diff --git a/extensions/emmet/src/balance.ts b/extensions/emmet/src/balance.ts
index 4687b734524..21ac3027d5e 100644
--- a/extensions/emmet/src/balance.ts
+++ b/extensions/emmet/src/balance.ts
@@ -87,10 +87,14 @@ function getRangeToBalanceIn(document: vscode.TextDocument, selection: vscode.Se
 		return selection;
 	}
 
-	if (selection.start.isEqual(nodeToBalance.start)
-		&& selection.end.isEqual(nodeToBalance.end)
-		&& nodeToBalance.close) {
-		return new vscode.Selection(nodeToBalance.open.end, nodeToBalance.close.start);
+	if (nodeToBalance.close) {
+		const entireNodeSelected = selection.start.isEqual(nodeToBalance.start) && selection.end.isEqual(nodeToBalance.end);
+		const startInOpenTag = selection.start.isAfter(nodeToBalance.open.start) && selection.start.isBefore(nodeToBalance.open.end);
+		const startInCloseTag = selection.start.isAfter(nodeToBalance.close.start) && selection.start.isBefore(nodeToBalance.close.end);
+
+		if (entireNodeSelected || startInOpenTag || startInCloseTag) {
+			return new vscode.Selection(nodeToBalance.open.end, nodeToBalance.close.start);
+		}
 	}
 
 	if (!nodeToBalance.firstChild) {
diff --git a/extensions/emmet/src/test/editPointSelectItemBalance.test.ts b/extensions/emmet/src/test/editPointSelectItemBalance.test.ts
index f05469ab440..0c47043e867 100644
--- a/extensions/emmet/src/test/editPointSelectItemBalance.test.ts
+++ b/extensions/emmet/src/test/editPointSelectItemBalance.test.ts
@@ -250,6 +250,7 @@ suite('Tests for Next/Previous Select/Edit point and Balance actions', () => {
 
 			editor.selections = [new Selection(12, 7, 12, 7)];
 			let expectedBalanceInRanges: [number, number, number, number][] = [
+				[12, 21, 17, 1],   // inner contents of <div class="header">
 				[13, 2, 16, 7],		// outer contents of <ul class="nav main">
 				[13, 23, 16, 2],  // inner contents of <ul class="nav main">
 				[14, 3, 14, 32],   // <li class="item1">Item 1</li>
@@ -293,6 +294,25 @@ suite('Tests for Next/Previous Select/Edit point and Balance actions', () => {
 		});
 	});
 
+	test('Emmet Balance In when selection doesnt span entire node or its inner contents', function (): any {
+		return withRandomFileEditor(htmlContents, 'html', (editor, doc) => {
+
+			editor.selection = new Selection(13, 7, 13, 10); // Inside the open tag of <ul class="nav main">
+			balanceIn();
+			testSelection(editor.selection, 23, 13, 2, 16); // inner contents of <ul class="nav main">
+
+			editor.selection = new Selection(16, 4, 16, 5); // Inside the open close of <ul class="nav main">
+			balanceIn();
+			testSelection(editor.selection, 23, 13, 2, 16); // inner contents of <ul class="nav main">
+
+			editor.selection = new Selection(13, 7, 14, 2); // Inside the open tag of <ul class="nav main"> and the next line
+			balanceIn();
+			testSelection(editor.selection, 23, 13, 2, 16); // inner contents of <ul class="nav main">
+
+			return Promise.resolve();
+		});
+	});
+
 	test('Emmet Balance In/Out in html template', function (): any {
 		const htmlTemplate = `
 <script type="text/html">