diff --git a/src/actions/actions.ts b/src/actions/actions.ts
index 7a89aaab1d9..37586a2e24d 100644
--- a/src/actions/actions.ts
+++ b/src/actions/actions.ts
@@ -4504,6 +4504,15 @@ class ActionReplaceCharacter extends BaseCommand {
     let timesToRepeat = vimState.recordedState.count || 1;
     const toReplace = this.keysPressed[1];
 
+    /**
+     * <character> includes <BS>, <SHIFT+BS> and <TAB> but not any control keys,
+     * so we ignore the former two keys and have a special handle for <tab>.
+     */
+
+    if (['<BS>', '<SHIFT+BS>'].indexOf(toReplace.toUpperCase()) >= 0) {
+      return vimState;
+    }
+
     if (position.character + timesToRepeat > position.getLineEnd().character) {
       return vimState;
     }
@@ -4520,14 +4529,25 @@ class ActionReplaceCharacter extends BaseCommand {
       endPos = new Position(endPos.line, endPos.character + 1);
     }
 
-    vimState.recordedState.transformations.push({
-      type    : "replaceText",
-      text    : toReplace.repeat(timesToRepeat),
-      start   : position,
-      end     : endPos,
-      diff    : new PositionDiff(0, timesToRepeat - 1),
-    });
-
+    if (toReplace === '<tab>') {
+      vimState.recordedState.transformations.push({
+        type: "deleteRange",
+        range: new Range(position, endPos)
+      });
+      vimState.recordedState.transformations.push({
+        type: "tab",
+        cursorIndex: this.multicursorIndex,
+        diff: new PositionDiff(0, -1)
+      });
+    } else {
+      vimState.recordedState.transformations.push({
+        type    : "replaceText",
+        text    : toReplace.repeat(timesToRepeat),
+        start   : position,
+        end     : endPos,
+        diff    : new PositionDiff(0, timesToRepeat - 1),
+      });
+    }
     return vimState;
   }
 
diff --git a/src/mode/modeHandler.ts b/src/mode/modeHandler.ts
index af7c14e8066..17a7ca3b75a 100644
--- a/src/mode/modeHandler.ts
+++ b/src/mode/modeHandler.ts
@@ -1374,6 +1374,21 @@ export class ModeHandler implements vscode.Disposable {
             return vimState;
           }
           break;
+        case "tab":
+          await vscode.commands.executeCommand('tab');
+          if (command.diff) {
+              if (command.cursorIndex === undefined) {
+                throw new Error("No cursor index - this should never ever happen!");
+              }
+
+              if (!accumulatedPositionDifferences[command.cursorIndex]) {
+                accumulatedPositionDifferences[command.cursorIndex] = [];
+              }
+
+              accumulatedPositionDifferences[command.cursorIndex].push(command.diff);
+            }
+
+          break;
       }
     }
 
diff --git a/src/transformations/transformations.ts b/src/transformations/transformations.ts
index 8b118f9fe9d..c5ac7508193 100644
--- a/src/transformations/transformations.ts
+++ b/src/transformations/transformations.ts
@@ -192,6 +192,19 @@ export interface Dot {
   type: "dot";
 }
 
+/**
+ * Represents Tab
+ */
+export interface Tab {
+  type: "tab";
+  cursorIndex?: number;
+
+  /**
+   * Move the cursor this much.
+   */
+  diff: PositionDiff;
+}
+
 /**
  * Represents macro
  */
@@ -211,7 +224,8 @@ export type Transformation
   | ShowCommandLine
   | Dot
   | Macro
-  | DeleteTextTransformation;
+  | DeleteTextTransformation
+  | Tab;
 
 /**
  * Text Transformations