diff --git a/etc/NEWS b/etc/NEWS
index cded60cca63..fdf01592e10 100644
--- a/etc/NEWS
+++ b/etc/NEWS
@@ -2761,6 +2761,9 @@ project-dedicated or global) is specified by the new
 ---
 *** Support for endless methods.
 
+---
+*** New user option 'ruby-method-params-indent'.
+
 ** Eshell
 
 +++
diff --git a/lisp/progmodes/ruby-mode.el b/lisp/progmodes/ruby-mode.el
index ed6044280ea..d4e6a25e5b3 100644
--- a/lisp/progmodes/ruby-mode.el
+++ b/lisp/progmodes/ruby-mode.el
@@ -267,6 +267,24 @@ ruby-align-chained-calls
   :safe 'booleanp
   :version "24.4")
 
+(defcustom ruby-method-params-indent t
+  "Indentation style of multiline method parameters.
+
+When t, the whole list with parentheses is indented against the
+method name.
+
+When a number, indent the parameters this many columns against
+the beginning of the method (the \"def\" keyword).
+
+The value nil means the same as 0.
+
+Only has effect when `ruby-use-smie' is t."
+  :type '(choice (const :tag "Indent against method name" t)
+                 (number :tag "Indent specified number of columns against def")
+                 (const :tag "Indent to def" nil))
+  :safe (lambda (val) (or (memq val '(t nil)) (numberp val)))
+  :version 29.1)
+
 (defcustom ruby-deep-arglist t
   "Deep indent lists in parenthesis when non-nil.
 Also ignores spaces after parenthesis when `space'.
@@ -659,9 +677,12 @@ ruby-smie-rules
        (unless (or (eolp) (forward-comment 1))
          (cons 'column (current-column)))))
     ('(:before . " @ ")
-     (save-excursion
-       (skip-chars-forward " \t")
-       (cons 'column (current-column))))
+     (if (or (eq ruby-method-params-indent t)
+             (not (smie-rule-parent-p "def" "def=")))
+         (save-excursion
+           (skip-chars-forward " \t")
+           (cons 'column (current-column)))
+       (smie-rule-parent (or ruby-method-params-indent 0))))
     ('(:before . "do") (ruby-smie--indent-to-stmt))
     ('(:before . ".")
      (if (smie-rule-sibling-p)
diff --git a/test/lisp/progmodes/ruby-mode-resources/ruby-method-params-indent.rb b/test/lisp/progmodes/ruby-mode-resources/ruby-method-params-indent.rb
new file mode 100644
index 00000000000..2b665797397
--- /dev/null
+++ b/test/lisp/progmodes/ruby-mode-resources/ruby-method-params-indent.rb
@@ -0,0 +1,18 @@
+class C
+  def self.foo(
+    baz,
+    bar
+  ) =
+    what
+
+  def foo=(
+    baz,
+    bar
+  )
+    hello
+  end
+end
+
+# Local Variables:
+# ruby-method-params-indent: 0
+# End:
diff --git a/test/lisp/progmodes/ruby-mode-resources/ruby.rb b/test/lisp/progmodes/ruby-mode-resources/ruby.rb
index 5636a4fc0e2..61b75c0c7f2 100644
--- a/test/lisp/progmodes/ruby-mode-resources/ruby.rb
+++ b/test/lisp/progmodes/ruby-mode-resources/ruby.rb
@@ -536,3 +536,7 @@ def foo=(
     hello
   end
 end
+
+# Local Variables:
+# ruby-method-params-indent: t
+# End:
diff --git a/test/lisp/progmodes/ruby-mode-tests.el b/test/lisp/progmodes/ruby-mode-tests.el
index 9be01dc78f9..ad9fc3dad4d 100644
--- a/test/lisp/progmodes/ruby-mode-tests.el
+++ b/test/lisp/progmodes/ruby-mode-tests.el
@@ -943,7 +943,7 @@ ruby-imenu-with-private-modifier
                      "Blub#bye"
                      "Blub#hiding")))))
 
-(ert-deftest ruby--indent/converted-from-manual-test ()
+(ert-deftest ruby--indent/run-manual-test ()
   :tags '(:expensive-test)
   ;; Converted from manual test.
   (let ((buf (find-file-noselect (ert-resource-file "ruby.rb"))))
@@ -954,6 +954,17 @@ ruby--indent/converted-from-manual-test
             (should (equal (buffer-string) orig))))
       (kill-buffer buf))))
 
+(ert-deftest ruby--indent/run-manual-test-method-params-indent ()
+  :tags '(:expensive-test)
+  ;; Converted from manual test.
+  (let ((buf (find-file-noselect (ert-resource-file "ruby-method-params-indent.rb"))))
+    (unwind-protect
+        (with-current-buffer buf
+          (let ((orig (buffer-string)))
+            (indent-region (point-min) (point-max))
+            (should (equal (buffer-string) orig))))
+      (kill-buffer buf))))
+
 (ert-deftest ruby--test-chained-indentation ()
   (with-temp-buffer
     (ruby-mode)