diff --git a/doc/classes/Label.xml b/doc/classes/Label.xml
index ae5a62753f1..7657cf31214 100644
--- a/doc/classes/Label.xml
+++ b/doc/classes/Label.xml
@@ -74,6 +74,9 @@
 			Limits the lines of text the node shows on screen.
 		</member>
 		<member name="mouse_filter" type="int" setter="set_mouse_filter" getter="get_mouse_filter" overrides="Control" enum="Control.MouseFilter" default="2" />
+		<member name="paragraph_separator" type="String" setter="set_paragraph_separator" getter="get_paragraph_separator" default="&quot;\\n&quot;">
+			String used as a paragraph separator. Each paragraph is processed independently, in its own BiDi context.
+		</member>
 		<member name="size_flags_vertical" type="int" setter="set_v_size_flags" getter="get_v_size_flags" overrides="Control" enum="Control.SizeFlags" is_bitfield="true" default="4" />
 		<member name="structured_text_bidi_override" type="int" setter="set_structured_text_bidi_override" getter="get_structured_text_bidi_override" enum="TextServer.StructuredTextParser" default="0">
 			Set BiDi algorithm override for the structured text.
@@ -129,6 +132,9 @@
 			[b]Note:[/b] If using a font with [member FontFile.multichannel_signed_distance_field] enabled, its [member FontFile.msdf_pixel_range] must be set to at least [i]twice[/i] the value of [theme_item outline_size] for outline rendering to look correct. Otherwise, the outline may appear to be cut off earlier than intended.
 			[b]Note:[/b] Using a value that is larger than half the font size is not recommended, as the font outline may fail to be fully closed in this case.
 		</theme_item>
+		<theme_item name="paragraph_spacing" data_type="constant" type="int" default="0">
+			Vertical space between paragraphs. Added on top of [theme_item line_spacing].
+		</theme_item>
 		<theme_item name="shadow_offset_x" data_type="constant" type="int" default="1">
 			The horizontal offset of the text's shadow.
 		</theme_item>
diff --git a/doc/classes/LabelSettings.xml b/doc/classes/LabelSettings.xml
index ff7b8e7b0e4..610f10574b5 100644
--- a/doc/classes/LabelSettings.xml
+++ b/doc/classes/LabelSettings.xml
@@ -27,6 +27,9 @@
 		<member name="outline_size" type="int" setter="set_outline_size" getter="get_outline_size" default="0">
 			Text outline size.
 		</member>
+		<member name="paragraph_spacing" type="float" setter="set_paragraph_spacing" getter="get_paragraph_spacing" default="0.0">
+			Vertical space between paragraphs. Added on top of [member line_spacing].
+		</member>
 		<member name="shadow_color" type="Color" setter="set_shadow_color" getter="get_shadow_color" default="Color(0, 0, 0, 0)">
 			Color of the shadow effect. If alpha is [code]0[/code], no shadow will be drawn.
 		</member>
diff --git a/scene/gui/label.cpp b/scene/gui/label.cpp
index 7a0e5b8867b..7dd24cc14d3 100644
--- a/scene/gui/label.cpp
+++ b/scene/gui/label.cpp
@@ -43,7 +43,9 @@ void Label::set_autowrap_mode(TextServer::AutowrapMode p_mode) {
 	}
 
 	autowrap_mode = p_mode;
-	lines_dirty = true;
+	for (Paragraph &para : paragraphs) {
+		para.lines_dirty = true;
+	}
 	queue_redraw();
 	update_configuration_warnings();
 
@@ -62,7 +64,9 @@ void Label::set_justification_flags(BitField<TextServer::JustificationFlag> p_fl
 	}
 
 	jst_flags = p_flags;
-	lines_dirty = true;
+	for (Paragraph &para : paragraphs) {
+		para.lines_dirty = true;
+	}
 	queue_redraw();
 }
 
@@ -76,7 +80,7 @@ void Label::set_uppercase(bool p_uppercase) {
 	}
 
 	uppercase = p_uppercase;
-	dirty = true;
+	text_dirty = true;
 
 	queue_redraw();
 }
@@ -87,12 +91,14 @@ bool Label::is_uppercase() const {
 
 int Label::get_line_height(int p_line) const {
 	Ref<Font> font = (settings.is_valid() && settings->get_font().is_valid()) ? settings->get_font() : theme_cache.font;
-	if (p_line >= 0 && p_line < lines_rid.size()) {
-		return TS->shaped_text_get_size(lines_rid[p_line]).y;
-	} else if (lines_rid.size() > 0) {
+	if (p_line >= 0 && p_line < total_line_count) {
+		return TS->shaped_text_get_size(get_line_rid(p_line)).y;
+	} else if (total_line_count > 0) {
 		int h = 0;
-		for (int i = 0; i < lines_rid.size(); i++) {
-			h = MAX(h, TS->shaped_text_get_size(lines_rid[i]).y);
+		for (const Paragraph &para : paragraphs) {
+			for (const RID &line_rid : para.lines_rid) {
+				h = MAX(h, TS->shaped_text_get_size(line_rid).y);
+			}
 		}
 		return h;
 	} else {
@@ -105,181 +111,216 @@ void Label::_shape() {
 	Ref<StyleBox> style = theme_cache.normal_style;
 	int width = (get_size().width - style->get_minimum_size().width);
 
-	if (dirty || font_dirty) {
-		if (dirty) {
-			TS->shaped_text_clear(text_rid);
+	if (text_dirty) {
+		for (Paragraph &para : paragraphs) {
+			for (const RID &line_rid : para.lines_rid) {
+				TS->free_rid(line_rid);
+			}
+			para.lines_rid.clear();
+			TS->free_rid(para.text_rid);
 		}
-		if (text_direction == Control::TEXT_DIRECTION_INHERITED) {
-			TS->shaped_text_set_direction(text_rid, is_layout_rtl() ? TextServer::DIRECTION_RTL : TextServer::DIRECTION_LTR);
-		} else {
-			TS->shaped_text_set_direction(text_rid, (TextServer::Direction)text_direction);
-		}
-		const Ref<Font> &font = (settings.is_valid() && settings->get_font().is_valid()) ? settings->get_font() : theme_cache.font;
-		int font_size = settings.is_valid() ? settings->get_font_size() : theme_cache.font_size;
-		ERR_FAIL_COND(font.is_null());
+		paragraphs.clear();
+
 		String txt = (uppercase) ? TS->string_to_upper(xl_text, language) : xl_text;
 		if (visible_chars >= 0 && visible_chars_behavior == TextServer::VC_CHARS_BEFORE_SHAPING) {
 			txt = txt.substr(0, visible_chars);
 		}
-		if (dirty) {
-			TS->shaped_text_add_string(text_rid, txt, font->get_rids(), font_size, font->get_opentype_features(), language);
-		} else {
-			int spans = TS->shaped_get_span_count(text_rid);
-			for (int i = 0; i < spans; i++) {
-				TS->shaped_set_span_update_font(text_rid, i, font->get_rids(), font_size, font->get_opentype_features());
-			}
+		String ps = paragraph_separator.c_unescape();
+		Vector<String> para_text = txt.split(ps);
+		int start = 0;
+		for (const String &str : para_text) {
+			Paragraph para;
+			para.text_rid = TS->create_shaped_text();
+			para.text = str;
+			para.start = start;
+			start += str.length() + ps.length();
+			paragraphs.push_back(para);
 		}
-		TS->shaped_text_set_bidi_override(text_rid, structured_text_parser(st_parser, st_args, txt));
-		if (!tab_stops.is_empty()) {
-			TS->shaped_text_tab_align(text_rid, tab_stops);
-		}
-		dirty = false;
-		font_dirty = false;
-		lines_dirty = true;
+		text_dirty = false;
 	}
 
-	if (lines_dirty) {
-		for (int i = 0; i < lines_rid.size(); i++) {
-			TS->free_rid(lines_rid[i]);
-		}
-		lines_rid.clear();
+	total_line_count = 0;
+	for (Paragraph &para : paragraphs) {
+		if (para.dirty || font_dirty) {
+			if (para.dirty) {
+				TS->shaped_text_clear(para.text_rid);
+			}
+			if (text_direction == Control::TEXT_DIRECTION_INHERITED) {
+				TS->shaped_text_set_direction(para.text_rid, is_layout_rtl() ? TextServer::DIRECTION_RTL : TextServer::DIRECTION_LTR);
+			} else {
+				TS->shaped_text_set_direction(para.text_rid, (TextServer::Direction)text_direction);
+			}
+			const Ref<Font> &font = (settings.is_valid() && settings->get_font().is_valid()) ? settings->get_font() : theme_cache.font;
+			int font_size = settings.is_valid() ? settings->get_font_size() : theme_cache.font_size;
+			ERR_FAIL_COND(font.is_null());
 
