diff --git a/core/encoding/entity/entity.odin b/core/encoding/entity/entity.odin
index a756bdf39..3f3d41953 100644
--- a/core/encoding/entity/entity.odin
+++ b/core/encoding/entity/entity.odin
@@ -146,6 +146,7 @@ decode_xml :: proc(input: string, options := XML_Decode_Options{}, allocator :=
 							for i in 0..<count {
 								write_rune(&builder, decoded[i])
 							}
+							prev = decoded[count - 1]
 							continue
 						}
 					}
diff --git a/tests/core/encoding/xml/test_core_xml.odin b/tests/core/encoding/xml/test_core_xml.odin
index c03dfe29d..564ee05d6 100644
--- a/tests/core/encoding/xml/test_core_xml.odin
+++ b/tests/core/encoding/xml/test_core_xml.odin
@@ -1,5 +1,6 @@
 package test_core_xml
 
+import "core:encoding/entity"
 import "core:encoding/xml"
 import "core:testing"
 import "core:strings"
@@ -217,6 +218,29 @@ run_test :: proc(t: ^testing.T, test: TEST, loc := #caller_location) {
 	}
 }
 
+@(test)
+test_normalize_whitespace :: proc(t: ^testing.T) {
+	s := "A &amp; B"
+	normalized_entity_decode, _ := entity.decode_xml(s, {.Normalize_Whitespace})
+	defer delete(normalized_entity_decode)
+
+	testing.expect_value(t, normalized_entity_decode, "A & B")
+
+	s = `<hellope attr="A &amp; B">A &amp; B</hellope>`
+
+	opts := xml.Options{
+		flags = {.Ignore_Unsupported, .Decode_SGML_Entities},
+	}
+
+	doc, err := xml.parse_bytes(transmute([]byte)s, opts)
+	defer xml.destroy(doc)
+	assert(err == .None)
+
+	testing.expect_value(t, doc.elements[0].value[0], "A & B")
+	attr := doc.elements[0].attribs
+	testing.expect_value(t, attr[0].val, "A & B")
+}
+
 @(private)
 doc_to_string :: proc(doc: ^xml.Document) -> (result: string) {
 	/*
@@ -298,4 +322,4 @@ doc_to_string :: proc(doc: ^xml.Document) -> (result: string) {
 
 	print(strings.to_writer(&buf), doc)
 	return strings.clone(strings.to_string(buf))
-}
+}
\ No newline at end of file