diff --git a/lib/sablon/processor/document/blocks.rb b/lib/sablon/processor/document/blocks.rb
index 2f0f8cd3..a10334bb 100644
--- a/lib/sablon/processor/document/blocks.rb
+++ b/lib/sablon/processor/document/blocks.rb
@@ -86,7 +86,7 @@ def self.encloses?(start_field, end_field)
         end
       end
 
-      class ImageBlock < ParagraphBlock
+      class ImageBlock < Block
         def self.encloses?(start_field, end_field)
           start_field.expression.start_with?('@')
         end
@@ -104,8 +104,8 @@ def replace(image)
               blip.attributes['embed'].value = image.local_rid if blip
               drawing_size = node.at_xpath('.//wp:extent')
 
-          # if image properties are defined, the size of the placeholder image
-          # should be replaced with the actual values
+              # if image properties are defined, the size of the placeholder
+              # image should be replaced with the actual values
               if image.width && image.height
                 drawing_size.attributes['cx'].value = image.width.to_s if drawing_size
                 drawing_size.attributes['cy'].value = image.height.to_s if drawing_size
@@ -126,6 +126,28 @@ def self.encloses?(start_field, end_field)
           super && parent(start_field) == parent(end_field)
         end
 
+        def process(env)
+          # Create a mock document structure so xpath queries will work
+          # correctly on block level content (i.e. searching for the first
+          # ancestor paragraph)
+          doc_node = Nokogiri::XML::Node.new('document', start_node.document)
+          doc_node.namespace = start_node.parent.namespace
+          p_node = Nokogiri::XML::Node.new('p', doc_node.document)
+          p_node.namespace = start_node.parent.namespace
+          p_node.children = Nokogiri::XML::NodeSet.new(p_node.document,
+                                                       body.map(&:dup))
+          doc_node.children = Nokogiri::XML::NodeSet.new(p_node.document,
+                                                         [p_node])
+          Processor::Document.process doc_node, env
+
+          if p_node.parent.nil?
+            replace_parent_node(doc_node.children)
+            []
+          else
+            p_node.children
+          end
+        end
+
         def remove_control_elements
           body.each(&:remove)
           start_field.remove
@@ -139,6 +161,16 @@ def start_node
         def end_node
           @end_node ||= end_field.start_node
         end
+
+        private
+
+        # A block level insertion has occurred which must replace the
+        # parent paragraph of the start node.
+        def replace_parent_node(content)
+          node = start_node.ancestors('.//w:p').first
+          content.each { |n| node.add_next_sibling n }
+          node.remove
+        end
       end
     end
   end
diff --git a/test/fixtures/conditionals_sample.docx b/test/fixtures/conditionals_sample.docx
index 73905b30..d2e4d71e 100644
Binary files a/test/fixtures/conditionals_sample.docx and b/test/fixtures/conditionals_sample.docx differ
diff --git a/test/fixtures/conditionals_template.docx b/test/fixtures/conditionals_template.docx
index bb7d41e9..369c7ca2 100644
Binary files a/test/fixtures/conditionals_template.docx and b/test/fixtures/conditionals_template.docx differ
diff --git a/test/fixtures/images_sample.docx b/test/fixtures/images_sample.docx
index aa9b2879..c9803aa2 100644
Binary files a/test/fixtures/images_sample.docx and b/test/fixtures/images_sample.docx differ
diff --git a/test/fixtures/images_template.docx b/test/fixtures/images_template.docx
index ee7e60a8..b3ca597c 100644
Binary files a/test/fixtures/images_template.docx and b/test/fixtures/images_template.docx differ
diff --git a/test/sablon_test.rb b/test/sablon_test.rb
index 8478bd8d..4ee34b2b 100644
--- a/test/sablon_test.rb
+++ b/test/sablon_test.rb
@@ -105,7 +105,8 @@ def test_generate_document_from_template
       object: OpenStruct.new(true_method: true, false_method: false),
       success_content: '✓',
       fail_content: '✗',
-      content: 'Some Content'
+      content: 'Some Content',
+      block_content: Sablon.content(:html, '<p>HTML paragraph injected</p>')
     }
     #
     template.render_to_file @output_path, context
@@ -155,7 +156,7 @@ def test_generate_document_from_template
     darth = Sablon.content(:image, @image_fixtures.join('darth_vader.jpg'))
     #
     im_data = StringIO.new(IO.binread(@image_fixtures.join('clone.jpg')))
-    trooper = Sablon.content(:image, im_data, filename: 'clone.jpg', properties: {height: '8cm', width: '4cm'})
+    trooper = Sablon.content(:image, im_data, filename: 'clone.jpg', properties: {height: '1cm', width: '4cm'})
     #
     # with the following context setup all trooper should be reused and
     # only a single file added to media. R2D2 should get duplicated in the