diff --git a/.changeset/stale-pants-relate.md b/.changeset/stale-pants-relate.md
new file mode 100644
index 00000000..0eb922df
--- /dev/null
+++ b/.changeset/stale-pants-relate.md
@@ -0,0 +1,5 @@
+---
+"htmljs-parser": minor
+---
+
+Improve handling ambiguity with tag type args vs type params. Type args must now always be directly adjacent the tag name, otherwise it will become type params.
diff --git a/src/__tests__/fixtures/attr-method-shorthand-with-type-parameters/__snapshots__/attr-method-shorthand-with-type-parameters.expected.txt b/src/__tests__/fixtures/attr-method-shorthand-with-type-parameters/__snapshots__/attr-method-shorthand-with-type-parameters.expected.txt
index 3dfc078e..4609fa04 100644
--- a/src/__tests__/fixtures/attr-method-shorthand-with-type-parameters/__snapshots__/attr-method-shorthand-with-type-parameters.expected.txt
+++ b/src/__tests__/fixtures/attr-method-shorthand-with-type-parameters/__snapshots__/attr-method-shorthand-with-type-parameters.expected.txt
@@ -1,11 +1,11 @@
 1╭─ <foo<A>(event: A){
  │  ││  ││ ││        ╰─ attrMethod.body "{\n  console.log(event.type)\n}"
  │  ││  ││ │╰─ attrMethod.params.value "event: A"
- │  ││  ││ ╰─ attrMethod.params "(event: A)"
- │  ││  │╰─ attrMethod.typeParams.value
- │  ││  ├─ attrMethod.typeParams "<A>"
- │  ││  ├─ attrMethod "<A>(event: A){\n  console.log(event.type)\n}"
- │  ││  ╰─ attrName
+ │  ││  ││ ├─ attrMethod.params "(event: A)"
+ │  ││  ││ ├─ attrMethod "(event: A){\n  console.log(event.type)\n}"
+ │  ││  ││ ╰─ attrName
+ │  ││  │╰─ tagTypeArgs.value
+ │  ││  ╰─ tagTypeArgs "<A>"
  │  │╰─ tagName "foo"
  ╰─ ╰─ openTagStart
 2╭─   console.log(event.type)
@@ -16,11 +16,11 @@
 5╭─ <foo<A> (event: A){
  │  ││  ││  ││        ╰─ attrMethod.body "{\n  console.log(event.type)\n}"
  │  ││  ││  │╰─ attrMethod.params.value "event: A"
- │  ││  ││  ╰─ attrMethod.params "(event: A)"
- │  ││  │╰─ attrMethod.typeParams.value
- │  ││  ├─ attrMethod.typeParams "<A>"
- │  ││  ├─ attrMethod "<A> (event: A){\n  console.log(event.type)\n}"
- │  ││  ╰─ attrName
+ │  ││  ││  ├─ attrMethod.params "(event: A)"
+ │  ││  ││  ├─ attrMethod "(event: A){\n  console.log(event.type)\n}"
+ │  ││  ││  ╰─ attrName
+ │  ││  │╰─ tagTypeArgs.value
+ │  ││  ╰─ tagTypeArgs "<A>"
  │  │╰─ tagName "foo"
  ╰─ ╰─ openTagStart
 6╭─   console.log(event.type)
@@ -61,11 +61,11 @@
 17╭─ <foo<A, B = string>(event: A & B){
   │  ││  ││             ││            ╰─ attrMethod.body "{\n  console.log(event.type)\n}"
   │  ││  ││             │╰─ attrMethod.params.value "event: A & B"
-  │  ││  ││             ╰─ attrMethod.params "(event: A & B)"
-  │  ││  │╰─ attrMethod.typeParams.value "A, B = string"
-  │  ││  ├─ attrMethod.typeParams "<A, B = string>"
-  │  ││  ├─ attrMethod "<A, B = string>(event: A & B){\n  console.log(event.type)\n}"
-  │  ││  ╰─ attrName
+  │  ││  ││             ├─ attrMethod.params "(event: A & B)"
+  │  ││  ││             ├─ attrMethod "(event: A & B){\n  console.log(event.type)\n}"
+  │  ││  ││             ╰─ attrName
+  │  ││  │╰─ tagTypeArgs.value "A, B = string"
+  │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
 18╭─   console.log(event.type)
@@ -76,11 +76,11 @@
