diff --git a/.gitignore b/.gitignore
index eee06c9..1edda7e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,3 +3,6 @@ __pycache__/
 *.so
 Cargo.lock
 .coverage
+/site
+/dist
+_pycrdt.*.pyd
diff --git a/docs/api_reference.md b/docs/api_reference.md
index 2050c17..95dc8ef 100644
--- a/docs/api_reference.md
+++ b/docs/api_reference.md
@@ -24,6 +24,11 @@
       - Transaction
       - TransactionEvent
       - UndoManager
+      - XmlElement
+      - XmlFragment
+      - XmlText
+      - XmlChildrenView
+      - XmlAttributesView
       - YMessageType
       - YSyncMessageType
       - create_awareness_message
diff --git a/python/pycrdt/__init__.py b/python/pycrdt/__init__.py
index e3139e3..94f1dd1 100644
--- a/python/pycrdt/__init__.py
+++ b/python/pycrdt/__init__.py
@@ -28,3 +28,7 @@
 from ._update import get_state as get_state
 from ._update import get_update as get_update
 from ._update import merge_updates as merge_updates
+from ._xml import XmlElement as XmlElement
+from ._xml import XmlEvent as XmlEvent
+from ._xml import XmlFragment as XmlFragment
+from ._xml import XmlText as XmlText
diff --git a/python/pycrdt/_base.py b/python/pycrdt/_base.py
index 8b82c03..08de2cd 100644
--- a/python/pycrdt/_base.py
+++ b/python/pycrdt/_base.py
@@ -21,6 +21,11 @@
 event_types: dict[Any, type[BaseEvent]] = {}
 
 
+def forbid_read_transaction(txn: Transaction):
+    if isinstance(txn, ReadTransaction):
+        raise RuntimeError("Read-only transaction cannot be used to modify document structure")
+
+
 class BaseDoc:
     _doc: _Doc
     _twin_doc: BaseDoc | None
@@ -91,8 +96,7 @@ def _get_or_insert(self, name: str, doc: Doc) -> Any: ...
     def _init(self, value: Any | None) -> None: ...
 
     def _forbid_read_transaction(self, txn: Transaction):
-        if isinstance(txn, ReadTransaction):
-            raise RuntimeError("Read-only transaction cannot be used to modify document structure")
+        forbid_read_transaction(txn)
 
     def _integrate(self, doc: Doc, integrated: Any) -> Any:
         prelim = self._prelim
diff --git a/python/pycrdt/_doc.py b/python/pycrdt/_doc.py
index eb0be01..8273af6 100644
--- a/python/pycrdt/_doc.py
+++ b/python/pycrdt/_doc.py
@@ -2,7 +2,7 @@
 
 from typing import Any, Callable, Iterable, Type, TypeVar, cast
 
-from ._base import BaseDoc, BaseType, base_types
+from ._base import BaseDoc, BaseType, base_types, forbid_read_transaction
 from ._pycrdt import Doc as _Doc
 from ._pycrdt import SubdocsEvent, Subscription, TransactionEvent
 from ._pycrdt import Transaction as _Transaction
@@ -160,7 +160,10 @@ def apply_update(self, update: bytes) -> None:
             except Exception as e:
                 self._twin_doc = Doc(dict(self))
                 raise e
-        self._doc.apply_update(update)
+        with self.transaction() as txn:
+            forbid_read_transaction(txn)
+            assert txn._txn is not None
+            self._doc.apply_update(txn._txn, update)
 
     def __setitem__(self, key: str, value: BaseType) -> None:
         """
diff --git a/python/pycrdt/_pycrdt.pyi b/python/pycrdt/_pycrdt.pyi
index 2b8cd69..766407d 100644
--- a/python/pycrdt/_pycrdt.pyi
+++ b/python/pycrdt/_pycrdt.pyi
@@ -1,4 +1,4 @@
-from typing import Any, Callable
+from typing import Any, Callable, Iterator
 
 class Doc:
     """Shared document."""
@@ -28,13 +28,16 @@ class Doc:
     def get_or_insert_map(self, name: str) -> Map:
         """Create a map root type on this document, or get an existing one."""
 
+    def get_or_insert_xml_fragment(self, name: str) -> XmlFragment:
+        """Create an XML fragment root type on this document, or get an existing one."""
+
     def get_state(self) -> bytes:
         """Get the current document state."""
 
     def get_update(self, state: bytes) -> bytes:
         """Get the update from the given state to the current state."""
 
-    def apply_update(self, update: bytes) -> None:
+    def apply_update(self, txn: Transaction, update: bytes) -> None:
         """Apply the update to the document."""
 
     def roots(self, txn: Transaction) -> dict[str, Text | Array | Map]:
@@ -94,15 +97,39 @@ class MapEvent:
     """Event generated by `Map.observe` method. Emitted during transaction commit
     phase."""
 
+class XmlEvent:
+    """Event generated by `Xml*.observe` methods. Emitted during transaction commit
+    phase."""
+
 class Text:
     """Shared text."""
 
     def len(self, txn: Transaction) -> int:
         """Returns the number of characters visible in the current shared text."""
 
-    def insert(self, txn: Transaction, index: int, chunk: str) -> None:
+    def insert(
+        self,
+        txn: Transaction,
+        index: int,
+        chunk: str,
+        attrs: Iterator[tuple[str, Any]] | None = None,
+    ) -> None:
         """Inserts a `chunk` of text at a given `index`."""
 
+    def insert_embed(
+        self,
+        txn: Transaction,
+        index: int,
+        embed: Any,
+        attrs: Iterator[tuple[str, Any]] | None = None,
+    ) -> None:
+        """Inserts an embed at a given `index`."""
+
+    def format(
+        self, txn: Transaction, index: int, len: int, attrs: Iterator[tuple[str, Any]]
+    ) -> None:
+        """Formats a range of elements"""
+
     def remove_range(self, txn: Transaction, index: int, len: int) -> None:
         """Removes up to `len` characters from th current shared text, starting at
         given`index`."""
@@ -110,6 +137,9 @@ class Text:
     def get_string(self, txn: Transaction) -> str:
         """Returns a text representation of the current shared text."""
 
+    def diff(self, txn: Transaction) -> list[tuple[Any, dict[str, Any] | None]]:
+        """Returns a sequence of formatted chunks"""
+
     def observe(self, callback: Callable[[TextEvent], None]) -> Subscription:
         """Subscribes a callback to be called with the shared text change event.
         Returns a subscription that can be used to unsubscribe."""
@@ -183,6 +213,126 @@ class Map:
         """Unsubscribes previously subscribed event callback identified by given
         `subscription`."""
 
