diff --git a/packages/svelte-markdown-preprocess/src/index.spec.ts b/packages/svelte-markdown-preprocess/src/index.spec.ts
index bb9ca7f4..df049a92 100644
--- a/packages/svelte-markdown-preprocess/src/index.spec.ts
+++ b/packages/svelte-markdown-preprocess/src/index.spec.ts
@@ -98,6 +98,49 @@ describe(svelteMarkdownPreprocess.name, () => {
     });
   });
 
+  describe('svelte components', () => {
+    const render = async (content: string) => {
+      const result = await svelteMarkdownPreprocess().markup({ filename: 'test.md', content });
+      return result?.code ?? '';
+    };
+
+    it('should render a component that owns its line', async () => {
+      await expect(render('<Markdown.Image src="a.webp" />')).resolves.toContain('<Markdown.Image src="a.webp" />');
+    });
+
+    it('should render sibling components sharing a line', async () => {
+      const code = await render('<Markdown.Image src="a.webp" /> <Markdown.Image src="b.webp" />');
+
+      expect(code).toContain('<Markdown.Image src="a.webp" />');
+      expect(code).toContain('<Markdown.Image src="b.webp" />');
+      expect(code).not.toContain('&lt;');
+    });
+
+    it('should render a component followed by prose on the same line', async () => {
+      const code = await render('<Markdown.Image src="a.webp" />In order to use this');
+
+      expect(code).toContain('<Markdown.Image src="a.webp" />');
+      expect(code).toContain('<Markdown.Paragraph>In order to use this</Markdown.Paragraph>');
+    });
+
+    it('should render a component preceded by prose on the same line', async () => {
+      await expect(render('Look at this <Markdown.Image src="a.webp" />')).resolves.toContain(
+        '<Markdown.Paragraph>Look at this <Markdown.Image src="a.webp" /></Markdown.Paragraph>',
+      );
+    });
+
+    it('should import a relative source from a component sharing a line', async () => {
+      const code = await render('Look at this <Markdown.Image src="./img/example.webp" />');
+
+      expect(code).toContain(`import __image_0 from './img/example.webp';`);
+      expect(code).toContain('<Markdown.Image src={__image_0} />');
+    });
+
+    it('should leave a component inside a code fence as code', async () => {
+      await expect(render('```svelte\n<Markdown.Image src="a.webp" />\n```')).resolves.toContain('<Markdown.Code');
+    });
+  });
+
   describe('images', () => {
     it('should import relative images so vite can optimize them', async () => {
       const result = await svelteMarkdownPreprocess().markup({
diff --git a/packages/svelte-markdown-preprocess/src/markdown.ts b/packages/svelte-markdown-preprocess/src/markdown.ts
index 1ed1791f..2c1b7072 100644
--- a/packages/svelte-markdown-preprocess/src/markdown.ts
+++ b/packages/svelte-markdown-preprocess/src/markdown.ts
@@ -27,7 +27,8 @@ const renderAlert = (
 ) => `<Markdown.Alert${createAttributes({ variant, title })}>${parser.parse(tokens)}</Markdown.Alert>\n`;
 
 // Marked reads a dotted tag as text, so a component like `<Markdown.Image />` needs its own rule.
-const SVELTE_COMPONENT_REGEX = /^<[A-Z]\w*\.\w+\b[^>]*\/>[ \t]*(?:\n+|$)/;
+const SVELTE_COMPONENT_REGEX = /^<[A-Z]\w*\.\w+\b[^>]*\/>/;
+const SVELTE_COMPONENT_BLOCK_REGEX = new RegExp(String.raw`${SVELTE_COMPONENT_REGEX.source}[ \t]*\n?`);
 
 const normalizeText = (text: string) => escapeHtml(emojify(text));
 
@@ -75,9 +76,16 @@ export const markedSvelte = (): MarkedExtension => ({
     },
 
     html(src) {
-      const match = SVELTE_COMPONENT_REGEX.exec(src);
+      const match = SVELTE_COMPONENT_BLOCK_REGEX.exec(src);
       return match ? { type: 'html', raw: match[0], text: `${match[0].trim()}\n`, pre: false, block: true } : false;
     },
+
+    tag(src) {
+      const match = SVELTE_COMPONENT_REGEX.exec(src);
+      return match
+        ? { type: 'html', raw: match[0], text: match[0], inLink: false, inRawBlock: false, block: false }
+        : false;
+    },
   },
 
   extensions: [