diff --git a/package.json b/package.json
index 9ed6864b..d8626bb3 100644
--- a/package.json
+++ b/package.json
@@ -27,6 +27,7 @@
   },
   "dependencies": {
     "ajv": "^8.11.0",
+    "fast-uri": "^3.0.6",
     "lodash": "4.17.21",
     "prettier": "^3.0.0",
     "request-light": "^0.5.7",
diff --git a/src/languageservice/services/yamlOnTypeFormatting.ts b/src/languageservice/services/yamlOnTypeFormatting.ts
index 1d2b1cec..7bb9e49e 100644
--- a/src/languageservice/services/yamlOnTypeFormatting.ts
+++ b/src/languageservice/services/yamlOnTypeFormatting.ts
@@ -50,4 +50,14 @@ export function doDocumentOnTypeFormatting(
       return [TextEdit.insert(position, '  ')];
     }
   }
+
+  if (params.ch === '\t' && params.options.insertSpaces) {
+    return [
+      TextEdit.replace(
+        Range.create(position.line, position.character - 1, position.line, position.character),
+        ' '.repeat(params.options.tabSize)
+      ),
+    ];
+  }
+  return;
 }
diff --git a/src/yamlServerInit.ts b/src/yamlServerInit.ts
index 9640e48d..8e0a7e77 100644
--- a/src/yamlServerInit.ts
+++ b/src/yamlServerInit.ts
@@ -105,6 +105,7 @@ export class YAMLServerInit {
         documentFormattingProvider: false,
         documentOnTypeFormattingProvider: {
           firstTriggerCharacter: '\n',
+          moreTriggerCharacter: ['\t'],
         },
         documentRangeFormattingProvider: false,
         definitionProvider: true,
diff --git a/test/yamlOnTypeFormatting.test.ts b/test/yamlOnTypeFormatting.test.ts
index 6984a481..cbd81c15 100644
--- a/test/yamlOnTypeFormatting.test.ts
+++ b/test/yamlOnTypeFormatting.test.ts
@@ -17,58 +17,66 @@ function createParams(position: Position): DocumentOnTypeFormattingParams {
   };
 }
 describe('YAML On Type Formatter', () => {
-  it('should react on "\n" only', () => {
-    const doc = setupTextDocument('foo:');
-    const params = createParams(Position.create(1, 0));
-    params.ch = '\t';
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result).is.undefined;
-  });
+  describe('On Enter Formatter', () => {
+    it('should add indentation for mapping', () => {
+      const doc = setupTextDocument('foo:\n');
+      const params = createParams(Position.create(1, 0));
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result).to.deep.include(TextEdit.insert(Position.create(1, 0), '  '));
+    });
 
-  it('should add indentation for mapping', () => {
-    const doc = setupTextDocument('foo:\n');
-    const params = createParams(Position.create(1, 0));
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result).to.deep.include(TextEdit.insert(Position.create(1, 0), '  '));
-  });
+    it('should add indentation for scalar array items', () => {
+      const doc = setupTextDocument('foo:\n  - some\n  ');
+      const pos = Position.create(2, 2);
+      const params = createParams(pos);
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result[0]).to.eqls(TextEdit.insert(pos, '- '));
+    });
 
-  it('should add indentation for scalar array items', () => {
-    const doc = setupTextDocument('foo:\n  - some\n  ');
-    const pos = Position.create(2, 2);
-    const params = createParams(pos);
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result[0]).to.eqls(TextEdit.insert(pos, '- '));
-  });
+    it('should add indentation for mapping in array', () => {
+      const doc = setupTextDocument('some:\n  - arr:\n  ');
+      const pos = Position.create(2, 2);
+      const params = createParams(pos);
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result).to.deep.include(TextEdit.insert(pos, '    '));
+    });
 
-  it('should add indentation for mapping in array', () => {
-    const doc = setupTextDocument('some:\n  - arr:\n  ');
-    const pos = Position.create(2, 2);
-    const params = createParams(pos);
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result).to.deep.include(TextEdit.insert(pos, '    '));
-  });
+    it('should replace all spaces in newline', () => {
+      const doc = setupTextDocument('some:\n    ');
+      const pos = Position.create(1, 0);
+      const params = createParams(pos);
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result).to.deep.include.members([
+        TextEdit.del(Range.create(pos, Position.create(1, 3))),
+        TextEdit.insert(pos, '  '),
+      ]);
+    });
 
-  it('should replace all spaces in newline', () => {
-    const doc = setupTextDocument('some:\n    ');
-    const pos = Position.create(1, 0);
-    const params = createParams(pos);
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result).to.deep.include.members([TextEdit.del(Range.create(pos, Position.create(1, 3))), TextEdit.insert(pos, '  ')]);
-  });
+    it('should keep all non white spaces characters in newline', () => {
+      const doc = setupTextDocument('some:\n  foo');
+      const pos = Position.create(1, 0);
+      const params = createParams(pos);
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result).is.undefined;
+    });
 
-  it('should keep all non white spaces characters in newline', () => {
-    const doc = setupTextDocument('some:\n  foo');
-    const pos = Position.create(1, 0);
-    const params = createParams(pos);
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result).is.undefined;
+    it('should add indentation for multiline string', () => {
+      const doc = setupTextDocument('some: |\n');
+      const pos = Position.create(1, 0);
+      const params = createParams(pos);
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result).to.deep.include(TextEdit.insert(pos, '  '));
+    });
   });
 
-  it('should add indentation for multiline string', () => {
-    const doc = setupTextDocument('some: |\n');
-    const pos = Position.create(1, 0);
-    const params = createParams(pos);
-    const result = doDocumentOnTypeFormatting(doc, params);
-    expect(result).to.deep.include(TextEdit.insert(pos, '  '));
+  describe('On Tab Formatter', () => {
+    it('should replace Tab with spaces', () => {
+      const doc = setupTextDocument('some:\n\t');
+      const pos = Position.create(1, 1);
+      const params = createParams(pos);
+      params.ch = '\t';
+      const result = doDocumentOnTypeFormatting(doc, params);
+      expect(result).to.deep.include(TextEdit.replace(Range.create(1, 0, 1, 1), '  '));
+    });
   });
 });
diff --git a/yarn.lock b/yarn.lock
index ee1d8f79..d04b390e 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1517,6 +1517,11 @@ fast-levenshtein@^2.0.6:
   resolved "https://registry.npmjs.org/fast-levenshtein/-/fast-levenshtein-2.0.6.tgz"
   integrity sha1-PYpcZog6FqMMqGQ+hR8Zuqd5eRc=
 
+fast-uri@^3.0.6:
+  version "3.0.6"
+  resolved "https://registry.yarnpkg.com/fast-uri/-/fast-uri-3.0.6.tgz#88f130b77cfaea2378d56bf970dea21257a68748"
+  integrity sha512-Atfo14OibSv5wAp4VWNsFYE1AchQRTv9cBGWET4pZWHzYshFSS9NQI6I57rdKn9croWVMbYFbLhJ+yJvmZIIHw==
+
 fastq@^1.6.0:
   version "1.13.0"
   resolved "https://registry.yarnpkg.com/fastq/-/fastq-1.13.0.tgz#616760f88a7526bdfc596b7cab8c18938c36b98c"