-		BitField<TextServer::LineBreakFlag> autowrap_flags = TextServer::BREAK_MANDATORY;
-		switch (autowrap_mode) {
-			case TextServer::AUTOWRAP_WORD_SMART:
-				autowrap_flags = TextServer::BREAK_WORD_BOUND | TextServer::BREAK_ADAPTIVE | TextServer::BREAK_MANDATORY;
-				break;
-			case TextServer::AUTOWRAP_WORD:
-				autowrap_flags = TextServer::BREAK_WORD_BOUND | TextServer::BREAK_MANDATORY;
-				break;
-			case TextServer::AUTOWRAP_ARBITRARY:
-				autowrap_flags = TextServer::BREAK_GRAPHEME_BOUND | TextServer::BREAK_MANDATORY;
-				break;
-			case TextServer::AUTOWRAP_OFF:
-				break;
-		}
-		autowrap_flags = autowrap_flags | TextServer::BREAK_TRIM_EDGE_SPACES;
-
-		PackedInt32Array line_breaks = TS->shaped_text_get_line_breaks(text_rid, width, 0, autowrap_flags);
-		for (int i = 0; i < line_breaks.size(); i = i + 2) {
-			RID line = TS->shaped_text_substr(text_rid, line_breaks[i], line_breaks[i + 1] - line_breaks[i]);
+			if (para.dirty) {
+				TS->shaped_text_add_string(para.text_rid, para.text, font->get_rids(), font_size, font->get_opentype_features(), language);
+			} else {
+				int spans = TS->shaped_get_span_count(para.text_rid);
+				for (int i = 0; i < spans; i++) {
+					TS->shaped_set_span_update_font(para.text_rid, i, font->get_rids(), font_size, font->get_opentype_features());
+				}
+			}
+			TS->shaped_text_set_bidi_override(para.text_rid, structured_text_parser(st_parser, st_args, para.text));
 			if (!tab_stops.is_empty()) {
-				TS->shaped_text_tab_align(line, tab_stops);
+				TS->shaped_text_tab_align(para.text_rid, tab_stops);
 			}
-			lines_rid.push_back(line);
+			para.dirty = false;
+			para.lines_dirty = true;
 		}
+
+		if (para.lines_dirty) {
+			for (const RID &line_rid : para.lines_rid) {
+				TS->free_rid(line_rid);
+			}
+			para.lines_rid.clear();
+
+			BitField<TextServer::LineBreakFlag> autowrap_flags = TextServer::BREAK_MANDATORY;
+			switch (autowrap_mode) {
+				case TextServer::AUTOWRAP_WORD_SMART:
+					autowrap_flags = TextServer::BREAK_WORD_BOUND | TextServer::BREAK_ADAPTIVE | TextServer::BREAK_MANDATORY;
+					break;
+				case TextServer::AUTOWRAP_WORD:
+					autowrap_flags = TextServer::BREAK_WORD_BOUND | TextServer::BREAK_MANDATORY;
+					break;
+				case TextServer::AUTOWRAP_ARBITRARY:
+					autowrap_flags = TextServer::BREAK_GRAPHEME_BOUND | TextServer::BREAK_MANDATORY;
+					break;
+				case TextServer::AUTOWRAP_OFF:
+					break;
+			}
+			autowrap_flags = autowrap_flags | TextServer::BREAK_TRIM_EDGE_SPACES;
+
+			PackedInt32Array line_breaks = TS->shaped_text_get_line_breaks(para.text_rid, width, 0, autowrap_flags);
+			for (int i = 0; i < line_breaks.size(); i = i + 2) {
+				RID line = TS->shaped_text_substr(para.text_rid, line_breaks[i], line_breaks[i + 1] - line_breaks[i]);
+				if (!tab_stops.is_empty()) {
+					TS->shaped_text_tab_align(line, tab_stops);
+				}
+				para.lines_rid.push_back(line);
+			}
+		}
+		total_line_count += para.lines_rid.size();
 	}
+	dirty = false;
+	font_dirty = false;
 
 	if (xl_text.length() == 0) {
 		minsize = Size2(1, get_line_height());
 		return;
 	}
 
-	if (autowrap_mode == TextServer::AUTOWRAP_OFF) {
-		minsize.width = 0.0f;
-		for (int i = 0; i < lines_rid.size(); i++) {
-			if (minsize.width < TS->shaped_text_get_size(lines_rid[i]).x) {
-				minsize.width = TS->shaped_text_get_size(lines_rid[i]).x;
+	int visible_lines = get_visible_line_count();
+	bool lines_hidden = visible_lines > 0 && visible_lines < total_line_count;
+
+	int line_index = 0;
+	for (Paragraph &para : paragraphs) {
+		if (autowrap_mode == TextServer::AUTOWRAP_OFF) {
+			minsize.width = 0.0f;
+			for (const RID &line_rid : para.lines_rid) {
+				if (minsize.width < TS->shaped_text_get_size(line_rid).x) {
+					minsize.width = TS->shaped_text_get_size(line_rid).x;
+				}
 			}
 		}
-	}
 
