diff --git a/src/vs/editor/common/controller/cursorMoveCommands.ts b/src/vs/editor/common/controller/cursorMoveCommands.ts
index 97925d92dcced20b395d570f2a4216d129142961..a0f5c443432081797a81bb6d0bca50c0d4a5a40b 100644
--- a/src/vs/editor/common/controller/cursorMoveCommands.ts
+++ b/src/vs/editor/common/controller/cursorMoveCommands.ts
@@ -418,7 +418,19 @@ export class CursorMoveCommands {
 		let result: CursorState[] = [];
 		for (let i = 0, len = cursors.length; i < len; i++) {
 			const cursor = cursors[i];
-			result[i] = CursorState.fromViewState(MoveOperations.moveLeft(context.config, context.viewModel, cursor.viewState, inSelectionMode, noOfColumns));
+
+			let newViewState = MoveOperations.moveLeft(context.config, context.viewModel, cursor.viewState, inSelectionMode, noOfColumns);
+
+			if (noOfColumns === 1 && newViewState.position.lineNumber !== cursor.viewState.position.lineNumber) {
+				// moved over to the previous view line
+				const newViewModelPosition = context.viewModel.coordinatesConverter.convertViewPositionToModelPosition(newViewState.position);
+				if (newViewModelPosition.lineNumber === cursor.modelState.position.lineNumber) {
+					// stayed on the same model line => pass wrapping point where 2 view positions map to a single model position
+					newViewState = MoveOperations.moveLeft(context.config, context.viewModel, newViewState, inSelectionMode, 1);
+				}
+			}
+
+			result[i] = CursorState.fromViewState(newViewState);
 		}
 		return result;
 	}
@@ -438,7 +450,18 @@ export class CursorMoveCommands {
 		let result: CursorState[] = [];
 		for (let i = 0, len = cursors.length; i < len; i++) {
 			const cursor = cursors[i];
-			result[i] = CursorState.fromViewState(MoveOperations.moveRight(context.config, context.viewModel, cursor.viewState, inSelectionMode, noOfColumns));
+			let newViewState = MoveOperations.moveRight(context.config, context.viewModel, cursor.viewState, inSelectionMode, noOfColumns);
+
+			if (noOfColumns === 1 && newViewState.position.lineNumber !== cursor.viewState.position.lineNumber) {
+				// moved over to the next view line
+				const newViewModelPosition = context.viewModel.coordinatesConverter.convertViewPositionToModelPosition(newViewState.position);
+				if (newViewModelPosition.lineNumber === cursor.modelState.position.lineNumber) {
+					// stayed on the same model line => pass wrapping point where 2 view positions map to a single model position
+					newViewState = MoveOperations.moveRight(context.config, context.viewModel, newViewState, inSelectionMode, 1);
+				}
+			}
+
+			result[i] = CursorState.fromViewState(newViewState);
 		}
 		return result;
 	}
diff --git a/src/vs/editor/test/common/controller/cursor.test.ts b/src/vs/editor/test/common/controller/cursor.test.ts
index 98b3810dec495357b909695387a6a944cea294b1..63eae2816d334a66174a2e7f9045c1164a77dc00 100644
--- a/src/vs/editor/test/common/controller/cursor.test.ts
+++ b/src/vs/editor/test/common/controller/cursor.test.ts
@@ -1741,6 +1741,49 @@ suite('Editor Controller - Regression tests', () => {
 			assertCursor(cursor, new Selection(1, 1, 1, 1));
 		});
 	});
+
+	test('issue #36740: wordwrap creates an extra step / character at the wrapping point', () => {
+		// a single model line => 4 view lines
+		withMockCodeEditor([
+			[
+				'Lorem ipsum ',
+				'dolor sit amet ',
+				'consectetur ',
+				'adipiscing elit',
+			].join('')
+		], { wordWrap: 'wordWrapColumn', wordWrapColumn: 16 }, (editor, cursor) => {
+			cursor.setSelections('test', [new Selection(1, 7, 1, 7)]);
+
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 8, 1, 8));
+
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 9, 1, 9));
+
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 10, 1, 10));
+
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 11, 1, 11));
+
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 12, 1, 12));
+
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 13, 1, 13));
+
+			// moving to view line 2
+			moveRight(cursor);
+			assertCursor(cursor, new Selection(1, 14, 1, 14));
+
+			moveLeft(cursor);
+			assertCursor(cursor, new Selection(1, 13, 1, 13));
+
+			// moving back to view line 1
+			moveLeft(cursor);
+			assertCursor(cursor, new Selection(1, 12, 1, 12));
+		});
+	});
 });
 
 suite('Editor Controller - Cursor Configuration', () => {