diff --git a/src/calibre/ebooks/pdb/input.py b/src/calibre/ebooks/pdb/input.py
index 3ad1a6121c..8f4751b42b 100644
--- a/src/calibre/ebooks/pdb/input.py
+++ b/src/calibre/ebooks/pdb/input.py
@@ -22,6 +22,12 @@ class PDBInput(InputFormatPlugin):
             help=_('Normally calibre treats blank lines as paragraph markers. '
                 'With this option it will assume that every line represents '
                 'a paragraph instead.')),
+        OptionRecommendation(name='print_formatted_paras', recommended_value=False,
+            help=_('Normally calibre treats blank lines as paragraph markers. '
+                'With this option it will assume that every line starting with '
+                'an indent (either a tab or 2+ spaces) represents a paragraph.'
+                'Paragraphs end when the next line that starts with an indent '
+                'is reached.')),
     ])
 
     def convert(self, stream, options, file_ext, log,
diff --git a/src/calibre/ebooks/pdb/palmdoc/reader.py b/src/calibre/ebooks/pdb/palmdoc/reader.py
index 8992382597..aaa121f1ed 100644
--- a/src/calibre/ebooks/pdb/palmdoc/reader.py
+++ b/src/calibre/ebooks/pdb/palmdoc/reader.py
@@ -13,8 +13,8 @@ import struct
 
 from calibre.ebooks.compression.palmdoc import decompress_doc
 from calibre.ebooks.pdb.formatreader import FormatReader
-from calibre.ebooks.txt.processor import convert_basic, separate_paragraphs, \
-    opf_writer
+from calibre.ebooks.txt.processor import convert_basic, opf_writer, \
+    separate_paragraphs_single_line
 
 class HeaderRecord(object):
     '''
@@ -36,6 +36,7 @@ class Reader(FormatReader):
         self.log = log
         self.encoding = options.input_encoding
         self.single_line_paras = options.single_line_paras
+        self.print_formatted_paras = options.print_formatted_paras
 
         self.sections = []
         for i in range(header.num_sections):
@@ -63,7 +64,9 @@ class Reader(FormatReader):
 
         self.log.info('Converting text to OEB...')
         if self.single_line_paras:
-            txt = separate_paragraphs(txt)
+            txt = separate_paragraphs_single_line(txt)
+        if self.print_formatted_paras:
+            txt = separate_paragraphs_print_formatted(txt)
         html = convert_basic(txt)
         with open(os.path.join(output_dir, 'index.html'), 'wb') as index:
             index.write(html.encode('utf-8'))
diff --git a/src/calibre/ebooks/pdb/ztxt/reader.py b/src/calibre/ebooks/pdb/ztxt/reader.py
index 664f498bee..4379159d81 100644
--- a/src/calibre/ebooks/pdb/ztxt/reader.py
+++ b/src/calibre/ebooks/pdb/ztxt/reader.py
@@ -12,8 +12,8 @@ import os, struct, zlib
 
 from calibre.ebooks.pdb.formatreader import FormatReader
 from calibre.ebooks.pdb.ztxt import zTXTError
-from calibre.ebooks.txt.processor import convert_basic, separate_paragraphs, \
-    opf_writer
+from calibre.ebooks.txt.processor import convert_basic, opf_writer, \
+    separate_paragraphs_single_line
 
 SUPPORTED_VERSION = (1, 40)
 
@@ -40,6 +40,7 @@ class Reader(FormatReader):
         self.log = log
         self.encoding = options.input_encoding
         self.single_line_paras = options.single_line_paras
+        self.print_formatted_paras = options.print_formatted_paras
     
         self.sections = []
         for i in range(header.num_sections):
@@ -79,7 +80,9 @@ class Reader(FormatReader):
 
         self.log.info('Converting text to OEB...')
         if self.single_line_paras:
-            txt = separate_paragraphs(txt)
+            txt = separate_paragraphs_single_line(txt)
+        if self.print_formatted_paras:
+            txt = separate_paragraphs_print_formatted(txt)
         html = convert_basic(txt)
         with open(os.path.join(output_dir, 'index.html'), 'wb') as index:
             index.write(html.encode('utf-8'))
diff --git a/src/calibre/ebooks/txt/input.py b/src/calibre/ebooks/txt/input.py
index f52bfa6fb5..eb86113f7a 100644
--- a/src/calibre/ebooks/txt/input.py
+++ b/src/calibre/ebooks/txt/input.py
@@ -8,7 +8,7 @@ import os
 
 from calibre.customize.conversion import InputFormatPlugin, OptionRecommendation
 from calibre.ebooks.txt.processor import convert_basic, convert_markdown, \
-    separate_paragraphs
+    separate_paragraphs_single_line, separate_paragraphs_print_formatted
 
 class TXTInput(InputFormatPlugin):
 
@@ -22,6 +22,12 @@ class TXTInput(InputFormatPlugin):
             help=_('Normally calibre treats blank lines as paragraph markers. '
                 'With this option it will assume that every line represents '
                 'a paragraph instead.')),
+        OptionRecommendation(name='print_formatted_paras', recommended_value=False,
+            help=_('Normally calibre treats blank lines as paragraph markers. '
+                'With this option it will assume that every line starting with '
+                'an indent (either a tab or 2+ spaces) represents a paragraph.'
+                'Paragraphs end when the next line that starts with an indent '
+                'is reached.')),
         OptionRecommendation(name='markdown', recommended_value=False,
             help=_('Run the text input through the markdown pre-processor. To '
                 'learn more about markdown see')+' http://daringfireball.net/projects/markdown/'),
@@ -35,8 +41,11 @@ class TXTInput(InputFormatPlugin):
         log.debug('Reading text from file...')
         txt = stream.read().decode(ienc, 'replace')
 
