diff --git a/src/client/activation/languageClientMiddlewareBase.ts b/src/client/activation/languageClientMiddlewareBase.ts
index 29a49b8bd35d..67ec24701189 100644
--- a/src/client/activation/languageClientMiddlewareBase.ts
+++ b/src/client/activation/languageClientMiddlewareBase.ts
@@ -10,6 +10,7 @@ import {
     Middleware,
     ResponseError,
 } from 'vscode-languageclient';
+import { ConfigurationItem } from 'vscode-languageserver-protocol';
 
 import { HiddenFilePrefix } from '../common/constants';
 import { IConfigurationService } from '../common/types';
@@ -96,6 +97,8 @@ export class LanguageClientMiddlewareBase implements Middleware {
                         settingDict._envPYTHONPATH = envPYTHONPATH;
                     }
                 }
+
+                this.configurationHook(item, settings[i] as LSPObject);
             }
 
             return settings;
@@ -107,6 +110,9 @@ export class LanguageClientMiddlewareBase implements Middleware {
         return undefined;
     }
 
+    // eslint-disable-next-line class-methods-use-this, @typescript-eslint/no-empty-function
+    protected configurationHook(_item: ConfigurationItem, _settings: LSPObject): void {}
+
     private get connected(): Promise<boolean> {
         return this.connectedPromise.promise;
     }
diff --git a/src/client/activation/node/analysisOptions.ts b/src/client/activation/node/analysisOptions.ts
index f06ed52b7b54..a410405d3131 100644
--- a/src/client/activation/node/analysisOptions.ts
+++ b/src/client/activation/node/analysisOptions.ts
@@ -1,18 +1,26 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
 
+import { ConfigurationTarget, extensions, WorkspaceConfiguration } from 'vscode';
 import { LanguageClientOptions } from 'vscode-languageclient';
+import * as semver from 'semver';
 import { IWorkspaceService } from '../../common/application/types';
+import { PYLANCE_EXTENSION_ID } from '../../common/constants';
+import { IExperimentService } from '../../common/types';
 
 import { LanguageServerAnalysisOptionsBase } from '../common/analysisOptions';
 import { ILanguageServerOutputChannel } from '../types';
 import { LspNotebooksExperiment } from './lspNotebooksExperiment';
 
+const EDITOR_CONFIG_SECTION = 'editor';
+const FORMAT_ON_TYPE_CONFIG_SETTING = 'formatOnType';
+
 export class NodeLanguageServerAnalysisOptions extends LanguageServerAnalysisOptionsBase {
     // eslint-disable-next-line @typescript-eslint/no-useless-constructor
     constructor(
         lsOutputChannel: ILanguageServerOutputChannel,
         workspace: IWorkspaceService,
+        private readonly experimentService: IExperimentService,
         private readonly lspNotebooksExperiment: LspNotebooksExperiment,
     ) {
         super(lsOutputChannel, workspace);
@@ -25,6 +33,53 @@ export class NodeLanguageServerAnalysisOptions extends LanguageServerAnalysisOpt
             trustedWorkspaceSupport: true,
             lspNotebooksSupport: this.lspNotebooksExperiment.isInNotebooksExperiment(),
             lspInteractiveWindowSupport: this.lspNotebooksExperiment.isInNotebooksExperimentWithInteractiveWindowSupport(),
+            autoIndentSupport: await this.isAutoIndentEnabled(),
         } as unknown) as LanguageClientOptions;
     }
+
+    private async isAutoIndentEnabled() {
+        const editorConfig = this.getPythonSpecificEditorSection();
+        let formatOnTypeEffectiveValue = editorConfig.get(FORMAT_ON_TYPE_CONFIG_SETTING);
+        const formatOnTypeInspect = editorConfig.inspect(FORMAT_ON_TYPE_CONFIG_SETTING);
+        const formatOnTypeSetForPython = formatOnTypeInspect?.globalLanguageValue !== undefined;
+
+        const inExperiment = await this.isInAutoIndentExperiment();
+
+        if (inExperiment !== formatOnTypeSetForPython) {
+            if (inExperiment) {
+                await NodeLanguageServerAnalysisOptions.setPythonSpecificFormatOnType(editorConfig, true);
+            } else if (formatOnTypeInspect?.globalLanguageValue !== false) {
+                await NodeLanguageServerAnalysisOptions.setPythonSpecificFormatOnType(editorConfig, undefined);
+            }
+
+            formatOnTypeEffectiveValue = this.getPythonSpecificEditorSection().get(FORMAT_ON_TYPE_CONFIG_SETTING);
+        }
+
+        return inExperiment && formatOnTypeEffectiveValue;
+    }
+
+    private async isInAutoIndentExperiment(): Promise<boolean> {
+        if (await this.experimentService.inExperiment('pylanceAutoIndent')) {
+            return true;
+        }
+
+        const pylanceVersion = extensions.getExtension(PYLANCE_EXTENSION_ID)?.packageJSON.version;
+        return pylanceVersion && semver.prerelease(pylanceVersion)?.includes('dev');
+    }
+
+    private getPythonSpecificEditorSection() {
+        return this.workspace.getConfiguration(EDITOR_CONFIG_SECTION, undefined, /* languageSpecific */ true);
+    }
+
+    private static async setPythonSpecificFormatOnType(
+        editorConfig: WorkspaceConfiguration,
+        value: boolean | undefined,
+    ) {
+        await editorConfig.update(
+            FORMAT_ON_TYPE_CONFIG_SETTING,
+            value,
+            ConfigurationTarget.Global,
+            /* overrideInLanguage */ true,
+        );
+    }
 }
diff --git a/src/client/activation/node/languageClientMiddleware.ts b/src/client/activation/node/languageClientMiddleware.ts
index e1e9cb447bc1..9c1d4c468191 100644
--- a/src/client/activation/node/languageClientMiddleware.ts
+++ b/src/client/activation/node/languageClientMiddleware.ts
@@ -2,8 +2,8 @@
 // Licensed under the MIT License.
 
