diff --git a/Text/Css.hs b/Text/Css.hs
--- a/Text/Css.hs
+++ b/Text/Css.hs
@@ -21,7 +21,7 @@
 import Text.Shakespeare.Base hiding (Scope)
 import Language.Haskell.TH
 import Control.Applicative ((<$>), (<*>))
-import Control.Arrow ((***))
+import Control.Arrow ((***), second)
 import Text.IndentToBrace (i2b)
 import Data.Functor.Identity (runIdentity)
 import Control.Monad (unless)
@@ -48,8 +48,10 @@
 
 type family ChildBlocks a
 type instance ChildBlocks Resolved = ()
-type instance ChildBlocks Unresolved = [Block Unresolved]
+type instance ChildBlocks Unresolved = [(HasLeadingSpace, Block Unresolved)]
 
+type HasLeadingSpace = Bool
+
 type family Str a
 type instance Str Resolved = Builder
 type instance Str Unresolved = Contents
@@ -72,8 +74,8 @@
 
 data TopLevel a where
     TopBlock   :: !(Block a) -> TopLevel a
-    TopAtBlock :: !String -- ^ name e.g., media
-               -> !(Str a) -- ^ selector
+    TopAtBlock :: !String -- name e.g., media
+               -> !(Str a) -- selector
                -> ![Block a]
                -> TopLevel a
     TopAtDecl  :: !String -> !(Str a) -> TopLevel a
@@ -154,7 +156,7 @@
         (scope1 ++ scope2, rest0 ++ rest1 ++ rest2)
       where
         rest0 = intercalate [ContentRaw ","] x ++ concatMap go' y
-        (scope1, rest1) = go (map TopBlock z)
+        (scope1, rest1) = go (map (TopBlock . snd) z)
         (scope2, rest2) = go rest
     go (TopVar k v:rest) =
         ((k, v):scope, rest')
@@ -178,11 +180,18 @@
     parseBlocks'' <- parseBlocks'
     return $ cr `AppE` parseBlocks'' `AppE` (LitE $ StringL fp) `AppE` ListE c
 
-combineSelectors :: [Contents] -> [Contents] -> [Contents]
-combineSelectors a b = do
+combineSelectors :: HasLeadingSpace
+                 -> [Contents]
+                 -> [Contents]
+                 -> [Contents]
+combineSelectors hsl a b = do
     a' <- a
     b' <- b
-    return $ a' ++ ContentRaw " " : b'
+    return $ a' ++ addSpace b'
+  where
+    addSpace
+        | hsl = (ContentRaw " " :)
+        | otherwise = id
 
 blockRuntime :: [(Deref, CDData url)]
              -> (url -> [(Text, Text)] -> Text)
@@ -211,12 +220,12 @@
     resolveAttr (Attr k v) = Attr <$> (mconcat <$> mapM go' k) <*> (mconcat <$> mapM go' v)
 
     subGo :: [Contents] -- ^ parent selectors
-          -> Block Unresolved
+          -> (HasLeadingSpace, Block Unresolved)
           -> Either String (DList (Block Resolved))
-    subGo x' (Block a b c d) =
+    subGo x' (hls, Block a b c d) =
         blockRuntime cd render' (Block a' b c d)
       where
-        a' = combineSelectors x' a
+        a' = combineSelectors hls x' a
 
 contentToBuilderRT :: [(Deref, CDData url)]
                    -> (url -> [(Text, Text)] -> Text)
@@ -312,7 +321,7 @@
 compressBlock :: Block Unresolved
               -> Block Unresolved
 compressBlock (Block x y blocks mixins) =
-    Block (map cc x) (map go y) (map compressBlock blocks) mixins
+    Block (map cc x) (map go y) (map (second compressBlock) blocks) mixins
   where
     go (Attr k v) = Attr (cc k) (cc v)
     cc [] = []
@@ -364,10 +373,10 @@
     go (Attr x y) = conE 'Attr
         `appE` (contentsToBuilder r scope x)
         `appE` (contentsToBuilder r scope y)
-    subGo (Block sel' b c d) =
+    subGo (hls, Block sel' b c d) =
         blockToCss r scope $ Block sel'' b c d
       where
-        sel'' = combineSelectors sel sel'
+        sel'' = combineSelectors hls sel sel'
 
 selectorToBuilder :: Name -> Scope -> [Contents] -> Q Exp
 selectorToBuilder r scope sels =
diff --git a/Text/Lucius.hs b/Text/Lucius.hs
--- a/Text/Lucius.hs
+++ b/Text/Lucius.hs
@@ -1,4 +1,5 @@
 {-# LANGUAGE TemplateHaskell #-}
+{-# LANGUAGE ScopedTypeVariables #-}
 {-# LANGUAGE GADTs #-}
 {-# LANGUAGE GeneralizedNewtypeDeriving #-}
 {-# LANGUAGE FlexibleInstances #-}
@@ -88,7 +89,20 @@
     pairsBlocks <- parsePairsBlocks id
     let (pairs, blocks, mixins) = partitionPBs pairsBlocks
     whiteSpace
-    return $ Block sel pairs blocks mixins
+    return $ Block sel pairs (map detectAmp blocks) mixins
+
+-- | Looks for an & at the beginning of a selector and, if present, indicates
+-- that we should not have a leading space. Otherwise, we should have the
+-- leading space.
+detectAmp :: Block Unresolved -> (Bool, Block Unresolved)
+detectAmp (Block (sel) b c d) =
+    (hls, Block sel' b c d)
+  where
+    (hls, sel') =
+        case sel of
+            (ContentRaw "&":rest):others -> (False, rest : others)
+            (ContentRaw ('&':s):rest):others -> (False, (ContentRaw s : rest) : others)
+            _ -> (True, sel)
 
 partitionPBs :: [PairBlock] -> ([Attr Unresolved], [Block Unresolved], [Deref])
 partitionPBs =
diff --git a/shakespeare-css.cabal b/shakespeare-css.cabal
--- a/shakespeare-css.cabal
+++ b/shakespeare-css.cabal
@@ -1,5 +1,5 @@
 name:            shakespeare-css
-version:         1.0.4
+version:         1.0.5
 license:         MIT
 license-file:    LICENSE
 author:          Michael Snoyman <michael@snoyman.com>
diff --git a/test/ShakespeareCssTest.hs b/test/ShakespeareCssTest.hs
--- a/test/ShakespeareCssTest.hs
+++ b/test/ShakespeareCssTest.hs
@@ -429,6 +429,15 @@
                     }
                 |]
 
+    it "& subblocks" $
+        celper "foo:bar{baz:bin}"
+        [lucius|
+            foo {
+                &:bar {
+                    baz: bin;
+                }
+            }
+        |]
 
 data Url = Home | Sub SubUrl
 data SubUrl = SubUrl