diff --git a/Cython/Compiler/Code.pxd b/Cython/Compiler/Code.pxd
index ad44048409b..14400e86d0a 100644
--- a/Cython/Compiler/Code.pxd
+++ b/Cython/Compiler/Code.pxd
@@ -138,6 +138,3 @@ cdef class PyxCodeWriter:
     cdef Py_ssize_t level
     cdef Py_ssize_t original_level
     cdef dict _insertion_points
-
-    @cython.final
-    cdef int _putln(self, line) except -1
diff --git a/Cython/Compiler/Code.py b/Cython/Compiler/Code.py
index d34bda3bc55..bc2ad3813bb 100644
--- a/Cython/Compiler/Code.py
+++ b/Cython/Compiler/Code.py
@@ -3086,22 +3086,23 @@ def getvalue(self):
         return result
 
     def putln(self, line, context=None):
-        context = context or self.context
-        if context:
+        if context is None:
+            if self.context is not None:
+                context = self.context
+        if context is not None:
             line = sub_tempita(line, context)
-        self._putln(line)
-
-    def _putln(self, line):
-        self.buffer.write(f"{self.level * '    '}{line}\n")
+        # Avoid indenting empty lines.
+        self.buffer.write(f"{self.level * '    '}{line}\n" if line else "\n")
 
     def put_chunk(self, chunk, context=None):
-        context = context or self.context
-        if context:
+        if context is None:
+            if self.context is not None:
+                context = self.context
+        if context is not None:
             chunk = sub_tempita(chunk, context)
 
-        chunk = textwrap.dedent(chunk)
-        for line in chunk.splitlines():
-            self._putln(line)
+        chunk = _indent_chunk(chunk, self.level * 4)
+        self.buffer.write(chunk)
 
     def insertion_point(self):
         return type(self)(self.buffer.insertion_point(), self.level, self.context)
@@ -3119,6 +3120,66 @@ def __getitem__(self, name):
         return self._insertion_points[name]
 
 
+@cython.final
+@cython.ccall
+def _indent_chunk(chunk: str, indentation_length: cython.int) -> str:
+    """Normalise leading space to the intended indentation and strip empty lines.
+    """
+    assert '\t' not in chunk
+    lines = chunk.splitlines(keepends=True)
+    if not lines:
+        return chunk
+    last_line = lines[-1].rstrip(' ')
+    if last_line:
+        lines[-1] = last_line
+    else:
+        del lines[-1]
+        if not lines:
+            return '\n'
+
+    # Count minimal (non-empty) indentation and strip empty lines.
+    min_indentation: cython.int = len(chunk) + 1
+    line_indentation: cython.int
+    line: str
+    i: cython.int
+    for i, line in enumerate(lines):
+        line_indentation = _count_indentation(line)
+        if line_indentation + 1 == len(line):
+            lines[i] = '\n'
+        elif line_indentation < min_indentation:
+            min_indentation = line_indentation
+
+    if min_indentation > len(chunk):
+        # All empty lines.
+        min_indentation = 0
+
+    if min_indentation < indentation_length:
+        add_indent = ' ' * (indentation_length - min_indentation)
+        lines = [
+            add_indent + line if line != '\n' else '\n'
+            for line in lines
+        ]
+    elif min_indentation > indentation_length:
+        start: cython.int = min_indentation - indentation_length
+        lines = [
+            line[start:] if line != '\n' else '\n'
+            for line in lines
+        ]
+
+    return ''.join(lines)
+
+
+@cython.exceptval(-1)
+@cython.cfunc
+def _count_indentation(s: str) -> cython.int:
+    i: cython.int = 0
+    ch: cython.Py_UCS4
+    for i, ch in enumerate(s):
+        if ch != ' ':
+            break
+    return i
+
+
 class ClosureTempAllocator:
     def __init__(self, klass):
         self.klass = klass
diff --git a/Cython/Compiler/Tests/TestCode.py b/Cython/Compiler/Tests/TestCode.py
new file mode 100644
index 00000000000..decfbf3946c
--- /dev/null
+++ b/Cython/Compiler/Tests/TestCode.py
@@ -0,0 +1,86 @@
+import textwrap
+from unittest import TestCase
+
+from ..Code import _indent_chunk
+
+class TestIndent(TestCase):
+    def _test_indentations(self, chunk, expected):
+        for indentation in range(16):
+            expected_indented = textwrap.indent(expected, ' ' * indentation)
+            for line in expected_indented.splitlines():
+                # Validate before the comparison that empty lines got stripped also by textwrap.indent().
+                self.assertTrue(line == '' or line.strip(), repr(line))
+
+            with self.subTest(indentation=indentation):
+                result = _indent_chunk(chunk, indentation_length=indentation)
+                self.assertEqual(expected_indented, result)
+
+    def test_indent_empty(self):
+        self._test_indentations('', '')
+
+    def test_indent_empty_lines(self):
+        self._test_indentations('\n', '\n')
+        self._test_indentations('\n'*2, '\n'*2)
+        self._test_indentations('\n'*3, '\n'*3)
+        self._test_indentations(' \n'*2, '\n'*2)
+        self._test_indentations('\n  \n \n    \n', '\n'*4)
+
+    def test_indent_one_line(self):
+        self._test_indentations('abc', 'abc')
+
+    def test_indent_chunk(self):
+        chunk = """
+            x = 1
+            if x == 2:
+                print("False")
+            else:
+                print("True")
+        """
+        expected = """
+x = 1
+if x == 2:
+    print("False")
+else:
+    print("True")
+"""
+        self._test_indentations(chunk, expected)
+
+    def test_indent_empty_line(self):
+        chunk = """
+            x = 1
+
+            if x == 2:
+                print("False")
+            else:
+                print("True")
+        """
+        expected = """
+x = 1
+
+if x == 2:
+    print("False")
+else:
+    print("True")
+"""
+        self._test_indentations(chunk, expected)
+
+    def test_indent_empty_line_unclean(self):
+        lines = """
+            x = 1
+
+            if x == 2:
+                print("False")
+            else:
+                print("True")
+        """.splitlines(keepends=True)
+        lines[2] = '            \n'
+        chunk = ''.join(lines)
+        expected = """
+x = 1
+
+if x == 2:
+    print("False")
+else:
+    print("True")
+"""
+        self._test_indentations(chunk, expected)