diff --git a/cjs/mixin/inner-html.js b/cjs/mixin/inner-html.js
index ec106d80..9d3e3165 100644
--- a/cjs/mixin/inner-html.js
+++ b/cjs/mixin/inner-html.js
@@ -1,6 +1,6 @@
 'use strict';
 const {ELEMENT_NODE, DOCUMENT_FRAGMENT_NODE} = require('../shared/constants.js');
-const {CUSTOM_ELEMENTS} = require('../shared/symbols.js');
+const {CUSTOM_ELEMENTS, END, NEXT} = require('../shared/symbols.js');
 const {parseFromString} = require('../shared/parse-from-string.js');
 const {ignoreCase} = require('../shared/utils.js');
 
@@ -21,7 +21,22 @@ const setInnerHtml = (node, html) => {
   const {constructor} = ownerDocument;
   const document = new constructor;
   document[CUSTOM_ELEMENTS] = ownerDocument[CUSTOM_ELEMENTS];
-  const {childNodes} = parseFromString(document, ignoreCase(node), html);
+  const isHTML = ignoreCase(node);
+  // the content of an SVG element is SVG: <rect/> closes, children are SVGElement
+  const isSVG = isHTML && 'ownerSVGElement' in node;
+  let {childNodes} = parseFromString(document, isHTML, isSVG ? `<svg>${html}</svg>` : html);
+
+  if (isSVG) {
+    const svg = childNodes[0];
+    const ownerSVGElement = node.localName === 'svg' ? node : node.ownerSVGElement;
+    let {[NEXT]: next, [END]: end} = svg;
+    while (next !== end) {
+      if (next.nodeType === ELEMENT_NODE)
+        next.ownerSVGElement = ownerSVGElement;
+      next = next[NEXT];
+    }
+    childNodes = svg.childNodes;
+  }
 
   node.replaceChildren(...childNodes.map(setOwnerDocument, ownerDocument));
 };
diff --git a/esm/mixin/inner-html.js b/esm/mixin/inner-html.js
index ac37e8f7..7c25809b 100644
--- a/esm/mixin/inner-html.js
+++ b/esm/mixin/inner-html.js
@@ -1,5 +1,5 @@
 import {ELEMENT_NODE, DOCUMENT_FRAGMENT_NODE} from '../shared/constants.js';
-import {CUSTOM_ELEMENTS} from '../shared/symbols.js';
+import {CUSTOM_ELEMENTS, END, NEXT} from '../shared/symbols.js';
 import {parseFromString} from '../shared/parse-from-string.js';
 import {ignoreCase} from '../shared/utils.js';
 
@@ -19,7 +19,22 @@ export const setInnerHtml = (node, html) => {
   const {constructor} = ownerDocument;
   const document = new constructor;
   document[CUSTOM_ELEMENTS] = ownerDocument[CUSTOM_ELEMENTS];
-  const {childNodes} = parseFromString(document, ignoreCase(node), html);
+  const isHTML = ignoreCase(node);
+  // the content of an SVG element is SVG: <rect/> closes, children are SVGElement
+  const isSVG = isHTML && 'ownerSVGElement' in node;
+  let {childNodes} = parseFromString(document, isHTML, isSVG ? `<svg>${html}</svg>` : html);
+
+  if (isSVG) {
+    const svg = childNodes[0];
+    const ownerSVGElement = node.localName === 'svg' ? node : node.ownerSVGElement;
+    let {[NEXT]: next, [END]: end} = svg;
+    while (next !== end) {
+      if (next.nodeType === ELEMENT_NODE)
+        next.ownerSVGElement = ownerSVGElement;
+      next = next[NEXT];
+    }
+    childNodes = svg.childNodes;
+  }
 
   node.replaceChildren(...childNodes.map(setOwnerDocument, ownerDocument));
 };
diff --git a/test/svg/element.js b/test/svg/element.js
index 4f5259ca..97a55d39 100644
--- a/test/svg/element.js
+++ b/test/svg/element.js
@@ -46,4 +46,20 @@ assert(svg.getAttribute('class'), 'a b c');
 
 svg.setAttribute('class', 'd e');
 assert(svg.getAttribute('class'), 'd e');
-assert(svg.namespaceURI, 'http://www.w3.org/2000/svg');
\ No newline at end of file
+assert(svg.namespaceURI, 'http://www.w3.org/2000/svg');
+
+// https://github.com/WebReflection/linkedom/issues/326
+({document} = parseHTML('<!doctype html><html><body><svg></svg></body></html>'));
+svg = document.querySelector('svg');
+svg.innerHTML = '<circle r="1"/><circle r="2"/>';
+assert(svg.childNodes.length, 2, 'self-closing children are siblings');
+assert(svg.firstChild instanceof SVGElement, true, 'innerHTML children are SVG elements');
+assert(svg.firstChild.ownerSVGElement, svg, 'innerHTML children ownerSVGElement');
+assert(svg.innerHTML, '<circle r="1" /><circle r="2" />');
+
+svg.innerHTML = '<g></g>';
+const g = svg.firstChild;
+g.innerHTML = '<rect/><g><path d="M0 0"/></g>';
+assert(g.toString(), '<g><rect /><g><path d="M0 0" /></g></g>', 'nested innerHTML');
+assert(g.firstChild.ownerSVGElement, svg, 'nested innerHTML ownerSVGElement');
+assert(g.lastChild.firstChild.ownerSVGElement, svg, 'deep innerHTML ownerSVGElement');