diff --git a/parley/src/builder.rs b/parley/src/builder.rs
index d7fecc32f..b758ea165 100644
--- a/parley/src/builder.rs
+++ b/parley/src/builder.rs
@@ -290,6 +290,8 @@ impl<'b, B: Brush> TreeBuilder<'b, B> {
 
     #[inline]
     pub fn build_into(self, layout: &mut Layout<B>) -> String {
+        let root_text_wrap_mode = self.lcx.tree_style_builder.root_text_wrap_mode();
+
         // Apply TreeStyleBuilder styles to LayoutContext.
         let text = self
             .lcx
@@ -299,6 +301,11 @@ impl<'b, B: Brush> TreeBuilder<'b, B> {
         // Call generic layout builder method
         build_into_layout(layout, &text, self.lcx, self.fcx, self.options);
 
+        // The tree builder knows its root style, which is a better source for the default
+        // wrap mode than the first entry of the style table (which may be a synthesized
+        // default style when the layout contains no text).
+        layout.data.default_text_wrap_mode = root_text_wrap_mode;
+
         text
     }
 
@@ -358,6 +365,13 @@ fn build_into_layout<B: Brush>(
         .styles
         .extend(lcx.style_table.iter().map(|s| s.as_layout_style()));
 
+    // Record the wrap mode which applies at the start of the text
+    layout.data.default_text_wrap_mode = lcx
+        .style_table
+        .first()
+        .map(|s| s.text_wrap_mode)
+        .unwrap_or_default();
+
     // Sort the inline boxes as subsequent code assumes that they are in text index order.
     // Note: It's important that this is a stable sort to allow users to control the order of contiguous inline boxes
     lcx.inline_boxes.sort_by_key(|b| b.index);
diff --git a/parley/src/layout/data.rs b/parley/src/layout/data.rs
index 5f6afc3b8..d3dd0f43d 100644
--- a/parley/src/layout/data.rs
+++ b/parley/src/layout/data.rs
@@ -185,6 +185,10 @@ pub(crate) struct LayoutData<B: Brush> {
     // Output of style resolution (input to line breaking)
     pub(crate) styles: Vec<Style<B>>,
     pub(crate) inline_boxes: Vec<InlineBox>,
+    /// The wrap mode that applies before any text cluster has been processed. This is
+    /// used to determine whether line breaks are allowed around inline boxes that occur
+    /// before any text (or in layouts that contain no text at all).
+    pub(crate) default_text_wrap_mode: TextWrapMode,
 
     // Output of shaping (input to line breaking)
     pub(crate) shaped_text: ShapedText,
@@ -230,6 +234,7 @@ impl<B: Brush> Default for LayoutData<B> {
             height: 0.,
             styles: Vec::new(),
             inline_boxes: Vec::new(),
+            default_text_wrap_mode: TextWrapMode::Wrap,
             shaped_text: ShapedText::new(),
             runs: Vec::new(),
             items: Vec::new(),
@@ -256,6 +261,7 @@ impl<B: Brush> LayoutData<B> {
         self.height = 0.;
         self.styles.clear();
         self.inline_boxes.clear();
+        self.default_text_wrap_mode = TextWrapMode::Wrap;
         self.shaped_text.clear();
         self.runs.clear();
         self.items.clear();
@@ -370,7 +376,7 @@ impl<B: Brush> LayoutData<B> {
 
         let mut running_min_width = 0.0;
         let mut running_max_width = 0.0;
-        let mut text_wrap_mode = TextWrapMode::Wrap;
+        let mut text_wrap_mode = self.default_text_wrap_mode;
         // The whitespace class of the previous atom's first character, and the atom's advance.
         let mut prev_atom: Option<(Whitespace, f32)> = None;
         let is_rtl = self.base_level.is_rtl();
diff --git a/parley/src/layout/line_break.rs b/parley/src/layout/line_break.rs
index 94dcc31e7..5c8ed5e3b 100644
--- a/parley/src/layout/line_break.rs
+++ b/parley/src/layout/line_break.rs
@@ -453,10 +453,14 @@ impl<'a, B: Brush> BreakLines<'a, B> {
         lines.swap(&mut layout.data);
         lines.lines.clear();
         lines.line_items.clear();
+        // Initialize the wrap mode from the layout's default wrap mode so that inline
+        // boxes which occur before any text cluster use the correct wrap mode.
+        let mut state = BreakerState::default();
+        state.line.text_wrap_mode = layout.data.default_text_wrap_mode;
         Self {
             layout,
             lines,
-            state: BreakerState::default(),
+            state,
             prev_state: None,
             done: false,
         }
@@ -680,8 +684,10 @@ impl<'a, B: Brush> BreakLines<'a, B> {
                             self.layout.data.quantize,
                         );
 
-                        // We can always line break after an inline box
-                        self.state.mark_line_break_opportunity();
+                        // We can line break after an inline box unless wrapping is disabled
+                        if self.state.line.text_wrap_mode == TextWrapMode::Wrap {
+                            self.state.mark_line_break_opportunity();
+                        }
                     } else {
                         // If we're at the start of the line, this box will never fit, so consume it and accept the overflow.
                         let reason = if self.state.line.x == 0.0 {
diff --git a/parley/src/resolve/tree.rs b/parley/src/resolve/tree.rs
index 023ea9e72..13ce0b2a2 100644
--- a/parley/src/resolve/tree.rs
+++ b/parley/src/resolve/tree.rs
@@ -4,7 +4,7 @@
 //! Hierarchical tree based style application.
 use alloc::{string::String, vec::Vec};
 
-use crate::style::WhiteSpaceCollapse;
+use crate::style::{TextWrapMode, WhiteSpaceCollapse};
 
 use super::{Brush, ResolvedProperty, ResolvedStyle, StyleRun};
 
@@ -40,6 +40,13 @@ impl<B: Brush> TreeStyleBuilder<B> {
     fn current_style(&self) -> ResolvedStyle<B> {
         self.tree[self.current_span].style.clone()
     }
+
+    pub(crate) fn root_text_wrap_mode(&self) -> TextWrapMode {
+        self.tree
+            .first()
+            .map(|node| node.style.text_wrap_mode)
+            .unwrap_or(TextWrapMode::Wrap)
+    }
 }
 
 impl<B: Brush> Default for TreeStyleBuilder<B> {