diff --git a/apps/builder/app/shared/copy-paste/plugin-html.test.tsx b/apps/builder/app/shared/copy-paste/plugin-html.test.tsx
index b8fd1ed6bc4c..88c38206cc10 100644
--- a/apps/builder/app/shared/copy-paste/plugin-html.test.tsx
+++ b/apps/builder/app/shared/copy-paste/plugin-html.test.tsx
@@ -63,3 +63,59 @@ test("ignore html without any tags", async () => {
   expect(await html.onPaste?.(`It works`)).toEqual(false);
   expect($instances.get()).toEqual(data.instances);
 });
+
+test("skip whitespace-only text nodes between element siblings", async () => {
+  const data = renderData(
+    <ws.element ws:tag="body" ws:id="bodyId">
+      <ws.element ws:tag="div" ws:id="divId"></ws.element>
+    </ws.element>
+  );
+  $project.set({ id: "" } as Project);
+  $instances.set(data.instances);
+  $pages.set(
+    createDefaultPages({ rootInstanceId: "bodyId", homePageId: "pageId" })
+  );
+  $awareness.set({ pageId: "pageId", instanceSelector: ["divId", "bodyId"] });
+
+  // Regression test: whitespace between elements should not create separate text nodes
+  // but the space should be preserved as part of one of the adjacent span instances
+  // This ensures the second span gets text-content control in settings panel
+  expect(
+    await html.onPaste?.(`<div><span>✓</span> <span>text</span></div>`)
+  ).toEqual(true);
+
+  const instances = Array.from($instances.get().values()).filter(
+    (i) => i.id !== "bodyId" && i.id !== "divId"
+  );
+
+  const divs = instances.filter((i) => i.tag === "div");
+  expect(divs.length).toBeGreaterThan(0);
+
+  const pastedDiv = divs[0];
+  expect(pastedDiv?.children).toHaveLength(2);
+
+  // Both children should be element ids (the two spans), not a text node for the space
+  expect(pastedDiv?.children[0].type).toBe("id");
+  expect(pastedDiv?.children[1].type).toBe("id");
+  expect(pastedDiv?.children.some((c) => c.type === "text")).toBe(false);
+
+  // Verify the space is preserved in one of the spans' text content
+  const child0 = pastedDiv?.children[0];
+  const child1 = pastedDiv?.children[1];
+  const span1Id = child0?.type === "id" ? child0.value : undefined;
+  const span2Id = child1?.type === "id" ? child1.value : undefined;
+
+  const span1 = span1Id ? $instances.get().get(span1Id) : undefined;
+  const span2 = span2Id ? $instances.get().get(span2Id) : undefined;
+
+  const span1Text =
+    span1?.children[0]?.type === "text" ? span1.children[0].value : "";
+  const span2Text =
+    span2?.children[0]?.type === "text" ? span2.children[0].value : "";
+
+  // Space should be preserved as part of one of the spans, not lost
+  const combinedText = span1Text + span2Text;
+  expect(combinedText).toContain("✓");
+  expect(combinedText).toContain("text");
+  expect(combinedText).toContain(" ");
+});
diff --git a/apps/builder/app/shared/copy-paste/plugin-markdown.test.tsx b/apps/builder/app/shared/copy-paste/plugin-markdown.test.tsx
index 14831acec914..6a56db80f25c 100644
--- a/apps/builder/app/shared/copy-paste/plugin-markdown.test.tsx
+++ b/apps/builder/app/shared/copy-paste/plugin-markdown.test.tsx
@@ -196,7 +196,7 @@ test("preserve spaces between strong and em", () => {
     renderTemplate(
       <>
         <ws.element ws:tag="p">
-          <ws.element ws:tag="strong">One</ws.element>{" "}
+          <ws.element ws:tag="strong">{"One "}</ws.element>
           <ws.element ws:tag="em">two</ws.element>
           {" text"}
         </ws.element>
diff --git a/apps/builder/app/shared/html.test.tsx b/apps/builder/app/shared/html.test.tsx
index 66ba2e4518d9..4471ffcd8cb0 100644
--- a/apps/builder/app/shared/html.test.tsx
+++ b/apps/builder/app/shared/html.test.tsx
@@ -219,7 +219,7 @@ test("collapse any spacing characters inside rich text", () => {
   ).toEqual(
     renderTemplate(
       <ws.element ws:tag="div">
-        <ws.element ws:tag="i">line</ws.element>{" "}
+        <ws.element ws:tag="i">{"line "}</ws.element>
         <ws.element ws:tag="b">another line</ws.element> text
       </ws.element>
     )
diff --git a/apps/builder/app/shared/html.ts b/apps/builder/app/shared/html.ts
index 56f179e7d17b..0577c249dae8 100644
--- a/apps/builder/app/shared/html.ts
+++ b/apps/builder/app/shared/html.ts
@@ -887,13 +887,16 @@ export const generateFragmentFromHtml = (
         }
       }
     }
+    let spaceAttachedToPrev = false;
     for (let index = 0; index < node.childNodes.length; index += 1) {
       const childNode = node.childNodes[index];
       if (defaultTreeAdapter.isElementNode(childNode)) {
         const lastChild = instance.children.at(-1);
         const nextPreserveLeadingSpace =
+          !spaceAttachedToPrev &&
           instance.children.length > 0 &&
           !(lastChild?.type === "text" && lastChild.value.endsWith(" "));
+        spaceAttachedToPrev = false;
         const child = convertElementToInstance(childNode, {
           preserveLeadingSpace: nextPreserveLeadingSpace,
         });
@@ -902,12 +905,42 @@ export const generateFragmentFromHtml = (
         }
       }
       if (defaultTreeAdapter.isTextNode(childNode)) {
-        // trim spaces around rich text
-        // do not for code
+        // trim spaces around rich text, do not for code
         if (spaceRegex.test(childNode.value) && node.tagName !== "code") {
+          // Skip whitespace at start or end of parent
           if (index === 0 || index === node.childNodes.length - 1) {
             continue;
           }
+          const prevChild = node.childNodes[index - 1];
+          const nextChild = node.childNodes[index + 1];
+          const prevIsElement = defaultTreeAdapter.isElementNode(prevChild);
+          const nextIsElement = defaultTreeAdapter.isElementNode(nextChild);
+
+          // In rich-text contexts, attach whitespace between two sibling elements
+          // to the previous element instead of creating a separate text node.
+          // This avoids a standalone space child that would prevent the next element
+          // from being recognized as the last child for text-content control.
+          if (
+            prevIsElement &&
+            nextIsElement &&
+            !hasNonRichTextContent &&
+            instance.children.length > 0
+          ) {
+            const lastChild = instance.children.at(-1);
+            if (lastChild?.type === "id") {
+              const prevInstanceId = lastChild.value;
+              const prevInstance = instances.get(prevInstanceId);
+              if (prevInstance && prevInstance.children.length > 0) {
+                const prevLastChild = prevInstance.children.at(-1);
+                if (prevLastChild?.type === "text") {
+                  prevLastChild.value += " ";
+                  spaceAttachedToPrev = true;
+                  continue;
+                }
+              }
+            }
+            continue;
+          }
         }
         let child: Instance["children"][number] = {
           type: "text",