diff --git a/crates/typst/src/model/terms.rs b/crates/typst/src/model/terms.rs
index 44451be1e..983012bd7 100644
--- a/crates/typst/src/model/terms.rs
+++ b/crates/typst/src/model/terms.rs
@@ -4,9 +4,11 @@ use crate::foundations::{
     cast, elem, scope, Array, Content, NativeElement, Packed, Smart, StyleChain,
 };
 use crate::layout::{
-    BlockElem, Em, Fragment, HElem, LayoutMultiple, Length, Regions, Spacing, VElem,
+    BlockElem, Dir, Em, Fragment, HElem, LayoutMultiple, Length, Regions, Sides, Spacing,
+    StackChild, StackElem,
 };
 use crate::model::ParElem;
+use crate::text::TextElem;
 use crate::util::Numeric;
 
 /// A list of terms and their descriptions.
@@ -125,21 +127,31 @@ impl LayoutMultiple for Packed<TermsElem> {
                 .unwrap_or_else(|| *BlockElem::below_in(styles).amount())
         };
 
-        let mut seq = vec![];
-        for (i, child) in self.children().iter().enumerate() {
-            if i > 0 {
-                seq.push(VElem::new(gutter).with_weakness(1).pack());
-            }
-            if !indent.is_zero() {
-                seq.push(HElem::new(indent.into()).pack());
-            }
+        let pad = hanging_indent + indent;
+        let unpad = (!hanging_indent.is_zero())
+            .then(|| HElem::new((-hanging_indent).into()).pack());
+
+        let mut children = vec![];
+        for child in self.children().iter() {
+            let mut seq = vec![];
+            seq.extend(unpad.clone());
             seq.push(child.term().clone().strong());
             seq.push((*separator).clone());
             seq.push(child.description().clone());
+            children.push(StackChild::Block(Content::sequence(seq)));
         }
 
-        Content::sequence(seq)
-            .styled(ParElem::set_hanging_indent(hanging_indent + indent))
+        let mut padding = Sides::default();
+        if TextElem::dir_in(styles) == Dir::LTR {
+            padding.left = pad.into();
+        } else {
+            padding.right = pad.into();
+        }
+
+        StackElem::new(children)
+            .with_spacing(Some(gutter))
+            .pack()
+            .padded(padding)
             .layout(engine, styles, regions)
     }
 }
diff --git a/tests/ref/bugs/1050-terms-indent.png b/tests/ref/bugs/1050-terms-indent.png
new file mode 100644
index 000000000..58a7feae8
Binary files /dev/null and b/tests/ref/bugs/1050-terms-indent.png differ
diff --git a/tests/ref/layout/terms.png b/tests/ref/layout/terms.png
index 00531f98c..e0cd013ab 100644
Binary files a/tests/ref/layout/terms.png and b/tests/ref/layout/terms.png differ
diff --git a/tests/typ/bugs/1050-terms-indent.typ b/tests/typ/bugs/1050-terms-indent.typ
new file mode 100644
index 000000000..82376820a
--- /dev/null
+++ b/tests/typ/bugs/1050-terms-indent.typ
@@ -0,0 +1,11 @@
+#set page(width: 200pt)
+#set par(first-line-indent: 0.5cm)
+
+- #lorem(10)
+- #lorem(10)
+
++ #lorem(10)
++ #lorem(10)
+
+/ Term 1: #lorem(10)
+/ Term 2: #lorem(10)
diff --git a/tests/typ/layout/terms.typ b/tests/typ/layout/terms.typ
index fa94ae123..178aa98bc 100644
--- a/tests/typ/layout/terms.typ
+++ b/tests/typ/layout/terms.typ
@@ -22,6 +22,8 @@
   An important energy source
   for vegetarians.
 
+  And healthy!
+
 ---
 // Test style change.
 #set text(8pt)
@@ -30,6 +32,12 @@
 #set terms(hanging-indent: 30pt)
 / Second list: #lorem(5)
 
+---
+// Test RTL.
+#set text(8pt, dir: rtl)
+
+/ פרי: דבר טעים, אכיל. ומקור אנרגיה חשוב לצמחונים.
+
 ---
 // Test grid like show rule.
 #show terms: it => table(