diff --git a/.changeset/upgrade-htmljs-parser.md b/.changeset/upgrade-htmljs-parser.md
new file mode 100644
index 00000000..0c344e2d
--- /dev/null
+++ b/.changeset/upgrade-htmljs-parser.md
@@ -0,0 +1,9 @@
+---
+"@marko/language-server": patch
+"@marko/language-tools": patch
+"@marko/ts-plugin": patch
+"@marko/type-check": patch
+"marko-vscode": patch
+---
+
+Upgrade `htmljs-parser` to `^5.12.1`, which fixes a parse error where a `<`/`>` comparison inside a `static`/`server`/`client` function with a return-type annotation was treated as a generic bracket, swallowing the rest of the template (e.g. breaking "Show Extracted Script Output").
diff --git a/package-lock.json b/package-lock.json
index 6c517ec0..7999b373 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -11131,7 +11131,7 @@
         "@marko/compiler": "^5.39.66",
         "@marko/language-tools": "^2.6.2",
         "axe-core": "^4.12.1",
-        "htmljs-parser": "^5.11.0",
+        "htmljs-parser": "^5.12.1",
         "jsdom": "^29.1.1",
         "marko": "^5.39.11",
         "prettier": "^3.8.4",
@@ -11151,6 +11151,12 @@
         "tsx": "^4.22.4"
       }
     },
+    "packages/language-server/node_modules/htmljs-parser": {
+      "version": "5.12.1",
+      "resolved": "https://registry.npmjs.org/htmljs-parser/-/htmljs-parser-5.12.1.tgz",
+      "integrity": "sha512-QnHLg5SWqoH5o8MD4iOWJFtdKSS2lXxtNgyznFXvEeeCK0CTi6URdYtFGkFGDANdq8RZzkuc91KaBgLx2WAhSA==",
+      "license": "MIT"
+    },
     "packages/language-tools": {
       "name": "@marko/language-tools",
       "version": "2.6.2",
@@ -11158,7 +11164,7 @@
       "dependencies": {
         "@luxass/strip-json-comments": "^1.4.0",
         "@marko/compiler": "^5.39.66",
-        "htmljs-parser": "^5.11.0",
+        "htmljs-parser": "^5.12.1",
         "relative-import-path": "^1.0.0"
       },
       "devDependencies": {
@@ -11169,6 +11175,12 @@
         "tsx": "^4.22.4"
       }
     },
+    "packages/language-tools/node_modules/htmljs-parser": {
+      "version": "5.12.1",
+      "resolved": "https://registry.npmjs.org/htmljs-parser/-/htmljs-parser-5.12.1.tgz",
+      "integrity": "sha512-QnHLg5SWqoH5o8MD4iOWJFtdKSS2lXxtNgyznFXvEeeCK0CTi6URdYtFGkFGDANdq8RZzkuc91KaBgLx2WAhSA==",
+      "license": "MIT"
+    },
     "packages/ts-plugin": {
       "name": "@marko/ts-plugin",
       "version": "3.1.5",
diff --git a/packages/language-server/package.json b/packages/language-server/package.json
index e8c80a6f..7266d139 100644
--- a/packages/language-server/package.json
+++ b/packages/language-server/package.json
@@ -42,7 +42,7 @@
     "@marko/compiler": "^5.39.66",
     "@marko/language-tools": "^2.6.2",
     "axe-core": "^4.12.1",
-    "htmljs-parser": "^5.11.0",
+    "htmljs-parser": "^5.12.1",
     "jsdom": "^29.1.1",
     "marko": "^5.39.11",
     "prettier": "^3.8.4",
diff --git a/packages/language-tools/package.json b/packages/language-tools/package.json
index 1e5c573d..7ed6f665 100644
--- a/packages/language-tools/package.json
+++ b/packages/language-tools/package.json
@@ -38,7 +38,7 @@
   "dependencies": {
     "@luxass/strip-json-comments": "^1.4.0",
     "@marko/compiler": "^5.39.66",
-    "htmljs-parser": "^5.11.0",
+    "htmljs-parser": "^5.12.1",
     "relative-import-path": "^1.0.0"
   },
   "devDependencies": {