diff --git a/tests/ParseSpacelessTest.php b/tests/ParseSpacelessTest.php
new file mode 100644
index 0000000..7cd3cea
--- /dev/null
+++ b/tests/ParseSpacelessTest.php
@@ -0,0 +1,93 @@
+<?php
+
+namespace Moo\Test;
+
+use SilverStripe\Dev\SapphireTest;
+//use PHPUnit_Framework_TestCase;
+use SilverStripe\View\ArrayData;
+use SilverStripe\View\SSViewer;
+use SilverStripe\View\TemplateGlobalProvider;
+
+/**
+ * @internal
+ * @coversNothing
+ */
+class ParseSpacelessTest extends SapphireTest implements TemplateGlobalProvider
+{
+    public function testSimpleSpaceCleanUp()
+    {
+        $template = <<<'Template'
+<% spaceless %>
+    ... Template syntax  and HTML ...
+<% end_spaceless %>
+Template;
+
+        $output = SSViewer::execute_string($template, []);
+
+        $this->assertEquals('... Template syntax and HTML ...', $output);
+        $this->assertNotEquals('... Template syntax and HTML ... ', $output);
+        $this->assertNotEquals(' ... Template syntax and HTML ...', $output);
+    }
+
+    public function testWithTemplateFunctionIncludeValidSpaces()
+    {
+        $template = <<<'Template'
+<% spaceless %>
+    ... Template syntax and <strong>One</strong> <strong> Two</strong>HTML$Concat(' ', 'One', ' ', 'Two', ' - ', 'Three') ...
+    ... Template syntax and HTML{$Concat(' ', 'One', ' ', 'Two', ' - ', 'Three')}...
+    ...
+<% end_spaceless %>
+Template;
+        $output = SSViewer::execute_string($template, []);
+        $this->assertEquals(
+            '... Template syntax and <strong>One</strong><strong> Two</strong>HTML One Two - Three ... ... Template syntax and HTML One Two - Three... ...',
+            $output
+        );
+    }
+
+    public function testWithTemplateFunctionIncludeHtml()
+    {
+        $template = <<<'Template'
+<% spaceless %>
+    {$Hello($Name).Spaceless}!
+    
+    <div>Some random text....</div>
+<% end_spaceless %>
+Template;
+
+        $data   = ArrayData::create(['Name' => 'First  Name']);
+        $output = SSViewer::execute_string($template, $data);
+        $this->assertEquals(
+            '<div><span>Hello</span><strong>First Name</strong></div>! <div>Some random text....</div>',
+            $output
+        );
+    }
+
+    public static function get_template_global_variables()
+    {
+        return [
+            'Hello' => [
+                'method'  => 'Hello',
+                'casting' => 'HTMLText',
+            ],
+            'Concat' => [
+                'method'  => 'Concat',
+                'casting' => 'HTMLText',
+            ],
+        ];
+    }
+
+    public static function Hello(?string $name): string
+    {
+        return html_entity_decode(
+            '<div> <span>Hello</span> <strong>'.$name.'</strong></div>',
+            ENT_QUOTES | ENT_XML1,
+            'UTF-8'
+        );
+    }
+
+    public static function Concat(): string
+    {
+        return html_entity_decode(implode('', func_get_args()), ENT_QUOTES | ENT_XML1, 'UTF-8');
+    }
+}
diff --git a/tests/ParseTemplateTest.php b/tests/ParseTemplateTest.php
new file mode 100644
index 0000000..7e40a39
--- /dev/null
+++ b/tests/ParseTemplateTest.php
@@ -0,0 +1,185 @@
+<?php
+
+namespace Moo\Test;
+
+use SilverStripe\Dev\SapphireTest;
+//use PHPUnit_Framework_TestCase;
+use SilverStripe\View\ArrayData;
+use SilverStripe\View\SSViewer;
+
+/**
+ * @internal
+ * @coversNothing
+ */
+class ParseTemplateTest extends SapphireTest
+{
+    protected function setUp(): void
+    {
+        // Add path to templates used for testing
+        SSViewer::add_themes([
+            __DIR__.'/support',
+        ]);
+
+        parent::setUp();
+    }
+
+    public function testTemplateUsage()
+    {
+        // Template to render
+        $template = <<<'Template'
+<% template Card %>
+    <% set Name %>Full Name<% end_set %>
+    <% set Website %>
+        View portfolio: <a href="{$Link.URL}">{$Link.Title}</a>
+    <% end_set %>
+
+    <h1>Hello world</h1>