 21╭─ <foo<A, B = string> (event: A & B){
   │  ││  ││              ││            ╰─ attrMethod.body "{\n  console.log(event.type)\n}"
   │  ││  ││              │╰─ attrMethod.params.value "event: A & B"
-  │  ││  ││              ╰─ attrMethod.params "(event: A & B)"
-  │  ││  │╰─ attrMethod.typeParams.value "A, B = string"
-  │  ││  ├─ attrMethod.typeParams "<A, B = string>"
-  │  ││  ├─ attrMethod "<A, B = string> (event: A & B){\n  console.log(event.type)\n}"
-  │  ││  ╰─ attrName
+  │  ││  ││              ├─ attrMethod.params "(event: A & B)"
+  │  ││  ││              ├─ attrMethod "(event: A & B){\n  console.log(event.type)\n}"
+  │  ││  ││              ╰─ attrName
+  │  ││  │╰─ tagTypeArgs.value "A, B = string"
+  │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
 22╭─   console.log(event.type)
diff --git a/src/__tests__/fixtures/attr-name-with-html-chars/__snapshots__/attr-name-with-html-chars.expected.txt b/src/__tests__/fixtures/attr-name-with-html-chars/__snapshots__/attr-name-with-html-chars.expected.txt
index 55a28383..eba7c6d2 100644
--- a/src/__tests__/fixtures/attr-name-with-html-chars/__snapshots__/attr-name-with-html-chars.expected.txt
+++ b/src/__tests__/fixtures/attr-name-with-html-chars/__snapshots__/attr-name-with-html-chars.expected.txt
@@ -1,7 +1,3 @@
 1╭─ tagname <span>hello frank</span>
- │  │       ││    │     │     ╰─ error(INVALID_ATTR_TYPE_PARAMS:Attribute cannot contain type parameters unless it is a shorthand method) "/span"
- │  │       ││    │     ╰─ attrName "frank"
- │  │       ││    ╰─ attrName "hello"
- │  │       │╰─ tagTypeArgs.value "span"
- │  │       ╰─ tagTypeArgs "<span>"
+ │  │        ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters.) "span"
  ╰─ ╰─ tagName "tagname"
\ No newline at end of file
diff --git a/src/__tests__/fixtures/invalid-multiple-tag-type-params/__snapshots__/invalid-multiple-tag-type-params.expected.txt b/src/__tests__/fixtures/invalid-multiple-tag-type-params/__snapshots__/invalid-multiple-tag-type-params.expected.txt
index c2c3b42f..9889145e 100644
--- a/src/__tests__/fixtures/invalid-multiple-tag-type-params/__snapshots__/invalid-multiple-tag-type-params.expected.txt
+++ b/src/__tests__/fixtures/invalid-multiple-tag-type-params/__snapshots__/invalid-multiple-tag-type-params.expected.txt
@@ -1,5 +1,5 @@
 1╭─ <foo<A><B>/>
- │  ││  ││  ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must follow a tag name and type paremeters must precede a method or tag parameters.)
+ │  ││  ││  ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters.)
  │  ││  │╰─ tagTypeArgs.value
  │  ││  ╰─ tagTypeArgs "<A>"
  │  │╰─ tagName "foo"
diff --git a/src/__tests__/fixtures/invalid-type-args-after-space/__snapshots__/invalid-type-args-after-space.expected.txt b/src/__tests__/fixtures/invalid-type-args-after-space/__snapshots__/invalid-type-args-after-space.expected.txt
new file mode 100644
index 00000000..03e38d4b
--- /dev/null
+++ b/src/__tests__/fixtures/invalid-type-args-after-space/__snapshots__/invalid-type-args-after-space.expected.txt
@@ -0,0 +1,7 @@
+1╭─ <foo <A>>
+ │  ││    ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters.)