+class XmlFragment:
+    def parent(self) -> XmlFragment | XmlElement | XmlText | None: ...
+    def get_string(self, txn: Transaction) -> str:
+        """Returns a text representation of the current shared xml."""
+
+    def len(self, txn: Transaction) -> int:
+        """Returns the numer of children of the current shared xml."""
+
+    def get(self, txn: Transaction, index: int) -> XmlFragment | XmlElement | XmlText | None:
+        """Gets a child item by index, or None if the index is out of bounds"""
+
+    def remove_range(self, txn: Transaction, index: int, len: int) -> None:
+        """Removes a range of children"""
+
+    def insert_str(self, txn: Transaction, index: int, text: str) -> XmlText:
+        """Inserts a text node"""
+
+    def insert_element_prelim(self, txn: Transaction, index: int, tag: str) -> XmlElement:
+        """Inserts an empty element node"""
+
+    def observe(self, callback: Callable[[XmlEvent], None]) -> Subscription:
+        """Subscribes a callback to be called with the xml change event.
+        Returns a subscription that can be used to unsubscribe."""
+
+    def observe_deep(self, callback: Callable[[XmlEvent], None]) -> Subscription:
+        """Subscribes a callback to be called with the xml change event
+        and its nested elements.
+        Returns a subscription that can be used to unsubscribe."""
+
+class XmlElement:
+    def parent(self) -> XmlFragment | XmlElement | XmlText | None: ...
+    def get_string(self, txn: Transaction) -> str:
+        """Returns a text representation of the current shared xml."""
+
+    def len(self, txn: Transaction) -> int:
+        """Returns the numer of children of the current shared xml."""
+
+    def get(self, txn: Transaction, index: int) -> XmlFragment | XmlElement | XmlText | None:
+        """Gets a child item by index, or None if the index is out of bounds"""
+
+    def remove_range(self, txn: Transaction, index: int, len: int) -> None:
+        """Removes a range of children"""
+
+    def insert_str(self, txn: Transaction, index: int, text: str) -> XmlText:
+        """Inserts a text node"""
+
+    def insert_element_prelim(self, txn: Transaction, index: int, tag: str) -> XmlElement:
+        """Inserts an empty element node"""
+
+    def attributes(self, txn: Transaction) -> list[tuple[str, str]]:
+        """Gets all attributes, as a list of `(key, value)` tuples"""
+
+    def attribute(self, txn: Transaction, name: str) -> str | None:
+        """Gets an attribute, or None if the attribute does not exist"""
+
+    def insert_attribute(self, txn: Transaction, name: str, value: str) -> None:
+        """Inserts or overwrites an attribute."""
+
+    def remove_attribute(self, txn: Transaction, name: str) -> None:
+        """Removes an attribute"""
+
+    def siblings(self, txn) -> list[XmlFragment | XmlElement | XmlText]:
+        """Gets the siblings of this node"""
+
+    def observe(self, callback: Callable[[XmlEvent], None]) -> Subscription:
+        """Subscribes a callback to be called with the xml change event.
+        Returns a subscription that can be used to unsubscribe."""
+
+    def observe_deep(self, callback: Callable[[XmlEvent], None]) -> Subscription:
+        """Subscribes a callback to be called with the xml change event
+        and its nested elements.
+        Returns a subscription that can be used to unsubscribe."""
+
+class XmlText:
+    def parent(self) -> XmlFragment | XmlElement | XmlText | None: ...
+    def get_string(self, txn: Transaction) -> str:
+        """Returns a text representation of the current shared xml."""
+
+    def attributes(self, txn: Transaction) -> list[tuple[str, str]]:
+        """Gets all attributes, as a list of `(key, value)` tuples"""
+
+    def attribute(self, txn: Transaction, name: str) -> str | None:
+        """Gets an attribute, or None if the attribute does not exist"""
+
+    def insert_attribute(self, txn: Transaction, name: str, value: str) -> None:
+        """Inserts or overwrites an attribute."""
+
+    def remove_attribute(self, txn: Transaction, name: str) -> None:
+        """Removes an attribute"""
+
+    def siblings(self, txn: Transaction) -> list[XmlFragment | XmlElement | XmlText]:
+        """Gets the siblings of this node"""
+
+    def insert(
+        self,
+        txn: Transaction,
+        index: int,
+        text: str,
+        attrs: Iterator[tuple[str, Any]] | None = None,
+    ):
+        """Inserts text, optionally with attributes"""
+
+    def remove_range(self, txn: Transaction, index: int, len: int):
+        """Removes text"""
+
+    def format(self, txn: Transaction, index: int, len: int, attrs: Iterator[tuple[str, Any]]):
+        """Adds attributes to a section of text"""
+
+    def diff(self, txn: Transaction) -> list[tuple[Any, dict[str, Any] | None]]:
+        """Returns a sequence of formatted chunks"""
+
+    def observe(self, callback: Callable[[XmlEvent], None]) -> Subscription:
+        """Subscribes a callback to be called with the xml change event.
+        Returns a subscription that can be used to unsubscribe."""
+
+    def observe_deep(self, callback: Callable[[XmlEvent], None]) -> Subscription:
+        """Subscribes a callback to be called with the xml change event
+        and its nested elements.
+        Returns a subscription that can be used to unsubscribe."""
+
 class UndoManager:
     """Undo manager."""
 
diff --git a/python/pycrdt/_text.py b/python/pycrdt/_text.py
index 21570a3..67a6515 100644
--- a/python/pycrdt/_text.py
+++ b/python/pycrdt/_text.py
@@ -1,6 +1,6 @@
 from __future__ import annotations
 
-from typing import TYPE_CHECKING, Callable, cast
+from typing import TYPE_CHECKING, Any, Callable, cast
 
 from ._base import BaseEvent, BaseType, base_types, event_types
 from ._pycrdt import Subscription
@@ -233,18 +233,56 @@ def clear(self) -> None:
         """Remove the entire range of characters."""
         del self[:]
 
-    def insert(self, index: int, value: str) -> None:
+    def insert(self, index: int, value: str, attrs: dict[str, Any] | None = None) -> None:
         """
         Inserts a string at a given index in the text.
+        ```py
         Doc()["text"] = text = Text("Hello World!")
         text.insert(5, ",")
         assert text == "Hello, World!"
+        ```
 
         Args:
             index: The index where to insert the string.
             value: The string to insert in the text.
+            attrs: Optional dictionary of attributes to apply
+        """
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            self.integrated.insert(
+                txn._txn, index, value, iter(attrs.items()) if attrs is not None else None
+            )
+
+    def insert_embed(self, index: int, value: Any, attrs: dict[str, Any] | None = None) -> None:
+        """
+        Insert 'value' as an embed at a given index in the text.
         """
-        self[index:index] = value
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            self.integrated.insert_embed(
+                txn._txn, index, value, iter(attrs.items()) if attrs is not None else None
+            )
+
+    def format(self, start: int, stop: int, attrs: dict[str, Any]) -> None:
+        """
+        Adds attribute to a section of text
+        """
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            start, stop = self._check_slice(slice(start, stop))
+            length = stop - start
+            if length > 0:
+                self.integrated.format(txn._txn, start, length, iter(attrs.items()))
+
+    def diff(self) -> list[tuple[Any, dict[str, Any] | None]]:
+        """
+        Returns list of formatted chunks that the current text corresponds to.
+
+        Each list item is a tuple containing the chunk's contents and formatting attributes. The
+        contents is usually the text as a string, but may be other data for embedded objects.
+        """
+        with self.doc.transaction() as txn:
+            return self.integrated.diff(txn._txn)
 
