diff --git a/Sources/Mustache/Context.swift b/Sources/Mustache/Context.swift
index 9aaae62..ab48e3e 100644
--- a/Sources/Mustache/Context.swift
+++ b/Sources/Mustache/Context.swift
@@ -87,6 +87,23 @@ struct MustacheContext {
         )
     }
 
+    /// return context with indent information for invoking an inheritance block
+    func withBlockExpansion(indented: String?) -> MustacheContext {
+        let indentation: String? = if let indented {
+            (self.indentation ?? "") + indented
+        } else {
+            self.indentation
+        }
+        return .init(
+            stack: self.stack,
+            sequenceContext: nil,
+            indentation: indentation,
+            inherited: self.inherited,
+            contentType: self.contentType,
+            library: self.library
+        )
+    }
+
     /// return context with sequence info and sequence element added to stack
     func withSequence(_ object: Any, sequenceContext: MustacheSequenceContext) -> MustacheContext {
         var stack = self.stack
diff --git a/Sources/Mustache/Template+Parser.swift b/Sources/Mustache/Template+Parser.swift
index 566de74..0e61ea2 100644
--- a/Sources/Mustache/Template+Parser.swift
+++ b/Sources/Mustache/Template+Parser.swift
@@ -42,23 +42,58 @@ extension MustacheTemplate {
     }
 
     struct ParserState {
+        struct Flags: OptionSet {
+            let rawValue: Int
+
+            init(rawValue: Int) {
+                self.rawValue = rawValue
+            }
+
+            static var newLine: Self { .init(rawValue: 1 << 0) }
+            static var isPartialDefinition: Self { .init(rawValue: 1 << 1) }
+            static var isPartialDefinitionTopLevel: Self { .init(rawValue: 1 << 2) }
+        }
+
         var sectionName: String?
         var sectionTransforms: [String] = []
-        var newLine: Bool
+        var flags: Flags
         var startDelimiter: String
         var endDelimiter: String
+        var partialDefinitionIndent: Substring?
+
+        var newLine: Bool {
+            get { self.flags.contains(.newLine) }
+            set {
+                if newValue {
+                    self.flags.insert(.newLine)
+                } else {
+                    self.flags.remove(.newLine)
+                }
+            }
+        }
 
         init() {
             self.sectionName = nil
-            self.newLine = true
+            self.flags = .newLine
             self.startDelimiter = "{{"
             self.endDelimiter = "}}"
         }
 
-        func withSectionName(_ name: String, transforms: [String] = []) -> ParserState {
+        func withSectionName(_ name: String, newLine: Bool, transforms: [String] = []) -> ParserState {
             var newValue = self
             newValue.sectionName = name
             newValue.sectionTransforms = transforms
+            newValue.flags.remove(.isPartialDefinitionTopLevel)
+            if !newLine {
+                newValue.flags.remove(.newLine)
+            }
+            return newValue
+        }
+
+        func withInheritancePartial(_ name: String) -> ParserState {
+            var newValue = self
+            newValue.sectionName = name
+            newValue.flags.insert([.newLine, .isPartialDefinition, .isPartialDefinitionTopLevel])
             return newValue
         }
 
@@ -66,6 +101,7 @@ extension MustacheTemplate {
             var newValue = self
             newValue.startDelimiter = start
             newValue.endDelimiter = end
+            newValue.flags.remove(.isPartialDefinitionTopLevel)
             return newValue
         }
     }
@@ -88,7 +124,19 @@ extension MustacheTemplate {
         while !parser.reachedEnd() {
             // if new line read whitespace
             if state.newLine {
-                whiteSpaceBefore = parser.read(while: Set(" \t"))
+                let whiteSpace = parser.read(while: Set(" \t"))
+                // If inside a partial block definition
+                if state.flags.contains(.isPartialDefinition), !state.flags.contains(.isPartialDefinitionTopLevel) {
+                    // if definition indent has been set then remove it from current whitespace otherwise set the
+                    // indent as this is the first line of the partial definition
+                    if let partialDefinitionIndent = state.partialDefinitionIndent {
+                        whiteSpaceBefore = whiteSpace.dropFirst(partialDefinitionIndent.count)
+                    } else {
+                        state.partialDefinitionIndent = whiteSpace
+                    }
+                } else {
+                    whiteSpaceBefore = whiteSpace
+                }
             }
             let text = try readUntilDelimiterOrNewline(&parser, state: state)
             // if we hit a newline add text
@@ -121,7 +169,7 @@ extension MustacheTemplate {
                     tokens.append(.text(String(whiteSpaceBefore)))
                     whiteSpaceBefore = ""
                 }
-                let sectionTokens = try parse(&parser, state: state.withSectionName(name, transforms: transforms))
+                let sectionTokens = try parse(&parser, state: state.withSectionName(name, newLine: setNewLine, transforms: transforms))
                 tokens.append(.section(name: name, transforms: transforms, template: MustacheTemplate(sectionTokens)))
 
