diff --git a/src/blockdom/block_compiler.ts b/src/blockdom/block_compiler.ts
index 728fe6b5..76f7df31 100644
--- a/src/blockdom/block_compiler.ts
+++ b/src/blockdom/block_compiler.ts
@@ -113,7 +113,7 @@ interface IntermediateTree {
   nextSibling: IntermediateTree | null;
   el: Node;
   info: DynamicInfo[];
-  forceRef?: boolean;
+  isRef?: boolean;
   refIdx?: number;
   refN: number;
   currentNS: string | null;
@@ -127,7 +127,6 @@ function buildTree(
   switch (node.nodeType) {
     case Node.ELEMENT_NODE: {
       // HTMLElement
-      let isActive = false;
       let currentNS = parent && parent.currentNS;
       const tagName = (node as Element).tagName;
       let el: Node | undefined = undefined;
@@ -136,14 +135,14 @@ function buildTree(
         const index = parseInt(tagName.slice(11), 10);
         info.push({ type: "text", idx: index });
         el = document.createTextNode("");
-        isActive = true;
       }
       if (tagName.startsWith("block-child-")) {
-        domParentTree!.forceRef = true;
+        if (!domParentTree!.isRef) {
+          addRef(domParentTree!);
+        }
         const index = parseInt(tagName.slice(12), 10);
         info.push({ type: "child", idx: index });
         el = document.createTextNode("");
-        isActive = true;
       }
       const attrs = (node as Element).attributes;
       const ns = attrs.getNamedItem("block-ns");
@@ -161,7 +160,6 @@ function buildTree(
           const attrName = attrs[i].name;
           const attrValue = attrs[i].value;
           if (attrName.startsWith("block-handler-")) {
-            isActive = true;
             const idx = parseInt(attrName.slice(14), 10);
             info.push({
               type: "handler",
@@ -169,7 +167,6 @@ function buildTree(
               event: attrValue,
             });
           } else if (attrName.startsWith("block-attribute-")) {
-            isActive = true;
             const idx = parseInt(attrName.slice(16), 10);
             info.push({
               type: "attribute",
@@ -178,13 +175,11 @@ function buildTree(
               tag: tagName,
             });
           } else if (attrName === "block-attributes") {
-            isActive = true;
             info.push({
               type: "attributes",
               idx: parseInt(attrValue, 10),
             });
           } else if (attrName === "block-ref") {
-            isActive = true;
             info.push({
               type: "ref",
               idx: parseInt(attrValue, 10),
@@ -201,7 +196,7 @@ function buildTree(
         nextSibling: null,
         el,
         info,
-        refN: isActive ? 1 : 0,
+        refN: 0,
         currentNS,
       };
 
@@ -215,8 +210,6 @@ function buildTree(
           const tagName = (childNode as Element).tagName;
           const index = parseInt(tagName.slice(12), 10);
           info.push({ idx: index, type: "child", isOnlyChild: true });
-          isActive = true;
-          tree.refN = 1;
         } else {
           tree.firstChild = buildTree(node.firstChild, tree, tree);
           el.appendChild(tree.firstChild.el);
@@ -229,11 +222,8 @@ function buildTree(
           }
         }
       }
-      if (isActive) {
-        let cur: IntermediateTree | null = tree;
-        while ((cur = cur.parent)) {
-          cur.refN++;
-        }
+      if (tree.info.length) {
+        addRef(tree);
       }
       return tree;
     }
@@ -258,6 +248,13 @@ function buildTree(
   throw new Error("boom");
 }
 
+function addRef(tree: IntermediateTree) {
+  tree.isRef = true;
+  do {
+    tree.refN++;
+  } while ((tree = tree.parent as any));
+}
+
 function parentTree(tree: IntermediateTree): IntermediateTree | null {
   let parent = tree.parent;
   while (parent && parent.nextSibling === tree) {
@@ -304,21 +301,15 @@ interface BlockCtx {
   cbRefs: number[];
 }
 
-function buildContext(
-  tree: IntermediateTree,
-  ctx?: BlockCtx,
-  fromIdx?: number,
-  toIdx?: number
-): BlockCtx {
+function buildContext(tree: IntermediateTree, ctx?: BlockCtx, fromIdx?: number): BlockCtx {
   if (!ctx) {
     const children = new Array(tree.info.filter((v) => v.type === "child").length);
     ctx = { collectors: [], locations: [], children, cbRefs: [], refN: tree.refN };
     fromIdx = 0;
-    toIdx = tree.refN - 1;
   }
   if (tree.refN) {
     const initialIdx = fromIdx!;
-    const isRef = tree.forceRef || tree.info.length > 0;
+    const isRef = tree.isRef;
     const firstChild = tree.firstChild ? tree.firstChild.refN : 0;
     const nextSibling = tree.nextSibling ? tree.nextSibling.refN : 0;
 
@@ -336,13 +327,13 @@ function buildContext(
     if (nextSibling) {
       const idx = fromIdx! + firstChild;
       ctx.collectors.push({ idx, prevIdx: initialIdx, getVal: nodeGetNextSibling });
-      buildContext(tree.nextSibling!, ctx, idx, toIdx);
+      buildContext(tree.nextSibling!, ctx, idx);
     }
 
     // left
     if (firstChild) {
       ctx.collectors.push({ idx: fromIdx!, prevIdx: initialIdx, getVal: nodeGetFirstChild });
-      buildContext(tree.firstChild!, ctx, fromIdx!, toIdx! - nextSibling);
+      buildContext(tree.firstChild!, ctx, fromIdx!);
     }
   }
 
diff --git a/tests/blockdom/block.test.ts b/tests/blockdom/block.test.ts
index ec69d729..98c80df7 100644
--- a/tests/blockdom/block.test.ts
+++ b/tests/blockdom/block.test.ts
@@ -227,6 +227,22 @@ describe("misc", () => {
     expect(fixture.innerHTML).toBe("<p>() =&gt; 3tostring</p>");
   });
 
+  test("block with 2 subblocks: variation", async () => {
+    const block = createBlock("<a><b><c><block-child-0/>2</c></b><block-child-1/></a>");
+    const tree = block([], [text("1"), text("3")]);
+    mount(tree, fixture);
+    expect(fixture.innerHTML).toBe("<a><b><c>12</c></b>3</a>");
+  });
+
+  test("block with 2 subblocks: another variation", async () => {
+    const block = createBlock(
+      `<a block-attribute-0="hello"><b><c><block-child-0/>2</c></b><block-child-1/></a>`
+    );
+    const tree = block(["world"], [text("1"), text("3")]);
+    mount(tree, fixture);
+    expect(fixture.innerHTML).toBe(`<a hello="world"><b><c>12</c></b>3</a>`);
+  });
+
   //     test.skip("reusing a block skips patching process", async () => {
   //       const block = createBlock('<div><block-text-0/></div>');
   //       const foo = block(["foo"]);