+ │  │╰─ tagName "foo"
+ ╰─ ╰─ openTagStart
+2├─   hi
+3├─ </>
+4╰─ 
\ No newline at end of file
diff --git a/src/__tests__/fixtures/invalid-type-args-after-space/input.marko b/src/__tests__/fixtures/invalid-type-args-after-space/input.marko
new file mode 100644
index 00000000..d911c158
--- /dev/null
+++ b/src/__tests__/fixtures/invalid-type-args-after-space/input.marko
@@ -0,0 +1,3 @@
+<foo <A>>
+  hi
+</>
diff --git a/src/__tests__/fixtures/invalid-type-params-after-args/__snapshots__/invalid-type-params-after-args.expected.txt b/src/__tests__/fixtures/invalid-type-params-after-args/__snapshots__/invalid-type-params-after-args.expected.txt
index cb7159b9..1c3511b0 100644
--- a/src/__tests__/fixtures/invalid-type-params-after-args/__snapshots__/invalid-type-params-after-args.expected.txt
+++ b/src/__tests__/fixtures/invalid-type-params-after-args/__snapshots__/invalid-type-params-after-args.expected.txt
@@ -1,5 +1,5 @@
 1╭─ <foo(a)<A>/>
- │  ││  ││  ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must follow a tag name and type paremeters must precede a method or tag parameters.)
+ │  ││  ││  ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters.)
  │  ││  │╰─ tagArgs.value
  │  ││  ╰─ tagArgs "(a)"
  │  │╰─ tagName "foo"
diff --git a/src/__tests__/fixtures/invalid-type-params-after-params/__snapshots__/invalid-type-params-after-params.expected.txt b/src/__tests__/fixtures/invalid-type-params-after-params/__snapshots__/invalid-type-params-after-params.expected.txt
index aab1c933..f7c85ea4 100644
--- a/src/__tests__/fixtures/invalid-type-params-after-params/__snapshots__/invalid-type-params-after-params.expected.txt
+++ b/src/__tests__/fixtures/invalid-type-params-after-params/__snapshots__/invalid-type-params-after-params.expected.txt
@@ -1,5 +1,5 @@
 1╭─ <foo|a|<A>/>
- │  ││  ││  ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must follow a tag name and type paremeters must precede a method or tag parameters.)
+ │  ││  ││  ╰─ error(INVALID_TAG_TYPES:Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters.)
  │  ││  │╰─ tagParams.value
  │  ││  ╰─ tagParams "|a|"
  │  │╰─ tagName "foo"
diff --git a/src/__tests__/fixtures/tag-params-with-type-parameters/__snapshots__/tag-params-with-type-parameters.expected.txt b/src/__tests__/fixtures/tag-params-with-type-parameters/__snapshots__/tag-params-with-type-parameters.expected.txt
index a98f1f83..040c8dbf 100644
--- a/src/__tests__/fixtures/tag-params-with-type-parameters/__snapshots__/tag-params-with-type-parameters.expected.txt
+++ b/src/__tests__/fixtures/tag-params-with-type-parameters/__snapshots__/tag-params-with-type-parameters.expected.txt
@@ -2,8 +2,8 @@
  │  ││  ││ ││       ╰─ openTagEnd
  │  ││  ││ │╰─ tagParams.value "data: A"
  │  ││  ││ ╰─ tagParams "|data: A|"
- │  ││  │╰─ tagTypeParams.value
- │  ││  ╰─ tagTypeParams "<A>"
+ │  ││  │╰─ tagTypeArgs.value
+ │  ││  ╰─ tagTypeArgs "<A>"
  │  │╰─ tagName "foo"
  ╰─ ╰─ openTagStart
 2╭─   hi
@@ -17,8 +17,8 @@
  │  ││  ││  ││       ╰─ openTagEnd
  │  ││  ││  │╰─ tagParams.value "data: A"
  │  ││  ││  ╰─ tagParams "|data: A|"
