diff --git a/src/main/java/com/google/devtools/build/lib/syntax/Lexer.java b/src/main/java/com/google/devtools/build/lib/syntax/Lexer.java
index 5ecae12..a50a0a0 100644
--- a/src/main/java/com/google/devtools/build/lib/syntax/Lexer.java
+++ b/src/main/java/com/google/devtools/build/lib/syntax/Lexer.java
@@ -24,7 +24,9 @@
 import com.google.devtools.build.lib.util.Pair;
 import com.google.devtools.build.lib.vfs.PathFragment;
 import java.util.ArrayDeque;
+import java.util.ArrayList;
 import java.util.HashMap;
+import java.util.List;
 import java.util.Map;
 import java.util.Objects;
 import java.util.Stack;
@@ -87,11 +89,18 @@
   /** Last Token that was scanned. */
   private Token lastToken;
 
+  private final List<Comment> comments;
+
   // The number of unclosed open-parens ("(", '{', '[') at the current point in
   // the stream. Whitespace is handled differently when this is nonzero.
   private int openParenStackDepth = 0;
 
   private boolean containsErrors;
+  /**
+   * True after a NEWLINE token.
+   * In other words, we are outside an expression and we have to check the indentation.
+   */
+  private boolean checkIndentation;
 
   /**
    * Constructs a lexer which tokenizes the contents of the specified InputBuffer. Any errors during
@@ -104,6 +113,8 @@
     this.pos = 0;
     this.eventHandler = eventHandler;
     this.locationInfo = new LocationInfo(input.getPath(), lineNumberTable);
+    this.checkIndentation = true;
+    this.comments = new ArrayList<>();
 
     indentStack.push(0);
   }
@@ -112,6 +123,10 @@
     this(input, eventHandler, LineNumberTable.create(input.getContent(), input.getPath()));
   }
 
+  List<Comment> getComments() {
+    return comments;
+  }
+
   /**
    * Returns the filename from which the lexer's input came. Returns an empty value if the input
    * came from a string.
@@ -216,18 +231,16 @@
   }
 
   /**
-   * Parses an end-of-line sequence, handling statement indentation correctly.
+   * Parses an end-of-line sequence.
    *
    * <p>UNIX newlines are assumed (LF). Carriage returns are always ignored.
-   *
-   * <p>ON ENTRY: 'pos' is the index of the char after '\n'.
-   * ON EXIT: 'pos' is the index of the next non-space char after '\n'.
    */
   private void newline() {
     if (openParenStackDepth > 0) {
       newlineInsideExpression(); // in an expression: ignore space
     } else {
-      newlineOutsideExpression(); // generate NEWLINE/INDENT/OUTDENT tokens
+      checkIndentation = true;
+      addToken(new Token(TokenKind.NEWLINE, pos - 1, pos));
     }
   }
 
@@ -244,10 +257,6 @@
   }
 
   private void newlineOutsideExpression() {
-    if (pos > 1) { // skip over newline at start of file
-      addToken(new Token(TokenKind.NEWLINE, pos - 1, pos));
-    }
-
     // we're in a stmt: suck up space at beginning of next line
     int indentLen = 0;
     while (pos < buffer.length) {
@@ -269,7 +278,7 @@
         while (pos < buffer.length && c != '\n') {
           c = buffer[pos++];
         }
-        addToken(new Token(TokenKind.COMMENT, oldPos, pos - 1, bufferSlice(oldPos, pos - 1)));
+        makeComment(oldPos, pos - 1, bufferSlice(oldPos, pos - 1));
         indentLen = 0;
       } else { // printing character
         break;
@@ -707,6 +716,14 @@
    * least one token will be added to the tokens queue.
    */
   private void tokenize() {
+    if (checkIndentation) {
+      checkIndentation = false;
+      newlineOutsideExpression(); // generate INDENT/OUTDENT tokens
+      if (!tokens.isEmpty()) {
+        return;
+      }
+    }
+
     while (pos < buffer.length) {
       if (tokenizeTwoChars()) {
         pos += 2;
@@ -837,7 +854,7 @@
             pos++;
           }
         }
-        addToken(new Token(TokenKind.COMMENT, oldPos, pos, bufferSlice(oldPos, pos)));
+        makeComment(oldPos, pos, bufferSlice(oldPos, pos));
         break;
       }
       case '\'':
@@ -908,4 +925,7 @@
     return new String(this.buffer, start, end - start);
   }
 
+  private void makeComment(int start, int end, String content) {
+    comments.add(ASTNode.setLocation(createLocation(start, end), new Comment(content)));
+  }
 }
diff --git a/src/main/java/com/google/devtools/build/lib/syntax/Parser.java b/src/main/java/com/google/devtools/build/lib/syntax/Parser.java
index d593dc0..ec6d323 100644
--- a/src/main/java/com/google/devtools/build/lib/syntax/Parser.java
+++ b/src/main/java/com/google/devtools/build/lib/syntax/Parser.java
@@ -115,7 +115,6 @@
 
   private final Lexer lexer;
   private final EventHandler eventHandler;
-  private final List<Comment> comments;
 
   private static final Map<TokenKind, Operator> binaryOperators =
       new ImmutableMap.Builder<TokenKind, Operator>()
@@ -167,7 +166,6 @@
   private Parser(Lexer lexer, EventHandler eventHandler) {
     this.lexer = lexer;
     this.eventHandler = eventHandler;
-    this.comments = new ArrayList<>();
     nextToken();
   }
 
@@ -195,7 +193,7 @@
     List<Statement> statements = parser.parseFileInput();
     boolean errors = parser.errorsCount > 0 || lexer.containsErrors();
     return new ParseResult(
-        statements, parser.comments, locationFromStatements(lexer, statements), errors);
+        statements, lexer.getComments(), locationFromStatements(lexer, statements), errors);
   }
 
   /**
@@ -415,11 +413,6 @@
   private void nextToken() {
     if (token == null || token.kind != TokenKind.EOF) {
       token = lexer.nextToken();
-      // transparently handle comment tokens
-      while (token.kind == TokenKind.COMMENT) {
-        makeComment();
-        token = lexer.nextToken();
-      }
     }
     checkForbiddenKeywords();
     if (DEBUGGING) {
@@ -1344,9 +1337,4 @@
     }
     return setLocation(new ReturnStatement(expression), start, end);
   }
-
-  // create a comment node
-  private void makeComment() {
-    comments.add(setLocation(new Comment((String) token.value), token.left, token.right));
-  }
 }
diff --git a/src/main/java/com/google/devtools/build/lib/syntax/TokenKind.java b/src/main/java/com/google/devtools/build/lib/syntax/TokenKind.java
index e5098f1..e2a4dcd 100644
--- a/src/main/java/com/google/devtools/build/lib/syntax/TokenKind.java
+++ b/src/main/java/com/google/devtools/build/lib/syntax/TokenKind.java
@@ -26,7 +26,6 @@
   CLASS("class"),
   COLON(":"),
   COMMA(","),
-  COMMENT("comment"),
   CONTINUE("continue"),
   DEF("def"),
   DEL("del"),