diff --git a/src/calibre/ebooks/txt/output.py b/src/calibre/ebooks/txt/output.py
index 6f0a768b8f..b3bda7fa9d 100644
--- a/src/calibre/ebooks/txt/output.py
+++ b/src/calibre/ebooks/txt/output.py
@@ -33,6 +33,12 @@ class TXTOutput(OutputFormatPlugin):
         OptionRecommendation(name='inline_toc',
             recommended_value=False, level=OptionRecommendation.LOW,
             help=_('Add Table of Contents to beginning of the book.')),
+        OptionRecommendation(name='flush_paras',
+            recommended_value=False, level=OptionRecommendation.LOW,
+            help=_('Do not add a blank line between paragraphs.')),
+        OptionRecommendation(name='indent_paras',
+            recommended_value=False, level=OptionRecommendation.LOW,
+            help=_('Add a tab at the beginning of each paragraph.')),
      ])
 
     def convert(self, oeb_book, output_path, input_plugin, opts, log):
diff --git a/src/calibre/ebooks/txt/txtml.py b/src/calibre/ebooks/txt/txtml.py
index 28ba9eea4a..cba383ef9a 100644
--- a/src/calibre/ebooks/txt/txtml.py
+++ b/src/calibre/ebooks/txt/txtml.py
@@ -41,6 +41,7 @@ class TXTMLizer(object):
         self.log.info('Converting XHTML to TXT...')
         self.oeb_book = oeb_book
         self.opts = opts
+
         return self.mlize_spine()
 
     def mlize_spine(self):
@@ -92,12 +93,18 @@ class TXTMLizer(object):
 
         # Remove excessive newlines.
         text = re.sub('\n[ ]+\n', '\n\n', text)
-        text = re.sub('\n{3,}', '\n\n', text)
+        if self.opts.flush_paras:
+            text = re.sub('\n{2,}', '\n', text)
+        else:
+            text = re.sub('\n{3,}', '\n\n', text)
 
         # Replace spaces at the beginning and end of lines
         text = re.sub('(?imu)^[ ]+', '', text)
         text = re.sub('(?imu)[ ]+$', '', text)
 
+        if self.opts.indent_paras:
+            text = re.sub('(?imu)^(?=.)', '\t', text)
+
         return text
 
     def get_text(self, elem, stylizer):
@@ -137,8 +144,8 @@ class TXTMLizer(object):
         # Are we in a paragraph block?
         if tag in BLOCK_TAGS or style['display'] in BLOCK_STYLES:
             in_block = True
-            if not end.endswith('\n\n') and hasattr(elem, 'text') and elem.text != None and elem.text.strip() != '':
-                text.append('\n\n')
+            if not end.endswith(u'\n\n') and hasattr(elem, 'text') and elem.text != None and elem.text.strip() != '':
+                text.append(u'\n\n')
 
         # Process tags that contain text.
         if hasattr(elem, 'text') and elem.text != None and elem.text.strip() != '':
@@ -151,7 +158,7 @@ class TXTMLizer(object):
             text += self.dump_text(item, stylizer, en)
 
         if in_block:
-            text.append('\n\n')
+            text.append(u'\n\n')
 
         if hasattr(elem, 'tail') and elem.tail != None and elem.tail.strip() != '':
             text.append(elem.tail)
diff --git a/src/calibre/gui2/convert/txt_output.py b/src/calibre/gui2/convert/txt_output.py
index 407c308089..c2474ac4b8 100644
--- a/src/calibre/gui2/convert/txt_output.py
+++ b/src/calibre/gui2/convert/txt_output.py
@@ -17,7 +17,8 @@ class PluginWidget(Widget, Ui_Form):
     HELP = _('Options specific to')+' TXT '+_('output')
 
     def __init__(self, parent, get_option, get_help, db=None, book_id=None):
-        Widget.__init__(self, parent, 'txt_output', ['newline', 'inline_toc'])
+        Widget.__init__(self, parent, 'txt_output', ['newline', 'inline_toc',
+        'flush_paras', 'indent_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/txt_output.ui b/src/calibre/gui2/convert/txt_output.ui
index 6e62040533..900198aca9 100644
--- a/src/calibre/gui2/convert/txt_output.ui
+++ b/src/calibre/gui2/convert/txt_output.ui
@@ -27,7 +27,7 @@
    <item row="0" column="1">
     <widget class="QComboBox" name="opt_newline"/>
    </item>
-   <item row="2" column="0">
+   <item row="4" column="0">
     <spacer name="verticalSpacer">
      <property name="orientation">
       <enum>Qt::Vertical</enum>
@@ -40,13 +40,27 @@
      </property>
     </spacer>
    </item>
-   <item row="1" column="0">
+   <item row="1" column="0" colspan="2">
     <widget class="QCheckBox" name="opt_inline_toc">
      <property name="text">
       <string>&amp;Inline TOC</string>
      </property>
     </widget>
    </item>
+   <item row="2" column="0" colspan="2">
+    <widget class="QCheckBox" name="opt_flush_paras">
+     <property name="text">
+      <string>Do not add a blank line between paragraphs.</string>
+     </property>
+    </widget>
+   </item>
+   <item row="3" column="0" colspan="2">
+    <widget class="QCheckBox" name="opt_indent_paras">
+     <property name="text">
+      <string>Add a tab at the beginning of each paragraph</string>
+     </property>
+    </widget>
+   </item>
   </layout>
  </widget>
  <resources/>