diff --git a/javascript2.editor/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProvider.java b/javascript2.editor/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProvider.java
--- a/javascript2.editor/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProvider.java
+++ b/javascript2.editor/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProvider.java
@@ -549,9 +549,13 @@
                     // Emit the block verbatim
                     int sourceStart = ts.offset();
                     String text = htmlToken.text().toString();
-                    List<EmbeddingPosition> jsEmbeddings = extractJsEmbeddings(text, sourceStart);
-                    for (EmbeddingPosition embedding : jsEmbeddings) {
-                        embeddings.add(snapshot.create(embedding.getOffset(), embedding.getLength(), JsTokenId.JAVASCRIPT_MIME_TYPE));
+                    List<EmbeddingInformation> jsEmbeddings = extractJsEmbeddings(text, sourceStart, snapshot.getMimeType().equals(XHTML_MIME_TYPE));
+                    for (EmbeddingInformation embedding : jsEmbeddings) {
+                        if (embedding.getContent() != null) {
+                            embeddings.add(snapshot.create(embedding.getContent(), JsTokenId.JAVASCRIPT_MIME_TYPE));
+                        } else {
+                            embeddings.add(snapshot.create(embedding.getOffset(), embedding.getLength(), JsTokenId.JAVASCRIPT_MIME_TYPE));
+                        }
                     }
 // XXX: need better support in parsing api for this
 //                embeddings.add(snapshot.create("/*", JsTokenId.JAVASCRIPT_MIME_TYPE));
@@ -723,13 +727,29 @@
         }
     }
 
-    protected static List<EmbeddingPosition> extractJsEmbeddings(String text, int sourceStart) {
-        List<EmbeddingPosition> embeddings = new LinkedList<EmbeddingPosition>();
+    protected static List<EmbeddingInformation> extractJsEmbeddings(String text, int sourceStart, boolean decode) {
+        List<EmbeddingInformation> embeddings = new LinkedList<EmbeddingInformation>();
         Scanner scanner = new Scanner(text).useDelimiter("(<!--).*(-->)"); //NOI18N
         while (scanner.hasNext()) {
             scanner.next();
             MatchResult match = scanner.match();
-            embeddings.add(new EmbeddingPosition(sourceStart + match.start(), match.group().length()));
+            String toEmbed = match.group();
+            if (decode && (toEmbed.contains("&lt;") || toEmbed.contains("&gt;"))) {
+                Scanner decodeScanner = new Scanner(text).useDelimiter("(&lt;|&gt;)"); //NOI18N
+                while (decodeScanner.hasNext()) {
+                    decodeScanner.next();
+                    MatchResult decodeMatch = decodeScanner.match();
+                    int originalOffset = sourceStart + match.start() + decodeMatch.start();
+                    int originalLength = decodeMatch.group().length();
+                    int decodeOffset = originalLength + match.start() + decodeMatch.start();
+                    embeddings.add(new EmbeddingInformation(originalOffset, originalLength));
+                    if (decodeScanner.hasNext()) {
+                        embeddings.add(new EmbeddingInformation(toEmbed.substring(decodeOffset, decodeOffset + 4)));
+                    }
+                }
+            } else {
+                embeddings.add(new EmbeddingInformation(sourceStart + match.start(), toEmbed.length()));
+            }
         }
         return embeddings;
     }
@@ -744,16 +764,21 @@
         Embedding lastInlinedJavscriptEmbedding = null;
     }
 
-    protected static final class EmbeddingPosition {
+    protected static final class EmbeddingInformation {
 
-        private final int offset;
-        private final int length;
+        private int offset;
+        private int length;
+        private CharSequence content;
 
-        public EmbeddingPosition(int offset, int length) {
+        public EmbeddingInformation(int offset, int length) {
             this.offset = offset;
             this.length = length;
         }
 
+        public EmbeddingInformation(CharSequence content) {
+            this.content = getDecodedContent(content);
+        }
+
         public int getLength() {
             return length;
         }
@@ -762,5 +787,14 @@
             return offset;
         }
 
