diff --git a/.changeset/slimy-suits-sparkle.md b/.changeset/slimy-suits-sparkle.md
new file mode 100644
index 000000000..edb1146fe
--- /dev/null
+++ b/.changeset/slimy-suits-sparkle.md
@@ -0,0 +1,5 @@
+---
+'@astrojs/compiler': patch
+---
+
+Updates `compressHTML` logic to account for elements which are known to be whitespace sensitive
diff --git a/internal/transform/transform.go b/internal/transform/transform.go
index d4240adbb..2d9ab83c5 100644
--- a/internal/transform/transform.go
+++ b/internal/transform/transform.go
@@ -280,6 +280,62 @@ func isWhitespaceInsensitiveElement(n *astro.Node) bool {
 	return n.Data == "head"
 }
 
+var knownTextElements = map[string]bool{
+	"a":          true,
+	"abbr":       true,
+	"b":          true,
+	"bdi":        true,
+	"bdo":        true,
+	"blockquote": true,
+	"br":         true,
+	"caption":    true,
+	"cite":       true,
+	"code":       true,
+	"col":        true,
+	"colgroup":   true,
+	"data":       true,
+	"del":        true,
+	"dfn":        true,
+	"em":         true,
+	"h1":         true,
+	"h2":         true,
+	"h3":         true,
+	"h4":         true,
+	"h5":         true,
+	"h6":         true,
+	"i":          true,
+	"ins":        true,
+	"kbd":        true,
+	"mark":       true,
+	"p":          true,
+	"q":          true,
+	"rp":         true,
+	"rt":         true,
+	"ruby":       true,
+	"s":          true,
+	"samp":       true,
+	"small":      true,
+	"span":       true,
+	"strong":     true,
+	"sub":        true,
+	"sup":        true,
+	"table":      true,
+	"tbody":      true,
+	"td":         true,
+	"tfoot":      true,
+	"th":         true,
+	"thead":      true,
+	"time":       true,
+	"tr":         true,
+	"u":          true,
+	"var":        true,
+	"wbr":        true,
+}
+
+func isTextElement(n *astro.Node) bool {
+	return knownTextElements[n.Data]
+}
+
 func collapseWhitespace(doc *astro.Node) {
 	walk(doc, func(n *astro.Node) {
 		if n.Type == astro.TextNode {
@@ -304,10 +360,13 @@ func collapseWhitespace(doc *astro.Node) {
 
 			// If the node is only whitespace, clear it
 			if len(strings.TrimFunc(n.Data, unicode.IsSpace)) == 0 {
-				// If it's a lone text node, or if it's within a whitespace-insensitive element, clear completely
-				if (n.PrevSibling == nil && n.NextSibling == nil) || n.Closest(isWhitespaceInsensitiveElement) != nil {
+				if isTextElement(n) {
+					// Known textual elements can be handled early
+					n.Data = " "
+				} else if (n.PrevSibling == nil && n.NextSibling == nil) || n.Closest(isWhitespaceInsensitiveElement) != nil {
+					// If it's a lone text node, or if it's within a whitespace-insensitive element, clear completely
 					n.Data = ""
-				} else {
+				} else if n.Parent != nil {
 					n.Data = " "
 				}
 				return
diff --git a/internal/transform/transform_test.go b/internal/transform/transform_test.go
index a52dc11b6..580e08125 100644
--- a/internal/transform/transform_test.go
+++ b/internal/transform/transform_test.go
@@ -418,6 +418,16 @@ func TestCompactTransform(t *testing.T) {
 			source: "<div>Click   <a>here</a> <span>space</span></div>",
 			want:   "<div>Click <a>here</a> <span>space</span></div>",
 		},
+		{
+			name:   "preserve in-between inline elements I",
+			source: "<p>{'text'} <span>text</span></p>",
+			want:   "<p>{'text'} <span>text</span></p>",
+		},
+		{
+			name:   "preserve in-between inline elements II",
+			source: "<p><span>text</span> <span>text</span></p>",
+			want:   "<p><span>text</span> <span>text</span></p>",
+		},
 		{
 			name:   "expression trim first",
 			source: "<div>{\n() => {\n\t\treturn <span />}}</div>",
@@ -463,6 +473,21 @@ func TestCompactTransform(t *testing.T) {
 			source: "<div>{ a + b }</div>",
 			want:   "<div>{a + b}</div>",
 		},
+		{
+			name:   "meaningful whitspace regression I",
+			source: "<a href={``}>\n<span />\n<span />\n<span>{title}</span></a>",
+			want:   "<a href={``}> <span></span> <span></span> <span>{title}</span></a>",
+		},
+		{
+			name:   "meaningful whitspace regression I",
+			source: "<a href={``}>\n<span />\n<span />\n<span>{title}</span></a>",
+			want:   "<a href={``}> <span></span> <span></span> <span>{title}</span></a>",
+		},
+		{
+			name:   "meaningful whitespace regression II",
+			source: "<h2>\n    <span>Contributors with this achievement</span>\n    <span>Badge</span>\n</h2>",
+			want:   "<h2> <span>Contributors with this achievement</span> <span>Badge</span> </h2>",
+		},
 	}
 	var b strings.Builder
 	for _, tt := range tests {
diff --git a/packages/compiler/test/compact/minify.ts b/packages/compiler/test/compact/minify.ts
index 3dbe63607..13424d1ce 100644
--- a/packages/compiler/test/compact/minify.ts
+++ b/packages/compiler/test/compact/minify.ts
@@ -22,6 +22,10 @@ test('collapsing', async () => {
   assert.match(await minify(`<span> inline </span>`), '$$render`<span> inline </span>`');
   assert.match(await minify(`<span>\n inline \t{\t expression \t}</span>`), '$$render`<span>\ninline ${expression}</span>`');
   assert.match(await minify(`<span> inline { expression }</span>`), '$$render`<span> inline ${expression}</span>`');
+  assert.match(
+    await minify('<div>\n  <p>{"text"} <span>text</span></p>\n  <p><span>text</span> <span>text</span></p>\n</div>'),
+    '<div> <p>${"text"} <span>text</span></p> <p><span>text</span> <span>text</span></p> </div>'
+  );
 });
 
 test('space normalization between attributes', async () => {