diff --git a/src/compiler/compile/nodes/Element.ts b/src/compiler/compile/nodes/Element.ts
index c37ea5020a..3e883200a7 100644
--- a/src/compiler/compile/nodes/Element.ts
+++ b/src/compiler/compile/nodes/Element.ts
@@ -610,7 +610,7 @@ export default class Element extends Node {
 			} else if (
 				name === 'text' ||
 				name === 'html'
-			){
+			) {
 				const contenteditable = this.attributes.find(
 					(attribute: Attribute) => attribute.name === 'contenteditable'
 				);
@@ -626,7 +626,7 @@ export default class Element extends Node {
 						message: `'contenteditable' attribute cannot be dynamic if element uses two-way binding`
 					});
 				}
-		} else if (name !== 'this') {
+			} else if (name !== 'this') {
 				component.error(binding, {
 					code: `invalid-binding`,
 					message: `'${binding.name}' is not a valid binding`
diff --git a/src/compiler/compile/render-dom/wrappers/Element/Binding.ts b/src/compiler/compile/render-dom/wrappers/Element/Binding.ts
index 22f1f682e4..7de661e3d1 100644
--- a/src/compiler/compile/render-dom/wrappers/Element/Binding.ts
+++ b/src/compiler/compile/render-dom/wrappers/Element/Binding.ts
@@ -133,6 +133,14 @@ export default class BindingWrapper {
 				break;
 			}
 
+			case 'text':
+				update_conditions.push(`${this.snippet} !== ${parent.var}.textContent`);
+				break;
+
+			case 'html':
+				update_conditions.push(`${this.snippet} !== ${parent.var}.innerHTML`);
+				break;
+
 			case 'currentTime':
 			case 'playbackRate':
 			case 'volume':
@@ -162,7 +170,9 @@ export default class BindingWrapper {
 			);
 		}
 
-		if (!/(currentTime|paused)/.test(this.node.name)) {
+		if (this.node.name === 'html' || this.node.name === 'text') {
+			block.builders.mount.add_block(`if (${this.snippet} !== void 0) ${update_dom}`);
+		} else if (!/(currentTime|paused)/.test(this.node.name)) {
 			block.builders.mount.add_block(update_dom);
 		}
 	}
@@ -198,14 +208,6 @@ function get_dom_updater(
 		return `${element.var}.checked = ${condition};`;
 	}
 
-	if (binding.node.name === 'text') {
-		return `if (${binding.snippet} !== ${element.var}.textContent) ${element.var}.textContent = ${binding.snippet};`;
-	}
-
-	if (binding.node.name === 'html') {
-		return `if (${binding.snippet} !== ${element.var}.innerHTML) ${element.var}.innerHTML = ${binding.snippet};`;
-	}
-
 	if (binding.node.name === 'text') {
 		return `${element.var}.textContent = ${binding.snippet};`;
 	}
@@ -334,14 +336,6 @@ function get_value_from_dom(
 		return `this.innerHTML`;
 	}
 
-	if (name === 'text') {
-		return `this.textContent`;
-	}
-
-	if (name === 'html') {
-		return `this.innerHTML`;
-	}
-
 	// everything else
 	return `this.${name}`;
 }
diff --git a/src/compiler/compile/render-dom/wrappers/Element/index.ts b/src/compiler/compile/render-dom/wrappers/Element/index.ts
index c63ebf1693..527a101f6a 100644
--- a/src/compiler/compile/render-dom/wrappers/Element/index.ts
+++ b/src/compiler/compile/render-dom/wrappers/Element/index.ts
@@ -33,12 +33,6 @@ const events = [
 			(name === 'text' || name === 'html') &&
 			node.attributes.some(attribute => attribute.name === 'contenteditable')
 	},
-	{
-		event_names: ['change'],
-		filter: (node: Element, name: string) =>
-			(name === 'text' || name === 'html') &&
-			node.attributes.some(attribute => attribute.name === 'contenteditable')
-	},
 	{
 		event_names: ['change'],
 		filter: (node: Element, _name: string) =>
@@ -514,7 +508,19 @@ export default class ElementWrapper extends Wrapper {
 				.map(binding => `${binding.snippet} === void 0`)
 				.join(' || ');
 
