diff --git a/lib/haml/buffer.rb b/lib/haml/buffer.rb
index 09525163..1f60153f 100644
--- a/lib/haml/buffer.rb
+++ b/lib/haml/buffer.rb
@@ -114,7 +114,7 @@ module Haml
       result = html_escape(result) if escape_html
 
       has_newline = result.include?("\n")
-      if in_tag && (@options[:ugly] || !has_newline || preserve_tag)
+      if in_tag && !nuke_inner_whitespace && (@options[:ugly] || !has_newline || preserve_tag)
         @buffer << result
         @real_tabs -= 1
         return
diff --git a/test/haml/results/nuke_inner_whitespace.xhtml b/test/haml/results/nuke_inner_whitespace.xhtml
index 290534b2..71d55d87 100644
--- a/test/haml/results/nuke_inner_whitespace.xhtml
+++ b/test/haml/results/nuke_inner_whitespace.xhtml
@@ -32,3 +32,9 @@
     Bar
   </div></q>
 </p>
+<p>
+  <q>foo</q>
+  <q a='2'>
+    bar
+  </q>
+</p>
diff --git a/test/haml/templates/nuke_inner_whitespace.haml b/test/haml/templates/nuke_inner_whitespace.haml
index c6ba2b07..8eebd417 100644
--- a/test/haml/templates/nuke_inner_whitespace.haml
+++ b/test/haml/templates/nuke_inner_whitespace.haml
@@ -24,3 +24,9 @@
     %div
       Foo
       Bar
+
+-# Regression test
+%p
+  %q<= "foo"
+  %q{:a => 1 + 1}
+    bar