diff --git a/js/src/css/beautifier.js b/js/src/css/beautifier.js
index 7c2b4e81..04a33008 100644
--- a/js/src/css/beautifier.js
+++ b/js/src/css/beautifier.js
@@ -392,22 +392,31 @@ Beautifier.prototype.beautify = function() {
       if (this._input.lookBack("url")) {
         this.print_string(this._ch);
         this.eatWhitespace();
+        parenLevel++;
+        this.indent();
         this._ch = this._input.next();
         if (this._ch === ')' || this._ch === '"' || this._ch === '\'') {
           this._input.back();
-          parenLevel++;
         } else if (this._ch) {
           this.print_string(this._ch + this.eatString(')'));
+          if (parenLevel) {
+            parenLevel--;
+            this.outdent();
+          }
         }
       } else {
-        parenLevel++;
         this.preserveSingleSpace(isAfterSpace);
         this.print_string(this._ch);
         this.eatWhitespace();
+        parenLevel++;
+        this.indent();
       }
     } else if (this._ch === ')') {
+      if (parenLevel) {
+        parenLevel--;
+        this.outdent();
+      }
       this.print_string(this._ch);
-      parenLevel = Math.max(parenLevel - 1, 0);
     } else if (this._ch === ',') {
       this.print_string(this._ch);
       this.eatWhitespace(true);
diff --git a/js/test/generated/beautify-css-tests.js b/js/test/generated/beautify-css-tests.js
index 8a71463b..a4f7e8df 100644
--- a/js/test/generated/beautify-css-tests.js
+++ b/js/test/generated/beautify-css-tests.js
@@ -10494,8 +10494,8 @@ function run_css_tests(test_obj, Urlencoded, js_beautify, html_beautify, css_bea
             '}\n' +
             '.set {\n' +
             '    each(@set, {\n' +
-            '        @{key}-@{index}: @value;\n' +
-            '    }\n' +
+            '            @{key}-@{index}: @value;\n' +
+            '        }\n' +
             '    );\n' +
             '}');
         t('@light-blue: @nice-blue + #111;');
diff --git a/python/cssbeautifier/css/beautifier.py b/python/cssbeautifier/css/beautifier.py
index d4955d8e..8a27317c 100644
--- a/python/cssbeautifier/css/beautifier.py
+++ b/python/cssbeautifier/css/beautifier.py
@@ -413,20 +413,27 @@ class Beautifier:
                 if self._input.lookBack("url"):
                     self.print_string(self._ch)
                     self.eatWhitespace()
+                    parenLevel += 1
+                    self.indent()
                     self._ch = self._input.next()
                     if self._ch in {')', '"', '\''}:
                         self._input.back()
-                        parenLevel += 1
                     elif self._ch is not None:
                         self.print_string(self._ch + self.eatString(')'))
+                        if parenLevel:
+                            parenLevel -= 1
+                            self.outdent()
                 else:
-                    parenLevel += 1
                     self.preserveSingleSpace(isAfterSpace)
                     self.print_string(self._ch)
                     self.eatWhitespace()
+                    parenLevel += 1
+                    self.indent()
             elif self._ch == ')':
+                if parenLevel:
+                    parenLevel -= 1
+                    self.outdent()
                 self.print_string(self._ch)
-                parenLevel = max(parenLevel - 1, 0)
             elif self._ch == ',':
                 self.print_string(self._ch)
                 self.eatWhitespace(True)
diff --git a/python/cssbeautifier/tests/generated/tests.py b/python/cssbeautifier/tests/generated/tests.py
index 792ba8d5..918b03b2 100644
--- a/python/cssbeautifier/tests/generated/tests.py
+++ b/python/cssbeautifier/tests/generated/tests.py
@@ -10379,8 +10379,8 @@ class CSSBeautifierTest(unittest.TestCase):
             '}\n' +
             '.set {\n' +
             '    each(@set, {\n' +
-            '        @{key}-@{index}: @value;\n' +
-            '    }\n' +
+            '            @{key}-@{index}: @value;\n' +
+            '        }\n' +
             '    );\n' +
             '}')
         t('@light-blue: @nice-blue + #111;')
diff --git a/test/data/css/tests.js b/test/data/css/tests.js
index f7d1802a..57f3cb72 100644
--- a/test/data/css/tests.js
+++ b/test/data/css/tests.js
@@ -1297,9 +1297,8 @@ exports.test_data = {
             '}',
             '.set {',
             '    each(@set, {',
-            '        @{key}-@{index}: @value;',
-            '    }',
-            // This is not optimal formatting, included to document current behavior.
+            '            @{key}-@{index}: @value;',
+            '        }',
             '    );',
             '}'
           ]