diff --git a/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/contentmodel/participants/XMLSchemaErrorCode.java b/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/contentmodel/participants/XMLSchemaErrorCode.java
index 168c4f9bd..7edfac093 100644
--- a/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/contentmodel/participants/XMLSchemaErrorCode.java
+++ b/org.eclipse.lemminx/src/main/java/org/eclipse/lemminx/extensions/contentmodel/participants/XMLSchemaErrorCode.java
@@ -65,6 +65,7 @@ public enum XMLSchemaErrorCode implements IXMLErrorCode {
 	cvc_complex_type_3_2_2("cvc-complex-type.3.2.2"), // https://wiki.xmldation.com/Support/Validator/cvc-complex-type-3-2-2
 	cvc_complex_type_4("cvc-complex-type.4"), // https://wiki.xmldation.com/Support/Validator/cvc-complex-type-4
 	cvc_datatype_valid_1_2_1("cvc-datatype-valid.1.2.1"), // https://wiki.xmldation.com/Support/Validator/cvc-datatype-valid-1-2-1
+	cvc_datatype_valid_1_2_3("cvc-datatype-valid.1.2.3"), // https://wiki.xmldation.com/Support/Validator/cvc-datatype-valid-1-2-3
 	cvc_elt_1_a("cvc-elt.1.a"), // https://wiki.xmldation.com/Support/Validator/cvc-elt-1
 	cvc_elt_3_1("cvc-elt.3.1"), // https://wiki.xmldation.com/Support/Validator/cvc-elt-3-1
 	cvc_elt_3_2_1("cvc-elt.3.2.1"), // https://wiki.xmldation.com/Support/Validator/cvc-elt-3-2-1
@@ -223,22 +224,8 @@ public static Range toLSPRange(XMLLocator location, XMLSchemaErrorCode code, Obj
 		case cvc_elt_3_2_1:
 			return XMLPositionUtility.selectContent(offset, document);
 		case cvc_type_3_1_3:
-		case cvc_datatype_valid_1_2_1: {
-			String attrValue = getString(arguments[0]);
-			Range range = XMLPositionUtility.selectAttributeValueFromGivenValue(attrValue, offset, document);
-
-			if (range != null) {
-				return range;
-			}
-
-			DOMElement element = (DOMElement) document.findNodeAt(offset);
-
-			if (DOMUtils.containsTextOnly(element)) {
-				return XMLPositionUtility.selectTrimmedText(offset, document);
-			} else {
-				return XMLPositionUtility.selectFirstChild(offset, document);
-			}
-		}
+		case cvc_datatype_valid_1_2_1:
+		case cvc_datatype_valid_1_2_3:
 		case cvc_enumeration_valid:
 		case cvc_maxlength_valid:
 		case cvc_minlength_valid:
@@ -254,7 +241,12 @@ public static Range toLSPRange(XMLLocator location, XMLSchemaErrorCode code, Obj
 				return range;
 			} else {
 				// Try with text
-				return XMLPositionUtility.selectContent(offset, document);
+				DOMElement element = (DOMElement) document.findNodeAt(offset);
+				if (DOMUtils.containsTextOnly(element)) {
+					return XMLPositionUtility.selectTrimmedText(offset, document);
+				} else {
+					return XMLPositionUtility.selectFirstChild(offset, document);
+				}
 			}
 		}
 		case cvc_type_3_1_2:
diff --git a/org.eclipse.lemminx/src/test/java/org/eclipse/lemminx/extensions/contentmodel/XMLSchemaDiagnosticsTest.java b/org.eclipse.lemminx/src/test/java/org/eclipse/lemminx/extensions/contentmodel/XMLSchemaDiagnosticsTest.java
index ae33364f8..8644d3ac0 100644
--- a/org.eclipse.lemminx/src/test/java/org/eclipse/lemminx/extensions/contentmodel/XMLSchemaDiagnosticsTest.java
+++ b/org.eclipse.lemminx/src/test/java/org/eclipse/lemminx/extensions/contentmodel/XMLSchemaDiagnosticsTest.java
@@ -332,6 +332,17 @@ public void cvc_datatype_valid_1_2_1_TwoElements() throws Exception {
 				d(3, 4, 3, 11, XMLSchemaErrorCode.cvc_type_3_1_3));
 	}
 
+	@Test
+	public void cvc_datatype_valid_1_2_3OnText() throws Exception {
+		String xml = "<?xml version=\"1.0\" encoding=\"UTF-8\"?>\r\n" + //
+				"<dresssize xmlns:xsi=\"http://www.w3.org/2001/XMLSchema-instance\"\r\n" + //
+				" xsi:noNamespaceSchemaLocation=\"src/test/resources/xsd/dressSize.xsd\">\r\n" + //
+				"               XXX           \r\n" + // <-- error
+				"</dresssize>  ";
+		testDiagnosticsFor(xml, d(3, 15, 3, 18, XMLSchemaErrorCode.cvc_datatype_valid_1_2_3),
+				d(3, 15, 3, 18, XMLSchemaErrorCode.cvc_type_3_1_3));
+	}
+
 	@Test
 	public void cvc_maxLength_validOnAttribute() throws Exception {
 		String xml = "<?xml version=\"1.0\" encoding=\"UTF-8\"?>\r\n" + //
diff --git a/org.eclipse.lemminx/src/test/resources/validation/schema/cvc-datatype-valid.1.2.3.xml b/org.eclipse.lemminx/src/test/resources/validation/schema/cvc-datatype-valid.1.2.3.xml
new file mode 100644
index 000000000..05dde905d
--- /dev/null
+++ b/org.eclipse.lemminx/src/test/resources/validation/schema/cvc-datatype-valid.1.2.3.xml
@@ -0,0 +1,5 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<dresssize xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
+ xsi:noNamespaceSchemaLocation="../../xsd/dressSize.xsd">
+               XXX           
+</dresssize> 
\ No newline at end of file
diff --git a/org.eclipse.lemminx/src/test/resources/xsd/dressSize.xsd b/org.eclipse.lemminx/src/test/resources/xsd/dressSize.xsd
new file mode 100644
index 000000000..6b076ff9a
--- /dev/null
+++ b/org.eclipse.lemminx/src/test/resources/xsd/dressSize.xsd
@@ -0,0 +1,25 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<xs:schema xmlns:xs="http://www.w3.org/2001/XMLSchema"
+	elementFormDefault="qualified" attributeFormDefault="unqualified">
+
+	<xs:simpleType name="SizeType">
+		<xs:union memberTypes="DressSizeType">
+			<xs:simpleType>
+				<xs:restriction base="xs:token">
+					<xs:enumeration value="small" />
+					<xs:enumeration value="medium" />
+					<xs:enumeration value="large" />
+				</xs:restriction>
+			</xs:simpleType>
+		</xs:union>
+	</xs:simpleType>
+	<xs:simpleType name="DressSizeType">
+		<xs:restriction base="xs:integer">
+			<xs:minInclusive value="2" />
+			<xs:maxInclusive value="18" />
+		</xs:restriction>
+	</xs:simpleType>
+
+	<xs:element name="dresssize" type="SizeType" />
+
+</xs:schema>
\ No newline at end of file