diff --git a/richeditor-compose/src/commonMain/kotlin/com/mohamedrejeb/richeditor/parser/markdown/RichTextStateMarkdownParser.kt b/richeditor-compose/src/commonMain/kotlin/com/mohamedrejeb/richeditor/parser/markdown/RichTextStateMarkdownParser.kt
index df8925a5..ec187426 100644
--- a/richeditor-compose/src/commonMain/kotlin/com/mohamedrejeb/richeditor/parser/markdown/RichTextStateMarkdownParser.kt
+++ b/richeditor-compose/src/commonMain/kotlin/com/mohamedrejeb/richeditor/parser/markdown/RichTextStateMarkdownParser.kt
@@ -26,7 +26,6 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
     @OptIn(ExperimentalRichTextApi::class)
     override fun encode(input: String): RichTextState {
         val openedNodes = mutableListOf<ASTNode>()
-        val stringBuilder = StringBuilder()
         val richParagraphList = mutableListOf(RichParagraph())
         var currentRichSpan: RichSpan? = null
         var currentRichParagraphType: ParagraphType = DefaultParagraph()
@@ -36,8 +35,6 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
             onText = { text ->
                 if (text.isEmpty()) return@encodeMarkdownToRichText
 
-                stringBuilder.append(text)
-
                 if (richParagraphList.isEmpty())
                     richParagraphList.add(RichParagraph())
 
@@ -47,7 +44,10 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
                 if (safeCurrentRichSpan.children.isEmpty()) {
                     safeCurrentRichSpan.text += text
                 } else {
-                    val newRichSpan = RichSpan(paragraph = currentRichParagraph)
+                    val newRichSpan = RichSpan(
+                        paragraph = currentRichParagraph,
+                        parent = safeCurrentRichSpan,
+                    )
                     newRichSpan.text = text
                     safeCurrentRichSpan.children.add(newRichSpan)
                 }
@@ -63,8 +63,6 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
                 val tagSpanStyle = markdownElementsSpanStyleEncodeMap[node.type]
 
                 if (node.type in markdownBlockElements) {
-                    stringBuilder.append(' ')
-
                     val currentRichParagraph = richParagraphList.last()
 
                     // Get paragraph type from markdown element
@@ -127,6 +125,7 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
                         currentRichSpan?.spanStyle = currentRichSpan?.spanStyle?.merge(child.spanStyle) ?: child.spanStyle
                         currentRichSpan?.style = child.style
                         currentRichSpan?.children?.clear()
+                        currentRichSpan?.children?.addAll(child.children)
                     }
                 }
 
@@ -166,7 +165,7 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
 
         richTextState.richParagraphList.fastForEachIndexed { index, richParagraph ->
             // Append paragraph start text
-            builder.append(richParagraph.type.startRichSpan.text)
+            builder.appendParagraphStartText(richParagraph)
 
             richParagraph.getFirstNonEmptyChild()?.let { firstNonEmptyChild ->
                 if (firstNonEmptyChild.text.isNotEmpty()) {
@@ -222,6 +221,19 @@ internal object RichTextStateMarkdownParser : RichTextStateParser<String> {
         return stringBuilder.toString()
     }
 
+    private fun StringBuilder.appendParagraphStartText(paragraph: RichParagraph) {
+        when (val type = paragraph.type) {
+            is OrderedList ->
+                append("${type.number}. ")
+
+            is UnorderedList ->
+                append("- ")
+
+            else ->
+                Unit
+        }
+    }
+
     /**
      * Encodes Markdown elements to [SpanStyle].
      *
diff --git a/richeditor-compose/src/commonTest/kotlin/com.mohamedrejeb.richeditor/parser/markdown/RichTextStateMarkdownParserTest.kt b/richeditor-compose/src/commonTest/kotlin/com.mohamedrejeb.richeditor/parser/markdown/RichTextStateMarkdownParserTest.kt
new file mode 100644
index 00000000..4a222d6c
--- /dev/null
+++ b/richeditor-compose/src/commonTest/kotlin/com.mohamedrejeb.richeditor/parser/markdown/RichTextStateMarkdownParserTest.kt
@@ -0,0 +1,83 @@
+package com.mohamedrejeb.richeditor.parser.markdown
+
+import androidx.compose.ui.text.SpanStyle
+import androidx.compose.ui.text.font.FontStyle
+import androidx.compose.ui.text.font.FontWeight
+import kotlin.test.Test
+import kotlin.test.assertEquals
+
+class RichTextStateMarkdownParserTest {
+
+    @Test
+    fun testBold() {
+        val markdown = "**Hello World!**"
+        val expectedText = "Hello World!"
+        val state = RichTextStateMarkdownParser.encode(markdown)
+        val actualText = state.annotatedString.text
+
+        assertEquals(
+            expected = expectedText,
+            actual = actualText,
+        )
+
+        assertEquals(
+            expected = SpanStyle(fontWeight = FontWeight.Bold),
+            actual = state.richParagraphList.first().children.first().spanStyle
+        )
+    }
+
+    @Test
+    fun testBoldWithNestedItalic() {
+        val markdown = "**Hello *World!***"
+        val expectedText = "Hello World!"
+        val state = RichTextStateMarkdownParser.encode(markdown)
+        val actualText = state.annotatedString.text
+
+        assertEquals(
+            expected = expectedText,
+            actual = actualText,
+        )
+
+        val firstChild = state.richParagraphList.first().children.first()
+        val secondChild = firstChild.children.first()
+
+        assertEquals(
+            expected = SpanStyle(fontWeight = FontWeight.Bold),
+            actual = firstChild.spanStyle
+        )
+
+        assertEquals(
+            expected = SpanStyle(fontStyle = FontStyle.Italic),
+            actual = secondChild.spanStyle
+        )
+    }
+
+
+
+    @Test
+    fun testBoldWithNestedItalicAndUnderline() {
+        val markdown = "**Hello *World!***"
+        val expectedText = "Hello World!"
+        val state = RichTextStateMarkdownParser.encode(markdown)
+        val actualText = state.annotatedString.text
+
+        assertEquals(
+            expected = expectedText,
+            actual = actualText,
+        )
+
+        val firstChild = state.richParagraphList.first().children.first()
+        val secondChild = firstChild.children.first()
+
+        assertEquals(
+            expected = SpanStyle(fontWeight = FontWeight.Bold),
+            actual = firstChild.spanStyle
+        )
+
+        assertEquals(
+            expected = SpanStyle(fontStyle = FontStyle.Italic),
+            actual = secondChild.spanStyle
+        )
+    }
+
+}
\ No newline at end of file