diff --git a/src/Html/HtmlParser.fs b/src/Html/HtmlParser.fs
index c41fcb7a8..07c1ddba7 100644
--- a/src/Html/HtmlParser.fs
+++ b/src/Html/HtmlParser.fs
@@ -255,7 +255,6 @@ module internal HtmlParser =
 
     type InsertionMode =
         | DefaultMode
-        | FormattedMode
         | ScriptMode
         | CharRefMode
         | CommentMode
@@ -264,7 +263,6 @@ module internal HtmlParser =
         override x.ToString() =
             match x with
             | DefaultMode -> "default"
-            | FormattedMode -> "formatted"
             | ScriptMode -> "script"
             | CharRefMode -> "charref"
             | CommentMode -> "comment"
@@ -275,6 +273,7 @@ module internal HtmlParser =
         { Attributes : (CharList * CharList) list ref
           CurrentTag : CharList ref
           Content : CharList ref
+          HasFormattedParent: bool ref
           InsertionMode : InsertionMode ref
           Tokens : HtmlToken list ref
           Reader : TextReader }
@@ -282,6 +281,7 @@ module internal HtmlParser =
             { Attributes = ref []
               CurrentTag = ref CharList.Empty
               Content = ref CharList.Empty
+              HasFormattedParent = ref false
               InsertionMode = ref DefaultMode
               Tokens = ref []
               Reader = reader }
@@ -335,13 +335,13 @@ module internal HtmlParser =
 
         member x.IsFormattedTag
             with get() =
-               match x.CurrentTagName() with
-               | "pre" | "code" -> true
-               | _ -> false
+                match x.CurrentTagName().ToLower() with
+                | "pre" -> true
+                | _ -> false
 
         member x.IsScriptTag
             with get() =
-               match x.CurrentTagName().Trim().ToLower() with
+               match x.CurrentTagName().ToLower() with
                | "script" | "style" -> true
                | _ -> false
 
@@ -355,9 +355,15 @@ module internal HtmlParser =
                     else TagEnd(name)
                 else Tag(false, name, x.GetAttributes())
 
+            // pre is the only default formatted tag, nested pres are not
+            // allowed in the spec.
+            if x.IsFormattedTag then
+                x.HasFormattedParent := not isEnd
+            else
+                x.HasFormattedParent := !x.HasFormattedParent || x.IsFormattedTag
+
             x.InsertionMode :=
-                if x.IsFormattedTag && (not isEnd) then FormattedMode
-                elif x.IsScriptTag && (not isEnd) then ScriptMode
+                if x.IsScriptTag && (not isEnd) then ScriptMode
                 else DefaultMode
 
             x.CurrentTag := CharList.Empty
@@ -377,9 +383,11 @@ module internal HtmlParser =
                 let content = (!x.Content).ToString()
                 match !x.InsertionMode with
                 | DefaultMode ->
-                    let normalizedContent = wsRegex.Value.Replace(content, " ")
-                    if normalizedContent = " " then Text "" else Text normalizedContent
-                | FormattedMode -> content |> Text
+                    if !x.HasFormattedParent then
+                        Text content
+                    else
+                        let normalizedContent = wsRegex.Value.Replace(content, " ")
+                        if normalizedContent = " " then Text "" else Text normalizedContent
                 | ScriptMode -> content |> Text
                 | CharRefMode -> content.Trim() |> HtmlCharRefs.substitute |> Text
                 | CommentMode -> Comment content
@@ -422,7 +430,6 @@ module internal HtmlParser =
                 match !state.InsertionMode with
                 | DefaultMode -> state.Cons(); data state
                 | ScriptMode -> script state;
-                | FormattedMode -> state.Cons(); data state
                 | CharRefMode -> charRef state
                 | DocTypeMode -> docType state
                 | CommentMode -> comment state
diff --git a/tests/FSharp.Data.Tests/HtmlParser.fs b/tests/FSharp.Data.Tests/HtmlParser.fs
index 359cdf175..31e051ba3 100644
--- a/tests/FSharp.Data.Tests/HtmlParser.fs
+++ b/tests/FSharp.Data.Tests/HtmlParser.fs
@@ -1,5 +1,6 @@
 module FSharp.Data.Tests.HtmlParser
 
+open System
 open System.Globalization
 open NUnit.Framework
 open FsUnit
@@ -805,8 +806,8 @@ let ``Can parse pre blocks``() =
     result |> should equal [ "\r\n        This code should be indented and\r\n        have line feeds in it" ]
 
 [<Test>]
-let ``Can parse code blocks``() =
-    let html = "<code>\r\n        let f a b = a * b\r\n        f 5 6 |> should equal 30</code>"
+let ``Can parse pre containing code blocks``() =
+    let html = "<pre><code>\r\n        let f a b = a * b\r\n        f 5 6 |> should equal 30</code></pre>"
 
     let result =
         (HtmlDocument.Parse html)
@@ -815,6 +816,33 @@ let ``Can parse code blocks``() =
         |> Seq.toList
     result |> should equal [ "\r\n        let f a b = a * b\r\n        f 5 6 |> should equal 30" ]
 
+[<Test>]
+let ``Can parse pre blocks with char refs``() =
+    let html = "<pre>let hello =\r\n    fun who -&gt;\r\n        &quot;hello&quot; + who</pre>"
+
+    let result =
+        (HtmlDocument.Parse html)
+        |> HtmlDocument.descendantsNamed true [ "pre" ]
+        |> Seq.head
+        |> HtmlNode.innerText
+    let expected = "let hello =\r\n    fun who ->\r\n        \"hello\" + who"
+    result |> should equal expected
+
+[<Test>]
+let ``Drops whitespace outside pre``() =
+    let html =
+        "<div>foo    <pre>    bar    </pre>    baz</div>"
+
+    let result =
+        (HtmlDocument.Parse html)
+        |> HtmlDocument.descendantsNamed false [ "div" ]
+        |> Seq.head
+        |> string
+    // default indentation is 2 spaces
+    let nl = Environment.NewLine
+    let expected = $"<div>%s{nl}  foo <pre>    bar    </pre> baz%s{nl}</div>"
+    result |> should equal expected
+
 [<Test>]
 let ``Can parse national rail mobile site correctly``() =
     HtmlDocument.Load "Data/UKDepartures.html"
@@ -911,9 +939,9 @@ let ``Parsing non-html content doesn't cause an infinite loop - Github-1264``()
 [<Test; Timeout(2000)>]
 let ``Can handle incomplete tags at end of file without creating an infinite loop``() =
     let result = HtmlDocument.Parse """<html><head></head></html"""
-    let expected = 
+    let expected =
         HtmlDocument.New
             [ HtmlNode.NewElement
                 ("html",
                     [ HtmlNode.NewElement("head")])]
-    result |> should equal expected
\ No newline at end of file
+    result |> should equal expected