diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index f0fe9029f..3dcfc48d2 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -278,6 +278,7 @@ New or improved bindings
 -  As mentioned above, new special input functions ``undo`` (Control+\_ or Control+Z) and ``redo`` (Alt-/) can be used to revert changes to the command line or the pager search field (:issue:`6570`).
 -  Control-Z is now available for binding (:issue:`7152`).
 -  Additionally, using the ``cancel`` special input function (bound to escape by default) right after fish picked an unambiguous completion will undo that (:issue:`7433`).
+- ``fish_clipboard_paste`` (Control+V) trims indentation from multiline commands because fish already indents (:issue:`7662`).
 -  Vi mode bindings now support ``dh``, ``dl``, ``c0``, ``cf``, ``ct``, ``cF``, ``cT``, ``ch``, ``cl``, ``y0``, ``ci``, ``ca``, ``yi``, ``ya``, ``di``, ``da``, ``d;``, ``d,``, ``o``, ``O`` and Control+left/right keys to navigate by word (:issue:`6648`, :issue:`6755`, :issue:`6769`, :issue:`7442`, :issue:`7516`).
 -  Vi mode bindings support ``~`` (tilde) to toggle the case of the selected character (:issue:`6908`).
 -  Functions ``up-or-search`` and ``down-or-search`` (up-arrow and down-arrow) can cross empty lines and don't activate search mode if the search fails which makes it easier to use them to move between lines in some situations.
diff --git a/share/functions/__fish_commandline_is_singlequoted.fish b/share/functions/__fish_tokenizer_state.fish
similarity index 84%
rename from share/functions/__fish_commandline_is_singlequoted.fish
rename to share/functions/__fish_tokenizer_state.fish
index 26cb92b8e..42940f2d3 100644
--- a/share/functions/__fish_commandline_is_singlequoted.fish
+++ b/share/functions/__fish_tokenizer_state.fish
@@ -1,4 +1,4 @@
-function __fish_commandline_is_singlequoted --description "Return 0 if the current token has an open single-quote"
+function __fish_tokenizer_state --description "Print the state of the tokenizer at the end of the given string"
     # Go through the token char-by-char in a state machine.
     # The states are:
     # - normal - no quoting is active (the starting state)
@@ -8,8 +8,15 @@ function __fish_commandline_is_singlequoted --description "Return 0 if the curre
     # - single-escaped - open \\ inside single-quotes
     # - double-escaped - open \\ inside double-quotes
 
+    argparse --min-args 1 --max-args 1 i/initial-state= -- $argv
+    or return 1
+
     set -l state normal
-    for char in (commandline -ct | string split "")
+    if set -q _flag_initial_state
+        set str $_flag_initial_state
+    end
+
+    for char in (string split -- "" $argv[1])
         switch $char
             case "'" # single-quote
                 switch $state
@@ -51,10 +58,6 @@ function __fish_commandline_is_singlequoted --description "Return 0 if the curre
                 end
         end
     end
-    # TODO: Should "single-escaped" also be a success?
-    if contains -- $state single single-escaped
-        return 0
-    else
-        return 1
-    end
+
+    echo $state
 end
diff --git a/share/functions/fish_clipboard_paste.fish b/share/functions/fish_clipboard_paste.fish
index 37323b59c..3801c7eab 100644
--- a/share/functions/fish_clipboard_paste.fish
+++ b/share/functions/fish_clipboard_paste.fish
@@ -26,12 +26,28 @@ function fish_clipboard_paste
     # in order to turn it into a single literal token.
     #
     # This eases pasting non-code (e.g. markdown or git commitishes).
-    if __fish_commandline_is_singlequoted
+    set -l quote_state (__fish_tokenizer_state -- (commandline -ct))
+    if contains -- $quote_state single single-escaped
         if status test-feature regex-easyesc
             set data (string replace -ra "(['\\\])" '\\\\$1' -- $data)
         else
             set data (string replace -ra "(['\\\])" '\\\\\\\$1' -- $data)
         end
+    else if not contains -- $quote_state double double-escaped
+        and set -q data[2]
+        # Leading whitespace in subsequent lines is unneded, since fish
+        # already indents. Also gets rid of tabs (issue #5274).
+        set -l tmp
+        for line in $data
+            switch $quote_state
+                case normal
+                    set -a tmp (string trim -l -- $line)
+                case single single-escaped double double-escaped escaped
+                    set -a tmp $line
+            end
+            set quote_state (__fish_tokenizer_state -i $quote_state -- $line)
+        end
+        set data $data[1] $tmp[2..]
     end
     if not string length -q -- (commandline -c)
         # If we're at the beginning of the first line, trim whitespace from the start,