diff --git a/package.json b/package.json
index 3e88f33a5..28d4cd26a 100644
--- a/package.json
+++ b/package.json
@@ -36,7 +36,7 @@
     "vscode-languageserver-types": "^3.16.0",
     "vscode-nls": "^5.0.0",
     "vscode-uri": "^3.0.2",
-    "yaml": "2.2.2"
+    "yaml": "2.7.1"
   },
   "devDependencies": {
     "@microsoft/eslint-formatter-sarif": "3.0.0",
diff --git a/test/yamlValidation.test.ts b/test/yamlValidation.test.ts
index 50ef5b886..3c4a162b7 100644
--- a/test/yamlValidation.test.ts
+++ b/test/yamlValidation.test.ts
@@ -53,6 +53,12 @@ describe('YAML Validation Tests', () => {
       expect(result.length).to.be.equal(1);
       expect(result[0]).deep.equal(createExpectedError('Tabs are not allowed as indentation', 1, 1, 1, 10));
     });
+
+    it('Should allow proper space indentation followed by tab', async () => {
+      const yaml = 'foo:\n  \tbar';
+      const result = await parseSetup(yaml);
+      expect(result).to.be.empty;
+    });
   });
 
   describe('Unused anchors diagnostics', () => {
diff --git a/yarn.lock b/yarn.lock
index ee1d8f793..3d0b4412b 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3340,10 +3340,10 @@ yallist@^4.0.0:
   resolved "https://registry.npmjs.org/yallist/-/yallist-4.0.0.tgz"
   integrity sha512-3wdGidZyq5PB084XLES5TpOSRA3wjXAlIWMhum2kRcv/41Sn2emQ0dycQW4uZXLejwKvg6EsvbdlVL+FYEct7A==
 
-yaml@2.2.2:
-  version "2.2.2"
-  resolved "https://registry.yarnpkg.com/yaml/-/yaml-2.2.2.tgz#ec551ef37326e6d42872dad1970300f8eb83a073"
-  integrity sha512-CBKFWExMn46Foo4cldiChEzn7S7SRV+wqiluAb6xmueD/fGyRHIhX8m14vVGgeFWjN540nKCNVj6P21eQjgTuA==
+yaml@2.7.1:
+  version "2.7.1"
+  resolved "https://registry.yarnpkg.com/yaml/-/yaml-2.7.1.tgz#44a247d1b88523855679ac7fa7cda6ed7e135cf6"
+  integrity sha512-10ULxpnOCQXxJvBgxsn9ptjq6uviG/htZKk9veJGhlqn3w/DxQ631zFF+nlQXLwmImeS5amR2dl2U8sg6U9jsQ==
 
 yargs-parser@20.2.4, yargs-parser@^20.2.2:
   version "20.2.4"