diff --git a/server/src/chat/transport/matrix/bot/format.rs b/server/src/chat/transport/matrix/bot/format.rs
index 44fbf4ab..b3ec969d 100644
--- a/server/src/chat/transport/matrix/bot/format.rs
+++ b/server/src/chat/transport/matrix/bot/format.rs
@@ -96,6 +96,49 @@ mod tests {
         );
     }
 
+    #[test]
+    fn markdown_to_html_heading_renders_as_h_tag() {
+        let html = markdown_to_html("## Section\nContent here.");
+        assert!(
+            html.contains("<h2>Section</h2>"),
+            "expected <h2> heading tag: {html}"
+        );
+        assert!(
+            html.contains("<p>Content here.</p>"),
+            "expected paragraph after heading: {html}"
+        );
+    }
+
+    #[test]
+    fn markdown_to_html_heading_with_preceding_prose_renders_correctly() {
+        let html = markdown_to_html("Intro text.\n## Section\nBody.");
+        assert!(
+            html.contains("<h2>Section</h2>"),
+            "expected <h2> heading tag: {html}"
+        );
+        assert!(
+            html.contains("<p>Intro text.</p>"),
+            "expected intro paragraph: {html}"
+        );
+        assert!(
+            html.contains("<p>Body.</p>"),
+            "expected body paragraph: {html}"
+        );
+    }
+
+    #[test]
+    fn markdown_to_html_multiple_headings_each_render_as_h_tags() {
+        let html = markdown_to_html("## Section 1\nContent one.\n\n## Section 2\nContent two.");
+        assert!(
+            html.contains("<h2>Section 1</h2>"),
+            "expected first <h2>: {html}"
+        );
+        assert!(
+            html.contains("<h2>Section 2</h2>"),
+            "expected second <h2>: {html}"
+        );
+    }
+
     #[test]
     fn startup_announcement_uses_bot_name() {
         assert_eq!(format_startup_announcement("Timmy"), "Timmy is online.");
diff --git a/server/src/chat/util.rs b/server/src/chat/util.rs
index e34c913a..3d1ff245 100644
--- a/server/src/chat/util.rs
+++ b/server/src/chat/util.rs
@@ -223,12 +223,24 @@ pub fn normalize_line_breaks(text: &str) -> String {
 
         let prev_line = lines[i - 1];
 
-        // Insert a blank separator when both the current and previous lines
-        // are non-empty prose (not inside a code fence, not structured Markdown).
+        // ATX headings (lines starting with one or more `#` characters) always
+        // need a blank line before and after them so that Matrix clients render
+        // the heading with visual separation.  Without a blank line, a single
+        // newline between a heading and adjacent text is swallowed by many
+        // Matrix clients (including Element X), joining the heading text and
+        // the following content on the same line without any heading formatting.
+        let is_cur_heading = line.trim_start().starts_with('#');
+        let is_prev_heading = prev_line.trim_start().starts_with('#');
+
+        // Insert a blank separator when:
+        //   1. Both lines are non-empty prose (standard prose-to-prose rule).
+        //   2. The current line is an ATX heading (adds blank line *before* it).
+        //   3. The previous line was an ATX heading (adds blank line *after* it).
         let should_double = !line.is_empty()
             && !prev_line.is_empty()
-            && !is_structured_line(line)
-            && !is_structured_line(prev_line);
+            && ((!is_structured_line(line) && !is_structured_line(prev_line))
+                || is_cur_heading
+                || is_prev_heading);
 
         if should_double {
             result.push("");
@@ -599,10 +611,42 @@ mod tests {
     }
 
     #[test]
-    fn normalize_heading_single_newline_preserved() {
+    fn normalize_heading_followed_by_prose_gets_blank_line() {
+        // A blank line must be inserted after a heading so Matrix clients render
+        // the heading with visual separation from the following paragraph.
         let input = "# My Heading\nSome text below.";
         let output = normalize_line_breaks(input);
-        assert_eq!(output, "# My Heading\nSome text below.");
+        assert_eq!(output, "# My Heading\n\nSome text below.");
+    }
+
+    #[test]
+    fn normalize_prose_before_heading_gets_blank_line() {
+        // A blank line must be inserted before a heading when prose precedes it.
+        let input = "Some intro text.\n## Section";
+        let output = normalize_line_breaks(input);
+        assert_eq!(output, "Some intro text.\n\n## Section");
+    }
+
+    #[test]
+    fn normalize_heading_surrounded_by_prose_gets_blank_lines_both_sides() {
+        let input = "Intro.\n## Heading\nContent.";
+        let output = normalize_line_breaks(input);
+        assert_eq!(output, "Intro.\n\n## Heading\n\nContent.");
+    }
+
+    #[test]
+    fn normalize_consecutive_headings_separated_by_blank_lines() {
+        let input = "## Section 1\n## Section 2";
+        let output = normalize_line_breaks(input);
+        assert_eq!(output, "## Section 1\n\n## Section 2");
+    }
+
+    #[test]
+    fn normalize_heading_already_separated_by_blank_line_unchanged() {
+        // When there is already a blank line, no extra blank is inserted.
+        let input = "# Heading\n\nContent.";
+        let output = normalize_line_breaks(input);
+        assert_eq!(output, "# Heading\n\nContent.");
     }
 
     #[test]