diff --git a/src/Symfony/Component/Yaml/Parser.php b/src/Symfony/Component/Yaml/Parser.php
index efaaeaf710..52dedfe078 100644
--- a/src/Symfony/Component/Yaml/Parser.php
+++ b/src/Symfony/Component/Yaml/Parser.php
@@ -468,13 +468,13 @@ class Parser
         }
 
         $isCurrentLineBlank = $this->isCurrentLineBlank();
-        $text = '';
+        $blockLines = array();
 
         // leading blank lines are consumed before determining indentation
         while ($notEOF && $isCurrentLineBlank) {
             // newline only if not EOF
             if ($notEOF = $this->moveToNextLine()) {
-                $text .= "\n";
+                $blockLines[] = '';
                 $isCurrentLineBlank = $this->isCurrentLineBlank();
             }
         }
@@ -495,37 +495,59 @@ class Parser
                     preg_match($pattern, $this->currentLine, $matches)
                 )
             ) {
-                if ($isCurrentLineBlank) {
-                    $text .= substr($this->currentLine, $indentation);
+                if ($isCurrentLineBlank && strlen($this->currentLine) > $indentation) {
+                    $blockLines[] = substr($this->currentLine, $indentation);
+                } elseif ($isCurrentLineBlank) {
+                    $blockLines[] = '';
                 } else {
-                    $text .= $matches[1];
+                    $blockLines[] = $matches[1];
                 }
 
                 // newline only if not EOF
                 if ($notEOF = $this->moveToNextLine()) {
-                    $text .= "\n";
                     $isCurrentLineBlank = $this->isCurrentLineBlank();
                 }
             }
         } elseif ($notEOF) {
-            $text .= "\n";
+            $blockLines[] = '';
         }
 
         if ($notEOF) {
+            $blockLines[] = '';
             $this->moveToPreviousLine();
         }
 
         // folded style
         if ('>' === $style) {
-            // folded lines
-            // replace all non-leading/non-trailing single newlines with spaces
-            preg_match('/(\n*)$/', $text, $matches);
-            $text = preg_replace('/(?<!\n|^)\n(?!\n)/', ' ', rtrim($text, "\n"));
-            $text .= $matches[1];
+            $text = '';
+            $previousLineIndented = false;
+            $previousLineBlank = false;
 
-            // empty separation lines
-            // remove one newline from each group of non-leading/non-trailing newlines
-            $text = preg_replace('/[^\n]\n+\K\n(?=[^\n])/', '', $text);
+            for ($i = 0; $i < count($blockLines); $i++) {
+                if ('' === $blockLines[$i]) {
+                    $text .= "\n";
+                    $previousLineIndented = false;
+                    $previousLineBlank = true;
+                } elseif (' ' === $blockLines[$i][0]) {
+                    $text .= "\n".$blockLines[$i];
+                    $previousLineIndented = true;
+                    $previousLineBlank = false;
+                } elseif ($previousLineIndented) {
+                    $text .= "\n".$blockLines[$i];
+                    $previousLineIndented = false;
+                    $previousLineBlank = false;
+                } elseif ($previousLineBlank || 0 === $i) {
+                    $text .= $blockLines[$i];
+                    $previousLineIndented = false;
+                    $previousLineBlank = false;
+                } else {
+                    $text .= ' '.$blockLines[$i];
+                    $previousLineIndented = false;
+                    $previousLineBlank = false;
+                }
+            }
+        } else {
+            $text = implode("\n", $blockLines);
         }
 
         // deal with trailing newlines
diff --git a/src/Symfony/Component/Yaml/Tests/ParserTest.php b/src/Symfony/Component/Yaml/Tests/ParserTest.php
index 0ee1080d7a..0fe9542fda 100644
--- a/src/Symfony/Component/Yaml/Tests/ParserTest.php
+++ b/src/Symfony/Component/Yaml/Tests/ParserTest.php
@@ -820,6 +820,57 @@ EOT
             array($yaml2, $expected2),
         );
     }
+
+    public function testBlankLinesAreParsedAsNewLinesInFoldedBlocks()
+    {
+        $yaml = <<<EOT
+test: >
+    <h2>A heading</h2>
+
+    <ul>
+    <li>a list</li>
+    <li>may be a good example</li>
+    </ul>
+EOT;
+
+        $this->assertSame(
+            array(
+                'test' => <<<EOT
+<h2>A heading</h2>
+<ul> <li>a list</li> <li>may be a good example</li> </ul>
+EOT
+                ,
+            ),
+            $this->parser->parse($yaml)
+        );
+    }
+
+    public function testAdditionallyIndentedLinesAreParsedAsNewLinesInFoldedBlocks()
+    {
+        $yaml = <<<EOT
+test: >
+    <h2>A heading</h2>
+
+    <ul>
+      <li>a list</li>
+      <li>may be a good example</li>
+    </ul>
+EOT;
+
+        $this->assertSame(
+            array(
+                'test' => <<<EOT
+<h2>A heading</h2>
+<ul>
+  <li>a list</li>
+  <li>may be a good example</li>
+</ul>
+EOT
+                ,
+            ),
+            $this->parser->parse($yaml)
+        );
+    }
 }
 
 class B