diff --git a/ext/xml/tests/bug70962.phpt b/ext/xml/tests/bug70962.phpt
new file mode 100644
index 0000000000000..46a6d5dfca1b2
--- /dev/null
+++ b/ext/xml/tests/bug70962.phpt
@@ -0,0 +1,37 @@
+--TEST--
+Bug #70962: xml_parse_into_struct strips embedded whitespace with XML_OPTION_SKIP_WHITE
+--SKIPIF--
+<?php
+if (!extension_loaded('xml')) die('skip xml extension not available');
+?>
+--FILE--
+<?php
+function parseAndOutput($xml)
+{
+    $parser = xml_parser_create();
+    xml_parser_set_option($parser, XML_OPTION_SKIP_WHITE, 1);
+
+    xml_parse_into_struct($parser, $xml, $values);
+
+    return $values;
+}
+
+$xml = "<a><b>&lt;d&gt;\n &lt;e&gt;</b><![CDATA[  ]]><c>\n \t</c></a>";
+
+$parsed = parseAndOutput($xml);
+
+// Check embedded whitespace is not getting skipped.
+echo $parsed[1]['value'] . "\n";
+
+// Check XML_OPTION_SKIP_WHITE ignores values of tags containing whitespace characters only.
+var_dump(isset($parsed[2]['value']));
+
+// Check XML_OPTION_SKIP_WHITE ignores empty <![CDATA[  ]]> values.
+var_dump(count($parsed));
+
+?>
+--EXPECT--
+<d>
+ <e>
+bool(false)
+int(4)
diff --git a/ext/xml/xml.c b/ext/xml/xml.c
index fd8aebe03a524..84e9bc2b96506 100644
--- a/ext/xml/xml.c
+++ b/ext/xml/xml.c
@@ -886,72 +886,77 @@ void _xml_characterDataHandler(void *userData, const XML_Char *s, int len)
 			zend_string *decoded_value;
 
 			decoded_value = xml_utf8_decode(s, len, parser->target_encoding);
-			for (i = 0; i < ZSTR_LEN(decoded_value); i++) {
-				switch (ZSTR_VAL(decoded_value)[i]) {
-					case ' ':
-					case '\t':
-					case '\n':
-						continue;
-					default:
-						doprint = 1;
+			if (parser->skipwhite) {
+				for (i = 0; i < ZSTR_LEN(decoded_value); i++) {
+					switch (ZSTR_VAL(decoded_value)[i]) {
+						case ' ':
+						case '\t':
+						case '\n':
+							continue;
+						default:
+							doprint = 1;
+							break;
+					}
+					if (doprint) {
 						break;
-				}
-				if (doprint) {
-					break;
+					}
 				}
 			}
-			if (doprint || (! parser->skipwhite)) {
-				if (parser->lastwasopen) {
-					zval *myval;
-
-					/* check if the current tag already has a value - if yes append to that! */
-					if ((myval = zend_hash_str_find(Z_ARRVAL_P(parser->ctag), "value", sizeof("value") - 1))) {
-						int newlen = Z_STRLEN_P(myval) + ZSTR_LEN(decoded_value);
-						Z_STR_P(myval) = zend_string_extend(Z_STR_P(myval), newlen, 0);
-						strncpy(Z_STRVAL_P(myval) + Z_STRLEN_P(myval) - ZSTR_LEN(decoded_value),
-								ZSTR_VAL(decoded_value), ZSTR_LEN(decoded_value) + 1);
-						zend_string_release_ex(decoded_value, 0);
-					} else {
+
+			if (parser->lastwasopen) {
+				zval *myval;
+
+				/* check if the current tag already has a value - if yes append to that! */
+				if ((myval = zend_hash_str_find(Z_ARRVAL_P(parser->ctag), "value", sizeof("value") - 1))) {
+					size_t newlen = Z_STRLEN_P(myval) + ZSTR_LEN(decoded_value);
+					Z_STR_P(myval) = zend_string_extend(Z_STR_P(myval), newlen, 0);
+					strncpy(Z_STRVAL_P(myval) + Z_STRLEN_P(myval) - ZSTR_LEN(decoded_value),
+							ZSTR_VAL(decoded_value), ZSTR_LEN(decoded_value) + 1);
+					zend_string_release_ex(decoded_value, 0);
+				} else {
+					if (doprint || (! parser->skipwhite)) {
 						add_assoc_str(parser->ctag, "value", decoded_value);
+					} else {
+						zend_string_release_ex(decoded_value, 0);
 					}
+				}
 
