8),
     m_indentSize(4),
     m_tabKeyBehavior(TabNeverIndents),
-    m_continuationAlignBehavior(ContinuationAlignWithSpaces)
+    m_continuationAlignBehavior(ContinuationAlignWithSpaces),
+    m_smartBackspaceBehavior(BackspaceNeverIndents)
 {
 }
 
@@ -82,7 +82,7 @@ void TabSettings::toMap(const QString &prefix, QVariantMap *map) const
     map->insert(prefix + QLatin1String(spacesForTabsKey), m_spacesForTabs);
     map->insert(prefix + QLatin1String(autoSpacesForTabsKey), m_autoSpacesForTabs);
     map->insert(prefix + QLatin1String(autoIndentKey), m_autoIndent);
-    map->insert(prefix + QLatin1String(smartBackspaceKey), m_smartBackspace);
+    map->insert(prefix + QLatin1String(smartBackspaceBehaviorKey), m_smartBackspaceBehavior);
     map->insert(prefix + QLatin1String(tabSizeKey), m_tabSize);
     map->insert(prefix + QLatin1String(indentSizeKey), m_indentSize);
     map->insert(prefix + QLatin1String(tabKeyBehaviorKey), m_tabKeyBehavior);
@@ -96,8 +96,9 @@ void TabSettings::fromMap(const QString &prefix, const QVariantMap &map)
     m_autoSpacesForTabs =
         map.value(prefix + QLatin1String(autoSpacesForTabsKey), m_autoSpacesForTabs).toBool();
     m_autoIndent = map.value(prefix + QLatin1String(autoIndentKey), m_autoIndent).toBool();
-    m_smartBackspace =
-            map.value(prefix + QLatin1String(smartBackspaceKey), m_smartBackspace).toBool();
+    m_smartBackspaceBehavior = (SmartBackspaceBehavior)
+        map.value(prefix + QLatin1String(smartBackspaceBehaviorKey),
+                  m_smartBackspaceBehavior).toInt();
     m_tabSize = map.value(prefix + QLatin1String(tabSizeKey), m_tabSize).toInt();
     m_indentSize = map.value(prefix + QLatin1String(indentSizeKey), m_indentSize).toInt();
     m_tabKeyBehavior = (TabKeyBehavior)
@@ -396,7 +397,7 @@ bool TabSettings::equals(const TabSettings &ts) const
     return m_spacesForTabs == ts.m_spacesForTabs
         && m_autoSpacesForTabs == ts.m_autoSpacesForTabs
         && m_autoIndent == ts.m_autoIndent
-        && m_smartBackspace == ts.m_smartBackspace
+        && m_smartBackspaceBehavior == ts.m_smartBackspaceBehavior
         && m_tabSize == ts.m_tabSize
         && m_indentSize == ts.m_indentSize
         && m_tabKeyBehavior == ts.m_tabKeyBehavior
diff --git a/src/plugins/texteditor/tabsettings.h b/src/plugins/texteditor/tabsettings.h
index 26a1c6f7ec6..885f4b23308 100644
--- a/src/plugins/texteditor/tabsettings.h
+++ b/src/plugins/texteditor/tabsettings.h
@@ -63,6 +63,13 @@ public:
         ContinuationAlignWithIndent = 2
     };
 
+    // This enum must match the indexes of smartBackspaceBehavior widget
+    enum SmartBackspaceBehavior {
+        BackspaceNeverIndents = 0,
+        BackspaceFollowsPreviousIndents = 1,
+        BackspaceUnindents = 2
+    };
+
     TabSettings();
 
     void toSettings(const QString &category, QSettings *s) const;
@@ -96,11 +103,11 @@ public:
     bool m_spacesForTabs;
     bool m_autoSpacesForTabs;
     bool m_autoIndent;
-    bool m_smartBackspace;
     int m_tabSize;
     int m_indentSize;
     TabKeyBehavior m_tabKeyBehavior;
     ContinuationAlignBehavior m_continuationAlignBehavior;
+    SmartBackspaceBehavior m_smartBackspaceBehavior;
 
     bool equals(const TabSettings &ts) const;
 };
diff --git a/src/plugins/texteditor/tabsettingswidget.cpp b/src/plugins/texteditor/tabsettingswidget.cpp
index 60cc37caf87..fea3255cba0 100644
--- a/src/plugins/texteditor/tabsettingswidget.cpp
+++ b/src/plugins/texteditor/tabsettingswidget.cpp
@@ -52,7 +52,7 @@ TabSettingsWidget::TabSettingsWidget(QWidget *parent) :
             this, SLOT(slotSettingsChanged()));
     connect(ui->autoIndent, SIGNAL(toggled(bool)),
             this, SLOT(slotSettingsChanged()));
-    connect(ui->smartBackspace, SIGNAL(toggled(bool)),
+    connect(ui->smartBackspaceBehavior, SIGNAL(currentIndexChanged(int)),
             this, SLOT(slotSettingsChanged()));
     connect(ui->tabSize, SIGNAL(valueChanged(int)),
             this, SLOT(slotSettingsChanged()));
@@ -77,7 +77,7 @@ void TabSettingsWidget::setSettings(const TextEditor::TabSettings& s)
     ui->insertSpaces->setChecked(s.m_spacesForTabs);
     ui->autoInsertSpaces->setChecked(s.m_autoSpacesForTabs);
     ui->autoIndent->setChecked(s.m_autoIndent);
-    ui->smartBackspace->setChecked(s.m_smartBackspace);
+    ui->smartBackspaceBehavior->setCurrentIndex(s.m_smartBackspaceBehavior);
     ui->tabSize->setValue(s.m_tabSize);
     ui->indentSize->setValue(s.m_indentSize);
     ui->tabKeyBehavior->setCurrentIndex(s.m_tabKeyBehavior);
@@ -94,11 +94,13 @@ TabSettings TabSettingsWidget::settings() const
     set.m_spacesForTabs = ui->insertSpaces->isChecked();
     set.m_autoSpacesForTabs = ui->autoInsertSpaces->isChecked();
     set.m_autoIndent = ui->autoIndent->isChecked();
-    set.m_smartBackspace = ui->smartBackspace->isChecked();
+    set.m_smartBackspaceBehavior =
+        (TabSettings::SmartBackspaceBehavior)ui->smartBackspaceBehavior->currentIndex();
     set.m_tabSize = ui->tabSize->value();
     set.m_indentSize = ui->indentSize->value();
     set.m_tabKeyBehavior = (TabSettings::TabKeyBehavior)(ui->tabKeyBehavior->currentIndex());
-    set.m_continuationAlignBehavior = (TabSettings::ContinuationAlignBehavior)(ui->continuationAlignBehavior->currentIndex());
+    set.m_continuationAlignBehavior =
+        (TabSettings::ContinuationAlignBehavior)(ui->continuationAlignBehavior->currentIndex());
 