- │  ││  │╰─ tagTypeParams.value
- │  ││  ╰─ tagTypeParams "<A>"
+ │  ││  │╰─ tagTypeArgs.value
+ │  ││  ╰─ tagTypeArgs "<A>"
  │  │╰─ tagName "foo"
  ╰─ ╰─ openTagStart
 6╭─   hi
@@ -62,8 +62,8 @@
   │  ││  ││             ││           ╰─ openTagEnd
   │  ││  ││             │╰─ tagParams.value "data: A & B"
   │  ││  ││             ╰─ tagParams "|data: A & B|"
-  │  ││  │╰─ tagTypeParams.value "A, B = string"
-  │  ││  ╰─ tagTypeParams "<A, B = string>"
+  │  ││  │╰─ tagTypeArgs.value "A, B = string"
+  │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
 18╭─   hi
@@ -77,8 +77,8 @@
   │  ││  ││              ││           ╰─ openTagEnd
   │  ││  ││              │╰─ tagParams.value "data: A & B"
   │  ││  ││              ╰─ tagParams "|data: A & B|"
-  │  ││  │╰─ tagTypeParams.value "A, B = string"
-  │  ││  ╰─ tagTypeParams "<A, B = string>"
+  │  ││  │╰─ tagTypeArgs.value "A, B = string"
+  │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
 22╭─   hi
@@ -117,4 +117,54 @@
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-32╰─ 
\ No newline at end of file
+32├─ 
+33╭─ <foo()<A> |data: A|>
+  │  ││  ││││  ││       ╰─ openTagEnd
+  │  ││  ││││  │╰─ tagParams.value "data: A"
+  │  ││  ││││  ╰─ tagParams "|data: A|"
+  │  ││  │││╰─ tagTypeParams.value
+  │  ││  ││╰─ tagTypeParams "<A>"
+  │  ││  │╰─ tagArgs.value
+  │  ││  ╰─ tagArgs "()"
+  │  │╰─ tagName "foo"
+  ╰─ ╰─ openTagStart
+34╭─   hi
+  ╰─ ╰─ text "\n  hi\n"
+35╭─ </>
+  │  │ ├─ closeTagEnd(foo)
+  │  │ ╰─ closeTagName
+  ╰─ ╰─ closeTagStart "</"
+36├─ 
+37╭─ <foo/x<A> |data: A|>
+  │  ││  ││││  ││       ╰─ openTagEnd
+  │  ││  ││││  │╰─ tagParams.value "data: A"
+  │  ││  ││││  ╰─ tagParams "|data: A|"
+  │  ││  │││╰─ tagTypeParams.value
+  │  ││  ││╰─ tagTypeParams "<A>"
+  │  ││  │╰─ tagVar.value
+  │  ││  ╰─ tagVar "/x"
+  │  │╰─ tagName "foo"
+  ╰─ ╰─ openTagStart
+38╭─   hi
+  ╰─ ╰─ text "\n  hi\n"
+39╭─ </>
+  │  │ ├─ closeTagEnd(foo)
+  │  │ ╰─ closeTagName
+  ╰─ ╰─ closeTagStart "</"
+40├─ 
+41╭─ <foo<string><A> |data: A|>
+  │  ││  ││      ││  ││       ╰─ openTagEnd
+  │  ││  ││      ││  │╰─ tagParams.value "data: A"
+  │  ││  ││      ││  ╰─ tagParams "|data: A|"
+  │  ││  ││      │╰─ tagTypeParams.value
+  │  ││  ││      ╰─ tagTypeParams "<A>"
+  │  ││  │╰─ tagTypeArgs.value "string"
+  │  ││  ╰─ tagTypeArgs "<string>"
+  │  │╰─ tagName "foo"
+  ╰─ ╰─ openTagStart
+42╭─   hi
+  ╰─ ╰─ text "\n  hi\n"
+43╭─ </>
+  │  │ ├─ closeTagEnd(foo)
+  │  │ ╰─ closeTagName
+  ╰─ ╰─ closeTagStart "</"
\ No newline at end of file
diff --git a/src/__tests__/fixtures/tag-params-with-type-parameters/input.marko b/src/__tests__/fixtures/tag-params-with-type-parameters/input.marko
index 1a410705..6048d231 100644
--- a/src/__tests__/fixtures/tag-params-with-type-parameters/input.marko
+++ b/src/__tests__/fixtures/tag-params-with-type-parameters/input.marko
@@ -29,3 +29,15 @@
 <foo <A, B = string> |data: A & B|>
   hi
 </>
+
+<foo()<A> |data: A|>
+  hi
+</>
+
+<foo/x<A> |data: A|>
+  hi
+</>
+
+<foo<string><A> |data: A|>
+  hi
+</>
\ No newline at end of file
