diff --git a/index.js b/index.js
index efb22402..6ad8255c 100644
--- a/index.js
+++ b/index.js
@@ -323,16 +323,16 @@ function attributeValueToJSXPropValue(key, value) {
     return value;
 }
 
+function isCoalesceableHTML(html) {
+    // ignore block-level elements
+    // ignore self-closing or non-content-bearing elements
+    return html.match(BLOCK_ELEMENT_REGEX) || html.match(SELF_CLOSING_ELEMENT_REGEX) ? false : true;
+}
+
 function coalesceInlineHTML(ast) {
     function coalescer(node, index, siblings) {
         if (node.type === 'html') {
-            // ignore block-level elements
-            if (BLOCK_ELEMENT_REGEX.test(node.value)) {
-                return;
-            }
-
-            // ignore self-closing or non-content-bearing elements
-            if (SELF_CLOSING_ELEMENT_REGEX.test(node.value)) {
+            if (!isCoalesceableHTML(node.value)) {
                 return;
             }
 
@@ -347,7 +347,8 @@ function coalesceInlineHTML(ast) {
 
             // where's the end tag?
             while (end === undefined && i < siblings.length) {
-                if (siblings[i].type !== 'html') {
+                if (    siblings[i].type !== 'html'
+                    || (siblings[i].type === 'html' && !isCoalesceableHTML(siblings[i].value))) {
                     i += 1;
                     continue;
                 }
@@ -398,7 +399,7 @@ function coalesceInlineHTML(ast) {
         }
     };
 
-    return ast.children.forEach(coalescer);
+    ast.children.forEach(coalescer);
 }
 
 export function compiler(markdown, {overrides = {}} = {}) {
@@ -543,6 +544,11 @@ export function compiler(markdown, {overrides = {}} = {}) {
 
         let props = {key, ...ast.props};
 
+        if (Array.isArray(ast.children) && ast.children.length === 1 && ast.children[0].type === 'html') {
+            props.dangerouslySetInnerHTML = {__html: ast.children[0].value};
+            ast.children = null;
+        }
+
         const override = overrides[htmlNodeType];
         if (override) {
             if (override.component) {
@@ -607,8 +613,7 @@ export function compiler(markdown, {overrides = {}} = {}) {
     let jsx = astToJSX(remarkAST);
 
     // discard the root <div> node if there is only one valid initial child
-    // generally this is a paragraph
-    if (jsx.props.children.length === 1) {
+    if (jsx.props.children && jsx.props.children.length === 1) {
         jsx = jsx.props.children[0];
     }
 
diff --git a/index.spec.js b/index.spec.js
index ef81b794..d7f94ab2 100644
--- a/index.spec.js
+++ b/index.spec.js
@@ -554,6 +554,15 @@ describe('markdown-to-jsx', () => {
                 expect($element.children[0].children[0].tagName).toBe('STRONG');
                 expect($element.children[0].children[0].textContent).toBe('code');
             });
+
+            it('handles self-closing html inside parsable html (regression)', () => {
+                const element = render(compiler('<a href="https://opencollective.com/react-dropzone/sponsor/0/website" target="_blank"><img src="https://opencollective.com/react-dropzone/sponsor/0/avatar.svg"></a>'));
+                const $element = dom(element);
+
+                expect($element.tagName).toBe('P');
+                expect($element.children[0].tagName).toBe('A');
+                expect($element.children[0].children[0].tagName).toBe('IMG');
+            });
         });
 
         describe('horizontal rules', () => {