 import { Uri } from 'vscode';
-import { LanguageClient } from 'vscode-languageclient/node';
-import { IJupyterExtensionDependencyManager } from '../../common/application/types';
+import { ConfigurationItem, LanguageClient, LSPObject } from 'vscode-languageclient/node';
+import { IJupyterExtensionDependencyManager, IWorkspaceService } from '../../common/application/types';
 import { IServiceContainer } from '../../ioc/types';
 import { JupyterExtensionIntegration } from '../../jupyter/jupyterIntegration';
 import { traceLog } from '../../logging';
@@ -19,6 +19,8 @@ export class NodeLanguageClientMiddleware extends LanguageClientMiddleware {
 
     private readonly jupyterExtensionIntegration: JupyterExtensionIntegration;
 
+    private readonly workspaceService: IWorkspaceService;
+
     public constructor(
         serviceContainer: IServiceContainer,
         private getClient: () => LanguageClient | undefined,
@@ -26,6 +28,8 @@ export class NodeLanguageClientMiddleware extends LanguageClientMiddleware {
     ) {
         super(serviceContainer, LanguageServerType.Node, serverVersion);
 
+        this.workspaceService = serviceContainer.get<IWorkspaceService>(IWorkspaceService);
+
         this.lspNotebooksExperiment = serviceContainer.get<LspNotebooksExperiment>(LspNotebooksExperiment);
         this.setupHidingMiddleware(serviceContainer);
 
@@ -82,4 +86,25 @@ export class NodeLanguageClientMiddleware extends LanguageClientMiddleware {
 
         return result;
     }
+
+    // eslint-disable-next-line class-methods-use-this
+    protected configurationHook(item: ConfigurationItem, settings: LSPObject): void {
+        if (item.section === 'editor') {
+            if (this.workspaceService) {
+                // Get editor.formatOnType using Python language id so [python] setting
+                // will be honored if present.
+                const editorConfig = this.workspaceService.getConfiguration(
+                    item.section,
+                    undefined,
+                    /* languageSpecific */ true,
+                );
+
+                const settingDict: LSPObject & { formatOnType?: boolean } = settings as LSPObject & {
+                    formatOnType: boolean;
+                };
+
+                settingDict.formatOnType = editorConfig.get('formatOnType');
+            }
+        }
+    }
 }
diff --git a/src/client/common/application/types.ts b/src/client/common/application/types.ts
index a91aeed75b04..256404810237 100644
--- a/src/client/common/application/types.ts
+++ b/src/client/common/application/types.ts
@@ -837,9 +837,10 @@ export interface IWorkspaceService {
      *
      * @param section A dot-separated identifier.
      * @param resource A resource for which the configuration is asked for
+     * @param languageSpecific Should the [python] language-specific settings be obtained?
      * @return The full configuration or a subset.
      */
-    getConfiguration(section?: string, resource?: Uri): WorkspaceConfiguration;
+    getConfiguration(section?: string, resource?: Uri, languageSpecific?: boolean): WorkspaceConfiguration;
 