diff --git a/src/__tests__/fixtures/tag-with-type-arguments/__snapshots__/tag-with-type-arguments.expected.txt b/src/__tests__/fixtures/tag-with-type-arguments/__snapshots__/tag-with-type-arguments.expected.txt
index 9d1f21d9..3b72beaa 100644
--- a/src/__tests__/fixtures/tag-with-type-arguments/__snapshots__/tag-with-type-arguments.expected.txt
+++ b/src/__tests__/fixtures/tag-with-type-arguments/__snapshots__/tag-with-type-arguments.expected.txt
@@ -24,10 +24,10 @@
  │  │ ╰─ closeTagName
  ╰─ ╰─ closeTagStart "</"
 8├─ 
-9╭─ <foo <A>>
- │  ││   ││ ╰─ openTagEnd
- │  ││   │╰─ tagTypeArgs.value
- │  ││   ╰─ tagTypeArgs "<A>"
+9╭─ <foo<A, B = string>>
+ │  ││  ││             ╰─ openTagEnd
+ │  ││  │╰─ tagTypeArgs.value "A, B = string"
+ │  ││  ╰─ tagTypeArgs "<A, B = string>"
  │  │╰─ tagName "foo"
  ╰─ ╰─ openTagStart
 10╭─   hi
@@ -37,72 +37,20 @@
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
 12├─ 
-13╭─ <foo <A> >
-  │  ││   ││  ╰─ openTagEnd
-  │  ││   │╰─ tagTypeArgs.value
-  │  ││   ╰─ tagTypeArgs "<A>"
-  │  │╰─ tagName "foo"
-  ╰─ ╰─ openTagStart
-14╭─   hi
-  ╰─ ╰─ text "\n  hi\n"
-15╭─ </>
-  │  │ ├─ closeTagEnd(foo)
-  │  │ ╰─ closeTagName
-  ╰─ ╰─ closeTagStart "</"
-16├─ 
-17╭─ <foo<A, B = string>>
-  │  ││  ││             ╰─ openTagEnd
-  │  ││  │╰─ tagTypeArgs.value "A, B = string"
-  │  ││  ╰─ tagTypeArgs "<A, B = string>"
-  │  │╰─ tagName "foo"
-  ╰─ ╰─ openTagStart
-18╭─   hi
-  ╰─ ╰─ text "\n  hi\n"
-19╭─ </>
-  │  │ ├─ closeTagEnd(foo)
-  │  │ ╰─ closeTagName
-  ╰─ ╰─ closeTagStart "</"
-20├─ 
-21╭─ <foo<A, B = string> >
+13╭─ <foo<A, B = string> >
   │  ││  ││              ╰─ openTagEnd
   │  ││  │╰─ tagTypeArgs.value "A, B = string"
   │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-22╭─   hi
-  ╰─ ╰─ text "\n  hi\n"
-23╭─ </>
-  │  │ ├─ closeTagEnd(foo)
-  │  │ ╰─ closeTagName
-  ╰─ ╰─ closeTagStart "</"
-24├─ 
-25╭─ <foo <A, B = string>>
-  │  ││   ││             ╰─ openTagEnd
-  │  ││   │╰─ tagTypeArgs.value "A, B = string"
-  │  ││   ╰─ tagTypeArgs "<A, B = string>"
-  │  │╰─ tagName "foo"
-  ╰─ ╰─ openTagStart
-26╭─   hi
-  ╰─ ╰─ text "\n  hi\n"
-27╭─ </>
-  │  │ ├─ closeTagEnd(foo)
-  │  │ ╰─ closeTagName
-  ╰─ ╰─ closeTagStart "</"
-28├─ 
-29╭─ <foo <A, B = string> >
-  │  ││   ││              ╰─ openTagEnd
-  │  ││   │╰─ tagTypeArgs.value "A, B = string"
-  │  ││   ╰─ tagTypeArgs "<A, B = string>"
-  │  │╰─ tagName "foo"
-  ╰─ ╰─ openTagStart
-30╭─   hi
+14╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-31╭─ </>
+15╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-32├─ 
-33╭─ <foo<A>(bar)>
+16├─ 
+17╭─ <foo<A>(bar)>
   │  ││  ││ ││   ╰─ openTagEnd
   │  ││  ││ │╰─ tagArgs.value "bar"
   │  ││  ││ ╰─ tagArgs "(bar)"
@@ -110,14 +58,14 @@
   │  ││  ╰─ tagTypeArgs "<A>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-34╭─   hi
+18╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-35╭─ </>
+19╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-36├─ 
-37╭─ <foo<A> (bar)>
+20├─ 
+21╭─ <foo<A> (bar)>
   │  ││  ││  ││   ╰─ openTagEnd
   │  ││  ││  │╰─ tagArgs.value "bar"
   │  ││  ││  ╰─ tagArgs "(bar)"
