diff --git a/.changeset/chubby-glasses-read.md b/.changeset/chubby-glasses-read.md
new file mode 100644
index 00000000..58201398
--- /dev/null
+++ b/.changeset/chubby-glasses-read.md
@@ -0,0 +1,5 @@
+---
+"htmljs-parser": patch
+---
+
+Fix issue where arrow functions content was being parsed as types.
diff --git a/src/__tests__/fixtures/ts-static-const-arrow-function-return-type/__snapshots__/ts-static-const-arrow-function-return-type.expected.txt b/src/__tests__/fixtures/ts-static-const-arrow-function-return-type/__snapshots__/ts-static-const-arrow-function-return-type.expected.txt
new file mode 100644
index 00000000..49a17920
--- /dev/null
+++ b/src/__tests__/fixtures/ts-static-const-arrow-function-return-type/__snapshots__/ts-static-const-arrow-function-return-type.expected.txt
@@ -0,0 +1,28 @@
+1╭─ static const a = (a: number, b: number): string => {
+ ╰─ ╰─ tagName "static"
+2├─   if (a < b) {
+3├─     return "foo";
+4├─   } else {
+5├─     return "bar";
+6├─   }
+7├─ };
+8╭─ 
+ ╰─ ╰─ openTagEnd
+9╭─ static const b = (a: number, b: number): () => string => () => {
+ ╰─ ╰─ tagName "static"
+10├─   if (a < b) {
+11├─     return "foo";
+12├─   } else {
+13├─     return "bar";
+14├─   }
+15├─ };
+16╭─ 
+  ╰─ ╰─ openTagEnd
+17╭─ static const c = (a: number, b: number): string => a < b ? "foo" : "bar";
+  ╰─ ╰─ tagName "static"
+18╭─ 
+  ╰─ ╰─ openTagEnd
+19╭─ static const d = (a: number, b: number): () => string => () => a < b ? "foo" : "bar";
+  ╰─ ╰─ tagName "static"
+20╭─ 
+  ╰─ ╰─ openTagEnd
\ No newline at end of file
diff --git a/src/__tests__/fixtures/ts-static-const-arrow-function-return-type/input.marko b/src/__tests__/fixtures/ts-static-const-arrow-function-return-type/input.marko
new file mode 100644
index 00000000..eef8b1a2
--- /dev/null
+++ b/src/__tests__/fixtures/ts-static-const-arrow-function-return-type/input.marko
@@ -0,0 +1,19 @@
+static const a = (a: number, b: number): string => {
+  if (a < b) {
+    return "foo";
+  } else {
+    return "bar";
+  }
+};
+
+static const b = (a: number, b: number): () => string => () => {
+  if (a < b) {
+    return "foo";
+  } else {
+    return "bar";
+  }
+};
+
+static const c = (a: number, b: number): string => a < b ? "foo" : "bar";
+
+static const d = (a: number, b: number): () => string => () => a < b ? "foo" : "bar";
diff --git a/src/states/EXPRESSION.ts b/src/states/EXPRESSION.ts
index 05274824..08bfc43f 100644
--- a/src/states/EXPRESSION.ts
+++ b/src/states/EXPRESSION.ts
@@ -150,6 +150,13 @@ export const EXPRESSION: StateDefinition<ExpressionMeta> = {
       case CODE.EQUAL:
         if (expression.operators) {
           if (this.lookAtCharCodeAhead(1) === CODE.CLOSE_ANGLE_BRACKET) {
+            if (
+              expression.inType &&
+              !expression.forceType &&
+              this.getPreviousNonWhitespaceCharCode() !== CODE.CLOSE_PAREN
+            ) {
+              expression.inType = false;
+            }
             this.pos++;
           } else if (!(expression.forceType || expression.groupStack.length)) {
             expression.inType = false;