diff --git a/phpunit/directives/attributes/wp-show.php b/phpunit/directives/attributes/wp-show.php
index 4f9ed298..f9314c19 100644
--- a/phpunit/directives/attributes/wp-show.php
+++ b/phpunit/directives/attributes/wp-show.php
@@ -46,7 +46,7 @@ public function test_directive_wraps_content_in_template_if_when_is_false() {
 		$tags->next_tag( array( 'tag_closers' => 'visit' ) );
 		process_wp_show( $tags, $context );
 
-		$updated_markup = '<template><div data-wp-show="context.myblock.open">I should not be shown!</div></template>';
+		$updated_markup = '<template data-wp-show="context.myblock.open"><div >I should not be shown!</div></template>';
 
 		$this->assertSame( $updated_markup, $tags->get_updated_html() );
 		$this->assertSame( $context_before->get_context(), $context->get_context(), 'data-wp-show directive changed context' );
@@ -64,7 +64,7 @@ public function test_directive_wraps_void_tag_in_template_if_when_is_false() {
 		$tags->next_tag( array( 'tag_closers' => 'visit' ) );
 		process_wp_show( $tags, $context );
 
-		$updated_markup = '<template><img data-wp-show="context.myblock.open"></template>';
+		$updated_markup = '<template data-wp-show="context.myblock.open"><img ></template>';
 
 		$this->assertSame( $updated_markup, $tags->get_updated_html() );
 		$this->assertSame( $context_before->get_context(), $context->get_context(), 'data-wp-show directive changed context' );
diff --git a/src/directives/attributes/wp-show.php b/src/directives/attributes/wp-show.php
index a5626c94..141c26ee 100644
--- a/src/directives/attributes/wp-show.php
+++ b/src/directives/attributes/wp-show.php
@@ -14,6 +14,10 @@ function process_wp_show( $tags, $context ) {
 
 	$show = evaluate( $value, $context->get_context() );
 	if ( ! $show ) {
-		$tags->wrap_in_tag( 'TEMPLATE' );
+		$wrapper_bookmark = $tags->wrap_in_tag( 'TEMPLATE' );
+		$tags->seek( $wrapper_bookmark );
+		$tags->set_attribute( 'data-wp-show', $value );
+		$tags->next_tag();
+		$tags->remove_attribute( 'data-wp-show' );
 	}
 }
diff --git a/src/directives/class-wp-directive-processor.php b/src/directives/class-wp-directive-processor.php
index 048ccef2..58977e84 100644
--- a/src/directives/class-wp-directive-processor.php
+++ b/src/directives/class-wp-directive-processor.php
@@ -134,7 +134,8 @@ public function get_balanced_tag_bookmarks() {
 	 * calling the function.
 	 *
 	 * @param string $tag An HTML tag, specified in uppercase (e.g. "DIV").
-	 * @return bool Whether the operation was successful.
+	 * @return string|false The name of a bookmark pointing to the wrapping tag opener
+	 *                      if successful; false otherwise.
 	 *
 	 * @todo Allow passing in tags with attributes, e.g. <template id="abc">?
 	 */
@@ -179,7 +180,16 @@ public function wrap_in_tag( $tag ) {
 		$this->seek( $start_name ); // Return to original position.
 		$this->release_bookmark( $start_name );
 
-		return true;
+		$i = 0;
+		while ( array_key_exists( $tag . $i, $this->bookmarks ) ) {
+			++$i;
+		}
+		$bookmark_name                     = $tag . $i;
+		$this->bookmarks[ $bookmark_name ] = new WP_HTML_Span(
+			$start,
+			$start + strlen( $tag ) + 2
+		);
+		return $bookmark_name;
 	}
 
 	/**