diff --git a/src/parsers/pluscal.ts b/src/parsers/pluscal.ts
index f3923d5..0fb4b6a 100644
--- a/src/parsers/pluscal.ts
+++ b/src/parsers/pluscal.ts
@@ -112,6 +112,7 @@ export class TranspilerStdoutParser extends ProcessOutputHandler<DCollection> {
      *
      * So we can start looking for labels as soon as we see (1)
      * and stop as soon as we stop seeing label strings.
+     *
      */
     private tryParseAddedLabels(line: string) {
         // https://github.com/tlaplus/tlaplus/blob/21f92/tlatools/org.lamport.tlatools/src/pcal/ParseAlgorithm.java#L668
@@ -124,7 +125,7 @@ export class TranspilerStdoutParser extends ProcessOutputHandler<DCollection> {
             return false;
         }
 
-        const matcher = /^\s\s([A-Za-z0-9_]+) at line \d+, column \d+$/g.exec(line);
+        const matcher = /^\s\s([A-Za-z0-9_]+) at line \d+, column \d+/g.exec(line); // no closing `$` to handle macro statements
         if (!matcher) { // done parsing
             this.nowParsingAddedLabels = false;
             return false;
@@ -132,13 +133,17 @@ export class TranspilerStdoutParser extends ProcessOutputHandler<DCollection> {
 
         const labelname = matcher[1];
         const message = `Missing label, translator inserted \`${labelname}\` here`;
-        const locInfo = this.parseLocation(line) || ZERO_LOCATION_INFO;
+        const locInfo = this.parseLabelLocation(line) || ZERO_LOCATION_INFO;
         const locRange = new vscode.Range(locInfo.location, locInfo.location);
         this.result.addMessage(this.filePath, locRange, message, vscode.DiagnosticSeverity.Information);
 
         return true;
     }
 
+    /**
+     * Extracts location info from PlusCal translation strings.
+     * Note: not robust for labels. Use parseLabelLocation instead.
+     */
     private parseLocation(line: string): LocationInfo | undefined {
         const rxLocation = /\s*(?:at )?line (\d+), column (\d+).?\s*$/g;
         const matches = rxLocation.exec(line);
@@ -149,4 +154,30 @@ export class TranspilerStdoutParser extends ProcessOutputHandler<DCollection> {
         const posCol = parseInt(matches[2]);
         return new LocationInfo(new vscode.Position(posLine, posCol), matches[0].length);
     }
+
+    /**
+     * Extracts label location info from label added strings.
+     * Similar to `parseLocation`, EXCEPT it's also robust against insertions due to macros:
+     *
+     *         Lbl_2 at line 1, column 2 of macro called at line 23, column 5
+     *
+     * In this case, we want to capture "line 23, column 5" NOT "line 1".
+     */
+
+    private parseLabelLocation(line: string): LocationInfo | undefined {
+        const rxLocation = /\s*(?:at )?line (\d+), column (\d+)(?: of macro called at line (\d+), column (\d+))?.?\s*$/g;
+        const matches = rxLocation.exec(line);
+        if (!matches) {
+            return undefined;
+        }
+
+        // get macro match if it exists, otherwise get label match
+        const matchLine = matches[3] || matches[1];
+        const matchCol = matches[4] || matches[2];
+
+        const posLine = parseInt(matchLine) - 1;
+        const posCol = parseInt(matchCol);
+
+        return new LocationInfo(new vscode.Position(posLine, posCol), matches[0].length);
+    }
 }
diff --git a/tests/suite/parsers/pluscal.test.ts b/tests/suite/parsers/pluscal.test.ts
index 7e4ff2f..53ee923 100644
--- a/tests/suite/parsers/pluscal.test.ts
+++ b/tests/suite/parsers/pluscal.test.ts
@@ -142,6 +142,33 @@ suite('PlusCal Transpiler Output Parser Test Suite', () => {
         ]);
     });
 
+    test('Captures inserted macro labels', () => {
+        const stdout = [
+            'pcal.trans Version 1.11 of 31 December 2020',
+            'The following labels were added:',
+            '  Lbl_1 at line 16, column 5',
+            '  Lbl_2 at line 1, column 5 of macro called at line 23, column 5',
+            '  Lbl_3 at line 46, column 5',
+            'Parsing completed.',
+            'Translation completed.',
+            'New file saturation2.tla written.'
+        ].join('\n');
+        assertOutput(stdout, '/Users/bob/TLA/needs_labels.tla', [
+            new vscode.Diagnostic(
+                new vscode.Range(15, 5, 15, 5),
+                'Missing label, translator inserted `Lbl_1` here',
+                vscode.DiagnosticSeverity.Information),
+            new vscode.Diagnostic(
+                new vscode.Range(22, 5, 22, 5),
+                'Missing label, translator inserted `Lbl_2` here',
+                vscode.DiagnosticSeverity.Information),
+            new vscode.Diagnostic(
+                new vscode.Range(45, 5, 45, 5),
+                'Missing label, translator inserted `Lbl_3` here',
+                vscode.DiagnosticSeverity.Information)
+        ]);
+    });
+
     test('Captures multiple errors after blank message', () => {
         const stdout = [
             'pcal.trans Version 1.11 of 31 December 2020',