@@ -125,44 +73,14 @@
   │  ││  ╰─ tagTypeArgs "<A>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-38╭─   hi
-  ╰─ ╰─ text "\n  hi\n"
-39╭─ </>
-  │  │ ├─ closeTagEnd(foo)
-  │  │ ╰─ closeTagName
-  ╰─ ╰─ closeTagStart "</"
-40├─ 
-41╭─ <foo <A>(bar)>
-  │  ││   ││ ││   ╰─ openTagEnd
-  │  ││   ││ │╰─ tagArgs.value "bar"
-  │  ││   ││ ╰─ tagArgs "(bar)"
-  │  ││   │╰─ tagTypeArgs.value
-  │  ││   ╰─ tagTypeArgs "<A>"
-  │  │╰─ tagName "foo"
-  ╰─ ╰─ openTagStart
-42╭─   hi
-  ╰─ ╰─ text "\n  hi\n"
-43╭─ </>
-  │  │ ├─ closeTagEnd(foo)
-  │  │ ╰─ closeTagName
-  ╰─ ╰─ closeTagStart "</"
-44├─ 
-45╭─ <foo <A> (bar)>
-  │  ││   ││  ││   ╰─ openTagEnd
-  │  ││   ││  │╰─ tagArgs.value "bar"
-  │  ││   ││  ╰─ tagArgs "(bar)"
-  │  ││   │╰─ tagTypeArgs.value
-  │  ││   ╰─ tagTypeArgs "<A>"
-  │  │╰─ tagName "foo"
-  ╰─ ╰─ openTagStart
-46╭─   hi
+22╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-47╭─ </>
+23╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-48├─ 
-49╭─ <foo<A, B = string>(bar)>
+24├─ 
+25╭─ <foo<A, B = string>(bar)>
   │  ││  ││             ││   ╰─ openTagEnd
   │  ││  ││             │╰─ tagArgs.value "bar"
   │  ││  ││             ╰─ tagArgs "(bar)"
@@ -170,14 +88,14 @@
   │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-50╭─   hi
+26╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-51╭─ </>
+27╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-52├─ 
-53╭─ <foo<A, B = string> (bar)>
+28├─ 
+29╭─ <foo<A, B = string> (bar)>
   │  ││  ││              ││   ╰─ openTagEnd
   │  ││  ││              │╰─ tagArgs.value "bar"
   │  ││  ││              ╰─ tagArgs "(bar)"
@@ -185,40 +103,74 @@
   │  ││  ╰─ tagTypeArgs "<A, B = string>"
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-54╭─   hi
+30╭─   hi
+  ╰─ ╰─ text "\n  hi\n"
+31╭─ </>
+  │  │ ├─ closeTagEnd(foo)
+  │  │ ╰─ closeTagName
+  ╰─ ╰─ closeTagStart "</"
+32├─ 
+33├─ 
+34╭─ <foo<A> (bar) {
+  │  ││  ││  ││    ╰─ attrMethod.body "{\n  \n}"
+  │  ││  ││  │╰─ attrMethod.params.value "bar"
+  │  ││  ││  ├─ attrMethod.params "(bar)"
+  │  ││  ││  ├─ attrMethod "(bar) {\n  \n}"
+  │  ││  ││  ╰─ attrName
+  │  ││  │╰─ tagTypeArgs.value
+  │  ││  ╰─ tagTypeArgs "<A>"
+  │  │╰─ tagName "foo"
+  ╰─ ╰─ openTagStart
+35╭─   
+  ╰─ ╰─ attrMethod.body.value "\n  \n"
+36╭─ }>
+  ╰─  ╰─ openTagEnd
+37╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-55╭─ </>
+38╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-56├─ 
-57╭─ <foo <A, B = string>(bar)>
-  │  ││   ││             ││   ╰─ openTagEnd
-  │  ││   ││             │╰─ tagArgs.value "bar"
-  │  ││   ││             ╰─ tagArgs "(bar)"
-  │  ││   │╰─ tagTypeArgs.value "A, B = string"
-  │  ││   ╰─ tagTypeArgs "<A, B = string>"
+39├─ 
+40╭─ <foo <A> (bar) {
+  │  ││   ││  ││    ╰─ attrMethod.body "{\n  \n}"
+  │  ││   ││  │╰─ attrMethod.params.value "bar"
+  │  ││   ││  ╰─ attrMethod.params "(bar)"
+  │  ││   │╰─ attrMethod.typeParams.value
+  │  ││   ├─ attrMethod.typeParams "<A>"
+  │  ││   ├─ attrMethod "<A> (bar) {\n  \n}"
+  │  ││   ╰─ attrName
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-58╭─   hi