     return set;
 }
@@ -124,7 +126,7 @@ QString TabSettingsWidget::searchKeywords() const
             << sep << ui->insertSpaces->text()
             << sep << ui->autoInsertSpaces->text()
             << sep << ui->autoIndent->text()
-            << sep << ui->smartBackspace->text()
+            << sep << ui->smartBackspaceLabel->text()
             << sep << ui->tabSizeLabel->text()
             << sep << ui->indentSizeLabel->text()
             << sep << ui->tabKeyBehaviorLabel->text()
diff --git a/src/plugins/texteditor/tabsettingswidget.ui b/src/plugins/texteditor/tabsettingswidget.ui
index 63494f7b8ab..3b0d91ce495 100644
--- a/src/plugins/texteditor/tabsettingswidget.ui
+++ b/src/plugins/texteditor/tabsettingswidget.ui
@@ -166,24 +166,14 @@
         </property>
        </widget>
       </item>
-      <item row="4" column="0" colspan="3">
-       <widget class="QCheckBox" name="smartBackspace">
-        <property name="toolTip">
-         <string>Backspace will go back one indentation level instead of one space.</string>
-        </property>
-        <property name="text">
-         <string>&amp;Backspace follows indentation</string>
-        </property>
-       </widget>
-      </item>
-      <item row="5" column="0" colspan="2">
+      <item row="6" column="0" colspan="2">
        <widget class="QLabel" name="continuationAlignBehaviorLabel">
         <property name="text">
          <string>Align continuation lines:</string>
         </property>
        </widget>
       </item>
-      <item row="6" column="1">
+      <item row="7" column="1">
        <widget class="QComboBox" name="continuationAlignBehavior">
         <property name="toolTip">
          <string>&lt;html&gt;&lt;head/&gt;&lt;body&gt;
@@ -229,14 +219,14 @@ Influences the indentation of continuation lines.
         </item>
        </widget>
       </item>
-      <item row="7" column="0" colspan="2">
+      <item row="8" column="0" colspan="2">
        <widget class="QLabel" name="tabKeyBehaviorLabel">
         <property name="text">
          <string>Tab key performs auto-indent:</string>
         </property>
        </widget>
       </item>
-      <item row="8" column="1">
+      <item row="9" column="1">
        <widget class="QComboBox" name="tabKeyBehavior">
         <item>
          <property name="text">
@@ -255,7 +245,7 @@ Influences the indentation of continuation lines.
         </item>
        </widget>
       </item>
-      <item row="9" column="1">
+      <item row="10" column="1">
        <spacer name="verticalSpacer_2">
         <property name="orientation">
          <enum>Qt::Vertical</enum>
@@ -268,6 +258,48 @@ Influences the indentation of continuation lines.
         </property>
        </spacer>
       </item>
+      <item row="4" column="0" colspan="2">
+       <widget class="QLabel" name="smartBackspaceLabel">
+        <property name="text">
+         <string>Backspace indentation:</string>
+        </property>
+       </widget>
+      </item>
+      <item row="5" column="1">
+       <widget class="QComboBox" name="smartBackspaceBehavior">
+        <property name="toolTip">
+         <string>&lt;html&gt;&lt;head/&gt;&lt;body&gt;
+Specifies how backspace interacts with indentation.
+
+&lt;ul&gt;
+&lt;li&gt;None: No interaction at all. Regular plain backspace behavior.
+&lt;/li&gt;
+
+&lt;li&gt;Follows Previous Indents: In leading white space it will take the cursor back to the nearest indentation level used in previous lines.
+&lt;/li&gt;
+
+&lt;li&gt;Unindents: If the character behind the cursor is a space it behaves as a backtab.
+&lt;/li&gt;
+&lt;/ul&gt;&lt;/body&gt;&lt;/html&gt;
+</string>
+        </property>
+        <item>
+         <property name="text">
+          <string>None</string>
+         </property>
+        </item>
+        <item>
+         <property name="text">
+          <string>Follows Previous Indents</string>
+         </property>
+        </item>
+        <item>
+         <property name="text">
+          <string>Unindents</string>
+         </property>
+        </item>
+       </widget>
+      </item>
      </layout>
     </widget>
    </item>
@@ -279,7 +311,6 @@ Influences the indentation of continuation lines.
   <tabstop>tabSize</tabstop>
   <tabstop>indentSize</tabstop>
   <tabstop>autoIndent</tabstop>
-  <tabstop>smartBackspace</tabstop>
   <tabstop>continuationAlignBehavior</tabstop>
   <tabstop>tabKeyBehavior</tabstop>
  </tabstops>