diff --git a/src/markup/engine/__tests__/PhutilRemarkupEngineTestCase.php b/src/markup/engine/__tests__/PhutilRemarkupEngineTestCase.php
index 74932d9..c3b4960 100644
--- a/src/markup/engine/__tests__/PhutilRemarkupEngineTestCase.php
+++ b/src/markup/engine/__tests__/PhutilRemarkupEngineTestCase.php
@@ -1,121 +1,132 @@
 <?php
 
 /**
  * Test cases for @{class:PhutilRemarkupEngine}.
  */
 final class PhutilRemarkupEngineTestCase extends PhutilTestCase {
 
   public function testEngine() {
     $root = dirname(__FILE__).'/remarkup/';
     foreach (Filesystem::listDirectory($root, $hidden = false) as $file) {
       $this->markupText($root.$file);
     }
   }
 
   private function markupText($markup_file) {
     $contents = Filesystem::readFile($markup_file);
     $file = basename($markup_file);
 
     $parts = explode("\n~~~~~~~~~~\n", $contents);
     $this->assertEqual(3, count($parts), $markup_file);
 
     list($input_remarkup, $expected_output, $expected_text) = $parts;
 
+    $input_remarkup = $this->unescapeTrailingWhitespace($input_remarkup);
+    $expected_output = $this->unescapeTrailingWhitespace($expected_output);
+    $expected_text = $this->unescapeTrailingWhitespace($expected_text);
+
     $engine = $this->buildNewTestEngine();
 
     switch ($file) {
       case 'raw-escape.txt':
 
         // NOTE: Here, we want to test PhutilRemarkupEscapeRemarkupRule and
         // PhutilRemarkupBlockStorage, which are triggered by "\1". In the
         // test, "~" is used as a placeholder for "\1" since it's hard to type
         // "\1".
 
         $input_remarkup = str_replace('~', "\1", $input_remarkup);
         $expected_output = str_replace('~', "\1", $expected_output);
         $expected_text = str_replace('~', "\1", $expected_text);
         break;
       case 'toc.txt':
         $engine->setConfig('header.generate-toc', true);
         break;
       case 'link-same-window.txt':
         $engine->setConfig('uri.same-window', true);
         break;
       case 'link-square.txt':
         $engine->setConfig('uri.base', 'http://www.example.com/');
         $engine->setConfig('uri.here', 'http://www.example.com/page/');
         break;
     }
 
     $actual_output = (string)$engine->markupText($input_remarkup);
 
     switch ($file) {
       case 'toc.txt':
         $table_of_contents =
           PhutilRemarkupHeaderBlockRule::renderTableOfContents($engine);
         $actual_output = $table_of_contents."\n\n".$actual_output;
         break;
     }
 
     $this->assertEqual(
       $expected_output,
       $actual_output,
       pht("Failed to markup HTML in file '%s'.", $file));
 
     $engine->setMode(PhutilRemarkupEngine::MODE_TEXT);
     $actual_output = (string)$engine->markupText($input_remarkup);
 
     $this->assertEqual(
       $expected_text,
       $actual_output,
       pht("Failed to markup text in file '%s'.", $file));
   }
 
   private function buildNewTestEngine() {
     $engine = new PhutilRemarkupEngine();
 
     $engine->setConfig(
       'uri.allowed-protocols',
       array(
         'http' => true,
         'mailto' => true,
         'tel' => true,
       ));
 
     $rules = array();
     $rules[] = new PhutilRemarkupEscapeRemarkupRule();
     $rules[] = new PhutilRemarkupMonospaceRule();
     $rules[] = new PhutilRemarkupDocumentLinkRule();
     $rules[] = new PhutilRemarkupHyperlinkRule();
     $rules[] = new PhutilRemarkupBoldRule();
     $rules[] = new PhutilRemarkupItalicRule();
     $rules[] = new PhutilRemarkupDelRule();
     $rules[] = new PhutilRemarkupUnderlineRule();
     $rules[] = new PhutilRemarkupHighlightRule();
 
     $blocks = array();
     $blocks[] = new PhutilRemarkupQuotesBlockRule();
     $blocks[] = new PhutilRemarkupReplyBlockRule();
     $blocks[] = new PhutilRemarkupHeaderBlockRule();
     $blocks[] = new PhutilRemarkupHorizontalRuleBlockRule();
     $blocks[] = new PhutilRemarkupCodeBlockRule();
     $blocks[] = new PhutilRemarkupLiteralBlockRule();
     $blocks[] = new PhutilRemarkupNoteBlockRule();
     $blocks[] = new PhutilRemarkupTableBlockRule();
     $blocks[] = new PhutilRemarkupSimpleTableBlockRule();
     $blocks[] = new PhutilRemarkupDefaultBlockRule();
     $blocks[] = new PhutilRemarkupListBlockRule();
     $blocks[] = new PhutilRemarkupInterpreterBlockRule();
 
     foreach ($blocks as $block) {
       if (!($block instanceof PhutilRemarkupCodeBlockRule)) {
         $block->setMarkupRules($rules);
       }
     }
 
