diff --git a/Htmt/Htmt.csproj b/Htmt/Htmt.csproj
index 8a83a68..e463873 100644
--- a/Htmt/Htmt.csproj
+++ b/Htmt/Htmt.csproj
@@ -6,14 +6,14 @@
         <Nullable>enable</Nullable>
         <Authors>Asko Nõmm</Authors>
         <PackageId>Htmt</PackageId>
-        <Version>1.2.0</Version>
+        <Version>1.2.1</Version>
         <Description>HTML/XML templating library for .NET</Description>
         <PackageTags>html xml template</PackageTags>
         <PackageProjectUrl>https://github.com/askonomm/htmt</PackageProjectUrl>
         <PackageLicenseExpression>MIT</PackageLicenseExpression>
         <RepositoryUrl>https://github.com/askonomm/htmt</RepositoryUrl>
         <RepositoryType>git</RepositoryType>
-        <PackageReleaseNotes>Added support for partials, complex conditional expressions and auto-closing of void elements in HTML.</PackageReleaseNotes>
+        <PackageReleaseNotes>Fixed an issue where usage of HTML entities caused Htmt to throw an exception.</PackageReleaseNotes>
         <PackageReadmeFile>README.md</PackageReadmeFile>
     </PropertyGroup>
     
diff --git a/Htmt/Parser.cs b/Htmt/Parser.cs
index 02a149c..0701128 100644
--- a/Htmt/Parser.cs
+++ b/Htmt/Parser.cs
@@ -43,9 +43,10 @@ private void Parse()
             
             RemoveDoctype();
             CloseVoidElements();
-            TransformHtmlEntities();
         }
         
+        TransformHtmlEntities();
+        
         var templateStr = $"<root xmlns:x=\"{HtmtNamespace}\">{Template}</root>";
         using var reader = XmlReader.Create(new StringReader(templateStr), _xmlSettings);
         Xml.Load(reader);
diff --git a/HtmtTests/AttributeParserTest.cs b/HtmtTests/AttributeParserTest.cs
index a15a12f..03c2312 100644
--- a/HtmtTests/AttributeParserTest.cs
+++ b/HtmtTests/AttributeParserTest.cs
@@ -315,6 +315,18 @@ public void TestInnerPartialAttributeParserWithData()
         
         Assert.AreEqual("<html><body><div><h1>Hello, World!</h1></div></body></html>", html);
     }
+
+    [TestMethod]
+    public void TestInnerPartialAttributeParserWithHtmlEntities()
+    {
+        const string template = "<html><body><div x:inner-partial=\"partial\" /></body></html>";
+        const string partial = "<h1>This way &rarr;</h1>";
+        var data = new Dictionary<string, object?> { { "partial", partial } };
+        var parser = new Parser { Template = template, Data = data };
+        var html = parser.ToHtml();
+        
+        Assert.AreEqual("<html><body><div><h1>This way →</h1></div></body></html>", html);
+    }
     
     [TestMethod]
     public void TestOuterPartialAttributeParser()
@@ -339,4 +351,16 @@ public void TestOuterPartialAttributeParserWithData()
         
         Assert.AreEqual("<html><body><h1>Hello, World!</h1></body></html>", html);
     }
+
+    [TestMethod]
+    public void TestOuterPartialAttributeParserWithHtmlEntities()
+    {
+        const string template = "<html><body><div x:outer-partial=\"partial\" /></body></html>";
+        const string partial = "<h1>This way &rarr;</h1>";
+        var data = new Dictionary<string, object?> { { "partial", partial } };
+        var parser = new Parser { Template = template, Data = data };
+        var html = parser.ToHtml();
+        
+        Assert.AreEqual("<html><body><h1>This way →</h1></body></html>", html);
+    }
 }
\ No newline at end of file
diff --git a/HtmtTests/ParserTest.cs b/HtmtTests/ParserTest.cs
index 9b1820b..26556d1 100644
--- a/HtmtTests/ParserTest.cs
+++ b/HtmtTests/ParserTest.cs
@@ -65,4 +65,13 @@ public void TestHtmlEntities()
         
         Assert.AreEqual("<html><head></head><body><div>Hello, World!</div></body></html>", parser.ToHtml());
     }
+
+    [TestMethod]
+    public void TestMoreHtmlEntities()
+    {
+        const string template = "<html><head></head><body>&rarr;</body></html>";
+        var parser = new Htmt.Parser { Template = template };
+        
+        Assert.AreEqual("<html><head></head><body>→</body></html>", parser.ToHtml());
+    }
 }
\ No newline at end of file