     def observe(self, callback: Callable[[TextEvent], None]) -> Subscription:
         """
diff --git a/python/pycrdt/_xml.py b/python/pycrdt/_xml.py
new file mode 100644
index 0000000..9823496
--- /dev/null
+++ b/python/pycrdt/_xml.py
@@ -0,0 +1,485 @@
+from __future__ import annotations
+
+from typing import TYPE_CHECKING, Iterator, overload
+
+from ._base import BaseEvent, BaseType, base_types, event_types
+from ._pycrdt import XmlElement as _XmlElement
+from ._pycrdt import XmlEvent as _XmlEvent
+from ._pycrdt import XmlFragment as _XmlFragment
+from ._pycrdt import XmlText as _XmlText
+
+if TYPE_CHECKING:  # pragma: no cover
+    from typing import Any, Iterable, Mapping, Sized, TypeVar
+
+    from ._doc import Doc
+
+    T = TypeVar("T")
+
+
+def _integrated_to_wrapper(
+    doc: Doc, inner: _XmlText | _XmlElement | _XmlFragment
+) -> XmlText | XmlElement | XmlFragment:
+    if isinstance(inner, _XmlElement):
+        return XmlElement(_doc=doc, _integrated=inner)
+    if isinstance(inner, _XmlFragment):
+        return XmlFragment(_doc=doc, _integrated=inner)
+    return XmlText(_doc=doc, _integrated=inner)
+
+
+def _check_slice(value: Sized, key: slice) -> tuple[int, int]:
+    if key.step is not None:
+        raise RuntimeError("Step not supported")
+    if key.start is None:
+        start = 0
+    elif key.start < 0:
+        raise RuntimeError("Negative start not supported")
+    else:
+        start = key.start
+    if key.stop is None:
+        stop = len(value)
+    elif key.stop < 0:
+        raise RuntimeError("Negative stop not supported")
+    else:
+        stop = key.stop
+    return start, stop
+
+
+class _XmlBaseMixin(BaseType):
+    _integrated: _XmlElement | _XmlText | _XmlFragment | None
+
+    @property
+    def parent(self) -> XmlFragment | XmlElement | XmlText | None:
+        """
+        The parent of this node, if any.
+        """
+        inner = self.integrated.parent()
+        if inner is None:
+            return None
+        return _integrated_to_wrapper(self.doc, inner)
+
+    def __str__(self):
+        with self.doc.transaction() as txn:
+            return self.integrated.get_string(txn._txn)
+
+    def __eq__(self, other: object):
+        if not isinstance(other, _XmlBaseMixin):
+            return False
+        return self.integrated == other.integrated
+
+    def __hash__(self) -> int:
+        return hash(self.integrated)
+
+
+class _XmlFragmentTraitMixin(_XmlBaseMixin):
+    _integrated: _XmlElement | _XmlFragment | None
+
+    @property
+    def children(self) -> XmlChildrenView:
+        """
+        A list-like view into this object's child nodes.
+        """
+        return XmlChildrenView(self)
+
+
+class _XmlTraitMixin(_XmlBaseMixin):
+    _integrated: _XmlElement | _XmlText | None
+
+    @property
+    def attributes(self) -> XmlAttributesView:
+        """
+        A dict-like view into this object's attributes.
+        """
+        return XmlAttributesView(self)
+
+
+class XmlFragment(_XmlFragmentTraitMixin):
+    _prelim: list[XmlFragment | XmlElement | XmlText] | None
+    _integrated: _XmlFragment | None
+
+    def __init__(
+        self,
+        init: Iterable[XmlFragment | XmlElement | XmlText] | None = None,
+        *,
+        _doc: Doc | None = None,
+        _integrated: _XmlFragment | None = None,
+    ) -> None:
+        super().__init__(
+            init=list(init) if init is not None else None,
+            _doc=_doc,
+            _integrated=_integrated,
+        )
+
+    def to_py(self) -> None:
+        raise ValueError("XmlFragment has no Python equivalent")
+
+    def _get_or_insert(self, name: str, doc: Doc) -> Any:
+        return doc._doc.get_or_insert_xml_fragment(name)
+
+    def _init(self, value: list[XmlElement | str] | None) -> None:
+        if value is None:
+            return
+        for obj in value:
+            self.children.append(obj)
+
+
+class XmlElement(_XmlFragmentTraitMixin, _XmlTraitMixin):
+    _prelim: tuple[str, list[tuple[str, str]], list[str | XmlElement | XmlText]] | None
+    _integrated: _XmlElement | None
+
+    def __init__(
+        self,
+        tag: str | None = None,
+        attributes: dict[str, str] | Iterable[tuple[str, str]] | None = None,
+        contents: Iterable[XmlFragment | XmlElement | XmlText] | None = None,
+        *,
+        _doc: Doc | None = None,
+        _integrated: _XmlElement | None = None,
+    ) -> None:
+        """
+        Creates a new preliminary element.
+
+        `tag` is required.
+        """
+        if _integrated is not None:
+            super().__init__(init=None, _doc=_doc, _integrated=_integrated)
+            return
+
+        if tag is None:
+            raise ValueError("XmlElement: tag is required")
+
+        if isinstance(attributes, dict):
+            init_attrs = list(attributes.items())
+        elif attributes is not None:
+            init_attrs = list(attributes)
+        else:
+            init_attrs = []
+
+        super().__init__(
+            init=(
+                tag,
+                init_attrs,
+                list(contents) if contents is not None else [],
+            )
+        )
+
+    def to_py(self) -> None:
+        raise ValueError("XmlElement has no Python equivalent")
+
+    def _get_or_insert(self, name: str, doc: Doc) -> Any:
+        raise ValueError("Cannot get an XmlElement from a doc - get an XmlFragment instead.")
+
+    def _init(
+        self, value: tuple[str, list[tuple[str, str]], list[str | XmlElement | XmlText]] | None
+    ):
+        assert value is not None
+        _, attrs, contents = value
+        with self.doc.transaction():
+            for k, v in attrs:
+                self.attributes[k] = v
+            for child in contents:
+                self.children.append(child)
+
+    @property
+    def tag(self) -> str | None:
+        """
+        Gets the element's tag.
+        """
+        return self.integrated.tag()
+
+
+class XmlText(_XmlTraitMixin):
+    """
+    A piece of text in an XML tree.
+
+    This is similar to the `Text` object, but instead of existing in a doc on its own, it is a child
+    of an `XmlElement` or `XmlFragment`.
+    """
+
+    _prelim: str
+    _integrated: _XmlText | None
+
+    def __init__(
+        self,
+        init: str = "",
+        *,
+        _doc: Doc | None = None,
+        _integrated: _XmlText | None = None,
+    ) -> None:
+        super().__init__(
+            init=init,
+            _doc=_doc,
+            _integrated=_integrated,
+        )
+
+    def _get_or_insert(self, _name: str, _doc: Doc) -> Any:
+        raise ValueError("Cannot get an XmlText from a doc - get an XmlFragment instead.")
+
+    def to_py(self) -> str:
+        if self._integrated is None:
+            return self._prelim
+        return str(self)
+
+    def _init(self, value: str | None) -> None:  # pragma: no cover
+        assert value is not None
+        with self.doc.transaction() as txn:
+            self.integrated.insert(txn._txn, 0, value)
+
+    def __len__(self) -> int:
+        with self.doc.transaction() as txn:
+            return self.integrated.len(txn._txn)
+
+    def __iadd__(self, value: str) -> XmlText:
+        with self.doc.transaction():
+            self.insert(len(self), value)
+        return self
+
+    def insert(self, index: int, value: str, attrs: Mapping[str, Any] | None = None) -> None:
+        """
+        Inserts text at the specified index, optionally with attributes
+        """
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            self.integrated.insert(
+                txn._txn, index, value, iter(attrs.items()) if attrs is not None else iter([])
+            )
+
+    def insert_embed(self, index: int, value: Any, attrs: dict[str, Any] | None = None) -> None:
+        """
+        Insert 'value' as an embed at a given index in the text.
+        """
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            self.integrated.insert_embed(
+                txn._txn, index, value, iter(attrs.items()) if attrs is not None else None
+            )
+
+    def format(self, start: int, stop: int, attrs: dict[str, Any]) -> None:
+        """
+        Formats existing text with attributes.
+
+        Affects the text from the 'start' index (inclusive) to the 'stop' index (exclusive).
+        """
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            start, stop = _check_slice(self, slice(start, stop))
+            length = stop - start
+            if length > 0:
+                self.integrated.format(txn._txn, start, length, iter(attrs.items()))
+
+    def diff(self) -> list[tuple[Any, dict[str, Any] | None]]:
+        """
+        Returns list of formatted chunks that the current text corresponds to.
+
+        Each list item is a tuple containing the chunk's contents and formatting attributes. The
+        contents is usually the text as a string, but may be other data for embedded objects.
+        """
+        with self.doc.transaction() as txn:
+            return self.integrated.diff(txn._txn)
+
+    def __delitem__(self, key: int | slice) -> None:
+        with self.doc.transaction() as txn:
+            self._forbid_read_transaction(txn)
+            if isinstance(key, int):
+                self.integrated.remove_range(txn._txn, key, 1)
+            elif isinstance(key, slice):
+                start, stop = _check_slice(self, key)
+                length = stop - start
+                if length > 0:
+                    self.integrated.remove_range(txn._txn, start, length)
+            else:
+                raise TypeError(f"Index not supported: {key}")
+
+    def clear(self) -> None:
+        """Remove the entire range of characters."""
+        del self[:]
+
+
+class XmlEvent(BaseEvent):
+    __slots__ = ["children_changed", "target", "path", "delta", "keys"]
+
+
+class XmlAttributesView:
+    """
+    A list-like view into an `XmlFragment` or `XmlElement`'s child nodes.
+
+    Supports `len`, `in`, and getting, setting, and deleting by index. Iteration will iterate over
+    key/value tuples.
+    """
+
+    inner: _XmlTraitMixin
+
+    def __init__(self, inner: _XmlTraitMixin) -> None:
+        self.inner = inner
+
+    def get(self, key: str) -> Any | None:
+        """
+        Gets the value of an attribute, or `None` if there is no attribute with the passed in name.
+        """
+        with self.inner.doc.transaction() as txn:
+            v = self.inner.integrated.attribute(txn._txn, key)
+            if v is None:
+                return None
+            return v
+
+    def __getitem__(self, key: str) -> Any:
+        """
+        Gets an attribute by name.
+        """
+        v = self.get(key)
+        if v is None:
+            raise KeyError(key)
+        return v
+
+    def __setitem__(self, key: str, value: Any) -> None:
+        """
+        Sets an attribute.
+        """
+        with self.inner.doc.transaction() as txn:
+            self.inner._forbid_read_transaction(txn)
+            self.inner.integrated.insert_attribute(txn._txn, key, value)
+
+    def __delitem__(self, key: str) -> None:
+        """
+        Deletes an attribute
+        """
+        with self.inner.doc.transaction() as txn:
+            self.inner._forbid_read_transaction(txn)
+            self.inner.integrated.remove_attribute(txn._txn, key)
+
+    def __contains__(self, key: str) -> bool:
+        """
+        Checks if an attribute exists
+        """
+        return self.get(key) is not None
+
+    def __len__(self) -> int:
+        """
+        Gets the number of attributes
+        """
+        with self.inner.doc.transaction() as txn:
+            return len(self.inner.integrated.attributes(txn._txn))
+
+    def __iter__(self) -> Iterable[tuple[str, Any]]:
+        """
+        Iterates over each attribute, as key/value tuples.
+        """
+        with self.inner.doc.transaction() as txn:
+            return iter(self.inner.integrated.attributes(txn._txn))
+
+
+class XmlChildrenView:
+    """
+    A list-like view into an `XmlFragment` or `XmlElement`'s child nodes.
+
+    Supports `iter`, `len`, and getting, setting, and deleting by index.
+    """
+
+    inner: _XmlFragmentTraitMixin
+
+    def __init__(self, inner: _XmlFragmentTraitMixin) -> None:
+        self.inner = inner
+
+    def __len__(self) -> int:
+        """
+        Gets the number of child nodes
+        """
+        with self.inner.doc.transaction() as txn:
+            return self.inner.integrated.len(txn._txn)
+
+    def __getitem__(self, index: int) -> XmlElement | XmlFragment | XmlText:
+        """
+        Gets a child by its index.
+        """
+        with self.inner.doc.transaction() as txn:
+            if index >= len(self):
+                raise IndexError(index)
+            return _integrated_to_wrapper(
+                self.inner.doc, self.inner.integrated.get(txn._txn, index)
+            )
+
+    def __delitem__(self, key: int | slice) -> None:
+        """
+        Removes a child (integer index) or a range of children (slice index).
+        """
+        with self.inner.doc.transaction() as txn:
+            self.inner._forbid_read_transaction(txn)
+            if isinstance(key, int):
+                self.inner.integrated.remove_range(txn._txn, key, 1)
+            elif isinstance(key, slice):
+                start, stop = _check_slice(self, key)
+                length = stop - start
+                if length > 0:
+                    self.inner.integrated.remove_range(txn._txn, start, length)
+            else:
+                raise TypeError(f"Index not supported: {key}")
+
+    def __setitem__(self, key: int, value: str | XmlText | XmlElement):
+        """
+        Replaces a child. Equivalent to deleting the index and then inserting the new value.
+        """
+        with self.inner.doc.transaction():
+            del self[key]
+            self.insert(key, value)
+
+    def __iter__(self) -> Iterator[XmlText | XmlElement | XmlFragment]:
+        """
+        Iterates over child nodes.
+        """
+        with self.inner.doc.transaction():
+            children = [self[i] for i in range(len(self))]
+        return iter(children)
+
+    @overload
+    def insert(self, index: int, element: str | XmlText) -> XmlText: ...
+    @overload
+    def insert(self, index: int, element: XmlElement) -> XmlElement: ...
+
+    def insert(self, index: int, element: str | XmlText | XmlElement) -> XmlText | XmlElement:
+        """
+        Inserts a new node into the element's or fragment's children at the specified index.
+
+        Passing in a `str` will convert it to an `XmlText`. Returns the passed in element, which
+        will now be integrated into the tree.
+        """
+        with self.inner.doc.transaction() as txn:
+            self.inner._forbid_read_transaction(txn)
+            if index > len(self):
+                raise IndexError(index)
+            if isinstance(element, str):
+                integrated = self.inner.integrated.insert_str(txn._txn, index, element)
+                return XmlText(_doc=self.inner.doc, _integrated=integrated)
+            elif isinstance(element, XmlText):
+                if element._integrated is not None:
+                    raise ValueError("Cannot insert an integrated XmlText")
+                integrated = self.inner.integrated.insert_str(txn._txn, index, element.prelim)
+                element._integrate(self.inner.doc, integrated)
+                return element
+            elif isinstance(element, XmlElement):
+                if element._integrated is not None:
+                    raise ValueError("Cannot insert an integrated XmlElement")
+                prelim = element.prelim
+                integrated = self.inner.integrated.insert_element_prelim(txn._txn, index, prelim[0])
+                element._integrate(self.inner.doc, integrated)
+                element._init(prelim)
+                return element
+            else:
+                raise TypeError("Cannot add value to XML: " + repr(element))
+
+    @overload
+    def append(self, element: str | XmlText) -> XmlText: ...
+    @overload
+    def append(self, element: XmlElement) -> XmlElement: ...
+
+    def append(self, element: str | XmlText | XmlElement) -> XmlText | XmlElement:
+        """
+        Appends a new node to the end of the element's or fragment's children.
+
+        Equivalent to `insert` at index `len(self)`.
+        """
+        return self.insert(len(self), element)
+
+
+base_types[_XmlFragment] = XmlFragment
+base_types[_XmlElement] = XmlElement
+base_types[_XmlText] = XmlText
+event_types[_XmlEvent] = XmlEvent
diff --git a/src/doc.rs b/src/doc.rs
index 1e3b919..fb5ae19 100644
--- a/src/doc.rs
+++ b/src/doc.rs
@@ -2,14 +2,7 @@ use pyo3::prelude::*;
 use pyo3::exceptions::{PyRuntimeError, PyValueError};
 use pyo3::types::{PyBytes, PyDict, PyLong, PyList};
 use yrs::{
-    Doc as _Doc,
-    ReadTxn,
-    Transact,
-    TransactionMut,
-    TransactionCleanupEvent,
-    SubdocsEvent as _SubdocsEvent,
-    StateVector,
-    Update,
+    Doc as _Doc, ReadTxn, StateVector, SubdocsEvent as _SubdocsEvent, Transact, TransactionCleanupEvent, TransactionMut, Update
 };
 use yrs::updates::encoder::Encode;
 use yrs::updates::decoder::Decode;
@@ -19,6 +12,7 @@ use crate::map::Map;
 use crate::transaction::Transaction;
 use crate::subscription::Subscription;
 use crate::type_conversions::ToPython;
+use crate::xml::XmlFragment;
 