             case "^":
@@ -134,24 +182,9 @@ extension MustacheTemplate {
                     tokens.append(.text(String(whiteSpaceBefore)))
                     whiteSpaceBefore = ""
                 }
-                let sectionTokens = try parse(&parser, state: state.withSectionName(name, transforms: transforms))
+                let sectionTokens = try parse(&parser, state: state.withSectionName(name, newLine: setNewLine, transforms: transforms))
                 tokens.append(.invertedSection(name: name, transforms: transforms, template: MustacheTemplate(sectionTokens)))
 
-            case "$":
-                // inherited section
-                parser.unsafeAdvance()
-                let (name, transforms) = try parseName(&parser, state: state)
-                // ERROR: can't have transform applied to inherited sections
-                guard transforms.isEmpty else { throw Error.transformAppliedToInheritanceSection }
-                if self.isStandalone(&parser, state: state) {
-                    setNewLine = true
-                } else if whiteSpaceBefore.count > 0 {
-                    tokens.append(.text(String(whiteSpaceBefore)))
-                    whiteSpaceBefore = ""
-                }
-                let sectionTokens = try parse(&parser, state: state.withSectionName(name, transforms: transforms))
-                tokens.append(.inheritedSection(name: name, template: MustacheTemplate(sectionTokens)))
-
             case "/":
                 // end of section
                 parser.unsafeAdvance()
@@ -215,20 +248,18 @@ extension MustacheTemplate {
                 // partial with inheritance
                 parser.unsafeAdvance()
                 let name = try parsePartialName(&parser, state: state)
-                var indent: String?
+                if whiteSpaceBefore.count > 0 {
+                    tokens.append(.text(String(whiteSpaceBefore)))
+                }
                 if self.isStandalone(&parser, state: state) {
                     setNewLine = true
-                } else if whiteSpaceBefore.count > 0 {
-                    indent = String(whiteSpaceBefore)
-                    tokens.append(.text(indent!))
-                    whiteSpaceBefore = ""
                 }
-                let sectionTokens = try parse(&parser, state: state.withSectionName(name))
+                let sectionTokens = try parse(&parser, state: state.withInheritancePartial(name))
                 var inherit: [String: MustacheTemplate] = [:]
                 // parse tokens in section to extract inherited sections
                 for token in sectionTokens {
                     switch token {
-                    case .inheritedSection(let name, let template):
+                    case .blockDefinition(let name, let template):
                         inherit[name] = template
                     case .text:
                         break
@@ -236,7 +267,34 @@ extension MustacheTemplate {
                         throw Error.illegalTokenInsideInheritSection
                     }
                 }
-                tokens.append(.partial(name, indentation: indent, inherits: inherit))
+                tokens.append(.partial(name, indentation: String(whiteSpaceBefore), inherits: inherit))
+                whiteSpaceBefore = ""
+
+            case "$":
+                // inherited section
+                parser.unsafeAdvance()
+                let (name, transforms) = try parseName(&parser, state: state)
+                // ERROR: can't have transforms applied to inherited sections
+                guard transforms.isEmpty else { throw Error.transformAppliedToInheritanceSection }
+                if state.flags.contains(.isPartialDefinitionTopLevel) {
+                    let standAlone = self.isStandalone(&parser, state: state)
+                    if standAlone {
+                        setNewLine = true
+                    }
+                    let sectionTokens = try parse(&parser, state: state.withSectionName(name, newLine: setNewLine))
+                    tokens.append(.blockDefinition(name: name, template: MustacheTemplate(sectionTokens)))
+
+                } else {
+                    if whiteSpaceBefore.count > 0 {
+                        tokens.append(.text(String(whiteSpaceBefore)))
+                    }
+                    if self.isStandalone(&parser, state: state) {
+                        setNewLine = true
+                    } else if whiteSpaceBefore.count > 0 {}
+                    let sectionTokens = try parse(&parser, state: state.withSectionName(name, newLine: setNewLine))
+                    tokens.append(.blockExpansion(name: name, default: MustacheTemplate(sectionTokens), indentation: String(whiteSpaceBefore)))
+                    whiteSpaceBefore = ""
+                }
 
