diff --git a/lib/lexer_block.js b/lib/lexer_block.js
index 0fbfc50..e5bada7 100644
--- a/lib/lexer_block.js
+++ b/lib/lexer_block.js
@@ -13,11 +13,11 @@ var rules = [];
 // `list` should be after `hr`, but before `heading`
 rules.push(require('./lexer_block/code'));
 rules.push(require('./lexer_block/fences'));
+rules.push(require('./lexer_block/blockquote'));
 rules.push(require('./lexer_block/hr'));
 rules.push(require('./lexer_block/list'));
 rules.push(require('./lexer_block/heading'));
 rules.push(require('./lexer_block/lheading'));
-rules.push(require('./lexer_block/blockquote'));
 rules.push(require('./lexer_block/table'));
 rules.push(require('./lexer_block/paragraph'));
 
diff --git a/lib/lexer_block/code.js b/lib/lexer_block/code.js
index 4480075..6d00e35 100644
--- a/lib/lexer_block/code.js
+++ b/lib/lexer_block/code.js
@@ -34,7 +34,7 @@ module.exports = function code(state, startLine, endLine, silent) {
 
   state.tokens.push({
     type: 'code',
-    content: getLines(state, startLine, last, true).replace(/^ {4}/gm, '')
+    content: getLines(state, startLine, last, true).replace(/^ {1,4}/gm, '')
   });
 
   state.line = nextLine;
diff --git a/lib/lexer_block/fences.js b/lib/lexer_block/fences.js
index 27bd99d..8b56bcb 100644
--- a/lib/lexer_block/fences.js
+++ b/lib/lexer_block/fences.js
@@ -66,10 +66,17 @@ module.exports = function fences(state, startLine, endLine, silent) {
 
   if (silent) { return true; }
 
+  // If fense has heading spases, those should be removed from inner block
+  len = state.tShift[startLine];
+
   state.tokens.push({
     type: 'fence',
     params: params ? params.split(/\s+/g) : [],
-    content: getLines(state, startLine + 1, nextLine, true)
+    content: len === 0 ?
+                getLines(state, startLine + 1, nextLine, true)
+              :
+                getLines(state, startLine + 1, nextLine, true)
+                  .replace(RegExp('^ {1,' + len + '}', 'mg'), '')
   });
 
   state.line = nextLine + 1;
diff --git a/lib/renderer.js b/lib/renderer.js
index 8ac9dea..91cce50 100644
--- a/lib/renderer.js
+++ b/lib/renderer.js
@@ -18,14 +18,25 @@ function unescapeMd(str) {
 }
 
 
+// check if we need to hide '\n' before next token
+function getBreak(state, idx) {
+  if (++idx < state.tokens.length &&
+      state.tokens[idx].type === 'list_item_close') {
+    return '';
+  }
+
+  return '\n';
+}
+
+
 var rules = {};
 
 
-rules.blockquote_open = function (state /*, token*/) {
+rules.blockquote_open = function (state /*, token, idx*/) {
   state.result += '<blockquote>\n';
 };
-rules.blockquote_close = function (state /*, token*/) {
-  state.result += '</blockquote>\n';
+rules.blockquote_close = function (state, token, idx) {
+  state.result += '</blockquote>' + getBreak(state, idx);
 };
 
 
@@ -54,21 +65,21 @@ rules.heading_close = function (state, token) {
 };
 
 
-rules.hr = function (state/*, token*/) {
-  state.result += state.options.xhtml ? '<hr />\n' : '<hr>\n';
+rules.hr = function (state, token, idx) {
+  state.result += (state.options.xhtml ? '<hr />' : '<hr>') + getBreak(state, idx);
 };
 
 
-rules.bullet_list_open = function (state /*, token*/) {
+rules.bullet_list_open = function (state /*, token, idx*/) {
   state.result += '<ul>\n';
 };
-rules.bullet_list_close = function (state /*, token*/) {
+rules.bullet_list_close = function (state /*, token, idx*/) {
   state.result += '</ul>\n';
 };
-rules.list_item_open = function (state /*, token*/) {
+rules.list_item_open = function (state /*, token, idx*/) {
   state.result += '<li>';
 };
-rules.list_item_close = function (state /*, token*/) {
+rules.list_item_close = function (state /*, token, idx*/) {
   state.result += '</li>\n';
 };
 rules.ordered_list_open = function (state, token) {
@@ -76,29 +87,29 @@ rules.ordered_list_open = function (state, token) {
     + (token.order > 1 ? ' start="' + token.order + '"' : '')
     + '>\n';
 };
-rules.ordered_list_close = function (state /*, token*/) {
+rules.ordered_list_close = function (state /*, token, idx*/) {
   state.result += '</ol>\n';
 };
 
 
-rules.paragraph_open = function (state /*, token*/) {
+rules.paragraph_open = function (state /*, token, idx*/) {
   state.result += '<p>';
 };
-rules.paragraph_close = function (state /*, token*/) {
-  state.result += '</p>\n';
+rules.paragraph_close = function (state, token, idx) {
+  state.result += '</p>' + getBreak(state, idx);
 };
 
 
-rules.table_open = function (state /*, token*/) {
+rules.table_open = function (state /*, token, idx*/) {
   state.result += '<table>\n';
 };
-rules.table_close = function (state /*, token*/) {
+rules.table_close = function (state /*, token, idx*/) {
   state.result += '</table>\n';
 };
-rules.tr_open = function (state /*, token*/) {
+rules.tr_open = function (state /*, token, idx*/) {
   state.result += '<tr>\n';
 };
-rules.tr_close = function (state /*, token*/) {
+rules.tr_close = function (state /*, token, idx*/) {
   state.result += '</tr>\n';
 };
 rules.th_open = function (state, token) {
@@ -106,7 +117,7 @@ rules.th_open = function (state, token) {
     + (token.align ? ' align="' + token.align + '"' : '')
     + '>';
 };
-rules.th_close = function (state /*, token*/) {
+rules.th_close = function (state /*, token, idx*/) {
   state.result += '</th>\n';
 };
 rules.td_open = function (state, token) {
@@ -114,7 +125,7 @@ rules.td_open = function (state, token) {
     + (token.align ? ' align="' + token.align + '"' : '')
     + '>';
 };
-rules.td_close = function (state /*, token*/) {
+rules.td_close = function (state /*, token, idx*/) {
   state.result += '</td>\n';
 };
 
@@ -143,7 +154,7 @@ Renderer.prototype.render = function (state) {
       throw new Error('Renderer error: unknown token ' + tokens[i].type);
     }
 
-    rule(state, tokens[i]);
+    rule(state, tokens[i], i);
   }
 
   return state.result;