diff --git a/examples/demo/src/index.ts b/examples/demo/src/index.ts
index 0cfd1c5..b99f588 100644
--- a/examples/demo/src/index.ts
+++ b/examples/demo/src/index.ts
@@ -111,7 +111,8 @@ const ed = editor.create(document.getElementById('editor')!, {
     other: true,
     comments: false,
     strings: true
-  }
+  },
+  formatOnType: true
 })
 
 const select = document.getElementById('schema-selection') as HTMLSelectElement
diff --git a/src/index.ts b/src/index.ts
index f91a06f..70f3b57 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -1,6 +1,7 @@
 import { type JSONSchema4, type JSONSchema6, type JSONSchema7 } from 'json-schema'
 import {
   fromCodeActionContext,
+  fromFormattingOptions,
   fromPosition,
   fromRange,
   toCodeAction,
@@ -304,16 +305,25 @@ export function configureMonacoYaml(monaco: MonacoEditor, options: MonacoYamlOpt
         { open: '(', close: ')' },
         { open: '"', close: '"' },
         { open: "'", close: "'" }
-      ],
-
-      onEnterRules: [
-        {
-          beforeText: /:\s*$/,
-          action: { indentAction: monaco.languages.IndentAction.Indent }
-        }
       ]
     }),
 
+    monaco.languages.registerOnTypeFormattingEditProvider('yaml', {
+      autoFormatTriggerCharacters: ['\n'],
+
+      async provideOnTypeFormattingEdits(model, position, ch, formattingOptions) {
+        const worker = await workerManager.getWorker(model.uri)
+        const edits = await worker.doDocumentOnTypeFormatting(
+          String(model.uri),
+          fromPosition(position),
+          ch,
+          fromFormattingOptions(formattingOptions)
+        )
+
+        return edits?.map(toTextEdit)
+      }
+    }),
+
     monaco.languages.registerSelectionRangeProvider('yaml', {
       async provideSelectionRanges(model, positions) {
         const worker = await workerManager.getWorker(model.uri)
diff --git a/src/yaml.worker.ts b/src/yaml.worker.ts
index 2faf34d..3287630 100644
--- a/src/yaml.worker.ts
+++ b/src/yaml.worker.ts
@@ -8,6 +8,7 @@ import {
   type DocumentLink,
   type DocumentSymbol,
   type FoldingRange,
+  type FormattingOptions,
   type Hover,
   type LocationLink,
   type Position,
@@ -63,6 +64,16 @@ export interface YAMLWorker {
    */
   doHover: (uri: string, position: Position) => Hover | null | undefined
 
+  /**
+   * Get formatting edits when the user types in a YAML document.
+   */
+  doDocumentOnTypeFormatting: (
+    uri: string,
+    position: Position,
+    ch: string,
+    options: FormattingOptions
+  ) => TextEdit[] | undefined
+
   /**
    * Format a YAML document using Prettier.
    */
@@ -152,6 +163,10 @@ initialize<YAMLWorker, MonacoYamlOptions>((ctx, { enableSchemaRequest, ...langua
       ls.doDefinition(document, { position, textDocument: document })
     ),
 
+    doDocumentOnTypeFormatting: withDocument((document, position, ch, options) =>
+      ls.doDocumentOnTypeFormatting(document, { ch, options, position, textDocument: document })
+    ),
+
     doHover: withDocument(ls.doHover),
 
     format: withDocument(ls.doFormat),