diff --git a/packages/language-support/src/formatting/formatting.ts b/packages/language-support/src/formatting/formatting.ts
index 45853ae88..7cc2e8993 100644
--- a/packages/language-support/src/formatting/formatting.ts
+++ b/packages/language-support/src/formatting/formatting.ts
@@ -24,6 +24,7 @@ import {
 } from '../generated-parser/CypherCmdParser';
 import CypherCmdParserVisitor from '../generated-parser/CypherCmdParserVisitor';
 import {
+  findTargetToken,
   getParseTreeAndTokens,
   handleMergeClause,
   isComment,
@@ -41,6 +42,8 @@ export class TreePrintVisitor extends CypherCmdParserVisitor<void> {
   buffer: string[] = [];
   indentation = 0;
   indentationSpaces = 2;
+  targetToken?: number;
+  cursorPos?: number;
 
   constructor(private tokenStream: CommonTokenStream) {
     super();
@@ -191,14 +194,19 @@ export class TreePrintVisitor extends CypherCmdParserVisitor<void> {
         this.addSpace();
       }
     }
+
     if (node.symbol.type === CypherCmdLexer.EOF) {
       return;
     }
+    if (node.symbol.tokenIndex === this.targetToken) {
+      this.cursorPos = this.buffer.join('').length;
+    }
     if (wantsToBeUpperCase(node)) {
       this.buffer.push(node.getText().toUpperCase());
     } else {
       this.buffer.push(node.getText());
     }
+
     if (wantsSpaceAfter(node)) {
       this.addSpace();
     }
@@ -223,6 +231,9 @@ export class TreePrintVisitor extends CypherCmdParserVisitor<void> {
     if (options?.upperCase) {
       result = result.toUpperCase();
     }
+    if (node.symbol.tokenIndex === this.targetToken) {
+      this.cursorPos = this.buffer.join('').length;
+    }
     this.buffer.push(result);
     this.addCommentsAfter(node);
   };
@@ -372,8 +383,47 @@ export class TreePrintVisitor extends CypherCmdParserVisitor<void> {
   };
 }
 
-export function formatQuery(query: string) {
+interface FormattingResultWithCursor {
+  formattedString: string;
+  newCursorPos: number;
+}
+
+export function formatQuery(query: string): string;
+export function formatQuery(
+  query: string,
+  cursorPosition: number,
+): FormattingResultWithCursor;
+export function formatQuery(
+  query: string,
+  cursorPosition?: number,
+): string | FormattingResultWithCursor {
   const { tree, tokens } = getParseTreeAndTokens(query);
   const visitor = new TreePrintVisitor(tokens);
-  return visitor.format(tree);
+  
+  tokens.fill();
+
+  if (cursorPosition === undefined) return visitor.format(tree);
+
+  if (cursorPosition >= query.length || cursorPosition <= 0) {
+    const result = visitor.format(tree);
+    return {
+      formattedString: result,
+      newCursorPos: cursorPosition === 0 ? 0 : result.length,
+    };
+  }
+
+  const targetToken = findTargetToken(tokens.tokens, cursorPosition);
+  if (!targetToken) {
+    return {
+      formattedString: visitor.format(tree),
+      newCursorPos: 0,
+    };
+  }
+  const relativePosition = cursorPosition - targetToken.start;
+  visitor.targetToken = targetToken.tokenIndex;
+
+  return {
+    formattedString: visitor.format(tree),
+    newCursorPos: visitor.cursorPos + relativePosition,
+  };
 }
diff --git a/packages/language-support/src/formatting/formattingHelpers.ts b/packages/language-support/src/formatting/formattingHelpers.ts
index ed0973bf9..b9e8cfcca 100644
--- a/packages/language-support/src/formatting/formattingHelpers.ts
+++ b/packages/language-support/src/formatting/formattingHelpers.ts
@@ -79,3 +79,19 @@ export function getParseTreeAndTokens(query: string) {
   const tree = parser.statementsOrCommands();
   return { tree, tokens };
 }
+
+export function findTargetToken(
+  tokens: Token[],
+  cursorPosition: number,
+): Token | false {
+  let targetToken: Token;
+  for (const token of tokens) {
+    if (token.channel === 0) {
+      targetToken = token;
+    }
+    if (cursorPosition >= token.start && cursorPosition <= token.stop) {
+      return targetToken;
+    }
+  }
+  return false;
+}
diff --git a/packages/language-support/src/index.ts b/packages/language-support/src/index.ts
index 959b262c6..847e904f3 100644
--- a/packages/language-support/src/index.ts
+++ b/packages/language-support/src/index.ts
@@ -21,3 +21,4 @@ export type { CompletionItem, Neo4jFunction, Neo4jProcedure } from './types';
 export { CypherLexer, CypherParser };
 import CypherLexer from './generated-parser/CypherCmdLexer';
 import CypherParser from './generated-parser/CypherCmdParser';
+export { formatQuery } from './formatting/formatting'
diff --git a/packages/language-support/src/tests/formatting/formatting.test.ts b/packages/language-support/src/tests/formatting/formatting.test.ts
index a2d31578f..1a3c3ad07 100644
--- a/packages/language-support/src/tests/formatting/formatting.test.ts
+++ b/packages/language-support/src/tests/formatting/formatting.test.ts
@@ -277,3 +277,50 @@ describe('various edgecases', () => {
     verifyFormatting(query, expected);
   });
 });
+
+describe('tests for correct cursor position', () => {
+  test('cursor at beginning', () => {
+    const query = 'RETURN -1, -2, -3';
+    const result = formatQuery(query, 0);
+    expect(result.newCursorPos).toEqual(0);
+  });
+  test('cursor at end', () => {
+    const query = 'RETURN -1, -2, -3';
+    const result = formatQuery(query, query.length - 1);
+    expect(result.newCursorPos).toEqual(result.formattedString.length - 1);
+  });
+  test('cursor at newline', () => {
+    const query = `MATCH (n:Person)
+WHERE n.name = "Steve" 
+RETURN n 
+LIMIT 12;`;
+    const result = formatQuery(query, 56);
+    expect(result.newCursorPos).toEqual(54);
+  });
+
+  test('cursor start of line with spaces newline', () => {
+    const query = `UNWIND range(1,100) as _
+CALL {
+  MATCH (source:object) WHERE source.id= $id1
+  MATCH (target:object) WHERE target.id= $id2
+  MATCH path = (source)-[*1..10]->(target)
+  WITH path, reduce(weight = 0, r IN relationships(path) | weight + r.weight) as Weight
+  ORDER BY Weight LIMIT 3
+  RETURN length(path) as l, Weight 
+} 
+RETURN count(*)`;
+    const result = formatQuery(query, 124);
+    expect(result.newCursorPos).toEqual(131);
+  });
+
+  test('cursor start of line without spaces', () => {
+    const query = `MATCH (variable :Label)-[:REL_TYPE]->() 
+WHERE variable.property = "String" 
+    OR namespaced.function() = false
+    // comment
+    OR $parameter > 2 
+RETURN variable;`;
+    const result = formatQuery(query, 133);
+    expect(result.newCursorPos).toEqual(120);
+  });
+});
diff --git a/packages/react-codemirror-playground/src/App.tsx b/packages/react-codemirror-playground/src/App.tsx
index f39abbdd1..59ab690d6 100644
--- a/packages/react-codemirror-playground/src/App.tsx
+++ b/packages/react-codemirror-playground/src/App.tsx
@@ -1,6 +1,6 @@
 import { DbSchema, testData } from '@neo4j-cypher/language-support';
 import { CypherEditor } from '@neo4j-cypher/react-codemirror';
-import { useMemo, useState } from 'react';
+import { useMemo, useRef, useState } from 'react';
 import { Tree } from 'react-d3-tree';
 import { TokenTable } from './TokenTable';
 import { getDebugTree } from './treeUtil';
@@ -46,6 +46,8 @@ export function App() {
   );
   const [schemaError, setSchemaError] = useState<string | null>(null);
 
