diff --git a/extensions/html-language-features/client/src/mirrorCursor.ts b/extensions/html-language-features/client/src/mirrorCursor.ts
index 8f6f3ca6db5..43ea3169c97 100644
--- a/extensions/html-language-features/client/src/mirrorCursor.ts
+++ b/extensions/html-language-features/client/src/mirrorCursor.ts
@@ -161,6 +161,36 @@ function isCharBeforeAndAfterPositionsRoughtlyEqual(document: TextDocument, firs
 	const charBeforeSecondarySelection = getCharBefore(document, secondPos);
 	const charAfterSecondarySelection = getCharAfter(document, secondPos);
 
+	/**
+	 * Special case for exiting
+	 * |<div>
+	 * |</div>
+	 */
+	if (
+		charBeforePrimarySelection === ' ' &&
+		charBeforeSecondarySelection === ' ' &&
+		charAfterPrimarySelection === '<' &&
+		charAfterSecondarySelection === '<'
+	) {
+		return false;
+	}
+	/**
+	 * Special case for exiting
+	 * |  <div>
+	 * |  </div>
+	 */
+	if (charBeforePrimarySelection === '\n' && charBeforeSecondarySelection === '\n') {
+		return false;
+	}
+	/**
+	 * Special case for exiting
+	 * <div>|
+	 * </div>|
+	 */
+	if (charAfterPrimarySelection === '\n' && charAfterSecondarySelection === '\n') {
+		return false;
+	}
+
 	// Exit mirror mode when cursor position no longer mirror
 	// Unless it's in the case of `<|></|>`
 	const charBeforeBothPositionRoughlyEqual =