diff --git a/src/reactTemplates.js b/src/reactTemplates.js
index 196093b..31102fe 100644
--- a/src/reactTemplates.js
+++ b/src/reactTemplates.js
@@ -293,6 +293,15 @@ function hasNonSimpleChildren(node) {
     return _.some(node.children, child => child.type === 'tag' && child.attribs[repeatAttr]);
 }
 
+/**
+ * Trims a string the same way as String.prototype.trim(), but preserving all non breaking spaces ('\xA0') 
+ * @param {string} text
+ * @return {string}
+ */
+function trimHtmlText(text) {
+    return text.replace(/^[ \f\n\r\t\v\u1680\u180e\u2000-\u200a\u2028\u2029\u202f\u205f\u3000\ufeff]+|[ \f\n\r\t\v\u1680\u180e\u2000-\u200a\u2028\u2029\u202f\u205f\u3000\ufeff]+$/g, '');
+}
+
 /**
  * @param node
  * @param {Context} context
@@ -420,7 +429,7 @@ function convertHtmlToReact(node, context) {
         const sanitizedComment = node.data.split('*/').join('* /');
         return commentTemplate({data: sanitizedComment});
     } else if (node.type === 'text') {
-        return node.data.trim() ? utils.convertText(node, context, node.data) : '';
+        return trimHtmlText(node.data) ? utils.convertText(node, context, node.data) : '';        
     }
 }
 
diff --git a/test/data/non-breaking-space.rt b/test/data/non-breaking-space.rt
new file mode 100644
index 0000000..f2e6264
--- /dev/null
+++ b/test/data/non-breaking-space.rt
@@ -0,0 +1 @@
+<div>&#160;</div>
\ No newline at end of file
diff --git a/test/data/non-breaking-space.rt.js b/test/data/non-breaking-space.rt.js
new file mode 100644
index 0000000..11375d0
--- /dev/null
+++ b/test/data/non-breaking-space.rt.js
@@ -0,0 +1,9 @@
+define([
+    'react',
+    'lodash'
+], function (React, _) {
+    'use strict';
+    return function () {
+        return React.createElement('div', {}, '\xA0');
+    };
+});
\ No newline at end of file
diff --git a/test/src/rt.valid.spec.js b/test/src/rt.valid.spec.js
index 3d7a344..80aba77 100644
--- a/test/src/rt.valid.spec.js
+++ b/test/src/rt.valid.spec.js
@@ -30,7 +30,7 @@ module.exports = {
         });
 
         test('conversion test', t => {
-            const files = ['div.rt', 'test.rt', 'repeat.rt', 'repeat-with-index.rt', 'inputs.rt', 'virtual.rt', 'stateless.rt', 'style-vendor-prefix.rt'];
+            const files = ['div.rt', 'test.rt', 'repeat.rt', 'repeat-with-index.rt', 'inputs.rt', 'virtual.rt', 'stateless.rt', 'style-vendor-prefix.rt', 'non-breaking-space.rt'];
             testFiles(t, files, {modules: 'amd'});
         });