-	if (lines_dirty) {
-		BitField<TextServer::TextOverrunFlag> overrun_flags = TextServer::OVERRUN_NO_TRIM;
-		switch (overrun_behavior) {
-			case TextServer::OVERRUN_TRIM_WORD_ELLIPSIS:
-				overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
-				overrun_flags.set_flag(TextServer::OVERRUN_TRIM_WORD_ONLY);
-				overrun_flags.set_flag(TextServer::OVERRUN_ADD_ELLIPSIS);
-				break;
-			case TextServer::OVERRUN_TRIM_ELLIPSIS:
-				overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
-				overrun_flags.set_flag(TextServer::OVERRUN_ADD_ELLIPSIS);
-				break;
-			case TextServer::OVERRUN_TRIM_WORD:
-				overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
-				overrun_flags.set_flag(TextServer::OVERRUN_TRIM_WORD_ONLY);
-				break;
-			case TextServer::OVERRUN_TRIM_CHAR:
-				overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
-				break;
-			case TextServer::OVERRUN_NO_TRIMMING:
-				break;
-		}
-
-		// Fill after min_size calculation.
-
-		BitField<TextServer::JustificationFlag> line_jst_flags = jst_flags;
-		if (!tab_stops.is_empty()) {
-			line_jst_flags.set_flag(TextServer::JUSTIFICATION_AFTER_LAST_TAB);
-		}
-		if (autowrap_mode != TextServer::AUTOWRAP_OFF) {
-			int visible_lines = get_visible_line_count();
-			bool lines_hidden = visible_lines > 0 && visible_lines < lines_rid.size();
-			if (lines_hidden) {
-				overrun_flags.set_flag(TextServer::OVERRUN_ENFORCE_ELLIPSIS);
+		if (para.lines_dirty) {
+			BitField<TextServer::TextOverrunFlag> overrun_flags = TextServer::OVERRUN_NO_TRIM;
+			switch (overrun_behavior) {
+				case TextServer::OVERRUN_TRIM_WORD_ELLIPSIS:
+					overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
+					overrun_flags.set_flag(TextServer::OVERRUN_TRIM_WORD_ONLY);
+					overrun_flags.set_flag(TextServer::OVERRUN_ADD_ELLIPSIS);
+					break;
+				case TextServer::OVERRUN_TRIM_ELLIPSIS:
+					overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
+					overrun_flags.set_flag(TextServer::OVERRUN_ADD_ELLIPSIS);
+					break;
+				case TextServer::OVERRUN_TRIM_WORD:
+					overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
+					overrun_flags.set_flag(TextServer::OVERRUN_TRIM_WORD_ONLY);
+					break;
+				case TextServer::OVERRUN_TRIM_CHAR:
+					overrun_flags.set_flag(TextServer::OVERRUN_TRIM);
+					break;
+				case TextServer::OVERRUN_NO_TRIMMING:
+					break;
 			}
-			if (horizontal_alignment == HORIZONTAL_ALIGNMENT_FILL) {
-				int jst_to_line = visible_lines;
-				if (lines_rid.size() == 1 && line_jst_flags.has_flag(TextServer::JUSTIFICATION_DO_NOT_SKIP_SINGLE_LINE)) {
-					jst_to_line = lines_rid.size();
+
+			// Fill after min_size calculation.
+
+			BitField<TextServer::JustificationFlag> line_jst_flags = jst_flags;
+			if (!tab_stops.is_empty()) {
+				line_jst_flags.set_flag(TextServer::JUSTIFICATION_AFTER_LAST_TAB);
+			}
+			if (autowrap_mode != TextServer::AUTOWRAP_OFF) {
+				if (lines_hidden) {
+					overrun_flags.set_flag(TextServer::OVERRUN_ENFORCE_ELLIPSIS);
+				}
+				if (horizontal_alignment == HORIZONTAL_ALIGNMENT_FILL) {
+					int jst_to_line = para.lines_rid.size();
+					if (para.lines_rid.size() == 1 && line_jst_flags.has_flag(TextServer::JUSTIFICATION_DO_NOT_SKIP_SINGLE_LINE)) {
+						jst_to_line = para.lines_rid.size();
+					} else {
+						if (line_jst_flags.has_flag(TextServer::JUSTIFICATION_SKIP_LAST_LINE)) {
+							jst_to_line = para.lines_rid.size() - 1;
+						}
+						if (line_jst_flags.has_flag(TextServer::JUSTIFICATION_SKIP_LAST_LINE_WITH_VISIBLE_CHARS)) {
+							for (int i = para.lines_rid.size() - 1; i >= 0; i--) {
+								if (TS->shaped_text_has_visible_chars(para.lines_rid[i])) {
+									jst_to_line = i;
+									break;
+								}
+							}
+						}
+					}
+					for (int i = 0; i < para.lines_rid.size(); i++) {
+						if (i < jst_to_line) {
+							TS->shaped_text_fit_to_width(para.lines_rid[i], width, line_jst_flags);
+						} else if (i == (visible_lines - line_index - 1)) {
+							TS->shaped_text_set_custom_ellipsis(para.lines_rid[i], (el_char.length() > 0) ? el_char[0] : 0x2026);
+							TS->shaped_text_overrun_trim_to_width(para.lines_rid[i], width, overrun_flags);
+						}
+					}
+				} else if (lines_hidden && (visible_lines - line_index - 1 >= 0) && (visible_lines - line_index - 1) < para.lines_rid.size()) {
+					TS->shaped_text_set_custom_ellipsis(para.lines_rid[visible_lines - line_index - 1], (el_char.length() > 0) ? el_char[0] : 0x2026);
+					TS->shaped_text_overrun_trim_to_width(para.lines_rid[visible_lines - line_index - 1], width, overrun_flags);
+				}
+			} else {
+				// Autowrap disabled.
+				int jst_to_line = para.lines_rid.size();
+				if (para.lines_rid.size() == 1 && line_jst_flags.has_flag(TextServer::JUSTIFICATION_DO_NOT_SKIP_SINGLE_LINE)) {
+					jst_to_line = para.lines_rid.size();
 				} else {
 					if (line_jst_flags.has_flag(TextServer::JUSTIFICATION_SKIP_LAST_LINE)) {
-						jst_to_line = visible_lines - 1;
+						jst_to_line = para.lines_rid.size() - 1;
 					}
 					if (line_jst_flags.has_flag(TextServer::JUSTIFICATION_SKIP_LAST_LINE_WITH_VISIBLE_CHARS)) {
-						for (int i = visible_lines - 1; i >= 0; i--) {
-							if (TS->shaped_text_has_visible_chars(lines_rid[i])) {
+						for (int i = para.lines_rid.size() - 1; i >= 0; i--) {
+							if (TS->shaped_text_has_visible_chars(para.lines_rid[i])) {
 								jst_to_line = i;
 								break;
 							}
 						}
 					}
 				}
-				for (int i = 0; i < lines_rid.size(); i++) {
-					if (i < jst_to_line) {
-						TS->shaped_text_fit_to_width(lines_rid[i], width, line_jst_flags);
-					} else if (i == (visible_lines - 1)) {
-						TS->shaped_text_set_custom_ellipsis(lines_rid[i], (el_char.length() > 0) ? el_char[0] : 0x2026);
-						TS->shaped_text_overrun_trim_to_width(lines_rid[i], width, overrun_flags);
-					}
-				}
-			} else if (lines_hidden) {
-				TS->shaped_text_set_custom_ellipsis(lines_rid[visible_lines - 1], (el_char.length() > 0) ? el_char[0] : 0x2026);
-				TS->shaped_text_overrun_trim_to_width(lines_rid[visible_lines - 1], width, overrun_flags);
-			}
-		} else {
-			// Autowrap disabled.
-			int jst_to_line = lines_rid.size();
-			if (lines_rid.size() == 1 && line_jst_flags.has_flag(TextServer::JUSTIFICATION_DO_NOT_SKIP_SINGLE_LINE)) {
-				jst_to_line = lines_rid.size();
-			} else {
-				if (line_jst_flags.has_flag(TextServer::JUSTIFICATION_SKIP_LAST_LINE)) {
-					jst_to_line = lines_rid.size() - 1;
-				}
-				if (line_jst_flags.has_flag(TextServer::JUSTIFICATION_SKIP_LAST_LINE_WITH_VISIBLE_CHARS)) {
-					for (int i = lines_rid.size() - 1; i >= 0; i--) {
-						if (TS->shaped_text_has_visible_chars(lines_rid[i])) {
-							jst_to_line = i;
-							break;
-						}
+				for (int i = 0; i < para.lines_rid.size(); i++) {
+					if (i < jst_to_line && horizontal_alignment == HORIZONTAL_ALIGNMENT_FILL) {
+						TS->shaped_text_fit_to_width(para.lines_rid[i], width, line_jst_flags);
+						overrun_flags.set_flag(TextServer::OVERRUN_JUSTIFICATION_AWARE);
+						TS->shaped_text_set_custom_ellipsis(para.lines_rid[i], (el_char.length() > 0) ? el_char[0] : 0x2026);
+						TS->shaped_text_overrun_trim_to_width(para.lines_rid[i], width, overrun_flags);
+						TS->shaped_text_fit_to_width(para.lines_rid[i], width, line_jst_flags | TextServer::JUSTIFICATION_CONSTRAIN_ELLIPSIS);
+					} else {
+						TS->shaped_text_set_custom_ellipsis(para.lines_rid[i], (el_char.length() > 0) ? el_char[0] : 0x2026);
+						TS->shaped_text_overrun_trim_to_width(para.lines_rid[i], width, overrun_flags);
 					}
 				}
 			}
-			for (int i = 0; i < lines_rid.size(); i++) {
-				if (i < jst_to_line && horizontal_alignment == HORIZONTAL_ALIGNMENT_FILL) {
-					TS->shaped_text_fit_to_width(lines_rid[i], width, line_jst_flags);
-					overrun_flags.set_flag(TextServer::OVERRUN_JUSTIFICATION_AWARE);
-					TS->shaped_text_set_custom_ellipsis(lines_rid[i], (el_char.length() > 0) ? el_char[0] : 0x2026);
-					TS->shaped_text_overrun_trim_to_width(lines_rid[i], width, overrun_flags);
-					TS->shaped_text_fit_to_width(lines_rid[i], width, line_jst_flags | TextServer::JUSTIFICATION_CONSTRAIN_ELLIPSIS);
-				} else {
-					TS->shaped_text_set_custom_ellipsis(lines_rid[i], (el_char.length() > 0) ? el_char[0] : 0x2026);
-					TS->shaped_text_overrun_trim_to_width(lines_rid[i], width, overrun_flags);
-				}
-			}
+			para.lines_dirty = false;
 		}
-		lines_dirty = false;
+		line_index += para.lines_rid.size();
 	}
 
 	_update_visible();
@@ -291,20 +332,37 @@ void Label::_shape() {
 
 void Label::_update_visible() {
 	int line_spacing = settings.is_valid() ? settings->get_line_spacing() : theme_cache.line_spacing;
+	int paragraph_spacing = settings.is_valid() ? settings->get_paragraph_spacing() : theme_cache.paragraph_spacing;
 	Ref<StyleBox> style = theme_cache.normal_style;
-	int lines_visible = lines_rid.size();
+	int lines_visible = total_line_count;
 
 	if (max_lines_visible >= 0 && lines_visible > max_lines_visible) {
 		lines_visible = max_lines_visible;
 	}
 
 	minsize.height = 0;
-	int last_line = MIN(lines_rid.size(), lines_visible + lines_skipped);
-	for (int64_t i = lines_skipped; i < last_line; i++) {
-		minsize.height += TS->shaped_text_get_size(lines_rid[i]).y + line_spacing;
+	int last_line = MIN(total_line_count, lines_visible + lines_skipped);
+
+	int line_index = 0;
+	for (const Paragraph &para : paragraphs) {
+		if (line_index + para.lines_rid.size() <= lines_skipped) {
+			line_index += para.lines_rid.size();
+		} else {
+			int start = (line_index < lines_skipped) ? lines_skipped - line_index : 0;
+			int end = (line_index + para.lines_rid.size() < last_line) ? para.lines_rid.size() : last_line - line_index;
+			if (end <= 0) {
+				break;
+			}
+			for (int i = start; i < end; i++) {
+				minsize.height += TS->shaped_text_get_size(para.lines_rid[i]).y + line_spacing;
+			}
+			minsize.height += paragraph_spacing;
+			line_index += para.lines_rid.size();
+		}
 	}
+
 	if (minsize.height > 0) {
-		minsize.height -= line_spacing;
+		minsize.height -= (line_spacing + paragraph_spacing);
 	}
 }
 
@@ -336,25 +394,61 @@ inline void draw_glyph_outline(const Glyph &p_gl, const RID &p_canvas, const Col
 }
 
 void Label::_ensure_shaped() const {
-	if (dirty || font_dirty || lines_dirty) {
+	if (dirty || font_dirty || text_dirty) {
 		const_cast<Label *>(this)->_shape();
-	}
+	} else
+		for (const Paragraph &para : paragraphs) {
+			if (para.lines_dirty || para.dirty) {
+				const_cast<Label *>(this)->_shape();
+				return;
+			}
+		}
 }
 