 
 #[pyclass]
@@ -72,6 +66,10 @@ impl Doc {
         Ok(pyshared)
     }
 
+    fn get_or_insert_xml_fragment(&mut self, name: &str) -> XmlFragment {
+        self.doc.get_or_insert_xml_fragment(name).into()
+    }
+
     fn create_transaction(&self, py: Python<'_>) -> PyResult<Py<Transaction>> {
         if let Ok(txn) = self.doc.try_transact_mut() {
             let t: Py<Transaction> = Py::new(py, Transaction::from(txn))?;
@@ -105,15 +103,12 @@ impl Doc {
         Ok(bytes)
     }
 
-    fn apply_update(&mut self, update: &Bound<'_, PyBytes>) -> PyResult<()> {
-        let mut txn = self.doc.transact_mut();
-        let bytes: &[u8] = update.extract()?;
-        let u = Update::decode_v1(&bytes).unwrap();
-        if let Ok(_) = txn.apply_update(u) {
-            return Ok(());
-        } else {
-            return Err(PyRuntimeError::new_err("Cannot apply update"));
-        }
+    fn apply_update(&mut self, txn: &mut Transaction, update: &Bound<'_, PyBytes>) -> PyResult<()> {
+        let u = Update::decode_v1(update.as_bytes()).unwrap();
+        let mut _t = txn.transaction();
+        let t = _t.as_mut().unwrap().as_mut();
+        t.apply_update(u)
+            .map_err(|e| PyRuntimeError::new_err(format!("Cannot apply update: {}", e)))
     }
 
     fn roots(&self, py: Python<'_>, txn: &mut Transaction) -> PyObject {
diff --git a/src/lib.rs b/src/lib.rs
index 2cb2fc4..d3187c8 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -1,4 +1,8 @@
 use pyo3::prelude::*;
+use xml::XmlElement;
+use xml::XmlEvent;
+use xml::XmlFragment;
+use xml::XmlText;
 mod doc;
 mod text;
 mod array;
@@ -8,6 +12,7 @@ mod subscription;
 mod type_conversions;
 mod undo;
 mod update;
+mod xml;
 use crate::doc::Doc;
 use crate::doc::TransactionEvent;
 use crate::doc::SubdocsEvent;
@@ -34,6 +39,10 @@ fn _pycrdt(_py: Python, m: &Bound<'_, PyModule>) -> PyResult<()> {
     m.add_class::<StackItem>()?;
     m.add_class::<Subscription>()?;
     m.add_class::<UndoManager>()?;
+    m.add_class::<XmlElement>()?;
+    m.add_class::<XmlFragment>()?;
+    m.add_class::<XmlText>()?;
+    m.add_class::<XmlEvent>()?;
     m.add_function(wrap_pyfunction!(get_state, m)?)?;
     m.add_function(wrap_pyfunction!(get_update, m)?)?;
     m.add_function(wrap_pyfunction!(merge_updates, m)?)?;
diff --git a/src/text.rs b/src/text.rs
index 7970ca0..5bc3f1b 100644
--- a/src/text.rs
+++ b/src/text.rs
@@ -1,5 +1,5 @@
 use pyo3::prelude::*;
-use pyo3::types::{PyList, PyString};
+use pyo3::types::{PyDict, PyIterator, PyList, PyString, PyTuple};
 use yrs::{
     GetString,
     Observable,
@@ -7,10 +7,10 @@ use yrs::{
     Text as _Text,
     TransactionMut,
 };
-use yrs::types::text::TextEvent as _TextEvent;
+use yrs::types::text::{TextEvent as _TextEvent, YChange};
 use crate::transaction::Transaction;
 use crate::subscription::Subscription;
-use crate::type_conversions::ToPython;
+use crate::type_conversions::{py_to_any, py_to_attrs, ToPython};
 