     $engine->setBlockRules($blocks);
 
     return $engine;
   }
 
+
+  private function unescapeTrailingWhitespace($input) {
+    // Remove up to one "~" at the end of each line so trailing whitespace may
+    // be written in tests as " ~".
+    return preg_replace('/~$/m', '', $input);
+  }
+
 }
diff --git a/src/markup/engine/__tests__/remarkup/del.txt b/src/markup/engine/__tests__/remarkup/del.txt
index c1120bf..955ad86 100644
--- a/src/markup/engine/__tests__/remarkup/del.txt
+++ b/src/markup/engine/__tests__/remarkup/del.txt
@@ -1,11 +1,11 @@
-omg~~ wtf~~~~~ bbq~~~ lol~~
-~~deleted text~~
+omg~~ wtf~~~~~ bbq~~~ lol~~~
+~~deleted text~~~
 ~~This is a great idea~~~ die forever please
-~~~~~~
+~~~~~~~
 ~~~~~~~~~~
-<p>omg~~ wtf~~~~~ bbq~~~ lol~~
+<p>omg~~ wtf~~~~~ bbq~~~ lol~~~
 <del>deleted text</del>
 <del>This is a great idea~</del> die forever please
 ~~~~~~</p>
 ~~~~~~~~~~
-omg~~ wtf~~~~~ bbq~~~ lol~~ ~~deleted text~~ ~~This is a great idea~~~ die forever please ~~~~~~
+omg~~ wtf~~~~~ bbq~~~ lol~~ ~~deleted text~~ ~~This is a great idea~~~ die forever please ~~~~~~~
diff --git a/src/markup/engine/__tests__/remarkup/link-with-tilde.txt b/src/markup/engine/__tests__/remarkup/link-with-tilde.txt
index 9f48f60..615814d 100644
--- a/src/markup/engine/__tests__/remarkup/link-with-tilde.txt
+++ b/src/markup/engine/__tests__/remarkup/link-with-tilde.txt
@@ -1,5 +1,5 @@
-http://www.example.com/~
+http://www.example.com/~~
 ~~~~~~~~~~
 <p><a href="http://www.example.com/~" class="remarkup-link" target="_blank" rel="noreferrer">http://www.example.com/~</a></p>
 ~~~~~~~~~~
-http://www.example.com/~
+http://www.example.com/~~
diff --git a/src/markup/engine/__tests__/remarkup/quoted-indent-block.txt b/src/markup/engine/__tests__/remarkup/quoted-indent-block.txt
new file mode 100644
index 0000000..80a7428
--- /dev/null
+++ b/src/markup/engine/__tests__/remarkup/quoted-indent-block.txt
@@ -0,0 +1,5 @@
+>   xyz
+~~~~~~~~~~
+<blockquote><div class="remarkup-code-block" data-code-lang="text" data-sigil="remarkup-code-block"><pre class="remarkup-code">xyz</pre></div></blockquote>
+~~~~~~~~~~
+>   xyz
diff --git a/src/markup/engine/__tests__/remarkup/quoted-lists.txt b/src/markup/engine/__tests__/remarkup/quoted-lists.txt
new file mode 100644
index 0000000..bfe622b
--- /dev/null
+++ b/src/markup/engine/__tests__/remarkup/quoted-lists.txt
@@ -0,0 +1,24 @@
+> # X
+> # Y
+>
+> B
+>
+> * C
+~~~~~~~~~~
+<blockquote><ol class="remarkup-list">
+<li class="remarkup-list-item">X</li>
+<li class="remarkup-list-item">Y</li>
+</ol>
+
+<p>B</p>
+
+<ul class="remarkup-list">
+<li class="remarkup-list-item">C</li>
+</ul></blockquote>
+~~~~~~~~~~
+> 1. X
+> 2. Y
+> ~
+> B
+> ~
+> - C
diff --git a/src/markup/engine/__tests__/remarkup/quotes.txt b/src/markup/engine/__tests__/remarkup/quotes.txt
index afa02d5..212f872 100644
--- a/src/markup/engine/__tests__/remarkup/quotes.txt
+++ b/src/markup/engine/__tests__/remarkup/quotes.txt
@@ -1,9 +1,9 @@
 > Dear Sir,
 > I am utterly disgusted with the quality
 > of your inflight food service.
 ~~~~~~~~~~
 <blockquote><p>Dear Sir,
- I am utterly disgusted with the quality
- of your inflight food service.</p></blockquote>
+I am utterly disgusted with the quality
+of your inflight food service.</p></blockquote>
 ~~~~~~~~~~
 > Dear Sir, I am utterly disgusted with the quality of your inflight food service.
diff --git a/src/markup/engine/__tests__/remarkup/raw-escape.txt b/src/markup/engine/__tests__/remarkup/raw-escape.txt
index ee850b3..4cb635e 100644
--- a/src/markup/engine/__tests__/remarkup/raw-escape.txt
+++ b/src/markup/engine/__tests__/remarkup/raw-escape.txt
@@ -1,17 +1,17 @@
-~1~
+~1~~
 
 ~2Z
 
 ~a
 ~~~~~~~~~~
 <p>~1~</p>
 