 RID Label::get_line_rid(int p_line) const {
-	return lines_rid[p_line];
+	if (p_line < 0 || p_line >= total_line_count) {
+		return RID();
+	}
+
+	int line_index = 0;
+	for (const Paragraph &para : paragraphs) {
+		if (line_index + para.lines_rid.size() <= p_line) {
+			line_index += para.lines_rid.size();
+		} else {
+			return para.lines_rid[p_line - line_index];
+		}
+	}
+
+	return RID();
 }
 
 Rect2 Label::get_line_rect(int p_line) const {
+	if (p_line < 0 || p_line >= total_line_count) {
+		return Rect2();
+	}
+
+	int line_index = 0;
+	for (int p = 0; p < paragraphs.size(); p++) {
+		const Paragraph &para = paragraphs[p];
+		if (line_index + para.lines_rid.size() <= p_line) {
+			line_index += para.lines_rid.size();
+		} else {
+			return _get_line_rect(p, p_line - line_index);
+		}
+	}
+
+	return Rect2();
+}
+
+Rect2 Label::_get_line_rect(int p_para, int p_line) const {
 	// Returns a rect providing the line's horizontal offset and total size. To determine the vertical
 	// offset, use r_offset and r_line_spacing from get_layout_data.
-	bool rtl = TS->shaped_text_get_inferred_direction(text_rid) == TextServer::DIRECTION_RTL;
+	bool rtl = TS->shaped_text_get_inferred_direction(paragraphs[p_para].text_rid) == TextServer::DIRECTION_RTL;
 	bool rtl_layout = is_layout_rtl();
 	Ref<StyleBox> style = theme_cache.normal_style;
 	Size2 size = get_size();
-	Size2 line_size = TS->shaped_text_get_size(lines_rid[p_line]);
+	Size2 line_size = TS->shaped_text_get_size(paragraphs[p_para].lines_rid[p_line]);
 	Vector2 offset;
-
 	switch (horizontal_alignment) {
 		case HORIZONTAL_ALIGNMENT_FILL:
 			if (rtl && autowrap_mode != TextServer::AUTOWRAP_OFF) {
@@ -381,43 +475,67 @@ Rect2 Label::get_line_rect(int p_line) const {
 			}
 		} break;
 	}
-
 	return Rect2(offset, line_size);
 }
 
-void Label::get_layout_data(Vector2 &r_offset, int &r_line_limit, int &r_line_spacing) const {
+int Label::get_layout_data(Vector2 &r_offset, int &r_last_line, int &r_line_spacing) const {
 	// Computes several common parameters involved in laying out and rendering text set to this label.
 	// Only vertical margin is considered in r_offset: use get_line_rect to get the horizontal offset
 	// for a given line of text.
 	Size2 size = get_size();
 	Ref<StyleBox> style = theme_cache.normal_style;
 	int line_spacing = settings.is_valid() ? settings->get_line_spacing() : theme_cache.line_spacing;
-
+	int paragraph_spacing = settings.is_valid() ? settings->get_paragraph_spacing() : theme_cache.paragraph_spacing;
 	float total_h = 0.0;
 	int lines_visible = 0;
 
 	// Get number of lines to fit to the height.
-	for (int64_t i = lines_skipped; i < lines_rid.size(); i++) {
-		total_h += TS->shaped_text_get_size(lines_rid[i]).y + line_spacing;
-		if (total_h > (get_size().height - style->get_minimum_size().height + line_spacing)) {
-			break;
+	int line_index = 0;
+	for (const Paragraph &para : paragraphs) {
+		if (line_index + para.lines_rid.size() <= lines_skipped) {
+			line_index += para.lines_rid.size();
+		} else {
+			int start = (line_index < lines_skipped) ? lines_skipped - line_index : 0;
+			for (int i = start; i < para.lines_rid.size(); i++) {
+				total_h += TS->shaped_text_get_size(para.lines_rid[i]).y + line_spacing;
+				if (total_h > (get_size().height - style->get_minimum_size().height + line_spacing)) {
+					break;
+				}
+				lines_visible++;
+			}
+			total_h += paragraph_spacing;
+			line_index += para.lines_rid.size();
 		}
-		lines_visible++;
 	}
 
 	if (max_lines_visible >= 0 && lines_visible > max_lines_visible) {
 		lines_visible = max_lines_visible;
 	}
 
-	r_line_limit = MIN(lines_rid.size(), lines_visible + lines_skipped);
+	r_last_line = MIN(total_line_count, lines_visible + lines_skipped);
 
 	// Get real total height.
+	int total_glyphs = 0;
 	total_h = 0;
-	for (int64_t i = lines_skipped; i < r_line_limit; i++) {
-		total_h += TS->shaped_text_get_size(lines_rid[i]).y + line_spacing;
+	line_index = 0;
+	for (const Paragraph &para : paragraphs) {
+		if (line_index + para.lines_rid.size() <= lines_skipped) {
+			line_index += para.lines_rid.size();
+		} else {
+			int start = (line_index < lines_skipped) ? lines_skipped - line_index : 0;
+			int end = (line_index + para.lines_rid.size() < r_last_line) ? para.lines_rid.size() : r_last_line - line_index;
+			if (end <= 0) {
+				break;
+			}
+			for (int i = start; i < end; i++) {
+				total_h += TS->shaped_text_get_size(para.lines_rid[i]).y + line_spacing;
+				total_glyphs += TS->shaped_text_get_glyph_count(para.lines_rid[i]) + TS->shaped_text_get_ellipsis_glyph_count(para.lines_rid[i]);
+			}
+			total_h += paragraph_spacing;
+			line_index += para.lines_rid.size();
+		}
 	}
 	total_h += style->get_margin(SIDE_TOP) + style->get_margin(SIDE_BOTTOM);
-
 	int vbegin = 0, vsep = 0;
 	if (lines_visible > 0) {
 		switch (vertical_alignment) {
@@ -425,29 +543,27 @@ void Label::get_layout_data(Vector2 &r_offset, int &r_line_limit, int &r_line_sp
 				// Nothing.
 			} break;
 			case VERTICAL_ALIGNMENT_CENTER: {
-				vbegin = (size.y - (total_h - line_spacing)) / 2;
+				vbegin = (size.y - (total_h - line_spacing - paragraph_spacing)) / 2;
 				vsep = 0;
-
 			} break;
 			case VERTICAL_ALIGNMENT_BOTTOM: {
-				vbegin = size.y - (total_h - line_spacing);
+				vbegin = size.y - (total_h - line_spacing - paragraph_spacing);
 				vsep = 0;
-
 			} break;
 			case VERTICAL_ALIGNMENT_FILL: {
 				vbegin = 0;
 				if (lines_visible > 1) {
-					vsep = (size.y - (total_h - line_spacing)) / (lines_visible - 1);
+					vsep = (size.y - (total_h - line_spacing - paragraph_spacing)) / (lines_visible - 1);
 				} else {
 					vsep = 0;
 				}
-
 			} break;
 		}
 	}
-
 	r_offset = { 0, style->get_offset().y + vbegin };
 	r_line_spacing = line_spacing + vsep;
+
+	return total_glyphs;
 }
 
 PackedStringArray Label::get_configuration_warnings() const {
@@ -477,12 +593,15 @@ PackedStringArray Label::get_configuration_warnings() const {
 
 	if (font.is_valid()) {
 		_ensure_shaped();
-		const Glyph *glyph = TS->shaped_text_get_glyphs(text_rid);
-		int64_t glyph_count = TS->shaped_text_get_glyph_count(text_rid);
-		for (int64_t i = 0; i < glyph_count; i++) {
-			if (glyph[i].font_rid == RID()) {
-				warnings.push_back(RTR("The current font does not support rendering one or more characters used in this Label's text."));
-				break;
+
+		for (const Paragraph &para : paragraphs) {
+			const Glyph *glyph = TS->shaped_text_get_glyphs(para.text_rid);
+			int64_t glyph_count = TS->shaped_text_get_glyph_count(para.text_rid);
+			for (int64_t i = 0; i < glyph_count; i++) {
+				if (glyph[i].font_rid == RID()) {
+					warnings.push_back(RTR("The current font does not support rendering one or more characters used in this Label's text."));
+					break;
+				}
 			}
 		}
 	}
@@ -501,7 +620,7 @@ void Label::_notification(int p_what) {
 			if (visible_ratio < 1) {
 				visible_chars = get_total_character_count() * visible_ratio;
 			}
-			dirty = true;
+			text_dirty = true;
 
 			queue_redraw();
 			update_configuration_warnings();
@@ -517,14 +636,16 @@ void Label::_notification(int p_what) {
 			}
 