 
 #[pyclass]
@@ -36,10 +36,38 @@ impl Text {
         Ok(len)
     }
 
-    fn insert(&self, txn: &mut Transaction, index: u32, chunk: &str) -> PyResult<()> {
+    #[pyo3(signature = (txn, index, chunk, attrs=None))]
+    fn insert(&self, txn: &mut Transaction, index: u32, chunk: &str, attrs: Option<Bound<'_, PyIterator>>) -> PyResult<()> {
         let mut _t = txn.transaction();
         let mut t = _t.as_mut().unwrap().as_mut();
-        self.text.insert(&mut t, index, chunk);
+        if let Some(attrs) = attrs {
+            let attrs = py_to_attrs(attrs)?;
+            self.text.insert_with_attributes(&mut t, index, chunk, attrs);
+        } else {
+            self.text.insert(&mut t, index, chunk);
+        }
+        Ok(())
+    }
+
+    #[pyo3(signature = (txn, index, embed, attrs=None))]
+    fn insert_embed(&self, txn: &mut Transaction, index: u32, embed: Bound<'_, PyAny>, attrs: Option<Bound<'_, PyIterator>>) -> PyResult<()> {
+        let embed = py_to_any(&embed);
+        let mut _t = txn.transaction();
+        let mut t = _t.as_mut().unwrap().as_mut();
+        if let Some(attrs) = attrs {
+            let attrs = py_to_attrs(attrs)?;
+            self.text.insert_embed_with_attributes(&mut t, index, embed, attrs);
+        } else {
+            self.text.insert_embed(&mut t, index, embed);
+        }
+        Ok(())
+    }
+
+    fn format(&self, txn: &mut Transaction, index: u32, len: u32, attrs: Bound<'_, PyIterator>) -> PyResult<()> {
+        let mut _t = txn.transaction();
+        let mut t = _t.as_mut().unwrap().as_mut();
+        let attrs = py_to_attrs(attrs)?;
+        self.text.format(&mut t, index, len, attrs);
         Ok(())
     }
 
@@ -58,6 +86,37 @@ impl Text {
         Python::with_gil(|py| PyString::new_bound(py, &s).into())
     }
 
+    fn diff<'py>(&self, py: Python<'py>, txn: &mut Transaction) -> Bound<'py, PyList> {
+        let mut t0 = txn.transaction();
+        let t1 = t0.as_mut().unwrap();
+        let t = t1.as_ref();
+
+        let iter = self.text.diff(t, YChange::identity)
+            .into_iter()
+            .map(|diff| {
+                let attrs = diff.attributes.map(|attrs| {
+                    let pyattrs = PyDict::new_bound(py);
+                    for (name, value) in attrs.into_iter() {
+                        pyattrs.set_item(
+                            PyString::intern_bound(py, &*name),
+                            value.into_py(py),
+                        ).unwrap();
+                    }
+                    pyattrs.into_any().unbind()
+                }).unwrap_or_else(|| py.None());
+                
+                PyTuple::new_bound(py, [
+                    diff.insert.into_py(py),
+                    attrs,
+                ])
+            });
+
+        PyList::new_bound(
+            py,
+            iter
+        )
+    }
+
     fn observe(&mut self, py: Python<'_>, f: PyObject) -> PyResult<Py<Subscription>> {
         let sub = self.text.observe(move |txn, e| {
             Python::with_gil(|py| {
diff --git a/src/type_conversions.rs b/src/type_conversions.rs
index 12ee4f9..bd0a9b9 100644
--- a/src/type_conversions.rs
+++ b/src/type_conversions.rs
@@ -1,14 +1,15 @@
 use pyo3::prelude::*;
-use pyo3::types::{IntoPyDict, PyAny, PyBool, PyByteArray, PyDict, PyFloat, PyList, PyLong, PyString, PyBytes};
+use pyo3::types::{IntoPyDict, PyAny, PyBool, PyByteArray, PyBytes, PyDict, PyFloat, PyIterator, PyList, PyLong, PyString};
 use yrs::types::{Attrs, Change, EntryChange, Delta, Events, Path, PathSegment};
-use yrs::{Any, Out, TransactionMut};
-use std::ops::Deref;
+use yrs::{Any, Out, TransactionMut, XmlOut};
 use std::collections::{VecDeque, HashMap};
+use std::sync::Arc;
 use crate::text::{Text, TextEvent};
 use crate::array::{Array, ArrayEvent};
 use crate::map::{Map, MapEvent};
 use crate::doc::Doc;
 use crate::undo::StackItem;
+use crate::xml::{XmlElement, XmlEvent, XmlFragment, XmlText};
 
 pub trait ToPython {
     fn into_py(self, py: Python) -> PyObject;
@@ -77,7 +78,7 @@ impl ToPython for Delta {
                 result.set_item("insert", value).unwrap();
 
                 if let Some(attrs) = attrs {
-                    let attrs = attrs_into_py(attrs.deref());
+                    let attrs = (&*attrs).into_py(py);
                     result.set_item("attributes", attrs).unwrap();
                 }
             }
@@ -85,7 +86,7 @@ impl ToPython for Delta {
                 result.set_item("retain", len).unwrap();
 
                 if let Some(attrs) = attrs {
-                    let attrs = attrs_into_py(attrs.deref());
+                    let attrs = (&*attrs).into_py(py);
                     result.set_item("attributes", attrs).unwrap();
                 }
             }
@@ -97,7 +98,7 @@ impl ToPython for Delta {
     }
 }
 
-impl ToPython for Out{
+impl ToPython for Out {
     fn into_py(self, py: Python) -> pyo3::PyObject {
         match self {
             Out::Any(v) => v.into_py(py),
@@ -105,23 +106,49 @@ impl ToPython for Out{
             Out::YArray(v) => Array::from(v).into_py(py),
             Out::YMap(v) => Map::from(v).into_py(py),
             Out::YDoc(v) => Doc::from(v).into_py(py),
-            _ => pyo3::IntoPy::into_py(py.None(), py),
-            //Out::YXmlElement(v) => YXmlElement::from(v).into_py(py),
-            //Out::YXmlText(v) => YXmlText::from(v).into_py(py),
+            Out::YXmlElement(v) => XmlElement::from(v).into_py(py),
+            Out::YXmlText(v) => XmlText::from(v).into_py(py),
+            Out::YXmlFragment(v) => XmlFragment::from(v).into_py(py),
+            Out::UndefinedRef(_) => pyo3::IntoPy::into_py(py.None(), py),
         }
     }
 }
 
-fn attrs_into_py(attrs: &Attrs) -> PyObject {
-    Python::with_gil(|py| {
+impl ToPython for XmlOut {
+    fn into_py(self, py: Python) -> PyObject {
+        match self {
+            XmlOut::Element(xml_element_ref) => Py::new(py, XmlElement::from(xml_element_ref))
+                .unwrap()
+                .into_any(),
+            XmlOut::Fragment(xml_fragment_ref) => Py::new(py, XmlFragment::from(xml_fragment_ref))
+                .unwrap()
+                .into_any(),
+            XmlOut::Text(xml_text_ref) => {
+                Py::new(py, XmlText::from(xml_text_ref)).unwrap().into_any()
+            }
+        }
+    }
+}
+
+impl<T> ToPython for Option<T>
+where
+    T: ToPython,
+{
+    fn into_py(self, py: Python) -> PyObject {
+        self.map(|v| v.into_py(py)).unwrap_or_else(|| py.None())
+    }
+}
+
+impl ToPython for &'_ Attrs {
+    fn into_py(self, py: Python) -> PyObject {
         let o = PyDict::new_bound(py);
-        for (key, value) in attrs.iter() {
+        for (key, value) in self.iter() {
             let key = key.as_ref();
             let value = Out::Any(value.clone()).into_py(py);
             o.set_item(key, value).unwrap();
         }
         o.into()
-    })
+    }
 }
 
