diff --git a/artiq/compiler/embedding.py b/artiq/compiler/embedding.py
index 6d46317d1..763accb20 100644
--- a/artiq/compiler/embedding.py
+++ b/artiq/compiler/embedding.py
@@ -5,10 +5,11 @@ the references to the host objects and translates the functions
 annotated as ``@kernel`` when they are referenced.
 """
 
-import os, re, linecache, inspect, textwrap
+import sys, os, re, linecache, inspect, textwrap
 from collections import OrderedDict, defaultdict
 
 from pythonparser import ast, algorithm, source, diagnostic, parse_buffer
+from pythonparser import lexer as source_lexer, parser as source_parser
 
 from ..language import core as language_core
 from . import types, builtins, asttyped, prelude
@@ -424,7 +425,7 @@ class Stitcher:
 
         # Extract function source.
         embedded_function = function.artiq_embedded.function
-        source_code = textwrap.dedent(inspect.getsource(embedded_function))
+        source_code = inspect.getsource(embedded_function)
         filename = embedded_function.__code__.co_filename
         module_name = embedded_function.__globals__['__name__']
         first_line = embedded_function.__code__.co_firstlineno
@@ -436,10 +437,20 @@ class Stitcher:
         cell_names = embedded_function.__code__.co_freevars
         host_environment.update({var: cells[index] for index, var in enumerate(cell_names)})
 
+        # Find out how indented we are.
+        initial_whitespace = re.search(r"^\s*", source_code).group(0)
+        initial_indent = len(initial_whitespace.expandtabs())
+
         # Parse.
         source_buffer = source.Buffer(source_code, filename, first_line)
-        parsetree, comments = parse_buffer(source_buffer, engine=self.engine)
-        function_node = parsetree.body[0]
+        lexer = source_lexer.Lexer(source_buffer, version=sys.version_info[0:2],
+                                   diagnostic_engine=self.engine)
+        lexer.indent = [(initial_indent,
+                         source.Range(source_buffer, 0, len(initial_whitespace)),
+                         initial_whitespace)]
+        parser = source_parser.Parser(lexer, version=sys.version_info[0:2],
+                                      diagnostic_engine=self.engine)
+        function_node = parser.file_input().body[0]
 
         # Mangle the name, since we put everything into a single module.
         function_node.name = "{}.{}".format(module_name, function.__qualname__)