diff --git a/lib/coffee-script/coffee-script.js b/lib/coffee-script/coffee-script.js
index 1b290b1c..80239e10 100644
--- a/lib/coffee-script/coffee-script.js
+++ b/lib/coffee-script/coffee-script.js
@@ -233,11 +233,11 @@
   parser.yy = require('./nodes');
 
   parser.yy.parseError = function(message, _arg) {
-    var errorLoc, errorText, errorToken, ignored, token, tokens, _ref;
+    var errorLoc, errorTag, errorText, errorToken, token, tokens, _ref;
     token = _arg.token;
     _ref = parser.lexer, errorToken = _ref.errorToken, tokens = _ref.tokens;
-    ignored = errorToken[0], errorText = errorToken[1], errorLoc = errorToken[2];
-    errorText = errorToken === tokens[tokens.length - 1] ? 'end of input' : helpers.nameWhitespaceCharacter(errorText);
+    errorTag = errorToken[0], errorText = errorToken[1], errorLoc = errorToken[2];
+    errorText = errorToken === tokens[tokens.length - 1] ? 'end of input' : errorTag === 'INDENT' || errorTag === 'OUTDENT' ? 'indentation' : helpers.nameWhitespaceCharacter(errorText);
     return helpers.throwSyntaxError("unexpected " + errorText, errorLoc);
   };
 
diff --git a/lib/coffee-script/nodes.js b/lib/coffee-script/nodes.js
index 035f61c1..42b8064b 100644
--- a/lib/coffee-script/nodes.js
+++ b/lib/coffee-script/nodes.js
@@ -2153,7 +2153,6 @@
     Expansion.prototype.isComplex = NO;
 
     Expansion.prototype.compileNode = function(o) {
-      throw new Error;
       return this.error('Expansion must be used inside a destructuring assignment or parameter list');
     };
 
diff --git a/lib/coffee-script/rewriter.js b/lib/coffee-script/rewriter.js
index 6915b736..22e2bb46 100644
--- a/lib/coffee-script/rewriter.js
+++ b/lib/coffee-script/rewriter.js
@@ -384,7 +384,7 @@
         }
         if (__indexOf.call(SINGLE_LINERS, tag) >= 0 && this.tag(i + 1) !== 'INDENT' && !(tag === 'ELSE' && this.tag(i + 1) === 'IF')) {
           starter = tag;
-          _ref2 = this.indentation(true), indent = _ref2[0], outdent = _ref2[1];
+          _ref2 = this.indentation(tokens[i]), indent = _ref2[0], outdent = _ref2[1];
           if (starter === 'THEN') {
             indent.fromThen = true;
           }
@@ -423,17 +423,14 @@
       });
     };
 
-    Rewriter.prototype.indentation = function(implicit) {
+    Rewriter.prototype.indentation = function(origin) {
       var indent, outdent;
-      if (implicit == null) {
-        implicit = false;
-      }
       indent = ['INDENT', 2];
       outdent = ['OUTDENT', 2];
-      if (implicit) {
+      if (origin) {
         indent.generated = outdent.generated = true;
-      }
-      if (!implicit) {
+        indent.origin = outdent.origin = origin;
+      } else {
         indent.explicit = outdent.explicit = true;
       }
       return [indent, outdent];
diff --git a/src/coffee-script.coffee b/src/coffee-script.coffee
index 7d1b1c23..559338c1 100644
--- a/src/coffee-script.coffee
+++ b/src/coffee-script.coffee
@@ -202,10 +202,12 @@ parser.yy.parseError = (message, {token}) ->
   # Disregard the token, we take its value directly from the lexer in case
   # the error is caused by a generated token which might refer to its origin.
   {errorToken, tokens} = parser.lexer
-  [ignored, errorText, errorLoc] = errorToken
+  [errorTag, errorText, errorLoc] = errorToken
 
   errorText = if errorToken is tokens[tokens.length - 1]
     'end of input'
+  else if errorTag in ['INDENT', 'OUTDENT']
+    'indentation'
   else
     helpers.nameWhitespaceCharacter errorText
 
diff --git a/src/rewriter.coffee b/src/rewriter.coffee
index 4be00ff2..a23beea5 100644
--- a/src/rewriter.coffee
+++ b/src/rewriter.coffee
@@ -392,7 +392,7 @@ class exports.Rewriter
       if tag in SINGLE_LINERS and @tag(i + 1) isnt 'INDENT' and
          not (tag is 'ELSE' and @tag(i + 1) is 'IF')
         starter = tag
-        [indent, outdent] = @indentation yes
+        [indent, outdent] = @indentation tokens[i]
         indent.fromThen   = true if starter is 'THEN'
         tokens.splice i + 1, 0, indent
         @detectEnd i + 2, condition, action
@@ -422,11 +422,14 @@ class exports.Rewriter
       return 1
 
   # Generate the indentation tokens, based on another token on the same line.
-  indentation: (implicit = no) ->
+  indentation: (origin) ->
     indent  = ['INDENT', 2]
     outdent = ['OUTDENT', 2]
-    indent.generated = outdent.generated = yes if implicit
-    indent.explicit = outdent.explicit = yes if not implicit
+    if origin
+      indent.generated = outdent.generated = yes
+      indent.origin = outdent.origin = origin
+    else
+      indent.explicit = outdent.explicit = yes
     [indent, outdent]
 
   generate: generate
diff --git a/test/error_messages.coffee b/test/error_messages.coffee
index e6d084b4..fc736ca6 100644
--- a/test/error_messages.coffee
+++ b/test/error_messages.coffee
@@ -99,3 +99,22 @@ test "#1096: unexpected generated tokens", ->
     for i in [1]:
                 ^
   '''
+
+test "#3325: implicit indentation errors", ->
+  assertErrorFormat '''
+    i for i in a then i
+  ''', '''
+    [stdin]:1:14: error: unexpected then
+    i for i in a then i
+                 ^^^^
+  '''
+
+test "explicit indentation errors", ->
+  assertErrorFormat '''
+    a = b
+      c
+  ''', '''
+    [stdin]:2:1: error: unexpected indentation
+      c
+    ^^
+  '''