+        public CharSequence getContent() {
+            return content;
+        }
+
+        private CharSequence getDecodedContent(CharSequence content) {
+            String contentHolder = CharSequenceUtilities.toString(content);
+            return contentHolder.replace("&lt;", "<").replace("&gt;", ">");
+        }
+
     }
 }
diff --git a/javascript2.editor/test/unit/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProviderTest.java b/javascript2.editor/test/unit/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProviderTest.java
--- a/javascript2.editor/test/unit/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProviderTest.java
+++ b/javascript2.editor/test/unit/src/org/netbeans/modules/javascript2/editor/embedding/JsEmbeddingProviderTest.java
@@ -43,7 +43,7 @@
 
 import java.util.List;
 import org.netbeans.modules.javascript2.editor.JsTestBase;
-import org.netbeans.modules.javascript2.editor.embedding.JsEmbeddingProvider.EmbeddingPosition;
+import org.netbeans.modules.javascript2.editor.embedding.JsEmbeddingProvider.EmbeddingInformation;
 
 /**
  *
@@ -57,12 +57,12 @@
 
     public void testExtractJsEmbeddings01() throws Exception {
         String text = "                          ";
-        List<EmbeddingPosition> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0);
+        List<EmbeddingInformation> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0, false);
         assertEquals(embeddings.size(), 1);
         assertEquals(0, embeddings.get(0).getOffset());
         assertEquals(text.length(), embeddings.get(0).getLength());
 
-        embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 5);
+        embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 5, false);
         assertEquals(embeddings.size(), 1);
         assertEquals(5, embeddings.get(0).getOffset());
         assertEquals(text.length(), embeddings.get(0).getLength());
@@ -70,12 +70,12 @@
 
     public void testExtractJsEmbeddings02() throws Exception {
         String text = "    <!-- anything \n -->             ";
-        List<EmbeddingPosition> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0);
+        List<EmbeddingInformation> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0, false);
         assertEquals(embeddings.size(), 1);
         assertEquals(0, embeddings.get(0).getOffset());
         assertEquals(text.length(), embeddings.get(0).getLength());
 
-        embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 5);
+        embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 5, false);
         assertEquals(embeddings.size(), 1);
         assertEquals(5, embeddings.get(0).getOffset());
         assertEquals(text.length(), embeddings.get(0).getLength());
@@ -83,12 +83,12 @@
 
     public void testExtractJsEmbeddings03() throws Exception {
         String text = "       <!-- Cau Pisliku -->             ";
-        List<EmbeddingPosition> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0);
+        List<EmbeddingInformation> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0, false);
         assertEquals(embeddings.size(), 2);
         assertEquals(0, embeddings.get(0).getOffset());
         assertEquals(text.indexOf("<!-- Cau Pisliku -->"), embeddings.get(0).getLength());
 
-        embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 5);
+        embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 5, false);
         assertEquals(embeddings.size(), 2);
         assertEquals(5, embeddings.get(0).getOffset());
         assertEquals(text.indexOf("<!-- Cau Pisliku -->"), embeddings.get(0).getLength());
@@ -96,7 +96,7 @@
 
     public void testExtractJsEmbeddings04() throws Exception {
         String text = "<!-- comment --> javascript code \n<!-- comment -->";
-        List<EmbeddingPosition> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0);
+        List<EmbeddingInformation> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0, false);
         assertEquals(1, embeddings.size());
         assertEquals(text.indexOf(" javascript code "), embeddings.get(0).getOffset());
         assertEquals(18, embeddings.get(0).getLength());
@@ -124,7 +124,7 @@
 "                afsdasdf\n"+
 "\n"+
 "        ";
-        List<EmbeddingPosition> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 193);
+        List<EmbeddingInformation> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 193, false);
         assertEquals(6, embeddings.size());
         assertEquals(193, embeddings.get(0).getOffset());
         assertEquals(text.indexOf("<!-- aaaaaaaa0 -->") + 18 + 193, embeddings.get(1).getOffset());
@@ -141,4 +141,16 @@
         assertEquals(36, embeddings.get(5).getLength());
     }
 
+    public void testExtractJsEmbeddings06() throws Exception {
+        String text = " for (var i = 0; i &lt; 10 ; i++ ) {} ";
+        List<EmbeddingInformation> embeddings = JsEmbeddingProvider.extractJsEmbeddings(text, 0, true);
+        assertEquals(3, embeddings.size());
+        assertEquals(0, embeddings.get(0).getOffset());
+        assertEquals(19, embeddings.get(0).getLength());
+        assertEquals("<", embeddings.get(1).getContent());
+        assertEquals(23, embeddings.get(2).getOffset());
+        assertEquals(15, embeddings.get(2).getLength());
+    }
+
+
 }