diff --git a/app/ycode/components/LayersTree.tsx b/app/ycode/components/LayersTree.tsx
index 597deebd..d11806bb 100644
--- a/app/ycode/components/LayersTree.tsx
+++ b/app/ycode/components/LayersTree.tsx
@@ -35,7 +35,7 @@ import { useAuthStore } from '@/stores/useAuthStore';
 // 6. Utils/lib
 import { cn } from '@/lib/utils';
 import { flattenTree, type FlattenedItem } from '@/lib/tree-utilities';
-import { canHaveChildren, getLayerIcon, getLayerName, getCollectionVariable, isTextContentLayer, isRichTextLayer, getRichTextSublayers, getTextStyleSublayers, canMoveLayer, updateLayerProps, filterDisabledSliderLayers, getLayerCmsFieldBinding, extractBlockText } from '@/lib/layer-utils';
+import { canHaveChildren, getLayerIcon, getLayerName, getCollectionVariable, isTextContentLayer, isRichTextLayer, hasRichTextContent, getRichTextSublayers, getTextStyleSublayers, canMoveLayer, updateLayerProps, filterDisabledSliderLayers, getLayerCmsFieldBinding, extractBlockText } from '@/lib/layer-utils';
 import { getBlockName } from '@/lib/templates/blocks';
 import { MULTI_ASSET_COLLECTION_ID } from '@/lib/collection-field-utils';
 import { hasStyleOverrides } from '@/lib/layer-style-utils';
@@ -252,7 +252,7 @@ const LayerRow = React.memo(function LayerRow({
   // Component instances should not show children in the tree (unless editing master)
   // Children can only be edited via "Edit master component"
   const shouldHideChildren = isComponentInstance && !editingComponentId;
-  const hasContentSublayers = isRichTextLayer(node.layer) && getRichTextSublayers(node.layer).length > 0;
+  const hasContentSublayers = hasRichTextContent(node.layer);
   const hasStyleSublayers = isTextContentLayer(node.layer) && getTextStyleSublayers(node.layer).length > 0;
   const hasSublayers = hasContentSublayers || hasStyleSublayers;
   const effectiveHasChildren = (hasChildren && !shouldHideChildren) || hasSublayers;
@@ -1883,7 +1883,7 @@ export default function LayersTree({
         hasVisibleChildren = node.canHaveChildren && !collapsedIds.has(node.id);
       } else {
         // Real layer nodes: check actual children and sublayer presence
-        const hasAnySublayers = (isRichTextLayer(node.layer) && getRichTextSublayers(node.layer).length > 0)
+        const hasAnySublayers = hasRichTextContent(node.layer)
           || (isTextContentLayer(node.layer) && getTextStyleSublayers(node.layer).length > 0);
         hasVisibleChildren = (!collapsedIds.has(node.id)) && (
           !!(node.layer.children && node.layer.children.length > 0) || hasAnySublayers
diff --git a/lib/layer-utils.ts b/lib/layer-utils.ts
index 12947dee..6c9b7953 100644
--- a/lib/layer-utils.ts
+++ b/lib/layer-utils.ts
@@ -631,6 +631,21 @@ function extractInlineMarks(block: any): string[] {
  * When a CMS field is bound, pass the resolved CMS content via `cmsContent`
  * so sublayers reflect the actual CMS item data.
  */
+/**
+ * Check if a richText layer has content blocks (either its own or via CMS binding).
+ * Used for determining collapsibility in the layers tree without requiring resolved CMS data.
+ */
+export function hasRichTextContent(layer: Layer): boolean {
+  if (!isRichTextLayer(layer)) return false;
+  const textVar = layer.variables?.text;
+  if (textVar?.type !== 'dynamic_rich_text') return false;
+  const layerDoc = (textVar.data as any)?.content;
+  if (!layerDoc?.content || !Array.isArray(layerDoc.content)) return false;
+  const binding = getCmsFieldBinding(layerDoc);
+  if (binding) return true;
+  return layerDoc.content.some((block: any) => block.type !== 'paragraph' || block.content?.length);
+}
+
 export function getRichTextSublayers(layer: Layer, cmsContent?: any): RichTextSublayer[] {
   const textVar = layer.variables?.text;
   if (textVar?.type !== 'dynamic_rich_text') return [];
diff --git a/lib/text-format-utils.ts b/lib/text-format-utils.ts
index 543e4d44..4c5213ab 100644
--- a/lib/text-format-utils.ts
+++ b/lib/text-format-utils.ts
@@ -442,8 +442,8 @@ function renderTextNode(
 /**
  * Render nested rich text content from a Tiptap JSON structure.
  * Used when a rich_text CMS field is inserted as an inline variable.
- * Delegates to renderBlock with useSpanForParagraphs=true since this
- * content is always nested inside another element.
+ * When useSpanForParagraphs is true (default), block elements render as spans
+ * to avoid invalid HTML nesting inside restrictive tags like <p> or <h1>.
  */
 function renderNestedRichTextContent(
   richTextValue: any,
@@ -458,6 +458,7 @@ function renderNestedRichTextContent(
   components?: Component[],
   renderComponentBlock?: RenderComponentBlockFn,
   ancestorComponentIds?: Set<string>,
+  useSpanForParagraphs = true,
 ): React.ReactNode[] {
   if (!richTextValue) {
     return [];
@@ -478,7 +479,7 @@ function renderNestedRichTextContent(
 