 impl ToPython for &Change {
@@ -255,10 +282,21 @@ pub(crate) fn events_into_py(txn: &TransactionMut, events: &Events) -> PyObject
             yrs::types::Event::Text(e_txt) => TextEvent::new(e_txt, txn).into_py(py),
             yrs::types::Event::Array(e_arr) => ArrayEvent::new(e_arr, txn).into_py(py),
             yrs::types::Event::Map(e_map) => MapEvent::new(e_map, txn).into_py(py),
-            //yrs::types::Event::XmlElement(e_xml) => YXmlEvent::new(e_xml, txn).into_py(py),
-            //yrs::types::Event::XmlText(e_xml) => YXmlTextEvent::new(e_xml, txn).into_py(py),
-            _ => py.None(),
+            yrs::types::Event::XmlFragment(e_xml) => unsafe { XmlEvent::from_xml_event(e_xml, txn, py) }.into_py(py),
+            yrs::types::Event::XmlText(e_xml) => unsafe { XmlEvent::from_xml_text_event(e_xml, txn, py) }.into_py(py),
         });
         PyList::new_bound(py, py_events).into()
     })
 }
+
+/// Converts an iterator of k,v tuples to an [`Attrs`] map
+pub(crate) fn py_to_attrs<'py>(
+    pyobj: Bound<'py, PyIterator>,
+) -> PyResult<Attrs> {
+    pyobj.map(|res| res.and_then(|item| {
+        let key = item.get_item(0)?.extract::<Bound<PyString>>()?;
+        let value = item.get_item(1).map(|v| py_to_any(&v))?;
+        Ok((Arc::from(key.to_str()?), value))
+    })).collect::<PyResult<Attrs>>()
+}
+
diff --git a/src/xml.rs b/src/xml.rs
new file mode 100644
index 0000000..b01753e
--- /dev/null
+++ b/src/xml.rs
@@ -0,0 +1,380 @@
+
+use pyo3::types::{PyAnyMethods, PyDict, PyIterator, PyList, PyString, PyTuple};
+use pyo3::{pyclass, pymethods, Bound, IntoPy as _, PyAny, PyObject, PyResult, Python};
+use yrs::types::text::YChange;
+use yrs::types::xml::{XmlEvent as _XmlEvent, XmlTextEvent as _XmlTextEvent};
+use yrs::{
+    DeepObservable, GetString as _, Observable as _, Text as _, TransactionMut, Xml as _, XmlElementPrelim, XmlElementRef, XmlFragment as _, XmlFragmentRef, XmlOut, XmlTextPrelim, XmlTextRef
+};
+
+use crate::subscription::Subscription;
+use crate::type_conversions::{events_into_py, py_to_any, py_to_attrs, EntryChangeWrapper};
+use crate::{transaction::Transaction, type_conversions::ToPython};
+
+/// Implements methods common to `XmlFragment`, `XmlElement`, and `XmlText`.
+macro_rules! impl_xml_methods {
+    (
+        $typ:ident[
+            $inner:ident
+            // For `XmlFragment` and `XmlElement`, implements methods from `yrs::types::xml::XmlFragment`
+            $(, fragment: $finner:ident)?
+            // For `XmlElement` and `XmlText`, implements methods from `yrs::types::xml::Xml`
+            $(, xml: $xinner:ident)?
+        ] {
+            // Methods specific to the type
+            $($extra:tt)*
+        }
+    ) => {
+        #[pymethods]
+        impl $typ {
+            fn parent(&self, py: Python<'_>) -> PyObject {
+                self.$inner.parent().into_py(py)
+            }
+
+            fn get_string(&self, txn: &mut Transaction) -> String {
+                let mut t0 = txn.transaction();
+                let t1 = t0.as_mut().unwrap();
+                let t = t1.as_ref();
+                self.$inner.get_string(t)
+            }
+
+            fn len(&self, txn: &mut Transaction)  -> u32 {
+                let mut t0 = txn.transaction();
+                let t1 = t0.as_mut().unwrap();
+                let t = t1.as_ref();
+                self.$inner.len(t)
+            }
+
+            $(
+                fn get(&self, py: Python<'_>, txn: &mut Transaction, index: u32) -> PyObject {
+                    let mut t0 = txn.transaction();
+                    let t1 = t0.as_mut().unwrap();
+                    let t = t1.as_ref();
+                    self.$finner.get(t, index).into_py(py)
+                }
+
+                fn remove_range(&self, txn: &mut Transaction, index: u32, len: u32) {
+                    let mut _t = txn.transaction();
+                    let mut t = _t.as_mut().unwrap().as_mut();
+                    self.$finner.remove_range(&mut t, index, len);
+                }
+
+                fn insert_str(&self, txn: &mut Transaction, index: u32, text: &str) -> XmlText {
+                    let mut _t = txn.transaction();
+                    let mut t = _t.as_mut().unwrap().as_mut();
+                    self.$finner.insert(&mut t, index, XmlTextPrelim::new(text)).into()
+                }
+
+                fn insert_element_prelim(&self, txn: &mut Transaction, index: u32, tag: &str) -> XmlElement {
+                    let mut _t = txn.transaction();
+                    let mut t = _t.as_mut().unwrap().as_mut();
+                    self.$finner.insert(&mut t, index, XmlElementPrelim::empty(tag)).into()
+                }
+            )?
+
+            $(
+                fn attributes(&self, txn: &mut Transaction) -> Vec<(String, String)> {
+                    let mut t0 = txn.transaction();
+                    let t1 = t0.as_mut().unwrap();
+                    let t = t1.as_ref();
+                    self.$xinner.attributes(t).map(|(k,v)| (String::from(k), v)).collect()
+                }
+
+                fn attribute(&self, txn: &mut Transaction, name: &str) -> Option<String> {
+                    let mut t0 = txn.transaction();
+                    let t1 = t0.as_mut().unwrap();
+                    let t = t1.as_ref();
+                    self.$xinner.get_attribute(t, name)
+                }
+            
+                fn insert_attribute(&self, txn: &mut Transaction, name: &str, value: &str) {
+                    let mut _t = txn.transaction();
+                    let mut t = _t.as_mut().unwrap().as_mut();
+                    self.$xinner.insert_attribute(&mut t, name, value);
+                }
+
+                fn remove_attribute(&self, txn: &mut Transaction, name: &str) {
+                    let mut _t = txn.transaction();
+                    let mut t = _t.as_mut().unwrap().as_mut();
+                    self.$xinner.remove_attribute(&mut t, &name);
+                }
+
+                fn siblings(&self, py: Python<'_>, txn: &mut Transaction) -> Vec<PyObject> {
+                    let mut t0 = txn.transaction();
+                    let t1 = t0.as_mut().unwrap();
+                    let t = t1.as_ref();
+                    self.$xinner.siblings(t).map(|node| node.into_py(py)).collect()
+                }
+            )?
+
+            $($extra)*
+        }
+
+        impl std::hash::Hash for $typ {
+            fn hash<H: std::hash::Hasher>(&self, state: &mut H) {
+                let branch: &yrs::branch::Branch = self.$inner.as_ref();
+                branch.id().hash(state)
+            }
+        }
+    };
+}
+
+#[pyclass(eq, frozen, hash)]
+#[derive(PartialEq, Eq)]
+pub struct XmlFragment {
+    pub fragment: XmlFragmentRef,
+}
+
+impl From<XmlFragmentRef> for XmlFragment {
+    fn from(value: XmlFragmentRef) -> Self {
+        XmlFragment { fragment: value }
+    }
+}
+
+impl_xml_methods!(XmlFragment[fragment, fragment: fragment] {
+    fn observe(&self, f: PyObject) -> Subscription {
+        self.fragment.observe(move |txn, e| {
+            Python::with_gil(|py| {
+                let e = unsafe { XmlEvent::from_xml_event(e, txn, py) };
+                if let Err(err) = f.call1(py, (e,)) {
+                    err.restore(py)
+                }
+            });
+        }).into()
+    }
+
+    fn observe_deep(&self, f: PyObject) -> Subscription {
+        self.fragment.observe_deep(move |txn, events| {
+            Python::with_gil(|py| {
+                let events = events_into_py(txn, events);
+                if let Err(err) = f.call1(py, (events,)) {
+                    err.restore(py);
+                }
+            })
+        }).into()
+    }
+});
+
+#[pyclass(eq, frozen, hash)]
+#[derive(PartialEq, Eq)]
+pub struct XmlElement {
+    pub element: XmlElementRef,
+}
+
+impl From<XmlElementRef> for XmlElement {
+    fn from(value: XmlElementRef) -> Self {
+        XmlElement { element: value }
+    }
+}
+
+impl_xml_methods!(XmlElement[element, fragment: element, xml: element] {
+    fn tag(&self) -> Option<String> {
+        self.element.try_tag().map(|s| String::from(&**s))
+    }
+
+    fn observe(&self, f: PyObject) -> Subscription {
+        self.element.observe(move |txn, e| {
+            Python::with_gil(|py| {
+                let e = unsafe { XmlEvent::from_xml_event(e, txn, py) };
+                if let Err(err) = f.call1(py, (e,)) {
+                    err.restore(py)
+                }
+            });
+        }).into()
+    }
+
+    fn observe_deep(&self, f: PyObject) -> Subscription {
+        self.element.observe_deep(move |txn, events| {
+            Python::with_gil(|py| {
+                let events = events_into_py(txn, events);
+                if let Err(err) = f.call1(py, (events,)) {
+                    err.restore(py);
+                }
+            })
+        }).into()
+    }
+});
+
+#[pyclass(eq, frozen, hash)]
+#[derive(PartialEq, Eq)]
+pub struct XmlText {
+    pub text: XmlTextRef,
+}
+
+impl From<XmlTextRef> for XmlText {
+    fn from(value: XmlTextRef) -> Self {
+        XmlText { text: value }
+    }
+}
+
+impl_xml_methods!(XmlText[text, xml: text] {
+    #[pyo3(signature = (txn, index, text, attrs=None))]
+    fn insert(&self, txn: &mut Transaction, index: u32, text: &str, attrs: Option<Bound<'_, PyIterator>>) -> PyResult<()> {
+        let mut _t = txn.transaction();
+        let mut t = _t.as_mut().unwrap().as_mut();
+        if let Some(attrs) = attrs {
+            let attrs = py_to_attrs(attrs)?;
+            self.text.insert_with_attributes(&mut t, index, text, attrs);
+        } else {
+            self.text.insert(&mut t, index, text);
+        }
+        Ok(())
+    }
+
+    #[pyo3(signature = (txn, index, embed, attrs=None))]
+    fn insert_embed<'py>(&self, txn: &mut Transaction, index: u32, embed: Bound<'py, PyAny>, attrs: Option<Bound<'_, PyIterator>>) -> PyResult<()> {
+        let embed = py_to_any(&embed);
+        let mut _t = txn.transaction();
+        let mut t = _t.as_mut().unwrap().as_mut();
+        if let Some(attrs) = attrs {
+            let attrs = py_to_attrs(attrs)?;
+            self.text.insert_embed_with_attributes(&mut t, index, embed, attrs);
+        } else {
+            self.text.insert_embed(&mut t, index, embed);
+        }
+        Ok(())
+    }
+
+    fn remove_range(&self, txn: &mut Transaction, index: u32, len: u32) {
+        let mut _t = txn.transaction();
+        let mut t = _t.as_mut().unwrap().as_mut();
+        self.text.remove_range(&mut t, index, len);
+    }
+
+    fn format(&self, txn: &mut Transaction, index: u32, len: u32, attrs: Bound<'_, PyIterator>) -> PyResult<()> {
+        let attrs = py_to_attrs(attrs)?;
+        let mut _t = txn.transaction();
+        let mut t = _t.as_mut().unwrap().as_mut();
+        self.text.format(&mut t, index, len, attrs);
+        Ok(())
+    }
+
+    fn diff<'py>(&self, py: Python<'py>, txn: &mut Transaction) -> Bound<'py, PyList> {
+        let mut t0 = txn.transaction();
+        let t1 = t0.as_mut().unwrap();
+        let t = t1.as_ref();
+
+        let iter = self.text.diff(t, YChange::identity)
+            .into_iter()
+            .map(|diff| {
+                let attrs = diff.attributes.map(|attrs| {
+                    let pyattrs = PyDict::new_bound(py);
+                    for (name, value) in attrs.into_iter() {
+                        pyattrs.set_item(
+                            PyString::intern_bound(py, &*name),
+                            value.into_py(py),
+                        ).unwrap();
+                    }
+                    pyattrs.into_any().unbind()
+                }).unwrap_or_else(|| py.None());
+
+                PyTuple::new_bound(py, [
+                    diff.insert.into_py(py),
+                    attrs,
+                ])
+            });
+
+        PyList::new_bound(
+            py,
+            iter
+        )
+    }
+
+    fn observe(&self, f: PyObject) -> Subscription {
+        self.text.observe(move |txn, e| {
+            Python::with_gil(|py| {
+                let e = unsafe { XmlEvent::from_xml_text_event(e, txn, py) };
+                if let Err(err) = f.call1(py, (e,)) {
+                    err.restore(py)
+                }
+            });
+        }).into()
+    }
+
+    fn observe_deep(&self, f: PyObject) -> Subscription {
+        self.observe(f)
+    }
+});
+
+
+
+#[pyclass(unsendable)]
+pub struct XmlEvent {
+    txn: *const TransactionMut<'static>,
+    transaction: Option<PyObject>,
+    #[pyo3(get)]
+    children_changed: PyObject,
+    #[pyo3(get)]
+    target: PyObject,
+    #[pyo3(get)]
+    path: PyObject,
+    #[pyo3(get)]
+    delta: PyObject,
+    #[pyo3(get)]
+    keys: PyObject,
+}
+
+impl XmlEvent {
+    pub unsafe fn from_xml_event(event: &_XmlEvent, txn: &TransactionMut, py: Python<'_>) -> Self {
+        Self {
+            txn: unsafe { std::mem::transmute::<&TransactionMut, &TransactionMut<'static>>(txn) },
+            transaction: None,
+            children_changed: event.children_changed().into_py(py),
+            target: event.target().clone().into_py(py),
+            path: event.path().clone().into_py(py),
+            delta: PyList::new_bound(
+                py,
+                event.delta(txn).into_iter().map(|d| d.into_py(py)),
+            )
+            .into(),
+            keys: {
+                let dict = PyDict::new_bound(py);
+                for (key, value) in event.keys(txn).iter() {
+                    dict.set_item(&**key, EntryChangeWrapper(value).into_py(py))
+                        .unwrap();
+                }
+                dict.into()
+            },
+        }
+    }
+
+    pub unsafe fn from_xml_text_event(event: &_XmlTextEvent, txn: &TransactionMut, py: Python<'_>) -> Self {
+        Self {
+            txn: unsafe { std::mem::transmute::<&TransactionMut, &TransactionMut<'static>>(txn) },
+            transaction: None,
+            target: XmlOut::Text(event.target().clone()).into_py(py),
+            path: event.path().clone().into_py(py),
+            delta: PyList::new_bound(
+                py,
+                event.delta(txn).into_iter().map(|d| d.clone().into_py(py)),
+            )
+            .into(),
+            keys: {
+                let dict = PyDict::new_bound(py);
+                for (key, value) in event.keys(txn).iter() {
+                    dict.set_item(&**key, EntryChangeWrapper(value).into_py(py))
+                        .unwrap();
+                }
+                dict.into()
+            },
+            children_changed: py.None(),
+        }
+    }
+}
+
+#[pymethods]
+impl XmlEvent {
+    #[getter]
+    fn transaction(&mut self, py: Python<'_>) -> PyObject {
+        self.transaction
+            .get_or_insert_with(|| Transaction::from(unsafe { &*self.txn }).into_py(py))
+            .clone_ref(py)
+    }
+
+    fn __repr__(&mut self) -> String {
+        format!(
+            "XmlEvent(children_changed={}, target={}, path={}, delta={}, keys={})",
+            self.children_changed, self.target, self.path, self.delta, self.keys,
+        )
+    }
+}
diff --git a/tests/test_text.py b/tests/test_text.py
index 7d866ac..c55a9c8 100644
--- a/tests/test_text.py
+++ b/tests/test_text.py
@@ -114,6 +114,28 @@ def test_slice():
     assert str(excinfo.value) == "Negative stop not supported"
 