+  const editorRef = useRef<CypherEditor>(null);
+
   const treeData = useMemo(() => {
     return getDebugTree(value);
   }, [value]);
@@ -103,6 +105,7 @@ export function App() {
             <CypherEditor
               className="border-2 border-gray-100 dark:border-gray-400 text-sm"
               value={value}
+              ref={editorRef}
               onChange={setValue}
               prompt="neo4j$"
               onExecute={() => {
@@ -112,10 +115,18 @@ export function App() {
               theme={darkMode ? 'dark' : 'light'}
               history={Object.values(demos)}
               schema={schema}
-              featureFlags={{ signatureInfoOnAutoCompletions: true }}
+              featureFlags={{
+                signatureInfoOnAutoCompletions: true,
+              }}
               ariaLabel="Cypher Editor"
             />
-
+            <p
+              onClick={() => editorRef.current.format()}
+              className="text-blue-500 cursor-pointer hover:text-blue-700"
+              title={window.navigator.userAgent.includes("Mac") ? "Shift-Option-F" : "Ctrl-Shift-I"}
+            >
+              Format Query
+            </p>
             {commandRanCount > 0 && (
               <span className="text-gray-400">
                 "commands" ran so far: {commandRanCount}
diff --git a/packages/react-codemirror/src/CypherEditor.tsx b/packages/react-codemirror/src/CypherEditor.tsx
index e5e63156c..c2792d3ab 100644
--- a/packages/react-codemirror/src/CypherEditor.tsx
+++ b/packages/react-codemirror/src/CypherEditor.tsx
@@ -13,7 +13,7 @@ import {
   placeholder,
   ViewUpdate,
 } from '@codemirror/view';
-import { type DbSchema } from '@neo4j-cypher/language-support';
+import { formatQuery, type DbSchema } from '@neo4j-cypher/language-support';
 import debounce from 'lodash.debounce';
 import { Component, createRef } from 'react';
 import { DEBOUNCE_TIME } from './constants';
@@ -195,7 +195,6 @@ const executeKeybinding = (
       run: insertNewline,
     },
   };
-
   if (onExecute) {
     keybindings['Ctrl-Enter'] = {
       key: 'Ctrl-Enter',
@@ -276,6 +275,26 @@ export class CypherEditor extends Component<
   editorView: React.MutableRefObject<EditorView> = createRef();
   private schemaRef: React.MutableRefObject<CypherConfig> = createRef();
 
+  /**
+   * Format Cypher query
+   */
+  format() {
+    const currentView = this.editorView.current;
+    const doc = currentView.state.doc.toString();
+    const { formattedString, newCursorPos } = formatQuery(
+      doc,
+      currentView.state.selection.main.anchor,
+    );
+    currentView.dispatch({
+      changes: {
+        from: 0,
+        to: doc.length,
+        insert: formattedString,
+      },
+      selection: { anchor: newCursorPos },
+    });
+  }
+
   /**
    * Focus the editor
    */
@@ -382,6 +401,15 @@ export class CypherEditor extends Component<
           }),
         ]
       : [];
+    extraKeybindings.push({
+      key: 'Ctrl-Shift-f',
+      mac: 'Alt-Shift-f',
+      preventDefault: true,
+      run: () => {
+        this.format();
+        return true;
+      },
+    });
 
     this.editorState.current = EditorState.create({
       extensions: [