diff --git a/lib/ace/mode/folding/xml.js b/lib/ace/mode/folding/xml.js
index e4af4878..eb868b26 100644
--- a/lib/ace/mode/folding/xml.js
+++ b/lib/ace/mode/folding/xml.js
@@ -217,13 +217,12 @@ oop.inherits(FoldMode, BaseFoldMode);
                 if (tag.closing) {
                     this._pop(stack, tag);
                     if (stack.length == 0)
-                        break;
+                        return Range.fromPoints(start, tag.start);
                 }
                 else {
                     stack.push(tag)
                 }
             }
-            return Range.fromPoints(start, tag.start);
         }
         else {
             var iterator = new TokenIterator(session, row, firstTag.column + firstTag.match.length);
@@ -244,15 +243,15 @@ oop.inherits(FoldMode, BaseFoldMode);
                 
                 if (!tag.closing) {
                     this._pop(stack, tag);
-                    if (stack.length == 0)
-                        break;
+                    if (stack.length == 0) {
+                        tag.start.column += tag.tagName.length + 2;
+                        return Range.fromPoints(tag.start, end);
+                    }
                 }
                 else {
                     stack.push(tag)
                 }
             }
-            tag.start.column += tag.tagName.length + 2;
-            return Range.fromPoints(tag.start, end);
         }
         
     };