-			if (this.node.name === 'select' || group.bindings.find(binding => binding.node.name === 'indeterminate' || binding.is_readonly_media_attribute())) {
+			const should_initialise = (
+				this.node.name === 'select' ||
+				group.bindings.find(binding => {
+					return (
+						binding.node.name === 'indeterminate' ||
+						binding.node.name === 'text' ||
+						binding.node.name === 'html' ||
+						binding.is_readonly_media_attribute()
+					);
+				})
+			);
+
+			if (should_initialise) {
 				const callback = has_local_function ? handler : `() => ${callee}.call(${this.var})`;
 				block.builders.hydrate.add_line(
 					`if (${some_initial_state_is_undefined}) @add_render_callback(${callback});`
diff --git a/src/compiler/compile/render-ssr/handlers/Element.ts b/src/compiler/compile/render-ssr/handlers/Element.ts
index 681e0d4c7b..fb9b935f9a 100644
--- a/src/compiler/compile/render-ssr/handlers/Element.ts
+++ b/src/compiler/compile/render-ssr/handlers/Element.ts
@@ -53,7 +53,11 @@ export default function(node: Element, renderer: Renderer, options: RenderOption
 	slot_scopes: Map<any, any>;
 }) {
 	let opening_tag = `<${node.name}`;
-	let node_contents; // awkward special case
+
+	// awkward special case
+	let node_contents;
+	let value;
+
 	const contenteditable = (
 		node.name !== 'textarea' &&
 		node.name !== 'input' &&
@@ -151,16 +155,16 @@ export default function(node: Element, renderer: Renderer, options: RenderOption
 		if (name === 'group') {
 			// TODO server-render group bindings
 		} else if (contenteditable && (name === 'text' || name === 'html')) {
-			const snippet = snip(expression)
+			node_contents = snip(expression);
 			if (name == 'text') {
-				node_contents = '${@escape(' + snippet + ')}'
+				value = '@escape($$value)';
 			} else {
 				// Do not escape HTML content
-				node_contents = '${' + snippet + '}'
+				value = '$$value';
 			}
 		} else if (binding.name === 'value' && node.name === 'textarea') {
 			const snippet = snip(expression);
-			node_contents='${(' + snippet + ') || ""}';
+			node_contents = '${(' + snippet + ') || ""}';
 		} else {
 			const snippet = snip(expression);
 			opening_tag += ' ${(v => v ? ("' + name + '" + (v === true ? "" : "=" + JSON.stringify(v))) : "")(' + snippet + ')}';
@@ -175,8 +179,14 @@ export default function(node: Element, renderer: Renderer, options: RenderOption
 
 	renderer.append(opening_tag);
 
-	if ((node.name === 'textarea' || contenteditable) && node_contents !== undefined) {
-		renderer.append(node_contents);
+	if (node_contents !== undefined) {
+		if (contenteditable) {
+			renderer.append('${($$value => $$value === void 0 ? `');
+			renderer.render(node.children, options);
+			renderer.append('` : ' + value + ')(' + node_contents + ')}');
+		} else {
+			renderer.append(node_contents);
+		}
 	} else {
 		renderer.render(node.children, options);
 	}
diff --git a/test/runtime/samples/binding-contenteditable-html-initial/_config.js b/test/runtime/samples/binding-contenteditable-html-initial/_config.js
new file mode 100644
index 0000000000..0b1f656a54
--- /dev/null
+++ b/test/runtime/samples/binding-contenteditable-html-initial/_config.js
@@ -0,0 +1,40 @@
+export default {
+	html: `
+		<editor><b>world</b></editor>
+		<p>hello <b>world</b></p>
+	`,
+
+	ssrHtml: `
+		<editor contenteditable="true"><b>world</b></editor>
+		<p>hello undefined</p>
+	`,
+
+	async test({ assert, component, target, window }) {
+		assert.equal(component.name, '<b>world</b>');
+
+		const el = target.querySelector('editor');
+
+		el.innerHTML = 'every<span>body</span>';
+
+		// No updates to data yet
+		assert.htmlEqual(target.innerHTML, `
+			<editor>every<span>body</span></editor>
+			<p>hello <b>world</b></p>
+		`);
+
+		// Handle user input
+		const event = new window.Event('input');
+		await el.dispatchEvent(event);
+		assert.htmlEqual(target.innerHTML, `
+			<editor>every<span>body</span></editor>
+			<p>hello every<span>body</span></p>
+		`);
+
+		component.name = 'good<span>bye</span>';
+		assert.equal(el.innerHTML, 'good<span>bye</span>');
+		assert.htmlEqual(target.innerHTML, `
+			<editor>good<span>bye</span></editor>
+			<p>hello good<span>bye</span></p>
+		`);
+	},
+};
diff --git a/test/runtime/samples/binding-contenteditable-html-initial/main.svelte b/test/runtime/samples/binding-contenteditable-html-initial/main.svelte
new file mode 100644
index 0000000000..1c05a0950d
--- /dev/null
+++ b/test/runtime/samples/binding-contenteditable-html-initial/main.svelte
@@ -0,0 +1,8 @@
+<script>
+	export let name;
+</script>
+
+<editor contenteditable="true" bind:html={name}>
+	<b>world</b>
+</editor>
+<p>hello {@html name}</p>
\ No newline at end of file
diff --git a/test/runtime/samples/contenteditable-html/_config.js b/test/runtime/samples/binding-contenteditable-html/_config.js
similarity index 89%
rename from test/runtime/samples/contenteditable-html/_config.js
rename to test/runtime/samples/binding-contenteditable-html/_config.js
index cd2a822655..013fa30f39 100644
--- a/test/runtime/samples/contenteditable-html/_config.js
+++ b/test/runtime/samples/binding-contenteditable-html/_config.js
@@ -19,14 +19,14 @@ export default {
 
