diff --git a/runtime/doc/options.txt b/runtime/doc/options.txt
index 188f7fc2e2..ec0f119033 100644
--- a/runtime/doc/options.txt
+++ b/runtime/doc/options.txt
@@ -3698,9 +3698,8 @@ A jump table for the options with a short description can be found at |Q_op|.
 			off and the line continues beyond the right of the
 			screen.
 							*lcs-precedes*
-	  precedes:c	Character to show in the first column, when 'wrap'
-			is off and there is text preceding the character
-			visible in the first column.
+	  precedes:c	Character to show in the first column, when there is
+			text preceding the character visible in the first column.
 							*lcs-conceal*
 	  conceal:c	Character to show in place of concealed text, when
 			'conceallevel' is set to 1.  A space when omitted.
diff --git a/src/nvim/screen.c b/src/nvim/screen.c
index f4aa10ecf5..f107985df7 100644
--- a/src/nvim/screen.c
+++ b/src/nvim/screen.c
@@ -3763,7 +3763,7 @@ win_line (
      */
     if (lcs_prec_todo != NUL
         && wp->w_p_list
-        && (wp->w_p_wrap ? wp->w_skipcol > 0 : wp->w_leftcol > 0)
+        && (wp->w_p_wrap ? (wp->w_skipcol > 0 && row == 0) : wp->w_leftcol > 0)
         && filler_todo <= 0
         && draw_state > WL_NR
         && c != NUL) {
diff --git a/test/functional/ui/highlight_spec.lua b/test/functional/ui/highlight_spec.lua
index f40f658275..95a19aec81 100644
--- a/test/functional/ui/highlight_spec.lua
+++ b/test/functional/ui/highlight_spec.lua
@@ -657,6 +657,30 @@ describe("'listchars' highlight", function()
     ]])
   end)
 
+  it("'listchar' with wrap", function()
+    screen:set_default_attr_ids({
+      [0] = {bold=true, foreground=Screen.colors.Blue},
+    })
+    feed_command('set wrap')
+    feed_command('set listchars=eol:¬,precedes:< list')
+    feed('90ia<esc>')
+    screen:expect([[
+      {0:<}aaaaaaaaaaaaaaaaaaa|
+      aaaaaaaaaaaaaaaaaaaa|
+      aaaaaaaaaaaaaaaaaaaa|
+      aaaaaaaaa^a{0:¬}         |
+                          |
+    ]])
+    feed('0')
+    screen:expect([[
+      ^aaaaaaaaaaaaaaaaaaaa|
+      aaaaaaaaaaaaaaaaaaaa|
+      aaaaaaaaaaaaaaaaaaaa|
+      aaaaaaaaaaaaaaaaaaaa|
+                          |
+    ]])
+  end)
+
   it("'listchar' in visual mode", function()
     screen:set_default_attr_ids({
       [1] = {background=Screen.colors.Grey90},