 <p>~2Z</p>
 
 <p>~a</p>
 ~~~~~~~~~~
-~1~
+~1~~
 
 ~2Z
 
 ~a
diff --git a/src/markup/engine/remarkup/blockrule/PhutilRemarkupQuotesBlockRule.php b/src/markup/engine/remarkup/blockrule/PhutilRemarkupQuotesBlockRule.php
index 6b0dc3f..7c90b34 100644
--- a/src/markup/engine/remarkup/blockrule/PhutilRemarkupQuotesBlockRule.php
+++ b/src/markup/engine/remarkup/blockrule/PhutilRemarkupQuotesBlockRule.php
@@ -1,65 +1,106 @@
 <?php
 
 final class PhutilRemarkupQuotesBlockRule extends PhutilRemarkupBlockRule {
 
   public function getMatchingLineCount(array $lines, $cursor) {
     $pos = $cursor;
 
     if (preg_match('/^>/', $lines[$pos])) {
       do {
         ++$pos;
       } while (isset($lines[$pos]) && preg_match('/^>/', $lines[$pos]));
     }
 
     return ($pos - $cursor);
   }
 
   public function supportsChildBlocks() {
     return true;
   }
 
   public function extractChildText($text) {
     $text = phutil_split_lines($text, true);
     foreach ($text as $key => $line) {
       $text[$key] = substr($line, 1);
     }
 
+    // If every line in the block is empty or begins with at least one leading
+    // space, strip the initial space off each line. When we quote text, we
+    // normally add "> " (with a space) to the beginning of each line, which
+    // can disrupt some other rules. If the block appears to have this space
+    // in front of each line, remove it.
+
+    $strip_space = true;
+    foreach ($text as $key => $line) {
+      $len = strlen($line);
+
+      if (!$len) {
+        // We'll still strip spaces if there are some completely empty
+        // lines, they may have just had trailing whitespace trimmed.
+        continue;
+      }
+
+      if ($line[0] == ' ' || $line[0] == "\n") {
+        continue;
+      }
+
+      // The first character of this line is something other than a space, so
+      // we can't strip spaces.
+      $strip_space = false;
+      break;
+    }
+
+    if ($strip_space) {
+      foreach ($text as $key => $line) {
+        $len = strlen($line);
+        if (!$len) {
+          continue;
+        }
+
+        if ($line[0] !== ' ') {
+          continue;
+        }
+
+        $text[$key] = substr($line, 1);
+      }
+    }
+
     return array('', implode('', $text));
   }
 
   public function markupText($text, $children) {
     if ($this->getEngine()->isTextMode()) {
       $lines = rtrim($children, "\n");
       $lines = phutil_split_lines($lines);
       foreach ($lines as $key => $line) {
         if (isset($line[0]) && ($line[0] == '>')) {
           $line = '>'.$line;
         } else {
           $line = '> '.$line;
         }
         $lines[$key] = $line;
       }
       return implode('', $lines);
     }
 
     $attributes = array();
     if ($this->getEngine()->isHTMLMailMode()) {
       $style = array(
         'border-left: 3px solid #a7b5bf;',
         'color: #464c5c;',
         'font-style: italic;',
         'margin: 4px 0 12px 0;',
         'padding: 4px 12px;',
         'background-color: #f8f9fc;',
       );
 
       $attributes['style'] = implode(' ', $style);
     }
 
     return phutil_tag(
       'blockquote',
       $attributes,
       $children);
   }
 
 }