diff --git a/compiler/parse/src/expr.rs b/compiler/parse/src/expr.rs
index 5e3463604e..03006199d2 100644
--- a/compiler/parse/src/expr.rs
+++ b/compiler/parse/src/expr.rs
@@ -9,8 +9,9 @@ use crate::ident::{global_tag_or_ident, ident, lowercase_ident, Ident};
 use crate::keyword;
 use crate::number_literal::number_literal;
 use crate::parser::{
-    self, allocated, ascii_char, ascii_string, fail, not, not_followed_by, optional, sep_by1, then,
-    unexpected, unexpected_eof, Either, Fail, FailReason, ParseResult, Parser, State,
+    self, allocated, ascii_char, ascii_string, fail, newline_char, not, not_followed_by, optional,
+    sep_by1, then, unexpected, unexpected_eof, Either, Fail, FailReason, ParseResult, Parser,
+    State,
 };
 use crate::type_annotation;
 use bumpalo::collections::string::String;
@@ -552,7 +553,7 @@ fn spaces_then_comment_or_newline<'a>() -> impl Parser<'a, Option<&'a str>> {
     skip_first!(
         zero_or_more!(ascii_char(' ')),
         map!(
-            either!(ascii_char('\n'), line_comment()),
+            either!(newline_char(), line_comment()),
             |either_comment_or_newline| match either_comment_or_newline {
                 Either::First(_) => None,
                 Either::Second(comment) => Some(comment),
@@ -1444,8 +1445,11 @@ fn unary_negate_function_arg<'a>(min_indent: u16) -> impl Parser<'a, Located<Exp
             one_of!(
                 ascii_char(b' '),
                 ascii_char(b'#'),
-                ascii_char(b'\n'),
+                newline_char(),
                 ascii_char(b'>')
+                ascii_char(' '),
+                ascii_char('#'),
+                ascii_char('>')
             ),
         ),
         move |arena, state, (spaces, num_or_minus_char)| {
diff --git a/compiler/parse/src/parser.rs b/compiler/parse/src/parser.rs
index 16e304c39f..4aa3e57073 100644
--- a/compiler/parse/src/parser.rs
+++ b/compiler/parse/src/parser.rs
@@ -432,8 +432,12 @@ fn line_too_long(attempting: Attempting, state: State<'_>) -> (Fail, State<'_>)
     (fail, state)
 }
 
-/// A single ASCII char.
+/// A single ASCII char that isn't a newline.
+/// (For newlines, use newline_char(), which handles line numbers)
 pub fn ascii_char<'a>(expected: u8) -> impl Parser<'a, ()> {
+    // Make sure this really is not a newline!
+    debug_assert_ne!(expected, '\n');
+
     move |_arena, state: State<'a>| match state.bytes.first() {
         Some(&actual) if expected == actual => Ok(((), state.advance_without_indenting(1)?)),
         Some(_) => Err(unexpected(0, state, Attempting::Keyword)),
@@ -441,6 +445,17 @@ pub fn ascii_char<'a>(expected: u8) -> impl Parser<'a, ()> {
     }
 }
 
+/// A single '\n' character.
+/// Use this instead of ascii_char('\n') because it properly handles
+/// incrementing the line number.
+pub fn newline_char<'a>() -> impl Parser<'a, ()> {
+    move |_arena, state: State<'a>| match state.bytes.first() {
+        Some(b'\n') => Ok(((), state.newline()?)),
+        Some(_) => Err(unexpected(0, state, Attempting::Keyword)),
+        _ => Err(unexpected_eof(0, Attempting::Keyword, state)),
+    }
+}
+
 /// One or more ASCII hex digits. (Useful when parsing unicode escape codes,
 /// which must consist entirely of ASCII hex digits.)
 pub fn ascii_hex_digits<'a>() -> impl Parser<'a, &'a str> {