diff --git a/src/plugins/qmldesigner/components/integration/designdocument.cpp b/src/plugins/qmldesigner/components/integration/designdocument.cpp
index a5d904c495a..8b8b3b91253 100644
--- a/src/plugins/qmldesigner/components/integration/designdocument.cpp
+++ b/src/plugins/qmldesigner/components/integration/designdocument.cpp
@@ -279,6 +279,7 @@ bool DesignDocument::isDocumentLoaded() const
 
 void DesignDocument::resetToDocumentModel()
 {
+    plainTextEdit()->document()->clearUndoRedoStacks();
     m_inFileComponentModel.reset();
 }
 
@@ -310,6 +311,8 @@ void DesignDocument::changeToDocumentModel()
     viewManager().detachRewriterView();
     viewManager().detachViewsExceptRewriterAndComponetView();
 
+    plainTextEdit()->document()->clearUndoRedoStacks();
+
     m_inFileComponentModel.reset();
     m_inFileComponentTextModifier.reset();
 
@@ -345,6 +348,8 @@ void DesignDocument::changeToInFileComponentModel(ComponentTextModifier *textMod
     viewManager().detachRewriterView();
     viewManager().detachViewsExceptRewriterAndComponetView();
 
+    plainTextEdit()->document()->clearUndoRedoStacks();
+
     m_inFileComponentModel.reset(createInFileComponentModel());
     m_inFileComponentModel->setTextModifier(m_inFileComponentTextModifier.data());
 
diff --git a/src/plugins/qmldesigner/designercore/model/componenttextmodifier.cpp b/src/plugins/qmldesigner/designercore/model/componenttextmodifier.cpp
index 6aca50c4334..aaccaee40db 100644
--- a/src/plugins/qmldesigner/designercore/model/componenttextmodifier.cpp
+++ b/src/plugins/qmldesigner/designercore/model/componenttextmodifier.cpp
@@ -160,40 +160,65 @@ void ComponentTextModifier::handleOriginalTextChanged()
 
     const QString currentText = m_originalModifier->text();
 
-    // Adjust for removal/addition of whitespace in the document
-    // Check that non-whitespace portion of the text is the same and count the whitespace diff
     const int oldLen = m_originalText.size();
     const int newLen = currentText.size();
-    int newSpace = 0;
-    int oldSpace = 0;
-    int newIdx = 0;
-    for (int oldIdx = 0; oldIdx < oldLen; ++oldIdx) {
-        const QChar oldChar = m_originalText[oldIdx];
-        if (oldIdx == m_componentStartOffset)
-            m_componentStartOffset += newSpace - oldSpace;
-        if (oldIdx == m_componentEndOffset) {
-            m_componentEndOffset += newSpace - oldSpace;
-            break;
+
+    if (oldLen != newLen) {
+        int newSpace = 0;
+        int oldSpace = 0;
+        int newIdx = 0;
+        int nonWhiteSpaceChangeIdx = -1;
+        int newStartOffset = m_componentStartOffset;
+
+        // Adjust for removal/addition of whitespace in the document.
+        // Whitespace changes that happen when document is saved can be spread around throughout
+        // the entire document in multiple places.
+        // Check that non-whitespace portion of the text is the same and count the whitespace diff
+        for (int oldIdx = 0; oldIdx < oldLen; ++oldIdx) {
+            const QChar oldChar = m_originalText[oldIdx];
+            if (oldIdx == m_componentStartOffset)
+                newStartOffset += newSpace - oldSpace;
+            if (oldIdx == m_componentEndOffset) {
+                m_componentEndOffset += newSpace - oldSpace;
+                m_componentStartOffset = newStartOffset;
+                m_originalText = currentText;
+                break;
+            }
+
+            while (newIdx < newLen && currentText[newIdx].isSpace()) {
+                ++newSpace;
+                ++newIdx;
+            }
+
+            if (oldChar.isSpace()) {
+                ++oldSpace;
+                continue;
+            }
+
+            if (currentText[newIdx] != oldChar) {
+                nonWhiteSpaceChangeIdx = oldIdx;
+                // A non-whitespace change is a result of manual text edit or undo/redo operation.
+                // Assumption is that separate whitespace changes and a non-whitespace change can't
+                // both happen simultaneously, so break out of whitespace check loop.
+                break;
+            } else {
+                ++newIdx;
+            }
         }
 
-        while (newIdx < newLen && currentText[newIdx].isSpace()) {
-            ++newSpace;
-            ++newIdx;
+        if (nonWhiteSpaceChangeIdx >= 0) {
+            // For non-whitespace change, we assume the whole change is either before the component
+            // or inside the component. If the change spans both, it's likely the change is
+            // invalid anyway, and we don't care about trying to keep offsets up to date.
+            int diff = newLen - oldLen;
+            if (nonWhiteSpaceChangeIdx < m_componentEndOffset)
+                m_componentEndOffset += diff;
+            if (nonWhiteSpaceChangeIdx < m_componentStartOffset)
+                m_componentStartOffset += diff;
+            m_originalText = currentText;
         }
 
-        if (oldChar.isSpace()) {
-            ++oldSpace;
-            continue;
-        }
-
-        if (currentText[newIdx] != oldChar) {
-            // Non-whitespace difference, we can't determine a valid offset in this case
-            // TODO: Needs proper handling to deal with undo/redo/arbitrary edits somehow (QDS-5392)
-            break;
-        } else {
-            ++newIdx;
-        }
     }
-    m_originalText = currentText;
+
     emit textChanged();
 }