+41╭─   
+  ╰─ ╰─ attrMethod.body.value "\n  \n"
+42╭─ }>
+  ╰─  ╰─ openTagEnd
+43╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-59╭─ </>
+44╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-60├─ 
-61╭─ <foo <A, B = string> (bar)>
-  │  ││   ││              ││   ╰─ openTagEnd
-  │  ││   ││              │╰─ tagArgs.value "bar"
-  │  ││   ││              ╰─ tagArgs "(bar)"
-  │  ││   │╰─ tagTypeArgs.value "A, B = string"
-  │  ││   ╰─ tagTypeArgs "<A, B = string>"
+45├─ 
+46╭─ <foo <A>(bar) {
+  │  ││   ││ ││    ╰─ attrMethod.body "{\n  \n}"
+  │  ││   ││ │╰─ attrMethod.params.value "bar"
+  │  ││   ││ ╰─ attrMethod.params "(bar)"
+  │  ││   │╰─ attrMethod.typeParams.value
+  │  ││   ├─ attrMethod.typeParams "<A>"
+  │  ││   ├─ attrMethod "<A>(bar) {\n  \n}"
+  │  ││   ╰─ attrName
   │  │╰─ tagName "foo"
   ╰─ ╰─ openTagStart
-62╭─   hi
+47╭─   
+  ╰─ ╰─ attrMethod.body.value "\n  \n"
+48╭─ }>
+  ╰─  ╰─ openTagEnd
+49╭─   hi
   ╰─ ╰─ text "\n  hi\n"
-63╭─ </>
+50╭─ </>
   │  │ ├─ closeTagEnd(foo)
   │  │ ╰─ closeTagName
   ╰─ ╰─ closeTagStart "</"
-64╰─ 
\ No newline at end of file
+51╰─ 
\ No newline at end of file
diff --git a/src/__tests__/fixtures/tag-with-type-arguments/input.marko b/src/__tests__/fixtures/tag-with-type-arguments/input.marko
index c9a8d8b5..acd34919 100644
--- a/src/__tests__/fixtures/tag-with-type-arguments/input.marko
+++ b/src/__tests__/fixtures/tag-with-type-arguments/input.marko
@@ -6,14 +6,6 @@
   hi
 </>
 
-<foo <A>>
-  hi
-</>
-
-<foo <A> >
-  hi
-</>
-
 <foo<A, B = string>>
   hi
 </>
@@ -22,14 +14,6 @@
   hi
 </>
 
-<foo <A, B = string>>
-  hi
-</>
-
-<foo <A, B = string> >
-  hi
-</>
-
 <foo<A>(bar)>
   hi
 </>
@@ -38,26 +22,29 @@
   hi
 </>
 
-<foo <A>(bar)>
+<foo<A, B = string>(bar)>
   hi
 </>
 
-<foo <A> (bar)>
+<foo<A, B = string> (bar)>
   hi
 </>
 
-<foo<A, B = string>(bar)>
-  hi
-</>
 
-<foo<A, B = string> (bar)>
+<foo<A> (bar) {
+  
+}>
   hi
 </>
 
-<foo <A, B = string>(bar)>
+<foo <A> (bar) {
+  
+}>
   hi
 </>
 
-<foo <A, B = string> (bar)>
+<foo <A>(bar) {
+  
+}>
   hi
 </>
diff --git a/src/states/OPEN_TAG.ts b/src/states/OPEN_TAG.ts
index bf4f0962..cf67098c 100644
--- a/src/states/OPEN_TAG.ts
+++ b/src/states/OPEN_TAG.ts
@@ -31,7 +31,7 @@ export interface OpenTagMeta extends Meta {
   hasArgs: boolean;
   hasAttrs: boolean;
   hasParams: boolean;
-  types: undefined | Ranges.Value;
+  typeParams: undefined | Ranges.Value;
   hasShorthandId: boolean;
   selfClosed: boolean;
   indent: string;
@@ -57,7 +57,7 @@ export const OPEN_TAG: StateDefinition<OpenTagMeta> = {
       hasArgs: false,
       hasAttrs: false,
       hasParams: false,
-      types: undefined,
+      typeParams: undefined,
       selfClosed: false,
       shorthandEnd: -1,
       tagName: undefined!,
@@ -379,7 +379,7 @@ export const OPEN_TAG: StateDefinition<OpenTagMeta> = {
         break;
       }
       case TAG_STAGE.ARGUMENT: {
-        const { types } = tag;
+        const { typeParams } = tag;
         const start = child.start - 1; // include (
         const end = ++this.pos; // include )
