diff --git a/FluidNC/src/ProcessSettings.cpp b/FluidNC/src/ProcessSettings.cpp
index 3a4b42aec..9bf29e37f 100644
--- a/FluidNC/src/ProcessSettings.cpp
+++ b/FluidNC/src/ProcessSettings.cpp
@@ -1031,6 +1031,10 @@ Error execute_line(char* line, Channel& channel, AuthenticationLevel auth_level)
     if (line[0] == 0) {
         return Error::Ok;
     }
+    // Skip leading whitespace
+    while (isspace(*line)) {
+        ++line;
+    }
     // User '$' or WebUI '[ESPxxx]' command
     if (line[0] == '$' || line[0] == '[') {
         if (gc_state.skip_blocks) {
diff --git a/fixture_tests/fixtures/dollar_command_leading_whitespace.nc b/fixture_tests/fixtures/dollar_command_leading_whitespace.nc
new file mode 100644
index 000000000..1a73c54e5
--- /dev/null
+++ b/fixture_tests/fixtures/dollar_command_leading_whitespace.nc
@@ -0,0 +1,4 @@
+-> $X
+<- ok
+->   $X
+<- ok