diff --git a/extensions/vb/language-configuration.json b/extensions/vb/language-configuration.json
index 53f537617c5..e5f718360f4 100644
--- a/extensions/vb/language-configuration.json
+++ b/extensions/vb/language-configuration.json
@@ -25,5 +25,40 @@
 			"start": "^\\s*#Region\\b",
 			"end": "^\\s*#End Region\\b"
 		}
-	}
+	},
+	"indentationRules": {
+		"decreaseIndentPattern": {
+			"pattern": "^\\s*((End\\s+(If|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Select|Try|While|For|Property|Get|Set|SyncLock|Using|AddHandler|RaiseEvent|RemoveHandler|Event|Operator))|Else|ElseIf|Case|Catch|Finally|Loop|Next|Wend|Until)\\b",
+			"flags": "i"
+		},
+		"increaseIndentPattern": {
+			"pattern": "^\\s*((If|ElseIf).*Then(?!\\s+(End\\s+If))\\s*(('|REM).*)?$)|\\b(Else|While|For|Do|Select\\s+Case|Case|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Try|Catch|Finally|SyncLock|Using|Property|Get|Set|AddHandler|RaiseEvent|RemoveHandler|Event|Operator)\\b(?!.*\\bEnd\\s+(If|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Select|Try|While|For|Property|Get|Set|SyncLock|Using|AddHandler|RaiseEvent|RemoveHandler|Event|Operator)\\b).*(('|REM).*)?$",
+			"flags": "i"
+		}
+	},
+	"onEnterRules": [
+		// Prevent indent after End statements, block terminators (Else, ElseIf, Loop, Next, etc.)
+		{
+			"beforeText": { "pattern": "^\\s*((End\\s+(If|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Select|Try|While|For|Property|Get|Set|SyncLock|Using|AddHandler|RaiseEvent|RemoveHandler|Event|Operator))|Else|ElseIf|Loop|Next|Wend|Until)\\b.*$", "flags": "i" },
+			"action": {
+				"indent": "none"
+			}
+		},
+		// Prevent indent when pressing Enter on a blank line after End statements or block terminators
+		{
+			"beforeText": "^\\s*$",
+			"previousLineText": { "pattern": "^\\s*((End\\s+(If|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Select|Try|While|For|Property|Get|Set|SyncLock|Using|AddHandler|RaiseEvent|RemoveHandler|Event|Operator))|Else|ElseIf|Loop|Next|Wend|Until)\\b.*$", "flags": "i" },
+			"action": {
+				"indent": "none"
+			}
+		},
+		// Prevent indent after lines ending with closing parenthesis (e.g., function calls, method invocations)
+		{
+			"beforeText": { "pattern": "^[^'\"]*\\)\\s*('.*)?$", "flags": "i" },
+			"afterText": "^(?!\\s*\\))",
+			"action": {
+				"indent": "none"
+			}
+		}
+	]
 }
diff --git a/src/vs/editor/contrib/indentation/test/browser/indentation.test.ts b/src/vs/editor/contrib/indentation/test/browser/indentation.test.ts
index 16a300fa56f..98558263b73 100644
--- a/src/vs/editor/contrib/indentation/test/browser/indentation.test.ts
+++ b/src/vs/editor/contrib/indentation/test/browser/indentation.test.ts
@@ -18,7 +18,7 @@ import { NullState } from '../../../../common/languages/nullTokenize.js';
 import { AutoIndentOnPaste, IndentationToSpacesCommand, IndentationToTabsCommand } from '../../browser/indentation.js';
 import { withTestCodeEditor } from '../../../../test/browser/testCodeEditor.js';
 import { testCommand } from '../../../../test/browser/testCommand.js';
-import { goIndentationRules, htmlIndentationRules, javascriptIndentationRules, latexIndentationRules, luaIndentationRules, phpIndentationRules, rubyIndentationRules } from '../../../../test/common/modes/supports/indentationRules.js';
+import { goIndentationRules, htmlIndentationRules, javascriptIndentationRules, latexIndentationRules, luaIndentationRules, phpIndentationRules, rubyIndentationRules, vbIndentationRules } from '../../../../test/common/modes/supports/indentationRules.js';
 import { cppOnEnterRules, htmlOnEnterRules, javascriptOnEnterRules, phpOnEnterRules } from '../../../../test/common/modes/supports/onEnterRules.js';
 import { TypeOperations } from '../../../../common/cursor/cursorTypeOperations.js';
 import { cppBracketRules, goBracketRules, htmlBracketRules, latexBracketRules, luaBracketRules, phpBracketRules, rubyBracketRules, typescriptBracketRules, vbBracketRules } from '../../../../test/common/modes/supports/bracketRules.js';
@@ -94,6 +94,7 @@ export function registerLanguageConfiguration(languageConfigurationService: ILan
 		case Language.VB:
 			return languageConfigurationService.register(language, {
 				brackets: vbBracketRules,
+				indentationRules: vbIndentationRules,
 			});
 		case Language.Latex:
 			return languageConfigurationService.register(language, {
@@ -1737,14 +1738,14 @@ suite('Auto Indent On Type - Visual Basic', () => {
 		assert.ok(true);
 	});
 
