diff --git a/src/vs/editor/browser/controller/mouseTarget.ts b/src/vs/editor/browser/controller/mouseTarget.ts
index f2be04e3a39..0113748775f 100644
--- a/src/vs/editor/browser/controller/mouseTarget.ts
+++ b/src/vs/editor/browser/controller/mouseTarget.ts
@@ -18,6 +18,7 @@ import { ViewContext } from 'vs/editor/common/view/viewContext';
 import { IViewModel } from 'vs/editor/common/viewModel/viewModel';
 import { CursorColumns } from 'vs/editor/common/controller/cursorCommon';
 import * as dom from 'vs/base/browser/dom';
+import { AtomicTabMoveOperations, Direction } from 'vs/editor/common/controller/cursorAtomicMoveOperations';
 
 export interface IViewZoneData {
 	viewZoneId: string;
@@ -998,6 +999,19 @@ export class MouseTargetFactory {
 		};
 	}
 
+	private static _snapToSoftTabBoundary(position: Position, viewModel: IViewModel): Position {
+		if (viewModel.getTextModelOptions().atomicSoftTabs) {
+			const minColumn = viewModel.getLineMinColumn(position.lineNumber);
+			const lineContent = viewModel.getLineContent(position.lineNumber);
+			const { tabSize } = viewModel.getTextModelOptions();
+			const newPosition = AtomicTabMoveOperations.atomicPosition(lineContent, position.column - minColumn, tabSize, Direction.Nearest);
+			if (newPosition !== -1) {
+				return new Position(position.lineNumber, newPosition + minColumn);
+			}
+		}
+		return position;
+	}
+
 	private static _doHitTest(ctx: HitTestContext, request: BareHitTestRequest): IHitTestResult {
 		// State of the art (18.10.2012):
 		// The spec says browsers should support document.caretPositionFromPoint, but nobody implemented it (http://dev.w3.org/csswg/cssom-view/)
@@ -1016,24 +1030,24 @@ export class MouseTargetFactory {
 
 		// Thank you browsers for making this so 'easy' :)
 
+		let result: IHitTestResult;
 		if (typeof document.caretRangeFromPoint === 'function') {
-
-			return this._doHitTestWithCaretRangeFromPoint(ctx, request);
-
+			result = this._doHitTestWithCaretRangeFromPoint(ctx, request);
 		} else if ((<any>document).caretPositionFromPoint) {
-
-			return this._doHitTestWithCaretPositionFromPoint(ctx, request.pos.toClientCoordinates());
-
+			result = this._doHitTestWithCaretPositionFromPoint(ctx, request.pos.toClientCoordinates());
 		} else if ((<any>document.body).createTextRange) {
-
-			return this._doHitTestWithMoveToPoint(ctx, request.pos.toClientCoordinates());
-
+			result = this._doHitTestWithMoveToPoint(ctx, request.pos.toClientCoordinates());
+		} else {
+			return {
+				position: null,
+				hitTarget: null
+			};
 		}
-
-		return {
-			position: null,
-			hitTarget: null
-		};
+		// Snap to the nearest soft tab boundary if atomic soft tabs are enabled.
+		if (result.position !== null && ctx.model.getTextModelOptions().atomicSoftTabs) {
+			result.position = this._snapToSoftTabBoundary(result.position, ctx.model);
+		}
+		return result;
 	}
 }
 
diff --git a/src/vs/editor/browser/view/viewController.ts b/src/vs/editor/browser/view/viewController.ts
index 13c0079560d..519a26bb5f8 100644
--- a/src/vs/editor/browser/view/viewController.ts
+++ b/src/vs/editor/browser/view/viewController.ts
@@ -14,7 +14,6 @@ import { IViewModel } from 'vs/editor/common/viewModel/viewModel';
 import { IMouseWheelEvent } from 'vs/base/browser/mouseEvent';
 import { EditorOption } from 'vs/editor/common/config/editorOptions';
 import * as platform from 'vs/base/common/platform';
-import { AtomicTabMoveOperations, Direction } from 'vs/editor/common/controller/cursorAtomicMoveOperations';
 
 export interface IMouseDispatchData {
 	position: Position;
@@ -129,35 +128,24 @@ export class ViewController {
 	}
 