 			// When a shaped text is invalidated by an external source, we want to reshape it.
-			if (!TS->shaped_text_is_ready(text_rid)) {
-				dirty = true;
-			}
+			for (Paragraph &para : paragraphs) {
+				if (!TS->shaped_text_is_ready(para.text_rid)) {
+					para.dirty = true;
+				}
 
-			for (const RID &line_rid : lines_rid) {
-				if (!TS->shaped_text_is_ready(line_rid)) {
-					lines_dirty = true;
-					break;
+				for (const RID &line_rid : para.lines_rid) {
+					if (!TS->shaped_text_is_ready(line_rid)) {
+						para.lines_dirty = true;
+						break;
+					}
 				}
 			}
 
@@ -539,10 +660,10 @@ void Label::_notification(int p_what) {
 			Color font_color = has_settings ? settings->get_font_color() : theme_cache.font_color;
 			Color font_shadow_color = has_settings ? settings->get_shadow_color() : theme_cache.font_shadow_color;
 			Point2 shadow_ofs = has_settings ? settings->get_shadow_offset() : theme_cache.font_shadow_offset;
+			int paragraph_spacing = has_settings ? settings->get_paragraph_spacing() : theme_cache.paragraph_spacing;
 			Color font_outline_color = has_settings ? settings->get_outline_color() : theme_cache.font_outline_color;
 			int outline_size = has_settings ? settings->get_outline_size() : theme_cache.font_outline_size;
 			int shadow_outline_size = has_settings ? settings->get_shadow_size() : theme_cache.font_shadow_outline_size;
-			bool rtl = (TS->shaped_text_get_inferred_direction(text_rid) == TextServer::DIRECTION_RTL);
 			bool rtl_layout = is_layout_rtl();
 
 			style->draw(ci, Rect2(Point2(0, 0), get_size()));
@@ -552,113 +673,126 @@ void Label::_notification(int p_what) {
 			bool trim_glyphs_rtl = (visible_chars >= 0) && ((visible_chars_behavior == TextServer::VC_GLYPHS_RTL) || ((visible_chars_behavior == TextServer::VC_GLYPHS_AUTO) && rtl_layout));
 
 			Vector2 ofs;
-			int line_limit;
 			int line_spacing;
-			get_layout_data(ofs, line_limit, line_spacing);
-
+			int last_line;
+			int total_glyphs = get_layout_data(ofs, last_line, line_spacing);
 			int processed_glyphs = 0;
-			int total_glyphs = 0;
-
-			for (int64_t i = lines_skipped; i < line_limit; i++) {
-				total_glyphs += TS->shaped_text_get_glyph_count(lines_rid[i]) + TS->shaped_text_get_ellipsis_glyph_count(lines_rid[i]);
-			}
-
 			int visible_glyphs = total_glyphs * visible_ratio;
 
-			for (int i = lines_skipped; i < line_limit; i++) {
-				Vector2 line_offset = get_line_rect(i).position;
-				ofs.x = line_offset.x;
-				ofs.y += TS->shaped_text_get_ascent(lines_rid[i]);
-
-				const Glyph *glyphs = TS->shaped_text_get_glyphs(lines_rid[i]);
-				int gl_size = TS->shaped_text_get_glyph_count(lines_rid[i]);
-
-				int ellipsis_pos = TS->shaped_text_get_ellipsis_pos(lines_rid[i]);
-				int trim_pos = TS->shaped_text_get_trim_pos(lines_rid[i]);
-
-				const Glyph *ellipsis_glyphs = TS->shaped_text_get_ellipsis_glyphs(lines_rid[i]);
-				int ellipsis_gl_size = TS->shaped_text_get_ellipsis_glyph_count(lines_rid[i]);
-
-				// Draw shadow, outline and text. Note: Do not merge this into the single loop iteration, to prevent overlaps.
-				for (int step = DRAW_STEP_SHADOW; step < DRAW_STEP_MAX; step++) {
-					if (step == DRAW_STEP_SHADOW && (font_shadow_color.a == 0)) {
-						continue;
-					}
-					if (step == DRAW_STEP_OUTLINE && (outline_size <= 0 || font_outline_color.a == 0)) {
-						continue;
+			int line_index = 0;
+			for (int p = 0; p < paragraphs.size(); p++) {
+				const Paragraph &para = paragraphs[p];
+				if (line_index + para.lines_rid.size() <= lines_skipped) {
+					line_index += para.lines_rid.size();
+				} else {
+					int start = (line_index < lines_skipped) ? lines_skipped - line_index : 0;
+					int end = (line_index + para.lines_rid.size() < last_line) ? para.lines_rid.size() : last_line - line_index;
+					if (end <= 0) {
+						break;
 					}
+					bool rtl = (TS->shaped_text_get_inferred_direction(para.text_rid) == TextServer::DIRECTION_RTL);
+					for (int i = start; i < end; i++) {
+						RID line_rid = para.lines_rid[i];
+						Vector2 line_offset = _get_line_rect(p, i).position;
+						ofs.x = line_offset.x;
 