             case "=":
                 // set delimiter
diff --git a/Sources/Mustache/Template+Render.swift b/Sources/Mustache/Template+Render.swift
index 04014ef..6be73eb 100644
--- a/Sources/Mustache/Template+Render.swift
+++ b/Sources/Mustache/Template+Render.swift
@@ -28,7 +28,8 @@ extension MustacheTemplate {
         if let indentation = context.indentation, indentation != "" {
             for token in tokens {
                 let renderedString = self.renderToken(token, context: &context)
-                if renderedString != "", string.last == "\n" {
+                // if rendered string is not empty and we are on a new line
+                if renderedString.count > 0, string.last == "\n" {
                     string += indentation
                 }
                 string += renderedString
@@ -75,11 +76,11 @@ extension MustacheTemplate {
             let child = self.getChild(named: variable, transforms: transforms, context: context)
             return self.renderInvertedSection(child, with: template, context: context)
 
-        case .inheritedSection(let name, let template):
+        case .blockExpansion(let name, let defaultTemplate, let indented):
             if let override = context.inherited?[name] {
-                return override.render(context: context)
+                return override.render(context: context.withBlockExpansion(indented: indented))
             } else {
-                return template.render(context: context)
+                return defaultTemplate.render(context: context.withBlockExpansion(indented: indented))
             }
 
         case .partial(let name, let indentation, let overrides):
@@ -89,6 +90,9 @@ extension MustacheTemplate {
 
         case .contentType(let contentType):
             context = context.withContentType(contentType)
+
+        case .blockDefinition:
+            fatalError("Should not be rendering block definitions")
         }
         return ""
     }
diff --git a/Sources/Mustache/Template.swift b/Sources/Mustache/Template.swift
index e62e0ee..fe152ac 100644
--- a/Sources/Mustache/Template.swift
+++ b/Sources/Mustache/Template.swift
@@ -38,7 +38,8 @@ public struct MustacheTemplate: Sendable {
         case unescapedVariable(name: String, transforms: [String] = [])
         case section(name: String, transforms: [String] = [], template: MustacheTemplate)
         case invertedSection(name: String, transforms: [String] = [], template: MustacheTemplate)
-        case inheritedSection(name: String, template: MustacheTemplate)
+        case blockDefinition(name: String, template: MustacheTemplate)
+        case blockExpansion(name: String, default: MustacheTemplate, indentation: String?)
         case partial(String, indentation: String?, inherits: [String: MustacheTemplate]?)
         case contentType(MustacheContentType)
     }
diff --git a/Tests/MustacheTests/PartialTests.swift b/Tests/MustacheTests/PartialTests.swift
index fda39c1..c8496c6 100644
--- a/Tests/MustacheTests/PartialTests.swift
+++ b/Tests/MustacheTests/PartialTests.swift
@@ -21,7 +21,7 @@ final class PartialTests: XCTestCase {
         let template = try MustacheTemplate(string: """
         <h2>Names</h2>
         {{#names}}
-          {{> user}}
+            {{> user}}
         {{/names}}
         """)
         let template2 = try MustacheTemplate(string: """
@@ -33,9 +33,9 @@ final class PartialTests: XCTestCase {
         let object: [String: Any] = ["names": ["john", "adam", "claire"]]
         XCTAssertEqual(library.render(object, withTemplate: "base"), """
         <h2>Names</h2>
-          <strong>john</strong>
-          <strong>adam</strong>
-          <strong>claire</strong>
+            <strong>john</strong>
+            <strong>adam</strong>
+            <strong>claire</strong>
 
         """)
     }
@@ -62,8 +62,7 @@ final class PartialTests: XCTestCase {
         """)
         var library = MustacheLibrary()
         library.register(template, named: "base")
-        library.register(template2, named: "user") // , withTemplate: String)// = MustacheLibrary(templates: ["base": template, "user": template2])
-
+        library.register(template2, named: "user")
         let object: [String: Any] = ["names": ["john", "adam", "claire"]]
         XCTAssertEqual(library.render(object, withTemplate: "base"), """
         <h2>Names</h2>
@@ -75,6 +74,37 @@ final class PartialTests: XCTestCase {
         """)
     }
 