 	public dispatchMouse(data: IMouseDispatchData): void {
-		let position = data.position;
-		if (this.viewModel.getTextModelOptions().atomicSoftTabs) {
-			const minColumn = this.viewModel.getLineMinColumn(position.lineNumber);
-			const lineContent = this.viewModel.getLineContent(position.lineNumber);
-			const { tabSize } = this.viewModel.getTextModelOptions();
-			const newPosition = AtomicTabMoveOperations.atomicPosition(lineContent, position.column - minColumn, tabSize, Direction.Nearest);
-			if (newPosition !== -1) {
-				position = new Position(position.lineNumber, newPosition + minColumn);
-			}
-		}
-
 		const options = this.configuration.options;
 		const selectionClipboardIsOn = (platform.isLinux && options.get(EditorOption.selectionClipboard));
 		const columnSelection = options.get(EditorOption.columnSelection);
 		if (data.middleButton && !selectionClipboardIsOn) {
-			this._columnSelect(position, data.mouseColumn, data.inSelectionMode);
+			this._columnSelect(data.position, data.mouseColumn, data.inSelectionMode);
 		} else if (data.startedOnLineNumbers) {
 			// If the dragging started on the gutter, then have operations work on the entire line
 			if (this._hasMulticursorModifier(data)) {
 				if (data.inSelectionMode) {
-					this._lastCursorLineSelect(position);
+					this._lastCursorLineSelect(data.position);
 				} else {
-					this._createCursor(position, true);
+					this._createCursor(data.position, true);
 				}
 			} else {
 				if (data.inSelectionMode) {
-					this._lineSelectDrag(position);
+					this._lineSelectDrag(data.position);
 				} else {
-					this._lineSelect(position);
+					this._lineSelect(data.position);
 				}
 			}
 		} else if (data.mouseDownCount >= 4) {
@@ -165,54 +153,54 @@ export class ViewController {
 		} else if (data.mouseDownCount === 3) {
 			if (this._hasMulticursorModifier(data)) {
 				if (data.inSelectionMode) {
-					this._lastCursorLineSelectDrag(position);
+					this._lastCursorLineSelectDrag(data.position);
 				} else {
-					this._lastCursorLineSelect(position);
+					this._lastCursorLineSelect(data.position);
 				}
 			} else {
 				if (data.inSelectionMode) {
-					this._lineSelectDrag(position);
+					this._lineSelectDrag(data.position);
 				} else {
-					this._lineSelect(position);
+					this._lineSelect(data.position);
 				}
 			}
 		} else if (data.mouseDownCount === 2) {
 			if (this._hasMulticursorModifier(data)) {
-				this._lastCursorWordSelect(position);
+				this._lastCursorWordSelect(data.position);
 			} else {
 				if (data.inSelectionMode) {
-					this._wordSelectDrag(position);
+					this._wordSelectDrag(data.position);
 				} else {
-					this._wordSelect(position);
+					this._wordSelect(data.position);
 				}
 			}
 		} else {
 			if (this._hasMulticursorModifier(data)) {
 				if (!this._hasNonMulticursorModifier(data)) {
 					if (data.shiftKey) {
-						this._columnSelect(position, data.mouseColumn, true);
+						this._columnSelect(data.position, data.mouseColumn, true);
 					} else {
 						// Do multi-cursor operations only when purely alt is pressed
 						if (data.inSelectionMode) {
-							this._lastCursorMoveToSelect(position);
+							this._lastCursorMoveToSelect(data.position);
 						} else {
-							this._createCursor(position, false);
+							this._createCursor(data.position, false);
 						}
 					}
 				}
 			} else {
 				if (data.inSelectionMode) {
 					if (data.altKey) {
-						this._columnSelect(position, data.mouseColumn, true);
+						this._columnSelect(data.position, data.mouseColumn, true);
 					} else {
 						if (columnSelection) {
-							this._columnSelect(position, data.mouseColumn, true);
+							this._columnSelect(data.position, data.mouseColumn, true);
 						} else {
-							this._moveToSelect(position);
+							this._moveToSelect(data.position);
 						}
 					}
 				} else {
-					this.moveTo(position);
+					this.moveTo(data.position);
 				}
 			}
 		}