-					int processed_glyphs_step = processed_glyphs;
-					Vector2 offset_step = ofs;
-					// Draw RTL ellipsis string when necessary.
-					if (rtl && ellipsis_pos >= 0) {
-						for (int gl_idx = ellipsis_gl_size - 1; gl_idx >= 0; gl_idx--) {
-							for (int j = 0; j < ellipsis_glyphs[gl_idx].repeat; j++) {
-								bool skip = (trim_chars && ellipsis_glyphs[gl_idx].end > visible_chars) || (trim_glyphs_ltr && (processed_glyphs_step >= visible_glyphs)) || (trim_glyphs_rtl && (processed_glyphs_step < total_glyphs - visible_glyphs));
-								if (!skip) {
-									if (step == DRAW_STEP_SHADOW) {
-										draw_glyph_shadow(ellipsis_glyphs[gl_idx], ci, font_shadow_color, shadow_outline_size, offset_step, shadow_ofs);
-									} else if (step == DRAW_STEP_OUTLINE) {
-										draw_glyph_outline(ellipsis_glyphs[gl_idx], ci, font_outline_color, outline_size, offset_step);
-									} else if (step == DRAW_STEP_TEXT) {
-										draw_glyph(ellipsis_glyphs[gl_idx], ci, font_color, offset_step);
+						const Glyph *glyphs = TS->shaped_text_get_glyphs(line_rid);
+						int gl_size = TS->shaped_text_get_glyph_count(line_rid);
+
+						int ellipsis_pos = TS->shaped_text_get_ellipsis_pos(line_rid);
+						int trim_pos = TS->shaped_text_get_trim_pos(line_rid);
+
+						const Glyph *ellipsis_glyphs = TS->shaped_text_get_ellipsis_glyphs(line_rid);
+						int ellipsis_gl_size = TS->shaped_text_get_ellipsis_glyph_count(line_rid);
+
+						ofs.y += TS->shaped_text_get_ascent(line_rid);
+
+						// Draw shadow, outline and text. Note: Do not merge this into the single loop iteration, to prevent overlaps.
+						int processed_glyphs_step = 0;
+						for (int step = DRAW_STEP_SHADOW; step < DRAW_STEP_MAX; step++) {
+							if (step == DRAW_STEP_SHADOW && (font_shadow_color.a == 0)) {
+								continue;
+							}
+							if (step == DRAW_STEP_OUTLINE && (outline_size <= 0 || font_outline_color.a == 0)) {
+								continue;
+							}
+
+							processed_glyphs_step = processed_glyphs;
+							Vector2 offset_step = ofs;
+							// Draw RTL ellipsis string when necessary.
+							if (rtl && ellipsis_pos >= 0) {
+								for (int gl_idx = ellipsis_gl_size - 1; gl_idx >= 0; gl_idx--) {
+									for (int j = 0; j < ellipsis_glyphs[gl_idx].repeat; j++) {
+										bool skip = (trim_chars && ellipsis_glyphs[gl_idx].end + para.start > visible_chars) || (trim_glyphs_ltr && (processed_glyphs_step >= visible_glyphs)) || (trim_glyphs_rtl && (processed_glyphs_step < total_glyphs - visible_glyphs));
+										if (!skip) {
+											if (step == DRAW_STEP_SHADOW) {
+												draw_glyph_shadow(ellipsis_glyphs[gl_idx], ci, font_shadow_color, shadow_outline_size, offset_step, shadow_ofs);
+											} else if (step == DRAW_STEP_OUTLINE) {
+												draw_glyph_outline(ellipsis_glyphs[gl_idx], ci, font_outline_color, outline_size, offset_step);
+											} else if (step == DRAW_STEP_TEXT) {
+												draw_glyph(ellipsis_glyphs[gl_idx], ci, font_color, offset_step);
+											}
+										}
+										processed_glyphs_step++;
+										offset_step.x += ellipsis_glyphs[gl_idx].advance;
 									}
 								}
-								processed_glyphs_step++;
-								offset_step.x += ellipsis_glyphs[gl_idx].advance;
 							}
-						}
-					}
-					// Draw main text.
-					for (int j = 0; j < gl_size; j++) {
-						// Trim when necessary.
-						if (trim_pos >= 0) {
-							if (rtl) {
-								if (j < trim_pos) {
-									continue;
-								}
-							} else {
-								if (j >= trim_pos) {
-									break;
-								}
-							}
-						}
-						for (int k = 0; k < glyphs[j].repeat; k++) {
-							bool skip = (trim_chars && glyphs[j].end > visible_chars) || (trim_glyphs_ltr && (processed_glyphs_step >= visible_glyphs)) || (trim_glyphs_rtl && (processed_glyphs_step < total_glyphs - visible_glyphs));
-							if (!skip) {
-								if (step == DRAW_STEP_SHADOW) {
-									draw_glyph_shadow(glyphs[j], ci, font_shadow_color, shadow_outline_size, offset_step, shadow_ofs);
-								} else if (step == DRAW_STEP_OUTLINE) {
-									draw_glyph_outline(glyphs[j], ci, font_outline_color, outline_size, offset_step);
-								} else if (step == DRAW_STEP_TEXT) {
-									draw_glyph(glyphs[j], ci, font_color, offset_step);
-								}
-							}
-							processed_glyphs_step++;
-							offset_step.x += glyphs[j].advance;
-						}
-					}
-					// Draw LTR ellipsis string when necessary.
-					if (!rtl && ellipsis_pos >= 0) {
-						for (int gl_idx = 0; gl_idx < ellipsis_gl_size; gl_idx++) {
-							for (int j = 0; j < ellipsis_glyphs[gl_idx].repeat; j++) {
-								bool skip = (trim_chars && ellipsis_glyphs[gl_idx].end > visible_chars) || (trim_glyphs_ltr && (processed_glyphs_step >= visible_glyphs)) || (trim_glyphs_rtl && (processed_glyphs_step < total_glyphs - visible_glyphs));
-								if (!skip) {
-									if (step == DRAW_STEP_SHADOW) {
-										draw_glyph_shadow(ellipsis_glyphs[gl_idx], ci, font_shadow_color, shadow_outline_size, offset_step, shadow_ofs);
-									} else if (step == DRAW_STEP_OUTLINE) {
-										draw_glyph_outline(ellipsis_glyphs[gl_idx], ci, font_outline_color, outline_size, offset_step);
-									} else if (step == DRAW_STEP_TEXT) {
-										draw_glyph(ellipsis_glyphs[gl_idx], ci, font_color, offset_step);
+							// Draw main text.
+							for (int j = 0; j < gl_size; j++) {
+								// Trim when necessary.
+								if (trim_pos >= 0) {
+									if (rtl) {
+										if (j < trim_pos) {
+											continue;
+										}
+									} else {
+										if (j >= trim_pos) {
+											break;
+										}
+									}
+								}
+								for (int k = 0; k < glyphs[j].repeat; k++) {
+									bool skip = (trim_chars && glyphs[j].end + para.start > visible_chars) || (trim_glyphs_ltr && (processed_glyphs_step >= visible_glyphs)) || (trim_glyphs_rtl && (processed_glyphs_step < total_glyphs - visible_glyphs));
+									if (!skip) {
+										if (step == DRAW_STEP_SHADOW) {
+											draw_glyph_shadow(glyphs[j], ci, font_shadow_color, shadow_outline_size, offset_step, shadow_ofs);
+										} else if (step == DRAW_STEP_OUTLINE) {
+											draw_glyph_outline(glyphs[j], ci, font_outline_color, outline_size, offset_step);
+										} else if (step == DRAW_STEP_TEXT) {
+											draw_glyph(glyphs[j], ci, font_color, offset_step);
+										}
+									}
+									processed_glyphs_step++;
+									offset_step.x += glyphs[j].advance;
+								}
+							}
+							// Draw LTR ellipsis string when necessary.
+							if (!rtl && ellipsis_pos >= 0) {
+								for (int gl_idx = 0; gl_idx < ellipsis_gl_size; gl_idx++) {
+									for (int j = 0; j < ellipsis_glyphs[gl_idx].repeat; j++) {
+										bool skip = (trim_chars && ellipsis_glyphs[gl_idx].end + para.start > visible_chars) || (trim_glyphs_ltr && (processed_glyphs_step >= visible_glyphs)) || (trim_glyphs_rtl && (processed_glyphs_step < total_glyphs - visible_glyphs));
+										if (!skip) {
+											if (step == DRAW_STEP_SHADOW) {
+												draw_glyph_shadow(ellipsis_glyphs[gl_idx], ci, font_shadow_color, shadow_outline_size, offset_step, shadow_ofs);
+											} else if (step == DRAW_STEP_OUTLINE) {
+												draw_glyph_outline(ellipsis_glyphs[gl_idx], ci, font_outline_color, outline_size, offset_step);
+											} else if (step == DRAW_STEP_TEXT) {
+												draw_glyph(ellipsis_glyphs[gl_idx], ci, font_color, offset_step);
+											}
+										}
+										processed_glyphs_step++;
+										offset_step.x += ellipsis_glyphs[gl_idx].advance;
 									}
 								}
-								processed_glyphs_step++;
-								offset_step.x += ellipsis_glyphs[gl_idx].advance;
 							}
 						}
+						processed_glyphs = processed_glyphs_step;
+						ofs.y += TS->shaped_text_get_descent(line_rid) + line_spacing;
 					}
+					ofs.y += paragraph_spacing;
+					line_index += para.lines_rid.size();
 				}
-				ofs.y += TS->shaped_text_get_descent(lines_rid[i]) + line_spacing;
 			}
 		} break;
 
@@ -668,7 +802,9 @@ void Label::_notification(int p_what) {
 		} break;
 
 		case NOTIFICATION_RESIZED: {
-			lines_dirty = true;
+			for (Paragraph &para : paragraphs) {
+				para.lines_dirty = true;
+			}
 		} break;
 	}
 }
@@ -676,34 +812,53 @@ void Label::_notification(int p_what) {
 Rect2 Label::get_character_bounds(int p_pos) const {
 	_ensure_shaped();
 
+	int paragraph_spacing = settings.is_valid() ? settings->get_paragraph_spacing() : theme_cache.paragraph_spacing;
+
 	Vector2 ofs;
-	int line_limit;
 	int line_spacing;
-	get_layout_data(ofs, line_limit, line_spacing);
+	int last_line;
+	get_layout_data(ofs, last_line, line_spacing);
 
-	for (int i = lines_skipped; i < line_limit; i++) {
-		Rect2 line_rect = get_line_rect(i);
-		ofs.x = line_rect.position.x;
-		int v_size = TS->shaped_text_get_glyph_count(lines_rid[i]);
-		const Glyph *glyphs = TS->shaped_text_get_glyphs(lines_rid[i]);
-
-		float gl_off = 0.0f;
-		for (int j = 0; j < v_size; j++) {
-			if ((glyphs[j].count > 0) && ((glyphs[j].index != 0) || ((glyphs[j].flags & TextServer::GRAPHEME_IS_SPACE) == TextServer::GRAPHEME_IS_SPACE))) {
-				if (p_pos >= glyphs[j].start && p_pos < glyphs[j].end) {
-					float advance = 0.f;
-					for (int k = 0; k < glyphs[j].count; k++) {
-						advance += glyphs[j + k].advance;
-					}
-					Rect2 rect;
-					rect.position = ofs + Vector2(gl_off, 0);
-					rect.size = Vector2(advance, line_rect.size.y);
-					return rect;
-				}
+	int line_index = 0;
+	for (int p = 0; p < paragraphs.size(); p++) {
+		const Paragraph &para = paragraphs[p];
+		if (line_index + para.lines_rid.size() <= lines_skipped) {
+			line_index += para.lines_rid.size();
+		} else {
+			int start = (line_index < lines_skipped) ? lines_skipped - line_index : 0;
+			int end = (line_index + para.lines_rid.size() < last_line) ? para.lines_rid.size() : last_line - line_index;
+			if (end <= 0) {
+				break;
 			}
-			gl_off += glyphs[j].advance * glyphs[j].repeat;
+			for (int i = start; i < end; i++) {
+				RID line_rid = para.lines_rid[i];
+				Rect2 line_rect = _get_line_rect(p, i);
+				ofs.x = line_rect.position.x;
+
+				int v_size = TS->shaped_text_get_glyph_count(line_rid);
+				const Glyph *glyphs = TS->shaped_text_get_glyphs(line_rid);
+
+				float gl_off = 0.0f;
+				for (int j = 0; j < v_size; j++) {
+					if ((glyphs[j].count > 0) && ((glyphs[j].index != 0) || ((glyphs[j].flags & TextServer::GRAPHEME_IS_SPACE) == TextServer::GRAPHEME_IS_SPACE))) {
+						if (p_pos >= glyphs[j].start + para.start && p_pos < glyphs[j].end + para.start) {
+							float advance = 0.f;
+							for (int k = 0; k < glyphs[j].count; k++) {
+								advance += glyphs[j + k].advance;
+							}
+							Rect2 rect;
+							rect.position = ofs + Vector2(gl_off, 0);
+							rect.size = Vector2(advance, line_rect.size.y);
+							return rect;
+						}
+					}
+					gl_off += glyphs[j].advance * glyphs[j].repeat;
+				}
+				ofs.y += TS->shaped_text_get_ascent(line_rid) + TS->shaped_text_get_descent(line_rid) + line_spacing;
+			}
+			ofs.y += paragraph_spacing;
+			line_index += para.lines_rid.size();
 		}
-		ofs.y += TS->shaped_text_get_ascent(lines_rid[i]) + TS->shaped_text_get_descent(lines_rid[i]) + line_spacing;
 	}
 	return Rect2();
 }
@@ -747,24 +902,33 @@ int Label::get_line_count() const {
 		return 1;
 	}
 	_ensure_shaped();
-	return lines_rid.size();
+
+	return total_line_count;
 }
 
