diff --git a/lib/temple/html/pretty.rb b/lib/temple/html/pretty.rb
index 6143573..29ad071 100644
--- a/lib/temple/html/pretty.rb
+++ b/lib/temple/html/pretty.rb
@@ -10,7 +10,8 @@ class Pretty < Fast
                                      header hgroup hr html li link meta nav ol option p
                                      rp rt ruby section script style table tbody td tfoot
                                      th thead tr ul video doctype).freeze,
-                     pre_tags: %w(code pre textarea).freeze
+                     pre_tags: %w(code pre textarea).freeze,
+                     compact: false
 
       def initialize(opts = {})
         super
@@ -62,6 +63,18 @@ def on_html_tag(name, attrs, content = nil)
         result = [:multi, [:static, "#{tag_indent(name)}<#{name}"], compile(attrs)]
         result << [:static, (closed && @format != :html ? ' /' : '') + '>']
 
+        # strip newlines around terminal nodes
+        @pretty = true
+        case content
+        in [:multi, [:newline]]
+          return (result << [:static, "</#{name}>"])
+        in [:multi, [:multi, [:static, str]]]
+          return (result << [:static, "#{str}</#{name}>"])
+        in [:multi, [:escape, true, [:dynamic, code]], [:multi, [:newline]]]
+          return (result << [:multi, [:escape, true, [:dynamic, code]], [:static, "</#{name}>"]])
+        else nil
+        end if options[:compact]
+
         @pretty = !@pre_tags || !options[:pre_tags].include?(name)
         if content
           @indent += 1