diff --git a/src/Statement.js b/src/Statement.js
index 5c6ddd08b57..8a5ff4e66e4 100644
--- a/src/Statement.js
+++ b/src/Statement.js
@@ -95,8 +95,10 @@ export default class Statement {
 
 		walk( this.node, {
 			enter ( node, parent ) {
-				const isStringLiteral = node.type === 'TemplateElement' || ( node.type === 'Literal' && typeof node.value === 'string' );
-				if ( isStringLiteral ) stringLiteralRanges.push([ node.start, node.end ]);
+				if ( node.type === 'TemplateElement' ) stringLiteralRanges.push([ node.start, node.end ]);
+				if ( node.type === 'Literal' && typeof node.value === 'string' && /\n/.test( node.raw ) ) {
+					stringLiteralRanges.push([ node.start + 1, node.end - 1 ]);
+				}
 
 				if ( node._scope ) scope = node._scope;
 				if ( /Function/.test( node.type ) && !isIife( node, parent ) ) readDepth += 1;
diff --git a/test/form/string-indentation-b/_config.js b/test/form/string-indentation-b/_config.js
new file mode 100644
index 00000000000..99f2d9cacb7
--- /dev/null
+++ b/test/form/string-indentation-b/_config.js
@@ -0,0 +1,6 @@
+module.exports = {
+	description: 'handles multiple var declarations inited to strings (#166)',
+	options: {
+		moduleName: 'myBundle'
+	}
+};
diff --git a/test/form/string-indentation-b/_expected/amd.js b/test/form/string-indentation-b/_expected/amd.js
new file mode 100644
index 00000000000..f646cb2e377
--- /dev/null
+++ b/test/form/string-indentation-b/_expected/amd.js
@@ -0,0 +1,8 @@
+define(function () { 'use strict';
+
+    var a = 'a';
+    var b = 'b';
+    assert.equal( a, 'a' );
+    assert.equal( b, 'b' );
+
+});
\ No newline at end of file
diff --git a/test/form/string-indentation-b/_expected/cjs.js b/test/form/string-indentation-b/_expected/cjs.js
new file mode 100644
index 00000000000..7c799d31f16
--- /dev/null
+++ b/test/form/string-indentation-b/_expected/cjs.js
@@ -0,0 +1,6 @@
+'use strict';
+
+var a = 'a';
+var b = 'b';
+assert.equal( a, 'a' );
+assert.equal( b, 'b' );
\ No newline at end of file
diff --git a/test/form/string-indentation-b/_expected/es6.js b/test/form/string-indentation-b/_expected/es6.js
new file mode 100644
index 00000000000..7ab432c7e04
--- /dev/null
+++ b/test/form/string-indentation-b/_expected/es6.js
@@ -0,0 +1,4 @@
+var a = 'a';
+var b = 'b';
+assert.equal( a, 'a' );
+assert.equal( b, 'b' );
\ No newline at end of file
diff --git a/test/form/string-indentation-b/_expected/iife.js b/test/form/string-indentation-b/_expected/iife.js
new file mode 100644
index 00000000000..0ffdcbe3d2b
--- /dev/null
+++ b/test/form/string-indentation-b/_expected/iife.js
@@ -0,0 +1,8 @@
+(function () { 'use strict';
+
+    var a = 'a';
+    var b = 'b';
+    assert.equal( a, 'a' );
+    assert.equal( b, 'b' );
+
+})();
\ No newline at end of file
diff --git a/test/form/string-indentation-b/_expected/umd.js b/test/form/string-indentation-b/_expected/umd.js
new file mode 100644
index 00000000000..c137f1bc2be
--- /dev/null
+++ b/test/form/string-indentation-b/_expected/umd.js
@@ -0,0 +1,12 @@
+(function (global, factory) {
+    typeof exports === 'object' && typeof module !== 'undefined' ? factory() :
+    typeof define === 'function' && define.amd ? define(factory) :
+    factory();
+}(this, function () { 'use strict';
+
+    var a = 'a';
+    var b = 'b';
+    assert.equal( a, 'a' );
+    assert.equal( b, 'b' );
+
+}));
\ No newline at end of file
diff --git a/test/form/string-indentation-b/main.js b/test/form/string-indentation-b/main.js
new file mode 100644
index 00000000000..e0a7210c91a
--- /dev/null
+++ b/test/form/string-indentation-b/main.js
@@ -0,0 +1,5 @@
+var a = 'a',
+    b = 'b';
+
+assert.equal( a, 'a' );
+assert.equal( b, 'b' );