 int Label::get_visible_line_count() const {
 	Ref<StyleBox> style = theme_cache.normal_style;
 	int line_spacing = settings.is_valid() ? settings->get_line_spacing() : theme_cache.line_spacing;
+	int paragraph_spacing = settings.is_valid() ? settings->get_paragraph_spacing() : theme_cache.paragraph_spacing;
 	int lines_visible = 0;
 	float total_h = 0.0;
-	for (int64_t i = lines_skipped; i < lines_rid.size(); i++) {
-		total_h += TS->shaped_text_get_size(lines_rid[i]).y + line_spacing;
-		if (total_h > (get_size().height - style->get_minimum_size().height + line_spacing)) {
-			break;
-		}
-		lines_visible++;
-	}
 
-	if (lines_visible > lines_rid.size()) {
-		lines_visible = lines_rid.size();
+	int line_index = 0;
+	for (const Paragraph &para : paragraphs) {
+		if (line_index + para.lines_rid.size() <= lines_skipped) {
+			line_index += para.lines_rid.size();
+		} else {
+			int start = (line_index < lines_skipped) ? lines_skipped - line_index : 0;
+			for (int i = start; i < para.lines_rid.size(); i++) {
+				total_h += TS->shaped_text_get_size(para.lines_rid[i]).y + line_spacing;
+				if (total_h > (get_size().height - style->get_minimum_size().height + line_spacing)) {
+					break;
+				}
+				lines_visible++;
+			}
+			total_h += paragraph_spacing;
+			line_index += para.lines_rid.size();
+		}
 	}
 
 	if (max_lines_visible >= 0 && lines_visible > max_lines_visible) {
@@ -781,7 +945,9 @@ void Label::set_horizontal_alignment(HorizontalAlignment p_alignment) {
 	}
 
 	if (horizontal_alignment == HORIZONTAL_ALIGNMENT_FILL || p_alignment == HORIZONTAL_ALIGNMENT_FILL) {
-		lines_dirty = true; // Reshape lines.
+		for (Paragraph &para : paragraphs) {
+			para.lines_dirty = true; // Reshape lines.
+		}
 	}
 	horizontal_alignment = p_alignment;
 
@@ -813,7 +979,7 @@ void Label::set_text(const String &p_string) {
 	}
 	text = p_string;
 	xl_text = atr(p_string);
-	dirty = true;
+	text_dirty = true;
 	if (visible_ratio < 1) {
 		visible_chars = get_total_character_count() * visible_ratio;
 	}
@@ -848,7 +1014,9 @@ void Label::set_text_direction(Control::TextDirection p_text_direction) {
 	ERR_FAIL_COND((int)p_text_direction < -1 || (int)p_text_direction > 3);
 	if (text_direction != p_text_direction) {
 		text_direction = p_text_direction;
-		font_dirty = true;
+		for (Paragraph &para : paragraphs) {
+			para.dirty = true;
+		}
 		queue_redraw();
 	}
 }
@@ -856,7 +1024,9 @@ void Label::set_text_direction(Control::TextDirection p_text_direction) {
 void Label::set_structured_text_bidi_override(TextServer::StructuredTextParser p_parser) {
 	if (st_parser != p_parser) {
 		st_parser = p_parser;
-		dirty = true;
+		for (Paragraph &para : paragraphs) {
+			para.dirty = true;
+		}
 		queue_redraw();
 	}
 }
@@ -871,7 +1041,9 @@ void Label::set_structured_text_bidi_override_options(Array p_args) {
 	}
 
 	st_args = p_args;
-	dirty = true;
+	for (Paragraph &para : paragraphs) {
+		para.dirty = true;
+	}
 	queue_redraw();
 }
 
@@ -886,7 +1058,9 @@ Control::TextDirection Label::get_text_direction() const {
 void Label::set_language(const String &p_language) {
 	if (language != p_language) {
 		language = p_language;
-		dirty = true;
+		for (Paragraph &para : paragraphs) {
+			para.dirty = true;
+		}
 		queue_redraw();
 	}
 }
@@ -895,6 +1069,18 @@ String Label::get_language() const {
 	return language;
 }
 
+void Label::set_paragraph_separator(const String &p_paragraph_separator) {
+	if (paragraph_separator != p_paragraph_separator) {
+		paragraph_separator = p_paragraph_separator;
+		text_dirty = true;
+		queue_redraw();
+	}
+}
+
+String Label::get_paragraph_separator() const {
+	return paragraph_separator;
+}
+
 void Label::set_clip_text(bool p_clip) {
 	if (clip == p_clip) {
 		return;
@@ -912,7 +1098,9 @@ bool Label::is_clipping_text() const {
 void Label::set_tab_stops(const PackedFloat32Array &p_tab_stops) {
 	if (tab_stops != p_tab_stops) {
 		tab_stops = p_tab_stops;
-		dirty = true;
+		for (Paragraph &para : paragraphs) {
+			para.dirty = true;
+		}
 		queue_redraw();
 	}
 }
@@ -927,7 +1115,9 @@ void Label::set_text_overrun_behavior(TextServer::OverrunBehavior p_behavior) {
 	}
 
 	overrun_behavior = p_behavior;
-	lines_dirty = true;
+	for (Paragraph &para : paragraphs) {
+		para.lines_dirty = true;
+	}
 	queue_redraw();
 	if (clip || overrun_behavior != TextServer::OVERRUN_NO_TRIMMING) {
 		update_minimum_size();
@@ -948,7 +1138,9 @@ void Label::set_ellipsis_char(const String &p_char) {
 		return;
 	}
 	el_char = c;
-	lines_dirty = true;
+	for (Paragraph &para : paragraphs) {
+		para.lines_dirty = true;
+	}
 	queue_redraw();
 	if (clip || overrun_behavior != TextServer::OVERRUN_NO_TRIMMING) {
 		update_minimum_size();
@@ -972,7 +1164,7 @@ void Label::set_visible_characters(int p_amount) {
 			visible_ratio = 1.0;
 		}
 		if (visible_chars_behavior == TextServer::VC_CHARS_BEFORE_SHAPING) {
-			dirty = true;
+			text_dirty = true;
 		}
 		queue_redraw();
 	}
@@ -996,7 +1188,7 @@ void Label::set_visible_ratio(float p_ratio) {
 		}
 
 		if (visible_chars_behavior == TextServer::VC_CHARS_BEFORE_SHAPING) {
-			dirty = true;
+			text_dirty = true;
 		}
 		queue_redraw();
 	}
@@ -1012,8 +1204,10 @@ TextServer::VisibleCharactersBehavior Label::get_visible_characters_behavior() c
 
 void Label::set_visible_characters_behavior(TextServer::VisibleCharactersBehavior p_behavior) {
 	if (visible_chars_behavior != p_behavior) {
+		if (visible_chars_behavior == TextServer::VC_CHARS_BEFORE_SHAPING || p_behavior == TextServer::VC_CHARS_BEFORE_SHAPING) {
+			text_dirty = true;
+		}
 		visible_chars_behavior = p_behavior;
-		dirty = true;
 		queue_redraw();
 	}
 }
@@ -1049,7 +1243,6 @@ int Label::get_max_lines_visible() const {
 }
 
 int Label::get_total_character_count() const {
-	_ensure_shaped();
 	return xl_text.length();
 }
 
