diff --git a/src/Expression/Expression.php b/src/Expression/Expression.php
index ec65a78..49cddbd 100644
--- a/src/Expression/Expression.php
+++ b/src/Expression/Expression.php
@@ -3,6 +3,7 @@
 
 use PackageFactory\Afx\Exception;
 use PackageFactory\Afx\Lexer;
+use PackageFactory\Afx\Parser;
 
 class Expression
 {
@@ -29,7 +30,7 @@ public static function parse(Lexer $lexer)
             if ($lexer->isClosingBrace()) {
                 if ($braceCount === 0) {
                     $lexer->consume();
-                    return $contents;
+                    return self::postProcessContents($contents);
                 }
 
                 $braceCount--;
@@ -38,4 +39,16 @@ public static function parse(Lexer $lexer)
             $contents .= $lexer->consume();
         }
     }
+
+    protected static function postProcessContents($contents)
+    {
+        $trimmedContents = trim($contents);
+
+        if ($trimmedContents{0} === '<') {
+            $parser = new Parser($trimmedContents);
+            return $parser->parse()[0];
+        }
+
+        return $contents;
+    }
 }
diff --git a/src/Expression/Prop.php b/src/Expression/Prop.php
index b90cd75..ad3ae3a 100644
--- a/src/Expression/Prop.php
+++ b/src/Expression/Prop.php
@@ -26,10 +26,15 @@ public static function parse(Lexer $lexer)
                     break;
 
                 case $lexer->isOpeningBrace():
-                    $value = [
-                        'type' => 'expression',
-                        'payload' => Expression::parse($lexer)
-                    ];
+                    $expression = Expression::parse($lexer);
+                    if (is_string($expression)) {
+                        $value = [
+                            'type' => 'expression',
+                            'payload' => $expression
+                        ];
+                    } else {
+                        $value = $expression;
+                    }
                     break;
                 default:
                     throw new Exception(sprintf(
diff --git a/tests/ParserTest.php b/tests/ParserTest.php
index eaa21de..152872d 100644
--- a/tests/ParserTest.php
+++ b/tests/ParserTest.php
@@ -642,6 +642,84 @@ public function shouldHandleWhitespace()
         );
     }
 
+    /**
+     * @test
+     */
+    public function shouldParsePropsContainingTags()
+    {
+        $parser = new Parser('<collection itemRenderer={<li>Hello World!</li>}/>');
+
+        $this->assertEquals(
+            [
+                [
+                    'type' => 'node',
+                    'payload' => [
+                        'identifier' => 'collection',
+                        'props' => [
+                            'itemRenderer' => [
+                                'type' => 'node',
+                                'payload' => [
+                                    'identifier' => 'li',
+                                    'props' => [],
+                                    'children' => [
+                                        [
+                                            'type' => 'text',
+                                            'payload' => 'Hello World!'
+                                        ]
+                                    ],
+                                    'selfClosing' => false
+                                ]
+                            ]
+                        ],
+                        'children' => [],
+                        'selfClosing' => true
+                    ]
+                ]
+            ],
+            $parser->parse()
+        );
+    }
+
+    /**
+     * @test
+     */
+    public function shouldParsePropsContainingTagsWithLineBreaks()
+    {
+        $parser = new Parser('<collection itemRenderer={
+            <div>Foo Bar</div>
+        }/>');
+
+        $this->assertEquals(
+            [
+                [
+                    'type' => 'node',
+                    'payload' => [
+                        'identifier' => 'collection',
+                        'props' => [
+                            'itemRenderer' => [
+                                'type' => 'node',
+                                'payload' => [
+                                    'identifier' => 'div',
+                                    'props' => [],
+                                    'children' => [
+                                        [
+                                            'type' => 'text',
+                                            'payload' => 'Foo Bar'
+                                        ]
+                                    ],
+                                    'selfClosing' => false
+                                ]
+                            ]
+                        ],
+                        'children' => [],
+                        'selfClosing' => true
+                    ]
+                ]
+            ],
+            $parser->parse()
+        );
+    }
+
     /**
      * @test
      * @expectedException \PackageFactory\Afx\Exception