diff --git a/Lib/test/test_codeop.py b/Lib/test/test_codeop.py
index 8c3e447200d..1f27830ae50 100644
--- a/Lib/test/test_codeop.py
+++ b/Lib/test/test_codeop.py
@@ -122,7 +122,6 @@ class CodeopTests(unittest.TestCase):
         av("def f():\n pass\n#foo\n")
         av("@a.b.c\ndef f():\n pass\n")
 
-    @support.skip_if_new_parser("Pegen does not support PyCF_DONT_INPLY_DEDENT yet")
     def test_incomplete(self):
         ai = self.assertIncomplete
 
diff --git a/Parser/pegen/pegen.c b/Parser/pegen/pegen.c
index 081da8238c3..d75267b2e27 100644
--- a/Parser/pegen/pegen.c
+++ b/Parser/pegen/pegen.c
@@ -553,7 +553,7 @@ _PyPegen_fill_token(Parser *p)
         type = NEWLINE; /* Add an extra newline */
         p->parsing_started = 0;
 
-        if (p->tok->indent) {
+        if (p->tok->indent && !(p->flags & PyPARSE_DONT_IMPLY_DEDENT)) {
             p->tok->pendin = -p->tok->indent;
             p->tok->indent = 0;
         }