+        # Adjust paragraph formatting as requested
         if options.single_line_paras:
-            txt = separate_paragraphs(txt)
+            txt = separate_paragraphs_single_line(txt)
+        if options.print_formatted_paras:
+            txt = separate_paragraphs_print_formatted(txt)
 
         if options.markdown:
             log.debug('Running text though markdown conversion...')
diff --git a/src/calibre/ebooks/txt/processor.py b/src/calibre/ebooks/txt/processor.py
index f6503c0bc5..9d0e1283c1 100644
--- a/src/calibre/ebooks/txt/processor.py
+++ b/src/calibre/ebooks/txt/processor.py
@@ -45,12 +45,16 @@ def convert_markdown(txt, title=''):
         safe_mode=False,)
     return HTML_TEMPLATE % (title, md.convert(txt))
 
-def separate_paragraphs(txt):
+def separate_paragraphs_single_line(txt):
     txt = txt.replace('\r\n', '\n')
     txt = txt.replace('\r', '\n')
     txt = re.sub(u'(?<=.)\n(?=.)', u'\n\n', txt)
     return txt
 
+def separate_paragraphs_print_formatted(txt):
+    txt = re.sub('(?miu)^(\t+|[ ]{2,})(?=.)', '\n\t', txt)
+    return txt
+
 def opf_writer(path, opf_name, manifest, spine, mi):
     opf = OPFCreator(path, mi)
     opf.create_manifest(manifest)
diff --git a/src/calibre/gui2/convert/pdb_input.py b/src/calibre/gui2/convert/pdb_input.py
index 4b0ba73fda..058f589856 100644
--- a/src/calibre/gui2/convert/pdb_input.py
+++ b/src/calibre/gui2/convert/pdb_input.py
@@ -14,6 +14,6 @@ class PluginWidget(Widget, Ui_Form):
 
     def __init__(self, parent, get_option, get_help, db=None, book_id=None):
         Widget.__init__(self, parent, 'pdb_input',
-            ['single_line_paras'])
+            ['single_line_paras', 'print_formatted_paras'])
         self.db, self.book_id = db, book_id
         self.initialize_options(get_option, get_help, db, book_id)
diff --git a/src/calibre/gui2/convert/pdb_input.ui b/src/calibre/gui2/convert/pdb_input.ui
index 191e749833..2b632b1a33 100644
--- a/src/calibre/gui2/convert/pdb_input.ui
+++ b/src/calibre/gui2/convert/pdb_input.ui
@@ -14,7 +14,7 @@
    <string>Form</string>
   </property>
   <layout class="QGridLayout" name="gridLayout">
-   <item row="1" column="0">
+   <item row="2" column="0">
     <spacer name="verticalSpacer">
      <property name="orientation">
       <enum>Qt::Vertical</enum>
@@ -34,6 +34,13 @@
      </property>
     </widget>
    </item>
+   <item row="1" column="0">
+    <widget class="QCheckBox" name="opt_print_formatted_paras">
+     <property name="text">
+      <string>Assume print formatting</string>
+     </property>
+    </widget>
+   </item>
   </layout>
  </widget>
  <resources/>
diff --git a/src/calibre/gui2/convert/txt_input.py b/src/calibre/gui2/convert/txt_input.py
index 3d17eefe0d..505a916f81 100644
--- a/src/calibre/gui2/convert/txt_input.py
+++ b/src/calibre/gui2/convert/txt_input.py
@@ -14,6 +14,6 @@ class PluginWidget(Widget, Ui_Form):
 
     def __init__(self, parent, get_option, get_help, db=None, book_id=None):
         Widget.__init__(self, parent, 'txt_input',
-            ['single_line_paras', 'markdown'])
+            ['single_line_paras', 'print_formatted_paras', 'markdown'])
         self.db, self.book_id = db, book_id
         self.initialize_options(get_option, get_help, db, book_id)
diff --git a/src/calibre/gui2/convert/txt_input.ui b/src/calibre/gui2/convert/txt_input.ui
index 8c22ff721e..94cc1ad25f 100644
--- a/src/calibre/gui2/convert/txt_input.ui
+++ b/src/calibre/gui2/convert/txt_input.ui
@@ -14,7 +14,7 @@
    <string>Form</string>
   </property>
   <layout class="QGridLayout" name="gridLayout">
-   <item row="3" column="0">
+   <item row="4" column="0">
     <spacer name="verticalSpacer">
      <property name="orientation">
       <enum>Qt::Vertical</enum>
@@ -34,14 +34,14 @@
      </property>
     </widget>
    </item>
-   <item row="1" column="0">
+   <item row="2" column="0">
     <widget class="QCheckBox" name="opt_markdown">
      <property name="text">
       <string>Process using markdown</string>
      </property>
     </widget>
    </item>
-   <item row="2" column="0">
+   <item row="3" column="0">
     <widget class="QLabel" name="label">
      <property name="text">
       <string>&lt;p&gt;Markdown is a simple markup language for text files, that allows for advanced formatting. To learn more visit &lt;a href=&quot;http://daringfireball.net/projects/markdown&quot;&gt;markdown&lt;/a&gt;.</string>
@@ -51,6 +51,13 @@
      </property>
     </widget>
    </item>
+   <item row="1" column="0">
+    <widget class="QCheckBox" name="opt_print_formatted_paras">
+     <property name="text">
+      <string>Assume print formatting</string>
+     </property>
+    </widget>
+   </item>
   </layout>
  </widget>
  <resources/>