diff --git a/.changeset/silver-countries-prove.md b/.changeset/silver-countries-prove.md
new file mode 100644
index 00000000..260b2202
--- /dev/null
+++ b/.changeset/silver-countries-prove.md
@@ -0,0 +1,5 @@
+---
+'playroom': patch
+---
+
+Fix bug in "Wrap selection in tag" command that caused the start cursor to sometimes be in the wrong position when selecting an empty line.
diff --git a/cypress/e2e/keymaps.cy.ts b/cypress/e2e/keymaps.cy.ts
index 8ab3dd2e..488e2278 100644
--- a/cypress/e2e/keymaps.cy.ts
+++ b/cypress/e2e/keymaps.cy.ts
@@ -348,6 +348,27 @@ describe('Keymaps', () => {
         <div>Third line</div>
       `);
     });
+
+    it('should wrap a two-line multi-line selection when the last selected line is empty', () => {
+      loadPlayroom(`
+        <div>First line</div>
+      `);
+
+      moveToEndOfLine();
+      typeCode(`{enter}`);
+
+      // Select all
+      typeCode(`{${modifierKey}+a}`);
+
+      typeCode(`{shift+${modifierKey}+,}`);
+      typeCode('a');
+
+      assertCodePaneContains(dedent`
+        <a>
+          <div>First line</div>
+        </a>\n
+      `);
+    });
   });
 
   describe('find and replace', () => {
diff --git a/src/Playroom/CodeEditor/keymaps/wrap.ts b/src/Playroom/CodeEditor/keymaps/wrap.ts
index f5702d89..c42a0c05 100644
--- a/src/Playroom/CodeEditor/keymaps/wrap.ts
+++ b/src/Playroom/CodeEditor/keymaps/wrap.ts
@@ -19,6 +19,8 @@ export const wrapInTag = (cm: Editor) => {
     const from = range.from();
     let to = range.to();
 
+    const isMultiLineSelection = to.line !== from.line;
+
     if (to.line !== from.line && to.ch === 0) {
       to = new Pos(to.line - 1);
     }
@@ -27,8 +29,6 @@ export const wrapInTag = (cm: Editor) => {
     const existingIndent =
       existingContent.length - existingContent.trimStart().length;
 
-    const isMultiLineSelection = to.line !== from.line;
-
     tagRanges.push({
       from,
       to,