     /**
      * Opens an untitled text document. The editor will prompt the user for a file
diff --git a/src/client/common/application/workspace.ts b/src/client/common/application/workspace.ts
index 69d5dff965a3..0a5fd8d81816 100644
--- a/src/client/common/application/workspace.ts
+++ b/src/client/common/application/workspace.ts
@@ -39,8 +39,16 @@ export class WorkspaceService implements IWorkspaceService {
     public get workspaceFile() {
         return workspace.workspaceFile;
     }
-    public getConfiguration(section?: string, resource?: Uri): WorkspaceConfiguration {
-        return workspace.getConfiguration(section, resource || null);
+    public getConfiguration(
+        section?: string,
+        resource?: Uri,
+        languageSpecific: boolean = false,
+    ): WorkspaceConfiguration {
+        if (languageSpecific) {
+            return workspace.getConfiguration(section, { uri: resource, languageId: 'python' });
+        } else {
+            return workspace.getConfiguration(section, resource);
+        }
     }
     public getWorkspaceFolder(uri: Resource): WorkspaceFolder | undefined {
         return uri ? workspace.getWorkspaceFolder(uri) : undefined;
diff --git a/src/client/languageServer/pylanceLSExtensionManager.ts b/src/client/languageServer/pylanceLSExtensionManager.ts
index faa1bb75c4bc..2cc74308feea 100644
--- a/src/client/languageServer/pylanceLSExtensionManager.ts
+++ b/src/client/languageServer/pylanceLSExtensionManager.ts
@@ -58,6 +58,7 @@ export class PylanceLSExtensionManager extends LanguageServerCapabilities
         this.analysisOptions = new NodeLanguageServerAnalysisOptions(
             outputChannel,
             workspaceService,
+            experimentService,
             lspNotebooksExperiment,
         );
         this.clientFactory = new NodeLanguageClientFactory(fileSystem, extensions);
diff --git a/src/test/activation/node/analysisOptions.unit.test.ts b/src/test/activation/node/analysisOptions.unit.test.ts
index 0518fac170e9..8d16f0c0d9c9 100644
--- a/src/test/activation/node/analysisOptions.unit.test.ts
+++ b/src/test/activation/node/analysisOptions.unit.test.ts
@@ -2,7 +2,7 @@
 // Licensed under the MIT License.
 import { assert, expect } from 'chai';
 import * as typemoq from 'typemoq';
-import { WorkspaceFolder } from 'vscode';
+import { WorkspaceConfiguration, WorkspaceFolder } from 'vscode';
 import { DocumentFilter } from 'vscode-languageclient/node';
 
 import { NodeLanguageServerAnalysisOptions } from '../../../client/activation/node/analysisOptions';
@@ -10,7 +10,7 @@ import { LspNotebooksExperiment } from '../../../client/activation/node/lspNoteb
 import { ILanguageServerOutputChannel } from '../../../client/activation/types';
 import { IWorkspaceService } from '../../../client/common/application/types';
 import { PYTHON, PYTHON_LANGUAGE } from '../../../client/common/constants';
-import { IOutputChannel } from '../../../client/common/types';
+import { IExperimentService, IOutputChannel } from '../../../client/common/types';
 
 suite('Pylance Language Server - Analysis Options', () => {
     class TestClass extends NodeLanguageServerAnalysisOptions {
@@ -32,17 +32,27 @@ suite('Pylance Language Server - Analysis Options', () => {
     let outputChannel: IOutputChannel;
     let lsOutputChannel: typemoq.IMock<ILanguageServerOutputChannel>;
     let workspace: typemoq.IMock<IWorkspaceService>;
+    let experimentService: IExperimentService;
     let lspNotebooksExperiment: typemoq.IMock<LspNotebooksExperiment>;
 
     setup(() => {
         outputChannel = typemoq.Mock.ofType<IOutputChannel>().object;
         workspace = typemoq.Mock.ofType<IWorkspaceService>();
         workspace.setup((w) => w.isVirtualWorkspace).returns(() => false);
+        const workspaceConfig = typemoq.Mock.ofType<WorkspaceConfiguration>();
+        workspace.setup((w) => w.getConfiguration('editor', undefined, true)).returns(() => workspaceConfig.object);
+        workspaceConfig.setup((w) => w.get('formatOnType')).returns(() => true);
         lsOutputChannel = typemoq.Mock.ofType<ILanguageServerOutputChannel>();
         lsOutputChannel.setup((l) => l.channel).returns(() => outputChannel);
+        experimentService = typemoq.Mock.ofType<IExperimentService>().object;
         lspNotebooksExperiment = typemoq.Mock.ofType<LspNotebooksExperiment>();
         lspNotebooksExperiment.setup((l) => l.isInNotebooksExperiment()).returns(() => false);
-        analysisOptions = new TestClass(lsOutputChannel.object, workspace.object, lspNotebooksExperiment.object);
+        analysisOptions = new TestClass(
+            lsOutputChannel.object,
+            workspace.object,
+            experimentService,
+            lspNotebooksExperiment.object,
+        );
     });
 
     test('Workspace folder is undefined', () => {