diff --git a/parser/src/error.rs b/parser/src/error.rs
index e1e6b2b..091bc77 100644
--- a/parser/src/error.rs
+++ b/parser/src/error.rs
@@ -205,10 +205,22 @@ pub(crate) fn parse_error_from_lalrpop(
                 source_path,
             }
         }
-        LalrpopError::UnrecognizedEOF { location, .. } => ParseError {
-            error: ParseErrorType::Eof,
-            location,
-            source_path,
+        LalrpopError::UnrecognizedEOF { location, expected } => {
+            // This could be an initial indentation error that we should ignore
+            let indent_error = expected == ["Indent"];
+            if indent_error {
+                ParseError {
+                    error: ParseErrorType::Lexical(LexicalErrorType::IndentationError),
+                    location,
+                    source_path,
+                }
+            } else {
+                ParseError {
+                    error: ParseErrorType::Eof,
+                    location,
+                    source_path,
+                }
+            }
         },
     }
 }