 		el.innerHTML = 'every<span>body</span>';
 
-        // No updates to data yet
+		// No updates to data yet
 		assert.htmlEqual(target.innerHTML, `
 			<editor>every<span>body</span></editor>
 			<p>hello <b>world</b></p>
 		`);
 
-        // Handle user input
-        const event = new window.Event('input');
+		// Handle user input
+		const event = new window.Event('input');
 		await el.dispatchEvent(event);
 		assert.htmlEqual(target.innerHTML, `
 			<editor>every<span>body</span></editor>
diff --git a/test/runtime/samples/contenteditable-html/main.svelte b/test/runtime/samples/binding-contenteditable-html/main.svelte
similarity index 62%
rename from test/runtime/samples/contenteditable-html/main.svelte
rename to test/runtime/samples/binding-contenteditable-html/main.svelte
index 53b4e81c88..09195ed558 100644
--- a/test/runtime/samples/contenteditable-html/main.svelte
+++ b/test/runtime/samples/binding-contenteditable-html/main.svelte
@@ -1,5 +1,5 @@
 <script>
-    export let name;
+	export let name;
 </script>
 
 <editor contenteditable="true" bind:html={name}></editor>
diff --git a/test/runtime/samples/binding-contenteditable-text-initial/_config.js b/test/runtime/samples/binding-contenteditable-text-initial/_config.js
new file mode 100644
index 0000000000..7345687d29
--- /dev/null
+++ b/test/runtime/samples/binding-contenteditable-text-initial/_config.js
@@ -0,0 +1,34 @@
+export default {
+	html: `
+		<editor><b>world</b></editor>
+		<p>hello world</p>
+	`,
+
+	ssrHtml: `
+		<editor contenteditable="true"><b>world</b></editor>
+		<p>hello undefined</p>
+	`,
+
+	async test({ assert, component, target, window }) {
+		assert.equal(component.name, 'world');
+
+		const el = target.querySelector('editor');
+
+		const event = new window.Event('input');
+
+		el.textContent = 'everybody';
+		await el.dispatchEvent(event);
+
+		assert.htmlEqual(target.innerHTML, `
+			<editor>everybody</editor>
+			<p>hello everybody</p>
+		`);
+
+		component.name = 'goodbye';
+		assert.equal(el.textContent, 'goodbye');
+		assert.htmlEqual(target.innerHTML, `
+			<editor>goodbye</editor>
+			<p>hello goodbye</p>
+		`);
+	},
+};
diff --git a/test/runtime/samples/binding-contenteditable-text-initial/main.svelte b/test/runtime/samples/binding-contenteditable-text-initial/main.svelte
new file mode 100644
index 0000000000..633d268f43
--- /dev/null
+++ b/test/runtime/samples/binding-contenteditable-text-initial/main.svelte
@@ -0,0 +1,8 @@
+<script>
+	export let name;
+</script>
+
+<editor contenteditable="true" bind:text={name}>
+	<b>world</b>
+</editor>
+<p>hello {name}</p>
\ No newline at end of file
diff --git a/test/runtime/samples/contenteditable-text/_config.js b/test/runtime/samples/binding-contenteditable-text/_config.js
similarity index 100%
rename from test/runtime/samples/contenteditable-text/_config.js
rename to test/runtime/samples/binding-contenteditable-text/_config.js
diff --git a/test/runtime/samples/contenteditable-text/main.svelte b/test/runtime/samples/binding-contenteditable-text/main.svelte
similarity index 66%
rename from test/runtime/samples/contenteditable-text/main.svelte
rename to test/runtime/samples/binding-contenteditable-text/main.svelte
index a71d9f0c5b..c47f5ee477 100644
--- a/test/runtime/samples/contenteditable-text/main.svelte
+++ b/test/runtime/samples/binding-contenteditable-text/main.svelte
@@ -1,5 +1,5 @@
 <script>
-    export let name;
+	export let name;
 </script>
 
 <editor contenteditable="true" bind:text={name}></editor>