diff --git a/.changeset/brave-beds-act.md b/.changeset/brave-beds-act.md
new file mode 100644
index 0000000000..4288967ceb
--- /dev/null
+++ b/.changeset/brave-beds-act.md
@@ -0,0 +1,5 @@
+---
+'@builder.io/mitosis': patch
+---
+
+Fix: properly handle innerHTML properties in react codegen
diff --git a/packages/core/src/__tests__/__snapshots__/builder.test.ts.snap b/packages/core/src/__tests__/__snapshots__/builder.test.ts.snap
index d94422bead..3f801630e6 100644
--- a/packages/core/src/__tests__/__snapshots__/builder.test.ts.snap
+++ b/packages/core/src/__tests__/__snapshots__/builder.test.ts.snap
@@ -3530,6 +3530,39 @@ exports[`Builder > Text with bindings 3`] = `
 }
 `;
 
+exports[`Builder > Valid Custom Code 1`] = `
+"<template>
+  <div><div innerHTML='<svg width=\\"200\\" height=\\"200\\"></svg>'></div></div>
+</template>
+
+<script>
+import { defineComponent } from \\"vue\\";
+
+export default defineComponent({
+  name: \\"my-component\\",
+});
+</script>"
+`;
+
+exports[`Builder > Valid Custom Code 2`] = `
+"import * as React from \\"react\\";
+
+function MyComponent(props) {
+  return (
+    <div>
+      <div
+        dangerouslySetInnerHTML={{
+          __html: \\"<svg width=&quot;200&quot; height=&quot;200&quot;></svg>\\",
+        }}
+      />
+    </div>
+  );
+}
+
+export default MyComponent;
+"
+`;
+
 exports[`Builder > async bindings 1`] = `
 {
   "data": {
diff --git a/packages/core/src/__tests__/builder.test.ts b/packages/core/src/__tests__/builder.test.ts
index f19db5264d..98cf441b78 100644
--- a/packages/core/src/__tests__/builder.test.ts
+++ b/packages/core/src/__tests__/builder.test.ts
@@ -3,6 +3,7 @@ import { componentToHtml } from '@/generators/html';
 import { componentToMitosis } from '@/generators/mitosis';
 import { ToMitosisOptions } from '@/generators/mitosis/types';
 import { componentToReact } from '@/generators/react';
+import { componentToVue } from '@/generators/vue';
 import { dedent } from '@/helpers/dedent';
 import {
   builderContentToMitosisComponent,
@@ -322,6 +323,35 @@ describe('Builder', () => {
     expect(html).toMatchSnapshot();
   });
 
+  test('Valid Custom Code', async () => {
+    const builderJson: BuilderContent = {
+      data: {
+        blocks: [
+          {
+            '@type': '@builder.io/sdk:Element',
+            component: {
+              name: 'CustomCode',
+              options: {
+                code: `<svg width="200" height="200"></svg>`,
+              },
+            },
+          },
+        ],
+      },
+    } as BuilderContent;
+    const component = builderContentToMitosisComponent(builderJson);
+
+    const vue = componentToVue({
+      plugins: [compileAwayBuilderComponents()],
+    })({ component });
+    expect(vue).toMatchSnapshot();
+
+    const react = componentToReact({
+      plugins: [compileAwayBuilderComponents()],
+    })({ component });
+    expect(react).toMatchSnapshot();
+  });
+
   test('Regenerate custom Hero', () => {
     const code = dedent`
       import { Hero } from "@components";
diff --git a/packages/core/src/generators/react/blocks.ts b/packages/core/src/generators/react/blocks.ts
index 40dc24b97d..04d2e7dcd6 100644
--- a/packages/core/src/generators/react/blocks.ts
+++ b/packages/core/src/generators/react/blocks.ts
@@ -145,7 +145,12 @@ const ATTTRIBUTE_MAPPERS: { [key: string]: string } = {
 const BINDING_MAPPERS: {
   [key: string]:
     | string
-    | ((key: string, value: string, options?: ToReactOptions) => [string, string]);
+    | ((
+        key: string,
+        value: string,
+        options?: ToReactOptions,
+        isProperty?: boolean,
+      ) => [string, string]);
 } = {
   ref(ref, value, options) {
     if (options?.preact) {
@@ -161,8 +166,14 @@ const BINDING_MAPPERS: {
     }
     return [ref, value];
   },
-  innerHTML(_key, value) {
-    return ['dangerouslySetInnerHTML', `{__html: ${value.replace(/\s+/g, ' ')}}`];
+  innerHTML(_key, value, _options, isProperty) {
+    const wrapChar = isProperty ? '"' : '';
+    let useValue = value.replace(/\s+/g, ' ');
+
+    if (isProperty) {
+      useValue = value.replace(/"/g, '\\"');
+    }
+    return ['dangerouslySetInnerHTML', `{__html: ${wrapChar}${useValue}${wrapChar}}`];
   },
   ...ATTTRIBUTE_MAPPERS,
 };
@@ -246,7 +257,7 @@ export const blockToReact = (
     } else if (BINDING_MAPPERS[key]) {
       const mapper = BINDING_MAPPERS[key];
       if (typeof mapper === 'function') {
-        const [newKey, newValue] = mapper(key, value, options);
+        const [newKey, newValue] = mapper(key, value, options, true);
         str += ` ${newKey}={${newValue}} `;
       } else {
         str += ` ${BINDING_MAPPERS[key]}="${value}" `;
diff --git a/packages/core/src/plugins/compile-away-builder-components.ts b/packages/core/src/plugins/compile-away-builder-components.ts
index ef9fb881a7..162791fa9d 100644
--- a/packages/core/src/plugins/compile-away-builder-components.ts
+++ b/packages/core/src/plugins/compile-away-builder-components.ts
@@ -203,7 +203,10 @@ export const components: CompileAwayComponentsMap = {
       bindings.innerHTML = node.bindings.code;
     }
     return wrapOutput(
-      node,
+      {
+        ...node,
+        properties: omit(node.properties, 'code'),
+      },
       createMitosisNode({
         name: (node.properties.builderTag as string) || 'div',
         properties: {