diff --git a/doc/org-manual.org b/doc/org-manual.org
index 488f3eecc..54bbf2a86 100644
--- a/doc/org-manual.org
+++ b/doc/org-manual.org
@@ -7390,8 +7390,9 @@ here:
 - =%i= ::
 
      Initial content, the region when capture is called while the
-     region is active.  The entire text will be indented like ~%i~
-     itself.
+     region is active.  If there is text before =%i= on the same line,
+     such as indentation, and =%i= is not inside a =%(exp)= form, that
+     prefix is added before every line in the inserted text.
 
 - =%a= ::
 
diff --git a/lisp/org-capture.el b/lisp/org-capture.el
index 0446594dc..2946b6fc5 100644
--- a/lisp/org-capture.el
+++ b/lisp/org-capture.el
@@ -287,8 +287,10 @@ be replaced with content and expanded:
               with `org-capture-use-agenda-date' set.
   %T          Time stamp as above, with date and time.
   %u, %U      Like the above, but inactive time stamps.
-  %i          Initial content, copied from the active region.  If %i is
-              indented, the entire inserted text will be indented as well.
+  %i          Initial content, copied from the active region.  If
+              there is text before %i on the same line, such as
+              indentation, and %i is not inside a %(sexp), that prefix
+              will be added before every line in the inserted text.
   %a          Annotation, normally the link created with `org-store-link'.
   %A          Like %a, but prompt for the description part.
   %l          Like %a, but only insert the literal link.