         const value = {
@@ -390,9 +390,9 @@ export const OPEN_TAG: StateDefinition<OpenTagMeta> = {
         if (this.consumeWhitespaceIfBefore("{")) {
           const attr = this.enterState(STATE.ATTRIBUTE);
 
-          if (types) {
-            attr.start = types.start;
-            attr.typeParams = types;
+          if (typeParams) {
+            attr.start = typeParams.start;
+            attr.typeParams = typeParams;
           } else {
             attr.start = start;
           }
@@ -401,8 +401,13 @@ export const OPEN_TAG: StateDefinition<OpenTagMeta> = {
           this.forward = 0;
           tag.hasAttrs = true;
         } else {
-          if (types) {
-            this.options.onTagTypeArgs?.(types);
+          if (typeParams) {
+            this.emitError(
+              child,
+              ErrorCode.INVALID_TAG_TYPES,
+              "Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters."
+            );
+            break;
           }
 
           this.options.onTagArgs?.({
@@ -414,9 +419,9 @@ export const OPEN_TAG: StateDefinition<OpenTagMeta> = {
         break;
       }
       case TAG_STAGE.TYPES: {
-        const { types, hasParams, hasArgs } = tag;
+        const { typeParams, hasParams, hasArgs } = tag;
         const end = ++this.pos; // include >
-        const typeArgs: Ranges.Value = {
+        const types: Ranges.Value = {
           start: child.start - 1, // include <
           end,
           value: {
@@ -425,29 +430,27 @@ export const OPEN_TAG: StateDefinition<OpenTagMeta> = {
           },
         };
 
+        if (tag.tagName.end === types.start) {
+          // When we match types just after the tag name then we are dealing with a type argument.
+          this.options.onTagTypeArgs?.(types);
+          break;
+        }
+
         this.consumeWhitespace();
         const nextCode = this.lookAtCharCodeAhead(0);
 
-        if (!hasParams && nextCode === CODE.PIPE) {
-          if (types) {
-            this.options.onTagTypeArgs?.(types);
-          }
-
-          this.options.onTagTypeParams?.(typeArgs);
-        } else if (!hasArgs && nextCode === CODE.OPEN_PAREN) {
-          if (types) {
-            this.options.onTagTypeArgs?.(types);
-          }
-
-          tag.types = typeArgs;
-        } else if (!(types || hasParams || hasArgs)) {
-          this.options.onTagTypeArgs?.(typeArgs);
-          tag.types = typeArgs;
+        if (nextCode === CODE.PIPE && !hasParams) {
+          this.options.onTagTypeParams?.(types);
+        } else if (
+          nextCode === CODE.OPEN_PAREN &&
+          !(typeParams || hasParams || hasArgs)
+        ) {
+          tag.typeParams = types;
         } else {
           this.emitError(
             child,
             ErrorCode.INVALID_TAG_TYPES,
-            "Unexpected types. Type arguments must follow a tag name and type paremeters must precede a method or tag parameters."
+            "Unexpected types. Type arguments must directly follow a tag name and type paremeters must precede a method or tag parameters."
           );
         }