-				} else {
-					zval tag;
-					zval *curtag, *mytype, *myval;
-
-					ZEND_HASH_REVERSE_FOREACH_VAL(Z_ARRVAL(parser->data), curtag) {
-						if ((mytype = zend_hash_str_find(Z_ARRVAL_P(curtag),"type", sizeof("type") - 1))) {
-							if (!strcmp(Z_STRVAL_P(mytype), "cdata")) {
-								if ((myval = zend_hash_str_find(Z_ARRVAL_P(curtag), "value", sizeof("value") - 1))) {
-									int newlen = Z_STRLEN_P(myval) + ZSTR_LEN(decoded_value);
-									Z_STR_P(myval) = zend_string_extend(Z_STR_P(myval), newlen, 0);
-									strncpy(Z_STRVAL_P(myval) + Z_STRLEN_P(myval) - ZSTR_LEN(decoded_value),
-											ZSTR_VAL(decoded_value), ZSTR_LEN(decoded_value) + 1);
-									zend_string_release_ex(decoded_value, 0);
-									return;
-								}
+			} else {
+				zval tag;
+				zval *curtag, *mytype, *myval;
+
+				ZEND_HASH_REVERSE_FOREACH_VAL(Z_ARRVAL(parser->data), curtag) {
+					if ((mytype = zend_hash_str_find(Z_ARRVAL_P(curtag),"type", sizeof("type") - 1))) {
+						if (!strcmp(Z_STRVAL_P(mytype), "cdata")) {
+							if ((myval = zend_hash_str_find(Z_ARRVAL_P(curtag), "value", sizeof("value") - 1))) {
+								int newlen = Z_STRLEN_P(myval) + ZSTR_LEN(decoded_value);
+								Z_STR_P(myval) = zend_string_extend(Z_STR_P(myval), newlen, 0);
+								strncpy(Z_STRVAL_P(myval) + Z_STRLEN_P(myval) - ZSTR_LEN(decoded_value),
+										ZSTR_VAL(decoded_value), ZSTR_LEN(decoded_value) + 1);
+								zend_string_release_ex(decoded_value, 0);
+								return;
 							}
 						}
-						break;
-					} ZEND_HASH_FOREACH_END();
+					}
+					break;
+				} ZEND_HASH_FOREACH_END();
 
-					if (parser->level <= XML_MAXLEVEL && parser->level > 0) {
-						array_init(&tag);
+				if (parser->level <= XML_MAXLEVEL && parser->level > 0 && (doprint || (! parser->skipwhite))) {
+					array_init(&tag);
 
-						_xml_add_to_info(parser,SKIP_TAGSTART(parser->ltags[parser->level-1]));
+					_xml_add_to_info(parser,SKIP_TAGSTART(parser->ltags[parser->level-1]));
 
-						add_assoc_string(&tag, "tag", SKIP_TAGSTART(parser->ltags[parser->level-1]));
-						add_assoc_str(&tag, "value", decoded_value);
-						add_assoc_string(&tag, "type", "cdata");
-						add_assoc_long(&tag, "level", parser->level);
+					add_assoc_string(&tag, "tag", SKIP_TAGSTART(parser->ltags[parser->level-1]));
+					add_assoc_str(&tag, "value", decoded_value);
+					add_assoc_string(&tag, "type", "cdata");
+					add_assoc_long(&tag, "level", parser->level);
 
-						zend_hash_next_index_insert(Z_ARRVAL(parser->data), &tag);
-					} else if (parser->level == (XML_MAXLEVEL + 1)) {
-											php_error_docref(NULL, E_WARNING, "Maximum depth exceeded - Results truncated");
-					}
+					zend_hash_next_index_insert(Z_ARRVAL(parser->data), &tag);
+				} else if (parser->level == (XML_MAXLEVEL + 1)) {
+					php_error_docref(NULL, E_WARNING, "Maximum depth exceeded - Results truncated");
+				} else {
+					zend_string_release_ex(decoded_value, 0);
 				}
-			} else {
-				zend_string_release_ex(decoded_value, 0);
 			}
 		}
 	}