diff --git a/autotests/ksqueezedtextlabelautotest.cpp b/autotests/ksqueezedtextlabelautotest.cpp
--- a/autotests/ksqueezedtextlabelautotest.cpp
+++ b/autotests/ksqueezedtextlabelautotest.cpp
@@ -175,7 +175,6 @@
     label->adjustSize();
 
     QVERIFY(!label->isSqueezed());
-    QEXPECT_FAIL("", "To fix: Respect chrome in sizeHint()", Abort);
     QCOMPARE(label->size().width(), labelWidth + indent);
     QCOMPARE(label->minimumSizeHint().width(), -1);
     QCOMPARE(label->sizeHint().width(), labelWidth + indent);
@@ -227,7 +226,6 @@
     label->setProperty(attribute.toLatin1().data(), amount);
     QTest::qWaitForWindowExposed(label.data());
 
-    QEXPECT_FAIL("", "To fix: Respect chrome in squeezeTextToLabel()", Abort);
     QVERIFY(label->isSqueezed());
 
     label->adjustSize();
diff --git a/src/ksqueezedtextlabel.h b/src/ksqueezedtextlabel.h
--- a/src/ksqueezedtextlabel.h
+++ b/src/ksqueezedtextlabel.h
@@ -59,6 +59,11 @@
  * @author Ronny Standtke <Ronny.Standtke@gmx.de>
  */
 
+// TODO KF6:
+//   - make more functions virtual (to benefit subclasses of KSqueezedTextLabel)
+//   - try to eliminate need for non-virtual-warning (to benefit use as QLabel),
+//     see https://phabricator.kde.org/D7164 for some ideas/considerations
+
 /*
  * QLabel
  */
@@ -127,6 +132,19 @@
      */
     bool isSqueezed() const;
 
+    /**
+     * @return the rectangle to squeeze the text into
+     *
+     * Reimplementation of QLabel::contentsRect().
+     *
+     * @warning The corresponding function in the base class is not virtual.
+     * Therefore make sure to call this function on objects of type KSqueezedTextLabel,
+     * as shown in the @ref non-virtual-warning "example in the class description".
+     *
+     * @since 5.39
+     */
+    QRect contentsRect() const;
+
 public Q_SLOTS:
     /**
      * Sets the text.
diff --git a/src/ksqueezedtextlabel.cpp b/src/ksqueezedtextlabel.cpp
--- a/src/ksqueezedtextlabel.cpp
+++ b/src/ksqueezedtextlabel.cpp
@@ -82,7 +82,8 @@
     if (textWidth > maxWidth) {
         textWidth = maxWidth;
     }
-    return QSize(textWidth, QLabel::sizeHint().height());
+    const int chromeWidth = width() - contentsRect().width();
+    return QSize(textWidth + chromeWidth, QLabel::sizeHint().height());
 }
 
 void KSqueezedTextLabel::setText(const QString &text)
@@ -100,7 +101,7 @@
 void KSqueezedTextLabel::squeezeTextToLabel()
 {
     QFontMetrics fm(fontMetrics());
-    int labelWidth = size().width();
+    const int labelWidth = contentsRect().width();
     QStringList squeezedLines;
     bool squeezed = false;
     Q_FOREACH (const QString &line, d->fullText.split(QLatin1Char('\n'))) {
@@ -122,6 +123,40 @@
     }
 }
 
+QRect KSqueezedTextLabel::contentsRect() const
+{
+    // calculation according to API docs for QLabel::indent
+    const int margin = this->margin();
+    int indent = this->indent();
+    if (indent < 0) {
+        if (frameWidth() == 0) {
+            indent = 0;
+        } else {
+            indent = fontMetrics().width(QLatin1Char('x')) / 2 - margin;
+        }
+    }
+
+    QRect result = QLabel::contentsRect();
+    if (indent > 0) {
+        const int alignment = this->alignment();
+        if (alignment & Qt::AlignLeft) {
+            result.setLeft(result.left() + indent);
+        }
+        if (alignment & Qt::AlignTop) {
+            result.setTop(result.top() + indent);
+        }
+        if (alignment & Qt::AlignRight) {
+            result.setRight(result.right() - indent);
+        }
+        if (alignment & Qt::AlignBottom) {
+            result.setBottom(result.bottom() - indent);
+        }
+    }
+
+    result.adjust(margin, margin, -margin, -margin);
+    return result;
+}
+
 void KSqueezedTextLabel::setAlignment(Qt::Alignment alignment)
 {
     // save fullText and restore it