diff --git a/CHANGELOG.md b/CHANGELOG.md
index e1a5af3..90e6087 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,7 @@
 - Allow default string filters to be applied to arrays
 - Similar filters are suggested when unknown filter is used
 - Added `indent` filter
+- Allow using new lines inside tags
 
 ### Bug Fixes
 
diff --git a/Sources/Lexer.swift b/Sources/Lexer.swift
index 5bd590d..b221775 100644
--- a/Sources/Lexer.swift
+++ b/Sources/Lexer.swift
@@ -10,7 +10,12 @@ struct Lexer {
       guard string.characters.count > 4 else { return "" }
       let start = string.index(string.startIndex, offsetBy: 2)
       let end = string.index(string.endIndex, offsetBy: -2)
-      return String(string[start..<end]).trim(character: " ")
+      let trimmed = String(string[start..<end])
+        .components(separatedBy: "\n")
+        .filter({ !$0.isEmpty })
+        .map({ $0.trim(character: " ") })
+        .joined(separator: " ")
+      return trimmed
     }
 
     if string.hasPrefix("{{") {
diff --git a/Tests/StencilTests/LexerSpec.swift b/Tests/StencilTests/LexerSpec.swift
index ac9eb50..e0014c7 100644
--- a/Tests/StencilTests/LexerSpec.swift
+++ b/Tests/StencilTests/LexerSpec.swift
@@ -64,5 +64,27 @@ func testLexer() {
       let lexer = Lexer(templateString: "{{}}")
       let _ = lexer.tokenize()
     }
+
+    $0.it("can tokenize with new lines") {
+        let lexer = Lexer(templateString:
+        "My name is {%\n" +
+        "    if name\n" +
+        "     and\n" +
+        "    name\n" +
+        "%}{{\n" +
+        "name\n" +
+        "}}{%\n" +
+        "endif %}.")
+
+        let tokens = lexer.tokenize()
+
+        try expect(tokens.count) == 5
+        try expect(tokens[0]) == Token.text(value: "My name is ")
+        try expect(tokens[1]) == Token.block(value: "if name and name")
+        try expect(tokens[2]) == Token.variable(value: "name")
+        try expect(tokens[3]) == Token.block(value: "endif")
+        try expect(tokens[4]) == Token.text(value: ".")
+
+    }
   }
 }
diff --git a/Tests/StencilTests/VariableSpec.swift b/Tests/StencilTests/VariableSpec.swift
index 6937e35..6dd78ee 100644
--- a/Tests/StencilTests/VariableSpec.swift
+++ b/Tests/StencilTests/VariableSpec.swift
@@ -5,10 +5,10 @@ import Spectre
 
 #if os(OSX)
 @objc class Superclass: NSObject {
-  let name = "Foo"
+  @objc let name = "Foo"
 }
 @objc class Object : Superclass {
-  let title = "Hello World"
+  @objc let title = "Hello World"
 }
 #endif