diff --git a/change/@ni-nimble-components-20c7f83a-27bf-4fe3-aeb3-86e15e1561c5.json b/change/@ni-nimble-components-20c7f83a-27bf-4fe3-aeb3-86e15e1561c5.json
new file mode 100644
index 0000000000..058f898218
--- /dev/null
+++ b/change/@ni-nimble-components-20c7f83a-27bf-4fe3-aeb3-86e15e1561c5.json
@@ -0,0 +1,7 @@
+{
+  "type": "patch",
+  "comment": "Mixed bold and italics formatting corner cases fixed. Update dependency on prosemirror-markdown",
+  "packageName": "@ni/nimble-components",
+  "email": "123377523+vivinkrishna-ni@users.noreply.github.com",
+  "dependentChangeType": "patch"
+}
diff --git a/package-lock.json b/package-lock.json
index 0eef6728d3..ccc5e2fac0 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -28065,9 +28065,9 @@
       }
     },
     "node_modules/prosemirror-markdown": {
-      "version": "1.11.0",
-      "resolved": "https://registry.npmjs.org/prosemirror-markdown/-/prosemirror-markdown-1.11.0.tgz",
-      "integrity": "sha512-yP9mZqPRstjZhhf3yykCQNE3AijxARrHe4e7esV9A+gp4cnGOH4QvrKYPpXLHspNWyvJJ+0URH+iIvV5qP1I2Q==",
+      "version": "1.11.2",
+      "resolved": "https://registry.npmjs.org/prosemirror-markdown/-/prosemirror-markdown-1.11.2.tgz",
+      "integrity": "sha512-Eu5g4WPiCdqDTGhdSsG9N6ZjACQRYrsAkrF9KYfdMaCmjIApH75aVncsWYOJvEk2i1B3i8jZppv3J/tnuHGiUQ==",
       "dependencies": {
         "markdown-it": "^13.0.1",
         "prosemirror-model": "^1.0.0"
@@ -34750,7 +34750,7 @@
         "d3-scale": "^4.0.2",
         "d3-selection": "^3.0.0",
         "d3-zoom": "^3.0.0",
-        "prosemirror-markdown": "^1.11.0",
+        "prosemirror-markdown": "^1.11.2",
         "prosemirror-model": "^1.19.2",
         "tslib": "^2.2.0"
       },
diff --git a/packages/nimble-components/package.json b/packages/nimble-components/package.json
index 8527dd0d5c..4e02a75876 100644
--- a/packages/nimble-components/package.json
+++ b/packages/nimble-components/package.json
@@ -86,7 +86,7 @@
     "d3-scale": "^4.0.2",
     "d3-selection": "^3.0.0",
     "d3-zoom": "^3.0.0",
-    "prosemirror-markdown": "^1.11.0",
+    "prosemirror-markdown": "^1.11.2",
     "prosemirror-model": "^1.19.2",
     "tslib": "^2.2.0"
   },
diff --git a/packages/nimble-components/src/rich-text/models/tests/markdown-serializer.spec.ts b/packages/nimble-components/src/rich-text/models/tests/markdown-serializer.spec.ts
index 1c60d696c0..3b3afbb556 100644
--- a/packages/nimble-components/src/rich-text/models/tests/markdown-serializer.spec.ts
+++ b/packages/nimble-components/src/rich-text/models/tests/markdown-serializer.spec.ts
@@ -56,6 +56,46 @@ describe('Markdown serializer', () => {
                 html: '<strong><em>Bold and Italics</em></strong>',
                 markdown: '***Bold and Italics***'
             },
+            {
+                name: 'Italics without spaces in between bold texts',
+                html: '<strong>Bold<em>italics</em>bold</strong>',
+                markdown: '**Bold*italics*bold**'
+            },
+            {
+                name: 'Italics with leading and trailing spaces in between bold texts',
+                html: '<strong>Bold<em> italics </em>bold</strong>',
+                markdown: '**Bold *italics* bold**'
+            },
+            {
+                name: 'Bold and italics with leading and trailing spaces in italics with isolated italics at the end',
+                html: '<strong>Bold<em> italics </em></strong><em>italics</em>',
+                markdown: '**Bold *italics*** *italics*'
+            },
+            {
+                name: 'Bold and italics with leading and trailing spaces in bold with isolated italics at the end',
+                html: '<strong> Bold <em>italics</em> </strong><em>italics</em>',
+                markdown: '**Bold *italics*** *italics*'
+            },
+            {
+                name: 'Bold and italics with leading and trailing spaces in both',
+                html: '<strong>Bold <em>italics</em> bold <em>italics </em></strong><em>italics</em>',
+                markdown: '**Bold *italics* bold *italics*** *italics*'
+            },
+            {
+                name: 'Bold without spaces in between italics texts',
+                html: '<em>Italics</em><strong><em>bold</em></strong><em>italics</em>',
+                markdown: '*Italics**bold**italics*'
+            },
+            {
+                name: 'Bold with leading and trailing spaces in between italics texts',
+                html: '<em>Italics</em><strong><em> bold </em></strong><em>italics</em>',
+                markdown: '*Italics **bold** italics*'
+            },
+            {
+                name: 'Italics and bold with leading and trailing spaces in bold with isolated bold at the end',
+                html: '<em>Italics </em><strong><em>bold </em>bold</strong>',
+                markdown: '*Italics **bold*** **bold**'
+            },
             {
                 name: 'Numbered list',
                 html: '<ol><li><p>Numbered list</p></li></ol>',