+    <% include Tags %>
+<% end_template %>
+Template;
+
+        // The expected output
+        $expected = <<<'Template'
+<div class="card">
+    <h1>Hello world</h1>
+    <div>Tag1, Tag2</div>
+    <div>
+        <div>Full Name</div>
+        <div>View portfolio: <a href="http://portfolio.com">portfolio.com</a></div>
+    </div>
+</div>
+Template;
+
+        // Assert template output matches the expected
+        $this->assertTemplate($template, $expected);
+    }
+
+    public function testTemplateNameWithNamespace()
+    {
+        // Template to render
+        $template = <<<'Template'
+<% template 'Namespace\Card' %>
+    <% set Name %>Full Name<% end_set %>
+    <% set Website %>
+        View portfolio: <a href="{$Link.URL}">{$Link.Title}</a>
+    <% end_set %>
+
+    <h1>Hello world</h1>
+
+<% end_template %>
+Template;
+
+        // The expected output
+        $expected = <<<'Template'
+<div class="card card--namespace">
+    <h1>Hello world</h1>
+    <div>
+        <div>Full Name</div>
+        <div>View portfolio: <a href="http://portfolio.com">portfolio.com</a></div>
+    </div>
+</div>
+Template;
+
+        // Assert template output matches the expected
+        $this->assertTemplate($template, $expected);
+    }
+
+    public function testTemplateWithVarAsFileName()
+    {
+        // Template to render
+        $template = <<<'Template'
+<% template $MyTemplate %>
+    <% set Name %>Full Name<% end_set %>
+    <% set Website %>
+        View portfolio: <a href="{$Link.URL}">{$Link.Title}</a>
+    <% end_set %>
+
+    <h1>Hello world</h1>
+
+<% end_template %>
+Template;
+
+        // The expected output
+        $expected = <<<'Template'
+<div class="card card--var">
+    <h1>Hello world</h1>
+    <div>
+        <div>Full Name</div>
+        <div>View portfolio: <a href="http://portfolio.com">portfolio.com</a></div>
+    </div>
+</div>
+Template;
+
+        // Assert template output matches the expected
+        $this->assertTemplate($template, $expected);
+    }
+
+    public function testTemplateNameFromMethod()
+    {
+        // Template to render
+        $template = <<<'Template'
+<% template $Me.CoolTemplate %>
+    <% set Name %>Full Name<% end_set %>
+    <% set Website %>
+        View portfolio: <a href="{$Link.URL}">{$Link.Title}</a>
+    <% end_set %>
+
+    <h1>Hello world</h1>
+
+<% end_template %>
+Template;
+
+        // The expected output
+        $expected = <<<'Template'
+<div class="card card--method">
+    <h1>Hello world</h1>
+    <div>
+        <div>Full Name</div>
+        <div>View portfolio: <a href="http://portfolio.com">portfolio.com</a></div>
+    </div>
+</div>
+Template;
+
+        // Assert template output matches the expected
+        $this->assertTemplate($template, $expected);
+    }
+
+    /**
+     * Get data to be used for template testing.
+     */
+    protected function getTemplateData(): ArrayData
+    {
+        return new class() extends ArrayData {
+            public function __construct()
+            {
+                parent::__construct([
+                    'MyTemplate' => 'Namespace\CardVar',
+                    'Link'       => [
+                        'URL'   => 'http://portfolio.com',
+                        'Title' => 'portfolio.com',
+                    ],
+                ]);
+            }
+
+            public function getCoolTemplate(): string
+            {
+                return 'Namespace\CardMethod';
+            }
+        };
+    }
+
+    /**
+     * Compile and assert template.
+     */
+    protected function assertTemplate(string $template, string $expected): void
+    {
+        // Data to use as template Top context
+        $data = $this->getTemplateData();
+
+        // Render template
+        $output = SSViewer::execute_string($template, $data);
+
+        // Assert template output matches the expected
+        $this->assertXmlStringEqualsXmlString($expected, $output);
+    }
+}