diff --git a/lib/rules_block/blockquote.js b/lib/rules_block/blockquote.js
index fcb047c0e..d1057aa2f 100644
--- a/lib/rules_block/blockquote.js
+++ b/lib/rules_block/blockquote.js
@@ -212,7 +212,21 @@ module.exports = function blockquote(state, startLine, endLine, silent) {
         break;
       }
     }
-    if (terminate) { break; }
+
+    if (terminate) {
+      if (oldIndent !== 0) {
+        // state.blkIndent was non-zero, we now set it to zero,
+        // so we need to re-calculate all offsets to appear as
+        // if indent wasn't changed
+        oldBMarks.push(state.bMarks[nextLine]);
+        oldBSCount.push(state.bsCount[nextLine]);
+        oldTShift.push(state.tShift[nextLine]);
+        oldSCount.push(state.sCount[nextLine]);
+        state.sCount[nextLine] -= oldIndent;
+      }
+
+      break;
+    }
 
     oldBMarks.push(state.bMarks[nextLine]);
     oldBSCount.push(state.bsCount[nextLine]);
diff --git a/test/fixtures/markdown-it/commonmark_extras.txt b/test/fixtures/markdown-it/commonmark_extras.txt
index 76f6cc7d7..aca8beb6e 100644
--- a/test/fixtures/markdown-it/commonmark_extras.txt
+++ b/test/fixtures/markdown-it/commonmark_extras.txt
@@ -112,6 +112,27 @@ Regression test (code block + regular paragraph)
 </blockquote>
 .
 
+Blockquotes inside indented lists should terminate correctly
+.
+   - a
+     > b
+     ```
+     c
+     ```
+   - d
+.
+<ul>
+<li>a
+<blockquote>
+<p>b</p>
+</blockquote>
+<pre><code>c
+</code></pre>
+</li>
+<li>d</li>
+</ul>
+.
+
 Don't output empty class here:
 .
 ```&#x20;