diff --git a/plugins/woocommerce-blocks/assets/js/atomic/utils/render-parent-block.tsx b/plugins/woocommerce-blocks/assets/js/atomic/utils/render-parent-block.tsx
index f39acaaa46e..98f6ebba8e2 100644
--- a/plugins/woocommerce-blocks/assets/js/atomic/utils/render-parent-block.tsx
+++ b/plugins/woocommerce-blocks/assets/js/atomic/utils/render-parent-block.tsx
@@ -108,7 +108,7 @@ const renderInnerBlocks = ( {
 	// Wrapper for inner components.
 	blockWrapper?: React.ElementType;
 	// Elements from the DOM being converted to components.
-	children: HTMLCollection;
+	children: HTMLCollection | NodeList;
 	// Depth within the DOM hierarchy.
 	depth?: number;
 } ): ( JSX.Element | null )[] | null => {
@@ -133,27 +133,41 @@ const renderInnerBlocks = ( {
 		/**
 		 * If the component cannot be found, or blockName is missing, return the original element. This also ensures
 		 * that children within the element are processed also, since it may be an element containing block markup.
+		 *
+		 * Note we use childNodes rather than children so that text nodes are also rendered.
 		 */
 		if ( ! InnerBlockComponent ) {
-			const parsedElement = parse( element.outerHTML );
+			const parsedElement = parse(
+				element?.outerHTML || element?.textContent || ''
+			);
 
-			if ( isValidElement( parsedElement ) ) {
-				const elementChildren = renderInnerBlocks( {
-					block,
-					blockMap,
-					children: element.children || [],
-					depth: depth + 1,
-					blockWrapper,
-				} );
-				return elementChildren
-					? cloneElement(
-							parsedElement,
-							componentProps,
-							elementChildren
-					  )
-					: cloneElement( parsedElement, componentProps );
+			// Returns text nodes without manipulation.
+			if ( typeof parsedElement === 'string' && !! parsedElement ) {
+				return parsedElement;
 			}
-			return null;
+
+			// Do not render invalid elements.
+			if ( ! isValidElement( parsedElement ) ) {
+				return null;
+			}
+
+			const renderedChildren = element.childNodes.length
+				? renderInnerBlocks( {
+						block,
+						blockMap,
+						children: element.childNodes,
+						depth: depth + 1,
+						blockWrapper,
+				  } )
+				: undefined;
+
+			return renderedChildren
+				? cloneElement(
+						parsedElement,
+						componentProps,
+						renderedChildren
+				  )
+				: cloneElement( parsedElement, componentProps );
 		}
 
 		// This will wrap inner blocks with the provided wrapper. If no wrapper is provided, we default to Fragment.