+    func testTrailingNewLines() throws {
+        let template1 = try MustacheTemplate(string: """
+        {{> withNewLine }}
+        >> {{> withNewLine }}
+        [ {{> withNewLine }} ]
+        """)
+        let template2 = try MustacheTemplate(string: """
+        {{> withoutNewLine }}
+        >> {{> withoutNewLine }}
+        [ {{> withoutNewLine }} ]
+        """)
+        let withNewLine = try MustacheTemplate(string: """
+        {{#things}}{{.}}, {{/things}}
+
+        """)
+        let withoutNewLine = try MustacheTemplate(string: "{{#things}}{{.}}, {{/things}}")
+        let library = MustacheLibrary(templates: ["base1": template1, "base2": template2, "withNewLine": withNewLine, "withoutNewLine": withoutNewLine])
+        let object = ["things": [1, 2, 3, 4, 5]]
+        XCTAssertEqual(library.render(object, withTemplate: "base1"), """
+        1, 2, 3, 4, 5, 
+        >> 1, 2, 3, 4, 5, 
+
+        [ 1, 2, 3, 4, 5, 
+         ]
+        """)
+        XCTAssertEqual(library.render(object, withTemplate: "base2"), """
+        1, 2, 3, 4, 5, >> 1, 2, 3, 4, 5, 
+        [ 1, 2, 3, 4, 5,  ]
+        """)
+    }
+
     /// Testing dynamic partials
     func testDynamicPartials() throws {
         let template = try MustacheTemplate(string: """
@@ -106,7 +136,6 @@ final class PartialTests: XCTestCase {
             <head>
             <title>{{$title}}Default title{{/title}}</title>
             </head>
-
             """,
             named: "header"
         )
@@ -144,4 +173,32 @@ final class PartialTests: XCTestCase {
 
         """)
     }
+
+    func testInheritanceIndentation() throws {
+        var library = MustacheLibrary()
+        try library.register(
+            """
+            Hi,
+               {{$block}}{{/block}}
+            """,
+            named: "parent"
+        )
+        try library.register(
+            """
+            {{<parent}}
+            {{$block}}
+              one
+               two
+            {{/block}}
+            {{/parent}}
+            """,
+            named: "template"
+        )
+        XCTAssertEqual(library.render({}, withTemplate: "template"), """
+        Hi,
+           one
+            two
+
+        """)
+    }
 }
diff --git a/Tests/MustacheTests/SpecTests.swift b/Tests/MustacheTests/SpecTests.swift
index a07dc63..8a6ab7f 100644
--- a/Tests/MustacheTests/SpecTests.swift
+++ b/Tests/MustacheTests/SpecTests.swift
@@ -86,7 +86,19 @@ final class MustacheSpecTests: XCTestCase {
 
             func XCTAssertSpecEqual(_ result: String?, _ test: Spec.Test) {
                 if result != test.expected {
-                    XCTFail("\n\(test.desc)result:\n\(result ?? "nil")\nexpected:\n\(test.expected)")
+                    XCTFail("""
+                    \(test.name)
+                    \(test.desc)
+                    template:
+                    \(test.template)
+                    data:
+                    \(test.data.value)
+                    \(test.partials.map { "partials:\n\($0)" } ?? "")
+                    result:
+                    \(result ?? "nil")
+                    expected:
+                    \(test.expected)
+                    """)
                 }
             }
         }
@@ -104,7 +116,6 @@ final class MustacheSpecTests: XCTestCase {
         let data = try Data(contentsOf: url)
         let spec = try JSONDecoder().decode(Spec.self, from: data)
 
-        print(spec.overview)
         let date = Date()
         for test in spec.tests {
             guard !ignoring.contains(test.name) else { continue }
@@ -113,6 +124,23 @@ final class MustacheSpecTests: XCTestCase {
         print(-date.timeIntervalSinceNow)
     }
 
+    func testSpec(name: String, only: [String]) throws {
+        let url = URL(string: "https://raw.githubusercontent.com/mustache/spec/master/specs/\(name).json")!
+        try testSpec(url: url, only: only)
+    }
+
+    func testSpec(url: URL, only: [String]) throws {
+        let data = try Data(contentsOf: url)
+        let spec = try JSONDecoder().decode(Spec.self, from: data)
+
+        let date = Date()
+        for test in spec.tests {
+            guard only.contains(test.name) else { continue }
+            XCTAssertNoThrow(try test.run())
+        }
+        print(-date.timeIntervalSinceNow)
+    }
+
     func testCommentsSpec() throws {
         try self.testSpec(name: "comments")
     }
@@ -138,7 +166,12 @@ final class MustacheSpecTests: XCTestCase {
     }
 
     func testInheritanceSpec() throws {
-        try XCTSkipIf(true) // inheritance spec has been updated and has added requirements, we don't yet support
-        try self.testSpec(name: "~inheritance")
+        try self.testSpec(
+            name: "~inheritance",
+            ignoring: [
+                "Intrinsic indentation",
+                "Nested block reindentation",
+            ]
+        )
     }
 }