diff --git a/src/types/util.rs b/src/types/util.rs
index 7eab912..6480ed7 100644
--- a/src/types/util.rs
+++ b/src/types/util.rs
@@ -259,15 +259,33 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
     escape_character: char,
     escapable_characters: C,
 ) -> Cow<'s, str> {
-    let mut state = CoalesceWhitespaceEscaped::Normal;
+    let mut state = CoalesceWhitespaceEscaped::Normal {
+        in_whitespace: false,
+    };
     for (offset, c) in input.char_indices() {
         state = match (state, c) {
-            (CoalesceWhitespaceEscaped::Normal, c) if c == escape_character => {
+            (CoalesceWhitespaceEscaped::Normal { in_whitespace: _ }, c)
+                if c == escape_character =>
+            {
                 CoalesceWhitespaceEscaped::NormalEscaping {
                     escape_offset: offset,
                 }
             }
-            (CoalesceWhitespaceEscaped::Normal, ' ' | '\t' | '\r' | '\n') => {
+            (CoalesceWhitespaceEscaped::Normal { in_whitespace }, ' ') => {
+                if in_whitespace {
+                    let mut ret = String::with_capacity(input.len());
+                    ret.push_str(&input[..offset]);
+                    CoalesceWhitespaceEscaped::RequiresMutation {
+                        in_whitespace: true,
+                        ret,
+                    }
+                } else {
+                    CoalesceWhitespaceEscaped::Normal {
+                        in_whitespace: true,
+                    }
+                }
+            }
+            (CoalesceWhitespaceEscaped::Normal { in_whitespace: _ }, '\t' | '\r' | '\n') => {
                 let mut ret = String::with_capacity(input.len());
                 ret.push_str(&input[..offset]);
                 ret.push(' ');
@@ -276,7 +294,11 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
                     ret,
                 }
             }
-            (CoalesceWhitespaceEscaped::Normal, _) => CoalesceWhitespaceEscaped::Normal,
+            (CoalesceWhitespaceEscaped::Normal { in_whitespace: _ }, _) => {
+                CoalesceWhitespaceEscaped::Normal {
+                    in_whitespace: false,
+                }
+            }
             (CoalesceWhitespaceEscaped::NormalEscaping { escape_offset }, c)
                 if escapable_characters(c) =>
             {
@@ -290,9 +312,15 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
                 }
             }
 
+            (CoalesceWhitespaceEscaped::NormalEscaping { escape_offset: _ }, ' ') => {
+                // We didn't escape the character so continue as normal.
+                CoalesceWhitespaceEscaped::Normal {
+                    in_whitespace: true,
+                }
+            }
             (
                 CoalesceWhitespaceEscaped::NormalEscaping { escape_offset: _ },
-                ' ' | '\t' | '\r' | '\n',
+                '\t' | '\r' | '\n',
             ) => {
                 // We didn't escape the character but we hit whitespace anyway.
                 let mut ret = String::with_capacity(input.len());
@@ -305,7 +333,9 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
             }
             (CoalesceWhitespaceEscaped::NormalEscaping { escape_offset: _ }, _) => {
                 // We didn't escape the character so continue as normal.
-                CoalesceWhitespaceEscaped::Normal
+                CoalesceWhitespaceEscaped::Normal {
+                    in_whitespace: false,
+                }
             }
 
             (
@@ -379,7 +409,6 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
             ) => {
                 ret.push(matched_escape_character);
                 ret.push(c);
-                // TODO
                 CoalesceWhitespaceEscaped::RequiresMutation {
                     in_whitespace: false,
                     ret,
@@ -388,7 +417,7 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
         }
     }
     match state {
-        CoalesceWhitespaceEscaped::Normal => Cow::Borrowed(input),
+        CoalesceWhitespaceEscaped::Normal { in_whitespace: _ } => Cow::Borrowed(input),
         CoalesceWhitespaceEscaped::NormalEscaping { escape_offset: _ } => Cow::Borrowed(input),
         CoalesceWhitespaceEscaped::RequiresMutation {
             in_whitespace: _,
@@ -405,7 +434,9 @@ fn impl_coalesce_whitespace_escaped<'s, C: Fn(char) -> bool>(
 }
 
 enum CoalesceWhitespaceEscaped {
-    Normal,
+    Normal {
+        in_whitespace: bool,
+    },
     NormalEscaping {
         escape_offset: usize,
     },
@@ -437,8 +468,7 @@ mod tests {
         let input = "foo bar baz";
         let output = coalesce_whitespace_escaped('&', |c| "".contains(c))(input);
         assert_eq!(output, "foo bar baz");
-        // TODO: Technically this should be a Borrowed but to keep the code simple for now we are treating all whitespace as causing ownership.
-        assert!(matches!(output, Cow::Owned(_)));
+        assert!(matches!(output, Cow::Borrowed(_)));
         Ok(())
     }
 
@@ -468,4 +498,14 @@ mod tests {
         assert!(matches!(output, Cow::Owned(_)));
         Ok(())
     }
+
+    #[test]
+    fn coalesce_whitespace_escaped_escape_mismatch_around_whitespace(
+    ) -> Result<(), Box<dyn std::error::Error>> {
+        let input = "foo& bar &baz";
+        let output = coalesce_whitespace_escaped('&', |c| "z".contains(c))(input);
+        assert_eq!(output, "foo& bar &baz");
+        assert!(matches!(output, Cow::Borrowed(_)));
+        Ok(())
+    }
 }