 
+def test_formatting():
+    doc = Doc()
+    doc["text"] = text = Text("")
+
+    text.insert(0, "hello ")
+    assert len(text) == len("hello "), str(text)
+    text.insert(len(text), "world", {"bold": True})
+    text.insert(len(text), "! I have formatting!", {})
+    text.format(len("hello world! "), len("hello world! I have formatting!") + 1, {"font-size": 32})
+    text.insert_embed(len(text), b"png blob", {"type": "image"})
+
+    diff = text.diff()
+
+    assert diff == [
+        ("hello ", None),
+        ("world", {"bold": True}),
+        ("! ", None),
+        ("I have formatting!", {"font-size": 32}),
+        (bytearray(b"png blob"), {"type": "image"}),
+    ]
+
+
 def test_observe():
     doc = Doc()
     doc["text"] = text = Text()
diff --git a/tests/test_update.py b/tests/test_update.py
index a892b2e..31dc22d 100644
--- a/tests/test_update.py
+++ b/tests/test_update.py
@@ -1,4 +1,4 @@
-from pycrdt import Doc, Map, get_state, get_update, merge_updates
+from pycrdt import Doc, Map, Text, get_state, get_update, merge_updates
 
 
 def test_update():
@@ -34,3 +34,22 @@ def test_update():
     doc1.apply_update(update1)
 
