diff --git a/Text/Markdown.hs b/Text/Markdown.hs
--- a/Text/Markdown.hs
+++ b/Text/Markdown.hs
@@ -29,6 +29,7 @@
 import Text.Markdown.Types
 import Prelude hiding (sequence, takeWhile)
 import Data.Default (Default (..))
+import Data.List (intercalate)
 import Data.Text (Text)
 import qualified Data.Text.Lazy as TL
 import Text.Blaze.Html (ToMarkup (..), Html)
@@ -82,7 +83,9 @@
     processBlocks :: [Block Text] -> [Block Html]
     processBlocks = map (fmap $ toHtmlI ms)
                   . msBlockFilter ms
-                  . map (fmap $ toInline refs)
+                  . map (fmap $ intercalate [InlineHtml "<br>"])
+                  . map (fmap $ map $ toInline refs)
+                  . map toBlockLines
 
     refs =
         Map.unions $ map toRef blocks
diff --git a/Text/Markdown/Block.hs b/Text/Markdown/Block.hs
--- a/Text/Markdown/Block.hs
+++ b/Text/Markdown/Block.hs
@@ -8,6 +8,7 @@
     ( Block (..)
     , ListType (..)
     , toBlocks
+    , toBlockLines
     ) where
 
 import Prelude
@@ -32,6 +33,11 @@
 (=$=) :: Monad m => Pipe a a b x m y -> Pipe b b c y m z -> Pipe a a c x m z
 (=$=) = pipeL
 #endif
+
+toBlockLines :: Block Text -> Block [Text]
+toBlockLines = fmap $ map T.stripEnd
+                    . concatMap (T.splitOn "  \r\n")
+                    . T.splitOn "  \n"
 
 toBlocks :: Monad m => MarkdownSettings -> Conduit Text m (Block Text)
 toBlocks ms =
diff --git a/markdown.cabal b/markdown.cabal
--- a/markdown.cabal
+++ b/markdown.cabal
@@ -1,5 +1,5 @@
 Name:                markdown
-Version:             0.1.11
+Version:             0.1.12
 Synopsis:            Convert Markdown to HTML, with XSS protection
 Description:         This library leverages existing high-performance libraries (attoparsec, blaze-html, text, and conduit), and should integrate well with existing codebases.
 Homepage:            https://github.com/snoyberg/markdown
diff --git a/test/main.hs b/test/main.hs
--- a/test/main.hs
+++ b/test/main.hs
@@ -43,6 +43,16 @@
   hspec $ do
     describe "block" blockSpecs
     describe "inline" inlineSpecs
+    describe "line break" $ do
+        it "is inserted for a single newline after two spaces"
+            $ check "<p>Hello<br>World!</p>" "Hello  \nWorld!"
+        it "is also inserted for a single CRLF after two spaces"
+            $ check "<p>Hello<br>World!</p>" "Hello  \r\nWorld!"
+        it "preserves quote nesting of the previous line"
+            $ check "<blockquote><p>Q1<br>Q2</p></blockquote><p>P2</p>"
+                    "> Q1  \nQ2\n\nP2"
+        it "consumes all trailing whitespace on the previous line"
+            $ check "<p>Hello<br>World!</p>" "Hello     \nWorld!"
     describe "paragraphs" $ do
         it "simple"
             $ check "<p>Hello World!</p>" "Hello World!"