diff --git a/pyscriptjs/environment.yml b/pyscriptjs/environment.yml
index f689c179..f65000d0 100644
--- a/pyscriptjs/environment.yml
+++ b/pyscriptjs/environment.yml
@@ -13,7 +13,7 @@ dependencies:
 -   pre-commit
 -   pillow
 -   numpy
-
+-   markdown
 -   pip:
     -   playwright
     -   pytest-playwright
diff --git a/pyscriptjs/src/plugins/python/py_markdown.py b/pyscriptjs/src/plugins/python/py_markdown.py
index cf2eda9b..0e373f38 100644
--- a/pyscriptjs/src/plugins/python/py_markdown.py
+++ b/pyscriptjs/src/plugins/python/py_markdown.py
@@ -1,9 +1,11 @@
+import html
 from textwrap import dedent
 
+from js import console
 from markdown import markdown
-from pyscript import Plugin, console
+from pyscript import Plugin
 
-console.warning(
+console.warn(
     "WARNING: This plugin is still in a very experimental phase and will likely change"
     " and potentially break in the future releases. Use it with caution."
 )
@@ -26,6 +28,7 @@ class PyMarkdown:
         self.element = element
 
     def connect(self):
-        self.element.innerHTML = markdown(
-            dedent(self.element.source), extensions=["fenced_code"]
-        )
+        unescaped_content = html.unescape(self.element.originalInnerHTML)
+        original = dedent(unescaped_content)
+        inner = markdown(original, extensions=["fenced_code"])
+        self.element.innerHTML = inner
diff --git a/pyscriptjs/tests/integration/test_zz_examples.py b/pyscriptjs/tests/integration/test_zz_examples.py
index 9d78e43e..7dbb629f 100644
--- a/pyscriptjs/tests/integration/test_zz_examples.py
+++ b/pyscriptjs/tests/integration/test_zz_examples.py
@@ -176,6 +176,17 @@ class TestExamples(PyScriptTest):
         zoom_out.click()
         self.assert_no_banners()
 
+    def test_markdown_plugin(self):
+        # Given the example page with:
+        # * <title>PyMarkdown</title>
+        # * <py-md>#Hello world!</py-md>
+        self.goto("examples/markdown-plugin.html")
+        self.wait_for_pyscript()
+        # ASSERT title is rendered correctly
+        assert self.page.title() == "PyMarkdown"
+        # ASSERT markdown is rendered to the corresponding HTML tag
+        wait_for_render(self.page, "*", "<h1>Hello world!</h1>")
+
     def test_matplotlib(self):
         self.goto("examples/matplotlib.html")
         self.wait_for_pyscript()
diff --git a/pyscriptjs/tests/py-unit/conftest.py b/pyscriptjs/tests/py-unit/conftest.py
index bac4bbfd..474c3d73 100644
--- a/pyscriptjs/tests/py-unit/conftest.py
+++ b/pyscriptjs/tests/py-unit/conftest.py
@@ -4,5 +4,10 @@ import sys
 
 # current working directory
 base_path = pathlib.Path().absolute()
+# add pyscript folder to path
 python_source = base_path / "src" / "python"
 sys.path.append(str(python_source))
+
+# add Python plugins folder to path
+python_plugins_source = base_path / "src" / "plugins" / "python"
+sys.path.append(str(python_plugins_source))
diff --git a/pyscriptjs/tests/py-unit/test_python_plugins.py b/pyscriptjs/tests/py-unit/test_python_plugins.py
new file mode 100644
index 00000000..6b1aafcc
--- /dev/null
+++ b/pyscriptjs/tests/py-unit/test_python_plugins.py
@@ -0,0 +1,17 @@
+from unittest.mock import Mock
+
+import py_markdown
+
+
+class TestPyMarkdown:
+    def test_plugin_hooks(self, monkeypatch):
+        console_mock = Mock()
+        monkeypatch.setattr(py_markdown, "console", console_mock)
+        config = "just a config"
+        runtime = "just a runtime"
+
+        py_markdown.plugin.configure(config)
+        console_mock.log.assert_called_with("configuration received: just a config")
+
+        py_markdown.plugin.afterStartup(runtime)
+        console_mock.log.assert_called_with("runtime received: just a runtime")