diff --git a/.changeset/tired-results-taste.md b/.changeset/tired-results-taste.md
new file mode 100644
index 00000000..9c858aee
--- /dev/null
+++ b/.changeset/tired-results-taste.md
@@ -0,0 +1,5 @@
+---
+"htmljs-parser": patch
+---
+
+Fix issue with arrow functions in type args/params.
diff --git a/src/__tests__/fixtures/tag-type-argument-arrow-function/__snapshots__/tag-type-argument-arrow-function.expected.txt b/src/__tests__/fixtures/tag-type-argument-arrow-function/__snapshots__/tag-type-argument-arrow-function.expected.txt
new file mode 100644
index 00000000..4b59b40d
--- /dev/null
+++ b/src/__tests__/fixtures/tag-type-argument-arrow-function/__snapshots__/tag-type-argument-arrow-function.expected.txt
@@ -0,0 +1,7 @@
+1╭─ <foo<{ bar: () => void }>/>
+ │  ││  ││                   ╰─ openTagEnd:selfClosed "/>"
+ │  ││  │╰─ tagTypeArgs.value "{ bar: () => void }"
+ │  ││  ╰─ tagTypeArgs "<{ bar: () => void }>"
+ │  │╰─ tagName "foo"
+ ╰─ ╰─ openTagStart
+2╰─ 
\ No newline at end of file
diff --git a/src/__tests__/fixtures/tag-type-argument-arrow-function/input.marko b/src/__tests__/fixtures/tag-type-argument-arrow-function/input.marko
new file mode 100644
index 00000000..0bc3d3f8
--- /dev/null
+++ b/src/__tests__/fixtures/tag-type-argument-arrow-function/input.marko
@@ -0,0 +1 @@
+<foo<{ bar: () => void }>/>
diff --git a/src/states/EXPRESSION.ts b/src/states/EXPRESSION.ts
index 08bfc43f..6e02e694 100644
--- a/src/states/EXPRESSION.ts
+++ b/src/states/EXPRESSION.ts
@@ -212,7 +212,16 @@ export const EXPRESSION: StateDefinition<ExpressionMeta> = {
       case CODE.CLOSE_PAREN:
       case CODE.CLOSE_SQUARE_BRACKET:
       case CODE.CLOSE_CURLY_BRACE:
-      case expression.inType && CODE.CLOSE_ANGLE_BRACKET: {
+      case CODE.CLOSE_ANGLE_BRACKET: {
+        if (code === CODE.CLOSE_ANGLE_BRACKET) {
+          if (
+            !expression.inType ||
+            this.lookAtCharCodeAhead(-1) === CODE.EQUAL
+          ) {
+            break;
+          }
+        }
+
         if (!expression.groupStack.length) {
           return this.emitError(
             expression,