@@ -1066,6 +1259,8 @@ void Label::_bind_methods() {
 	ClassDB::bind_method(D_METHOD("get_text_direction"), &Label::get_text_direction);
 	ClassDB::bind_method(D_METHOD("set_language", "language"), &Label::set_language);
 	ClassDB::bind_method(D_METHOD("get_language"), &Label::get_language);
+	ClassDB::bind_method(D_METHOD("set_paragraph_separator", "paragraph_separator"), &Label::set_paragraph_separator);
+	ClassDB::bind_method(D_METHOD("get_paragraph_separator"), &Label::get_paragraph_separator);
 	ClassDB::bind_method(D_METHOD("set_autowrap_mode", "autowrap_mode"), &Label::set_autowrap_mode);
 	ClassDB::bind_method(D_METHOD("get_autowrap_mode"), &Label::get_autowrap_mode);
 	ClassDB::bind_method(D_METHOD("set_justification_flags", "justification_flags"), &Label::set_justification_flags);
@@ -1107,6 +1302,7 @@ void Label::_bind_methods() {
 	ADD_PROPERTY(PropertyInfo(Variant::INT, "vertical_alignment", PROPERTY_HINT_ENUM, "Top,Center,Bottom,Fill"), "set_vertical_alignment", "get_vertical_alignment");
 	ADD_PROPERTY(PropertyInfo(Variant::INT, "autowrap_mode", PROPERTY_HINT_ENUM, "Off,Arbitrary,Word,Word (Smart)"), "set_autowrap_mode", "get_autowrap_mode");
 	ADD_PROPERTY(PropertyInfo(Variant::INT, "justification_flags", PROPERTY_HINT_FLAGS, "Kashida Justification:1,Word Justification:2,Justify Only After Last Tab:8,Skip Last Line:32,Skip Last Line With Visible Characters:64,Do Not Skip Single Line:128"), "set_justification_flags", "get_justification_flags");
+	ADD_PROPERTY(PropertyInfo(Variant::STRING, "paragraph_separator"), "set_paragraph_separator", "get_paragraph_separator");
 
 	ADD_PROPERTY(PropertyInfo(Variant::BOOL, "clip_text"), "set_clip_text", "is_clipping_text");
 	ADD_PROPERTY(PropertyInfo(Variant::INT, "text_overrun_behavior", PROPERTY_HINT_ENUM, "Trim Nothing,Trim Characters,Trim Words,Ellipsis,Word Ellipsis"), "set_text_overrun_behavior", "get_text_overrun_behavior");
@@ -1130,6 +1326,7 @@ void Label::_bind_methods() {
 
 	BIND_THEME_ITEM_CUSTOM(Theme::DATA_TYPE_STYLEBOX, Label, normal_style, "normal");
 	BIND_THEME_ITEM(Theme::DATA_TYPE_CONSTANT, Label, line_spacing);
+	BIND_THEME_ITEM(Theme::DATA_TYPE_CONSTANT, Label, paragraph_spacing);
 
 	BIND_THEME_ITEM(Theme::DATA_TYPE_FONT, Label, font);
 	BIND_THEME_ITEM(Theme::DATA_TYPE_FONT_SIZE, Label, font_size);
@@ -1143,17 +1340,18 @@ void Label::_bind_methods() {
 }
 
 Label::Label(const String &p_text) {
-	text_rid = TS->create_shaped_text();
-
 	set_mouse_filter(MOUSE_FILTER_IGNORE);
 	set_text(p_text);
 	set_v_size_flags(SIZE_SHRINK_CENTER);
 }
 
 Label::~Label() {
-	for (int i = 0; i < lines_rid.size(); i++) {
-		TS->free_rid(lines_rid[i]);
+	for (Paragraph &para : paragraphs) {
+		for (const RID &line_rid : para.lines_rid) {
+			TS->free_rid(line_rid);
+		}
+		para.lines_rid.clear();
+		TS->free_rid(para.text_rid);
 	}
-	lines_rid.clear();
-	TS->free_rid(text_rid);
+	paragraphs.clear();
 }
diff --git a/scene/gui/label.h b/scene/gui/label.h
index 2576d21c337..4c677c8b881 100644
--- a/scene/gui/label.h
+++ b/scene/gui/label.h
@@ -57,11 +57,21 @@ private:
 	Size2 minsize;
 	bool uppercase = false;
 
-	bool lines_dirty = true;
+	struct Paragraph {
+		bool lines_dirty = true;
+		bool dirty = true;
+		int start = 0;
+
+		String text;
+		RID text_rid;
+		Vector<RID> lines_rid;
+	};
 	bool dirty = true;
 	bool font_dirty = true;
-	RID text_rid;
-	Vector<RID> lines_rid;
+	bool text_dirty = true;
+	Vector<Paragraph> paragraphs;
+	int total_line_count = 0;
+	String paragraph_separator = "\\n";
 
 	String language;
 	TextDirection text_direction = TEXT_DIRECTION_AUTO;
@@ -83,6 +93,7 @@ private:
 
 		int font_size = 0;
 		int line_spacing = 0;
+		int paragraph_spacing = 0;
 		Color font_color;
 		Color font_shadow_color;
 		Point2 font_shadow_offset;
@@ -91,6 +102,7 @@ private:
 		int font_shadow_outline_size;
 	} theme_cache;
 
+	Rect2 _get_line_rect(int p_para, int p_line) const;
 	void _ensure_shaped() const;
 	void _update_visible();
 	void _shape();
@@ -99,7 +111,7 @@ private:
 protected:
 	RID get_line_rid(int p_line) const;
 	Rect2 get_line_rect(int p_line) const;
-	void get_layout_data(Vector2 &r_offset, int &r_line_limit, int &r_line_spacing) const;
+	int get_layout_data(Vector2 &r_offset, int &r_last_line, int &r_line_spacing) const;
 
 	void _notification(int p_what);
 	static void _bind_methods();
@@ -129,6 +141,9 @@ public:
 	void set_language(const String &p_language);
 	String get_language() const;
 
+	void set_paragraph_separator(const String &p_paragraph_separator);
+	String get_paragraph_separator() const;
+
 	void set_structured_text_bidi_override(TextServer::StructuredTextParser p_parser);
 	TextServer::StructuredTextParser get_structured_text_bidi_override() const;
 
diff --git a/scene/resources/label_settings.cpp b/scene/resources/label_settings.cpp
index 9a530fb680e..2ceb033a2dd 100644
--- a/scene/resources/label_settings.cpp
+++ b/scene/resources/label_settings.cpp
@@ -38,6 +38,9 @@ void LabelSettings::_bind_methods() {
 	ClassDB::bind_method(D_METHOD("set_line_spacing", "spacing"), &LabelSettings::set_line_spacing);
 	ClassDB::bind_method(D_METHOD("get_line_spacing"), &LabelSettings::get_line_spacing);
 
+	ClassDB::bind_method(D_METHOD("set_paragraph_spacing", "spacing"), &LabelSettings::set_paragraph_spacing);
+	ClassDB::bind_method(D_METHOD("get_paragraph_spacing"), &LabelSettings::get_paragraph_spacing);
+
 	ClassDB::bind_method(D_METHOD("set_font", "font"), &LabelSettings::set_font);
 	ClassDB::bind_method(D_METHOD("get_font"), &LabelSettings::get_font);
 
@@ -63,6 +66,7 @@ void LabelSettings::_bind_methods() {
 	ClassDB::bind_method(D_METHOD("get_shadow_offset"), &LabelSettings::get_shadow_offset);
 
 	ADD_PROPERTY(PropertyInfo(Variant::FLOAT, "line_spacing", PROPERTY_HINT_NONE, "suffix:px"), "set_line_spacing", "get_line_spacing");
+	ADD_PROPERTY(PropertyInfo(Variant::FLOAT, "paragraph_spacing", PROPERTY_HINT_NONE, "suffix:px"), "set_paragraph_spacing", "get_paragraph_spacing");
 
 	ADD_GROUP("Font", "font_");
 	ADD_PROPERTY(PropertyInfo(Variant::OBJECT, "font", PROPERTY_HINT_RESOURCE_TYPE, "Font"), "set_font", "get_font");
@@ -90,6 +94,17 @@ real_t LabelSettings::get_line_spacing() const {
 	return line_spacing;
 }
 
+void LabelSettings::set_paragraph_spacing(real_t p_spacing) {
+	if (paragraph_spacing != p_spacing) {
+		paragraph_spacing = p_spacing;
+		emit_changed();
+	}
+}
+
+real_t LabelSettings::get_paragraph_spacing() const {
+	return paragraph_spacing;
+}
+
 void LabelSettings::set_font(const Ref<Font> &p_font) {
 	if (font != p_font) {
 		if (font.is_valid()) {
diff --git a/scene/resources/label_settings.h b/scene/resources/label_settings.h
index 04ed51aad46..f7612217240 100644
--- a/scene/resources/label_settings.h
+++ b/scene/resources/label_settings.h
@@ -40,6 +40,7 @@ class LabelSettings : public Resource {
 	GDCLASS(LabelSettings, Resource);
 
 	real_t line_spacing = 3;
+	real_t paragraph_spacing = 0;
 
 	Ref<Font> font;
 	int font_size = Font::DEFAULT_FONT_SIZE;
@@ -61,6 +62,9 @@ public:
 	void set_line_spacing(real_t p_spacing);
 	real_t get_line_spacing() const;
 
+	void set_paragraph_spacing(real_t p_spacing);
+	real_t get_paragraph_spacing() const;
+
 	void set_font(const Ref<Font> &p_font);
 	Ref<Font> get_font() const;