diff --git a/.changeset/eight-shirts-dream.md b/.changeset/eight-shirts-dream.md
new file mode 100644
index 00000000..39537b27
--- /dev/null
+++ b/.changeset/eight-shirts-dream.md
@@ -0,0 +1,5 @@
+---
+"htmljs-parser": patch
+---
+
+Fixes an regression where string literals inside of parsed text nodes (eg `<script>`) were not properly changing the parser state. This caused issues when comment like syntax was embedded within these string literals"
diff --git a/src/__tests__/fixtures/script-with-strings/__snapshots__/script-with-strings.expected.txt b/src/__tests__/fixtures/script-with-strings/__snapshots__/script-with-strings.expected.txt
new file mode 100644
index 00000000..e56d5baf
--- /dev/null
+++ b/src/__tests__/fixtures/script-with-strings/__snapshots__/script-with-strings.expected.txt
@@ -0,0 +1,30 @@
+1╭─ <script>
+ │  ││     ╰─ openTagEnd
+ │  │╰─ tagName "script"
+ ╰─ ╰─ openTagStart
+2╭─   "this is a ${test}"
+ │  │            │ ╰─ placeholder:escape.value "test"
+ │  │            ╰─ placeholder:escape "${test}"
+ ╰─ ╰─ text "\n  \"this is a "
+3╭─   "this is a \${test}"
+ │  │             ╰─ text "${test}\"\n  \"/*\"\n  \"//\"\n  'this is a "
+ ╰─ ╰─ text "\n  \"this is a "
+4├─   "/*"
+5├─   "//"
+6╭─   'this is a ${test}'
+ │               │ ╰─ placeholder:escape.value "test"
+ ╰─              ╰─ placeholder:escape "${test}"
+7╭─   'this is a \${test}'
+ │  │             ╰─ text "${test}'\n  '/*'\n  '//'\n  `this is a ${test}`\n  `this is a \\${test}`\n  `/*`\n  `//`\n"
+ ╰─ ╰─ text "\n  'this is a "
+8├─   '/*'
+9├─   '//'
+10├─   `this is a ${test}`
+11├─   `this is a \${test}`
+12├─   `/*`
+13├─   `//`
+14╭─ </script>
+  │  │ │     ╰─ closeTagEnd(script)
+  │  │ ╰─ closeTagName "script"
+  ╰─ ╰─ closeTagStart "</"
+15╰─ 
\ No newline at end of file
diff --git a/src/__tests__/fixtures/script-with-strings/input.marko b/src/__tests__/fixtures/script-with-strings/input.marko
new file mode 100644
index 00000000..0d4f9a77
--- /dev/null
+++ b/src/__tests__/fixtures/script-with-strings/input.marko
@@ -0,0 +1,14 @@
+<script>
+  "this is a ${test}"
+  "this is a \${test}"
+  "/*"
+  "//"
+  'this is a ${test}'
+  'this is a \${test}'
+  '/*'
+  '//'
+  `this is a ${test}`
+  `this is a \${test}`
+  `/*`
+  `//`
+</script>
diff --git a/src/states/PARSED_STRING.ts b/src/states/PARSED_STRING.ts
new file mode 100644
index 00000000..7ef88e29
--- /dev/null
+++ b/src/states/PARSED_STRING.ts
@@ -0,0 +1,42 @@
+import { CODE, ErrorCode, STATE, StateDefinition, Meta } from "../internal";
+
+interface ParsedStringMeta extends Meta {
+  quoteCharCode: number;
+}
+
+export const PARSED_STRING: StateDefinition<ParsedStringMeta> = {
+  name: "PARSED_STRING",
+
+  enter(parent, start) {
+    return {
+      state: PARSED_STRING,
+      parent,
+      start,
+      end: start,
+      quoteCharCode: CODE.DOUBLE_QUOTE,
+    } as ParsedStringMeta;
+  },
+
+  exit() {},
+
+  char(code, str) {
+    if (code === str.quoteCharCode) {
+      this.pos++; // skip end quote
+      this.exitState();
+    } else if (!STATE.checkForPlaceholder(this, code)) {
+      this.startText();
+    }
+  },
+
+  eof(str) {
+    this.emitError(
+      str,
+      ErrorCode.INVALID_TEMPLATE_STRING,
+      "EOF reached while parsing string expression"
+    );
+  },
+
+  eol() {},
+
+  return() {},
+};
diff --git a/src/states/PARSED_TEXT_CONTENT.ts b/src/states/PARSED_TEXT_CONTENT.ts
index 4904354c..299d6cbf 100644
--- a/src/states/PARSED_TEXT_CONTENT.ts
+++ b/src/states/PARSED_TEXT_CONTENT.ts
@@ -50,6 +50,12 @@ export const PARSED_TEXT_CONTENT: StateDefinition<ParsedTextContentMeta> = {
         this.startText();
         this.enterState(STATE.TEMPLATE_STRING);
         break;
+      case CODE.DOUBLE_QUOTE:
+      case CODE.SINGLE_QUOTE:
+        this.startText();
+        this.enterState(STATE.PARSED_STRING).quoteCharCode = code;
+        break;
+
       default:
         if (!STATE.checkForPlaceholder(this, code)) this.startText();
         break;
diff --git a/src/states/index.ts b/src/states/index.ts
index db5eb50f..33471b5c 100644
--- a/src/states/index.ts
+++ b/src/states/index.ts
@@ -17,4 +17,5 @@ export * from "./REGULAR_EXPRESSION";
 export * from "./STRING";
 export * from "./TAG_NAME";
 export * from "./TEMPLATE_STRING";
+export * from "./PARSED_STRING";
 export * from "./OPEN_TAG";