diff --git a/QuickFIXn/Message/Message.cs b/QuickFIXn/Message/Message.cs
index 5bfc60360..333f286b4 100644
--- a/QuickFIXn/Message/Message.cs
+++ b/QuickFIXn/Message/Message.cs
@@ -83,6 +83,39 @@ public static MsgType IdentifyType(string fixstring)
             return new MsgType(GetMsgType(fixstring));
         }
 
+        public static int ExtractFieldTag(string msgstr, int pos)
+        {
+            int tagend = msgstr.IndexOf('=', pos);
+            int tag = Convert.ToInt32(msgstr.Substring(pos, tagend - pos));
+            return tag;
+        }
+
+        public static StringField ExtractDataField(string msgstr, int dataLength, ref int pos)
+        {
+            try
+            {
+                int tagend = msgstr.IndexOf('=', pos);
+                int tag = Convert.ToInt32(msgstr.Substring(pos, tagend - pos));
+                pos = tagend + 1;
+                StringField field = new StringField(tag, msgstr.Substring(pos, dataLength));
+
+                pos += dataLength + 1;
+                return field;
+            }
+            catch (ArgumentOutOfRangeException e)
+            {
+                throw new MessageParseError($"Error at position ({pos}) while parsing msg ({msgstr})", e);
+            }
+            catch (OverflowException e)
+            {
+                throw new MessageParseError($"Error at position ({pos}) while parsing msg ({msgstr})", e);
+            }
+            catch (FormatException e)
+            {
+                throw new MessageParseError($"Error at position ({pos}) while parsing msg ({msgstr})", e);
+            }
+        }
+
         public static StringField ExtractField(string msgstr, ref int pos)
         {
             try
@@ -314,9 +347,20 @@ public void FromString(
 
             while (pos < msgstr.Length)
             {
-                StringField f = ExtractField(msgstr, ref pos);
-                
-                if (validate && count < 3 && Header.HEADER_FIELD_ORDER[count++] != f.Tag)
+                StringField? f = null;
+
+                int fieldTag = ExtractFieldTag(msgstr, pos);
+                if (fieldTag == Tags.XmlData)
+                {
+                    if (IsHeaderField(Tags.XmlDataLen))
+                        f = ExtractDataField(msgstr, Header.GetInt(Tags.XmlDataLen), ref pos);
+                    else if (IsSetField(Tags.XmlDataLen))
+                        f = ExtractDataField(msgstr, GetInt(Tags.XmlDataLen), ref pos);
+                }
+
+                f ??= ExtractField(msgstr, ref pos);
+
+                if (validate && (count < 3) && (Header.HEADER_FIELD_ORDER[count++] != f.Tag))
                     throw new InvalidMessage("Header fields out of order");
 
                 if (IsHeaderField(f.Tag, transportDict))
diff --git a/RELEASE_NOTES.md b/RELEASE_NOTES.md
index dd5097afa..c767ab24c 100644
--- a/RELEASE_NOTES.md
+++ b/RELEASE_NOTES.md
@@ -66,6 +66,7 @@ What's New
 * #697 - new SocketIgnoreProxy setting (ABSJ415)
 * #740 - Capture inner exception messages when handling authentication exceptions (rars)
 * #833 - Add Try/Catch logic to SocketInitiator.OnStart() (Falcz)
+* #782 - proper handling of XmlData field (larsope)
 
 ### v1.11.2:
 * same as v1.11.1, but I fixed the readme in the pushed nuget packages
diff --git a/UnitTests/MessageTests.cs b/UnitTests/MessageTests.cs
index a8b5dcfda..315f75ae8 100644
--- a/UnitTests/MessageTests.cs
+++ b/UnitTests/MessageTests.cs
@@ -13,6 +13,8 @@ public class MessageTests
     {
         private IMessageFactory _defaultMsgFactory = new DefaultMessageFactory();
 