     assert data0.to_py() == data1.to_py() == {"key0": "val0", "key1": "val1"}
+
+
+def test_update_transaction():
+    doc0 = Doc()
+    text0 = doc0.get("test", type=Text)
+    text0 += "Hello"
+
+    update0 = doc0.get_update()
+
+    text0 += " World!"
+    update1 = doc0.get_update()
+    del doc0
+
+    doc1 = Doc()
+    with doc1.transaction():
+        doc1.apply_update(update0)
+        doc1.apply_update(update1)
+
+    assert str(doc1.get("test", type=Text)) == "Hello World!"
diff --git a/tests/test_xml.py b/tests/test_xml.py
new file mode 100644
index 0000000..77392c5
--- /dev/null
+++ b/tests/test_xml.py
@@ -0,0 +1,277 @@
+import pytest
+from pycrdt import Doc, XmlElement, XmlFragment, XmlText
+
+
+def test_plain_text():
+    doc1 = Doc()
+    frag = XmlFragment()
+    doc1["test"] = frag
+    with doc1.transaction():
+        frag.children.append("Hello")
+        with doc1.transaction():
+            frag.children.append(", World")
+        frag.children.append("!")
+
+    assert str(frag) == "Hello, World!"
+
+
+def test_api():
+    doc = Doc()
+    frag = XmlFragment(
+        [
+            XmlText("Hello "),
+            XmlElement("em", {"class": "bold"}, [XmlText("World")]),
+            XmlText("!"),
+        ]
+    )
+
+    with pytest.raises(RuntimeError) as excinfo:
+        frag.integrated
+    assert str(excinfo.value) == "Not integrated in a document yet"
+
+    with pytest.raises(RuntimeError) as excinfo:
+        frag.doc
+    assert str(excinfo.value) == "Not integrated in a document yet"
+
+    with pytest.raises(ValueError):
+        frag.to_py()
+
+    doc["test"] = frag
+    assert frag.parent is None
+    assert str(frag) == 'Hello <em class="bold">World</em>!'
+    assert len(frag.children) == 3
+    assert str(frag.children[0]) == "Hello "
+    assert str(frag.children[1]) == '<em class="bold">World</em>'
+    assert str(frag.children[2]) == "!"
+    assert list(frag.children) == [frag.children[0], frag.children[1], frag.children[2]]
+    assert frag.children[0].parent == frag
+    assert hash(frag.children[0].parent) == hash(frag)
+    assert frag != object()
+
+    frag.children.insert(1, XmlElement("strong", None, ["wonderful"]))
+    frag.children.insert(2, " ")
+    assert str(frag) == 'Hello <strong>wonderful</strong> <em class="bold">World</em>!'
+    assert len(frag.children) == 5
+
+    el = frag.children[3]
+    assert el.tag == "em"
+    assert len(el.attributes) == 1
+    assert el.attributes.get("class") == "bold"
+    assert el.attributes["class"] == "bold"
+    assert "class" in el.attributes
+    assert el.attributes.get("non-existent") is None
+    assert "non-existent" not in el.attributes
+    with pytest.raises(KeyError):
+        el.attributes["non-existent"]
+    assert list(el.attributes) == [("class", "bold")]
+
+    del frag.children[2]
+    del frag.children[1]
+    assert str(frag) == 'Hello <em class="bold">World</em>!'
+
+
+def test_text():
+    text = XmlText("Hello")
+    assert text.to_py() == "Hello"
+
+    doc = Doc()
+
+    with pytest.raises(ValueError):
+        doc["test"] = XmlText("test")
+
+    doc["test"] = XmlFragment([text])
+
+    assert str(text) == "Hello"
+    assert text.to_py() == "Hello"
+    assert len(text) == len("Hello")
+
+    text.clear()
+    assert str(text) == ""
+
+    text += "Goodbye"
+    assert str(text) == "Goodbye"
+
+    text.insert(1, " ")
+    assert str(text) == "G oodbye"
+    del text[1]
+    assert str(text) == "Goodbye"
+
+    text.insert(1, "  ")
+    del text[1:3]
+    assert str(text) == "Goodbye"
+
+    assert text.diff() == [("Goodbye", None)]
+    text.format(1, 3, {"bold": True})
+    assert text.diff() == [
+        ("G", None),
+        ("oo", {"bold": True}),
+        ("dbye", None),
+    ]
+
+    text.insert_embed(0, b"PNG!", {"type": "image"})
+    assert text.diff() == [
+        (b"PNG!", {"type": "image"}),
+        ("G", None),
+        ("oo", {"bold": True}),
+        ("dbye", None),
+    ]
+
+    text.insert(len(text), " World!", {"href": "some-url"})
+    assert text.diff() == [
+        (b"PNG!", {"type": "image"}),
+        ("G", None),
+        ("oo", {"bold": True}),
+        ("dbye", None),
+        (" World!", {"href": "some-url"}),
+    ]
+
+    del text[0]
+    assert text.diff() == [
+        ("G", None),
+        ("oo", {"bold": True}),
+        ("dbye", None),
+        (" World!", {"href": "some-url"}),
+    ]
+
+    del text[0:3]
+    assert text.diff() == [
+        ("dbye", None),
+        (" World!", {"href": "some-url"}),
+    ]
+
+    with pytest.raises(RuntimeError):
+        del text[0:5:2]
+    with pytest.raises(RuntimeError):
+        del text[-1:5]
+    with pytest.raises(RuntimeError):
+        del text[1:-1]
+    with pytest.raises(TypeError):
+        del text["invalid"]
+
+    doc["test2"] = XmlFragment([XmlText()])
+
+
+def test_element():
+    doc = Doc()
+
+    with pytest.raises(ValueError):
+        doc["test"] = XmlElement("test")
+
+    with pytest.raises(ValueError):
+        XmlElement()
+
+    doc["test"] = frag = XmlFragment()
+
+    el = XmlElement("div", {"class": "test"})
+    frag.children.append(el)
+    assert str(el) == '<div class="test"></div>'
+
+    el = XmlElement("div", [("class", "test")])
+    frag.children.append(el)
+    assert str(el) == '<div class="test"></div>'
+
+    el = XmlElement("div", None, [XmlText("Test")])
+    frag.children.append(el)
+    assert str(el) == "<div>Test</div>"
+
+    el = XmlElement("div")
+    frag.children.append(el)
+    assert str(el) == "<div></div>"
+
+    with pytest.raises(ValueError):
+        el.to_py()
+
+    el.attributes["class"] = "test"
+    assert str(el) == '<div class="test"></div>'
+    assert "class" in el.attributes
+    assert el.attributes["class"] == "test"
+    assert el.attributes.get("class") == "test"
+    assert len(el.attributes) == 1
+    assert list(el.attributes) == [("class", "test")]
+
+    del el.attributes["class"]
+    assert str(el) == "<div></div>"
+    assert "class" not in el.attributes
+    assert el.attributes.get("class") is None
+    assert len(el.attributes) == 0
+    assert list(el.attributes) == []
+
+    node = XmlText("Hello")
+    el.children.append(node)
+    assert str(el) == "<div>Hello</div>"
+    assert len(el.children) == 1
+    assert str(el.children[0]) == "Hello"
+    assert list(el.children) == [node]
+
+    el.children[0] = XmlText("Goodbye")
+    assert str(el) == "<div>Goodbye</div>"
+
+    del el.children[0]
+    assert str(el) == "<div></div>"
+
+    el.children.append(XmlElement("foo"))
+    el.children.append(XmlElement("bar"))
+    el.children.append(XmlElement("baz"))
+    assert str(el) == "<div><foo></foo><bar></bar><baz></baz></div>"
+
+    del el.children[0:2]
+    assert str(el) == "<div><baz></baz></div>"
+
+    with pytest.raises(TypeError):
+        del el.children["invalid"]
+    with pytest.raises(IndexError):
+        el.children[1]
+
+    text = XmlText("foo")
+    el.children.insert(0, text)
+    assert str(el) == "<div>foo<baz></baz></div>"
+
+    el2 = XmlElement("bar")
+    el.children.insert(1, el2)
+    assert str(el) == "<div>foo<bar></bar><baz></baz></div>"
+
+    with pytest.raises(IndexError):
+        el.children.insert(10, "test")
+    with pytest.raises(ValueError):
+        el.children.append(text)
+    with pytest.raises(ValueError):
+        el.children.append(el2)
+    with pytest.raises(TypeError):
+        el.children.append(object())
+
+
+def test_observe():
+    doc = Doc()
+    doc["test"] = fragment = XmlFragment(["Hello world!"])
+    events = []
+
+    def callback(event):
+        nonlocal fragment
+        with pytest.raises(RuntimeError) as excinfo:
+            fragment.children.append("text")
+        assert (
+            str(excinfo.value)
+            == "Read-only transaction cannot be used to modify document structure"
+        )
+        events.append(event)
+
+    sub = fragment.observe_deep(callback)  # noqa: F841
+
+    fragment.children.append(XmlElement("em", None, ["This is a test"]))
+    assert len(events) == 1
+    assert len(events[0]) == 1
+    assert events[0][0].children_changed is True
+    assert str(events[0][0].target) == "Hello world!<em>This is a test</em>"
+    assert events[0][0].path == []
+    assert len(events[0][0].delta) == 2
+    assert events[0][0].delta[0]["retain"] == 1
+    assert str(events[0][0].delta[1]["insert"][0]) == "<em>This is a test</em>"
+
+    events.clear()
+    fragment.children[0].format(1, 3, {"bold": True})
+
+    assert len(events) == 1
+    assert len(events[0]) == 1
+    assert str(events[0][0].target) == "H<bold>el</bold>lo world!"
+    assert events[0][0].delta[0] == {"retain": 1}
+    assert events[0][0].delta[1] == {"retain": 2, "attributes": {"bold": True}}