-	test.skip('issue #118932: no indentation in visual basic files', () => {
+	test('issue #118932: no indentation in visual basic files', () => {
 
 		// https://github.com/microsoft/vscode/issues/118932
 
 		const model = createTextModel([
-			'if True then',
+			'If True Then',
 			'    Some code',
-			'    end i',
+			'    End I',
 		].join('\n'), languageId, {});
 		disposables.add(model);
 
@@ -1752,9 +1753,9 @@ suite('Auto Indent On Type - Visual Basic', () => {
 			editor.setSelection(new Selection(3, 10, 3, 10));
 			viewModel.type('f', 'keyboard');
 			assert.strictEqual(model.getValue(), [
-				'if True then',
+				'If True Then',
 				'    Some code',
-				'end if',
+				'End If',
 			].join('\n'));
 		});
 	});
diff --git a/src/vs/editor/test/common/modes/supports/indentationRules.ts b/src/vs/editor/test/common/modes/supports/indentationRules.ts
index 0967de48bff..22a9d82b6b7 100644
--- a/src/vs/editor/test/common/modes/supports/indentationRules.ts
+++ b/src/vs/editor/test/common/modes/supports/indentationRules.ts
@@ -40,3 +40,11 @@ export const luaIndentationRules = {
 	decreaseIndentPattern: /^\s*((\b(elseif|else|end|until)\b)|(\})|(\)))/,
 	increaseIndentPattern: /^((?!(\-\-)).)*((\b(else|function|then|do|repeat)\b((?!\b(end|until)\b).)*)|(\{\s*))$/,
 };
+
+export const vbIndentationRules = {
+	// Decrease indent when line starts with End <keyword>, Else, ElseIf, Case, Catch, Finally, Loop, Next, Wend, Until
+	decreaseIndentPattern: /^\s*((End\s+(If|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Select|Try|While|For|Property|Get|Set|SyncLock|Using|AddHandler|RaiseEvent|RemoveHandler|Event|Operator))|Else|ElseIf|Case|Catch|Finally|Loop|Next|Wend|Until)\b/i,
+	// Increase indent after lines ending with Then, or lines starting with If/While/For/Do/Select/Sub/Function/Class/etc (block-starting keywords)
+	// The pattern matches lines that start block structures but excludes lines that also end them (like single-line If...Then...End If)
+	increaseIndentPattern: /^\s*((If|ElseIf).*Then(?!\s+(End\s+If))\s*(('|REM).*)?$)|\b(Else|While|For|Do|Select\s+Case|Case|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Try|Catch|Finally|SyncLock|Using|Property|Get|Set|AddHandler|RaiseEvent|RemoveHandler|Event|Operator)\b(?!.*\bEnd\s+(If|Sub|Function|Class|Module|Enum|Structure|Interface|Namespace|With|Select|Try|While|For|Property|Get|Set|SyncLock|Using|AddHandler|RaiseEvent|RemoveHandler|Event|Operator)\b).*(('|REM).*)?$/i,
+};