diff --git a/CHANGELOG.md b/CHANGELOG.md
index b5a12aafa..e9d264fa3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,12 @@
 
 ## Unreleased
 
+### Apply correct margin box when creating or switching pages
+
+When creating a new page or returning to a page previously created, compute the margin box correctly.
+
+(Dan Allen, [#1122](https://github.com/prawnpdf/prawn/pull/1022))
+
 ### Look for glyph in correct font
 
 Take the font style into account when looking for a glyph and fallback fonts are enabled.
diff --git a/lib/prawn/document.rb b/lib/prawn/document.rb
index 439667d5a..4c25c9959 100644
--- a/lib/prawn/document.rb
+++ b/lib/prawn/document.rb
@@ -723,15 +723,17 @@ def generate_margin_box
           (page.margins[:top] + page.margins[:bottom])
       )
 
-      # This check maintains indentation settings across page breaks
+      # update bounding box if not flowing from the previous page
+      unless @bounding_box&.parent
+        old_margin_box = @bounding_box
+        @bounding_box = @margin_box
+      end
+
+      # maintains indentation settings across page breaks
       if old_margin_box
         @margin_box.add_left_padding(old_margin_box.total_left_padding)
         @margin_box.add_right_padding(old_margin_box.total_right_padding)
       end
-
-      # we must update bounding box if not flowing from the previous page
-      #
-      @bounding_box = @margin_box unless @bounding_box&.parent
     end
 
     def apply_margin_options(options)
diff --git a/spec/prawn/document_spec.rb b/spec/prawn/document_spec.rb
index 3b649629e..029c044c7 100644
--- a/spec/prawn/document_spec.rb
+++ b/spec/prawn/document_spec.rb
@@ -126,6 +126,19 @@ def self.format(string)
         expect(pdf.instance_variable_get(:@background)).to eq(filename)
       end
     end
+
+    it 'retains the current margin and padding' do
+      initial_absolute_left = pdf.bounds.absolute_left
+
+      pdf.bounding_box [0, pdf.cursor], width: pdf.bounds.width do
+        pdf.bounds.move_past_bottom
+      end
+      pdf.indent 20 do
+        pdf.bounds.move_past_bottom
+      end
+
+      expect(pdf.bounds.absolute_left).to eq(initial_absolute_left)
+    end
   end
 
   describe '#float' do