+        private const char Nul = Message.SOH;
+
         [Test]
         public void IdentifyTypeTest()
         {
@@ -372,6 +374,52 @@ public void NestedRepeatingGroupParseGroupTest()
             Assert.That(subGrp.GetString(Tags.PartySubID), Is.EqualTo("OHAI123"));
         }
 
+        [Test]
+        public void ReadXmlDataTest() {
+            // Use tag 212/XmlDataLen to properly read 213/XmlData
+
+            QuickFix.DataDictionary.DataDictionary dd = new QuickFix.DataDictionary.DataDictionary();
+            dd.LoadFIXSpec("FIX42");
+
+            QuickFix.FIX42.NewOrderSingle n = new QuickFix.FIX42.NewOrderSingle();
+
+            string s = "8=FIX.4.2" + Nul + "9=495" + Nul + "35=n" + Nul + "34=31420" + Nul + "369=1003" + Nul +
+                       "52=20200701-20:34:33.978" + Nul + "49=CME" + Nul + "50=84" +
+                       Nul + "56=DUMMY11" + Nul + "57=SID1" + Nul + "143=US,IL" + Nul + "212=392" + Nul +
+                       "213=<RTRF>8=FIX.4.2" + Nul + "9=356" + Nul + "35=8" + Nul + "34=36027" + Nul +
+                       "369=18623" + Nul + "52=20200701-20:34:33.977" + Nul + "49=CME" + Nul + "50=84" + Nul +
+                       "56=M2L000N" + Nul + "57=DUMMY" + Nul + "143=US,IL" + Nul + "1=00331" + Nul +
+                       "6=0" + Nul + "11=ACP1593635673935" + Nul + "14=0" + Nul + "17=84618:1342652" + Nul + "20=0" +
+                       Nul + "37=84778833500" + Nul + "38=10" + Nul + "39=0" + Nul + "40=2" + Nul +
+                       "41=0" + Nul + "44=139.203125" + Nul + "48=204527" + Nul + "54=1" + Nul + "55=ZN" + Nul +
+                       "59=0" + Nul + "60=20200701-20:34:33.976" + Nul + "107=ZNH1" + Nul + "150=0" + Nul +
+                       "151=10" + Nul + "167=FUT" + Nul + "432=20200701" + Nul + "1028=Y" + Nul + "1031=Y" + Nul +
+                       "5979=1593635673976364291" + Nul + "9717=ACP1593635673935" + Nul + "10=124" + Nul + "</RTRF>" +
+                       Nul + "10=028" + Nul;
+
+            n.FromString(s, true, dd, dd, _defaultMsgFactory);
+
+            //verify that the data field was read correctly
+            Assert.AreEqual(n.Header.GetInt(212), n.Header.GetString(213).Length);
+        }
+
+        [Test]
+        public void XmlDataWithoutLengthTest() {
+            QuickFix.DataDictionary.DataDictionary dd = new QuickFix.DataDictionary.DataDictionary();
+            dd.LoadFIXSpec("FIX42");
+
+            QuickFix.FIX42.NewOrderSingle n = new QuickFix.FIX42.NewOrderSingle();
+
+            string s = "8=FIX.4.2" + Nul + "9=495" + Nul + "35=n" + Nul + "34=31420" + Nul + "369=1003" + Nul +
+                       "52=20200701-20:34:33.978" + Nul + "49=CME" + Nul + "50=84" +
+                       Nul + "56=DUMMY11" + Nul + "57=SID1" + Nul + "143=US,IL" + Nul +
+                       "213=oops my length field 212 is missing" +
+                       Nul + "10=028" + Nul;
+
+            FieldNotFoundException ex =
+                Assert.Throws<FieldNotFoundException>(delegate { n.FromString(s, true, dd, dd, _defaultMsgFactory); });
+            Assert.AreEqual("field not found for tag: 212", ex!.Message);
+        }
 
 
         [Test]