   if (parsed.type === 'doc' && Array.isArray(parsed.content)) {
     return parsed.content.map((block: any, blockIdx: number) =>
-      renderBlock(block, blockIdx, collectionItemData, pageCollectionItemData, textStyles, true, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds)
+      renderBlock(block, blockIdx, collectionItemData, pageCollectionItemData, textStyles, useSpanForParagraphs, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds)
     ).filter(Boolean);
   }
 
@@ -500,6 +501,7 @@ function renderInlineContent(
   components?: Component[],
   renderComponentBlock?: RenderComponentBlockFn,
   ancestorComponentIds?: Set<string>,
+  useSpanForParagraphs = true,
 ): React.ReactNode[] {
   return content.flatMap((node, idx) => {
     const key = `node-${idx}`;
@@ -537,6 +539,7 @@ function renderInlineContent(
             components,
             renderComponentBlock,
             ancestorComponentIds,
+            useSpanForParagraphs,
           );
         }
       }
@@ -699,7 +702,7 @@ function renderBlock(
     );
     const tag = hasBlockContent ? 'div' : useSpanForParagraphs ? 'span' : 'p';
 
-    return React.createElement(tag, paragraphProps, ...renderInlineContent(block.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds));
+    return React.createElement(tag, paragraphProps, ...renderInlineContent(block.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds, useSpanForParagraphs));
   }
 
   if (block.type === 'heading') {
@@ -718,7 +721,7 @@ function renderBlock(
     if (isEditMode) {
       headingProps['data-style'] = styleKey;
     }
-    return React.createElement(tag, headingProps, ...renderInlineContent(block.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds));
+    return React.createElement(tag, headingProps, ...renderInlineContent(block.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds, useSpanForParagraphs));
   }
 
   if (block.type === 'bulletList') {
@@ -935,7 +938,8 @@ export function renderRichText(
       paragraph.content[0].attrs?.variable?.data?.field_type === 'rich_text';
 
     if (hasSoleRichTextVariable) {
-      const inlineContent = renderInlineContent(paragraph.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds);
+      const nestedUseSpans = isSimpleTextElement ? true : useSpanForParagraphs;
+      const inlineContent = renderInlineContent(paragraph.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds, nestedUseSpans);
       return Array.isArray(inlineContent) ? inlineContent : [inlineContent];
     }
 
@@ -946,7 +950,7 @@ export function renderRichText(
       }
       return null;
     }
-    const inlineContent = renderInlineContent(paragraph.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds);
+    const inlineContent = renderInlineContent(paragraph.content, collectionItemData, pageCollectionItemData, textStyles, isEditMode, linkContext, timezone, layerDataMap, components, renderComponentBlock, ancestorComponentIds, useSpanForParagraphs);
     if (isEditMode && !isSimpleTextElement) {
       const paragraphClass = textStyles?.paragraph?.classes ?? DEFAULT_TEXT_STYLES.paragraph?.classes ?? '';
       const children = Array.isArray(inlineContent) ? inlineContent : [inlineContent];