diff --git a/docxtpl/__init__.py b/docxtpl/__init__.py
index 2ab1e9e..96a8997 100644
--- a/docxtpl/__init__.py
+++ b/docxtpl/__init__.py
@@ -109,6 +109,11 @@ class DocxTemplate(object):
                          r'</w:t></w:r><w:r><w:t xml:space="preserve">\1</w:t></w:r><w:r><w:t xml:space="preserve">',
                          src_xml,flags=re.DOTALL)
 
+        # {%- will merge with previous paragraph text
+        src_xml = re.sub(r'</w:t>(?:(?!</w:t>).)*?{%-','{%',src_xml,flags=re.DOTALL)
+        # -%} will merge with next paragraph text
+        src_xml = re.sub(r'-%}(?:(?!<w:t[ >]).)*?<w:t[^>]*?>','%}',src_xml,flags=re.DOTALL)
+
         for y in ['tr', 'tc', 'p', 'r']:
             # replace into xml code the row/paragraph/run containing
             # {%y xxx %} or {{y xxx}} template tag
diff --git a/tests/merge_paragraph.py b/tests/merge_paragraph.py
new file mode 100644
index 0000000..90e84e3
--- /dev/null
+++ b/tests/merge_paragraph.py
@@ -0,0 +1,17 @@
+# -*- coding: utf-8 -*-
+'''
+Created : 2015-03-12
+
+@author: Eric Lapouyade
+'''
+
+from docxtpl import DocxTemplate
+
+tpl=DocxTemplate('templates/merge_paragraph_tpl.docx')
+
+context = {
+   'living_in_town' : True,
+}
+
+tpl.render(context)
+tpl.save('output/merge_paragraph.docx')
diff --git a/tests/templates/merge_paragraph_tpl.docx b/tests/templates/merge_paragraph_tpl.docx
new file mode 100644
index 0000000..71faa5a
Binary files /dev/null and b/tests/templates/merge_paragraph_tpl.docx differ