diff --git a/llmlingua/prompt_compressor.py b/llmlingua/prompt_compressor.py
index 84e390e..8fea23c 100644
--- a/llmlingua/prompt_compressor.py
+++ b/llmlingua/prompt_compressor.py
@@ -2086,8 +2086,11 @@ def segment_structured_context(
             if not text.endswith("</llmlingua>"):
                 text = text + "</llmlingua>"
 
-            # Regular expression to match <llmlingua, rate=x, compress=y>content</llmlingua>, allowing rate and compress in any order
-            pattern = r"<llmlingua\s*(?:,\s*rate\s*=\s*([\d\.]+))?\s*(?:,\s*compress\s*=\s*(True|False))?\s*(?:,\s*rate\s*=\s*([\d\.]+))?\s*(?:,\s*compress\s*=\s*(True|False))?\s*>([^<]+)</llmlingua>"
+            # Regular expression to match <llmlingua, rate=x, compress=y>content</llmlingua>, allowing rate and compress in any order.
+            # The content group uses a non-greedy pattern that allows inner HTML/XML tags (e.g. <tag>...</tag>)
+            # while still stopping at </llmlingua>. The original [^<]+ would drop the last segment
+            # whenever the content contained any nested tag.
+            pattern = r"<llmlingua\s*(?:,\s*rate\s*=\s*([\d\.]+))?\s*(?:,\s*compress\s*=\s*(True|False))?\s*(?:,\s*rate\s*=\s*([\d\.]+))?\s*(?:,\s*compress\s*=\s*(True|False))?\s*>((?:[^<]*(?:<(?!/llmlingua>)[^>]*>)?)*?)</llmlingua>"
             matches = re.findall(pattern, text)
 
             # Extracting segment contents
diff --git a/tests/test_nested_tag_regex.py b/tests/test_nested_tag_regex.py
new file mode 100644
index 0000000..df3c3ab
--- /dev/null
+++ b/tests/test_nested_tag_regex.py
@@ -0,0 +1,120 @@
+# Copyright (c) 2023 Microsoft
+# Licensed under The MIT License [see LICENSE for details]
+
+"""
+Unit tests for issue #201: the regex pattern in segment_structured_context
+must handle nested tags inside <llmlingua>...</llmlingua> blocks.
+
+These tests exercise the pattern directly (no model loading needed).
+"""
+
+import re
+import sys
+import unittest
+from unittest.mock import MagicMock
+
+
+def _install_mock_modules():
+    """Stub heavy ML dependencies so llmlingua imports without torch/transformers.
+
+    Note: patching sys.modules here is process-local. pytest --dist=loadfile
+    (used in the Makefile) ensures this file runs in its own worker so the
+    stubs do not leak into integration tests that load real models.
+    """
+    for mod_name in [
+        "torch",
+        "torch.nn",
+        "torch.nn.functional",
+        "torch.utils",
+        "torch.utils.data",
+        "transformers",
+        "numpy",
+        "numpy.linalg",
+        "nltk",
+        "nltk.tokenize",
+        "accelerate",
+        "tiktoken",
+        "yaml",
+    ]:
+        if mod_name not in sys.modules:
+            sys.modules[mod_name] = MagicMock()
+
+
+_install_mock_modules()
+
+# Extract the pattern used in segment_structured_context without loading a model
+import importlib.util
+import inspect
+
+spec = importlib.util.spec_from_file_location(
+    "prompt_compressor", "llmlingua/prompt_compressor.py"
+)
+
+# Read the pattern directly from the source rather than executing the module
+_SOURCE = open("llmlingua/prompt_compressor.py").read()
+_PATTERN_LINE = next(
+    line for line in _SOURCE.splitlines() if "re.findall(pattern, text)" in line or "pattern = r" in line.split("findall")[0]
+    if 'llmlingua\\s' in line
+)
+# Safer: use the canonical regex so tests stay in sync with the code
+PATTERN = re.search(r'pattern = (r"[^"]*")', _SOURCE).group(1)
+PATTERN = eval(PATTERN)  # convert r"..." string literal to actual pattern string
+
+
+class NestedTagRegexTester(unittest.TestCase):
+    """Tests for the <llmlingua>...</llmlingua> parsing regex."""
+
+    def _findall(self, text):
+        return re.findall(PATTERN, text)
+
+    def test_plain_content_still_matched(self):
+        """Regression: plain text inside llmlingua tags must still be captured."""
+        text = (
+            "<llmlingua, compress=False>Speaker 4:</llmlingua>"
+            "<llmlingua, rate=0.4> Thank you. </llmlingua>"
+        )
+        matches = self._findall(text)
+        contents = [m[4] for m in matches]
+        self.assertEqual(contents, ["Speaker 4:", " Thank you. "])
+
+    def test_nested_tag_does_not_drop_segment(self):
+        """Fix for #201: content with inner <tag>...</tag> must not truncate the match."""
+        text = (
+            "<llmlingua, compress=False>Speaker 4:</llmlingua>"
+            "<llmlingua, rate=0.6>"
+            " We have <tag> nested content </tag> here."
+            "</llmlingua>"
+        )
+        matches = self._findall(text)
+        self.assertEqual(len(matches), 2, "Both segments must be captured")
+        self.assertIn("nested content", matches[1][4])
+        self.assertIn("here.", matches[1][4])
+
+    def test_multiple_segments_with_and_without_nested_tags(self):
+        """Full scenario from the issue report."""
+        text = (
+            "<llmlingua, compress=False>Speaker 4:</llmlingua>"
+            "<llmlingua, rate=0.4> Thank you. </llmlingua>"
+            "<llmlingua, compress=False>\nSpeaker 0:</llmlingua>"
+            "<llmlingua, rate=0.4> Item 11. </llmlingua>"
+            "<llmlingua, compress=False>\nSpeaker 4:</llmlingua>"
+            "<llmlingua, rate=0.6>"
+            " We have <tag> nested </tag> and customers."
+            "</llmlingua>"
+        )
+        matches = self._findall(text)
+        self.assertEqual(len(matches), 6, "All 6 segments must be captured")
+        self.assertIn("nested", matches[5][4])
+
+    def test_rate_attribute_still_captured(self):
+        """The rate and compress capture groups must still work with nested tags."""
+        text = "<llmlingua, rate=0.4> Text with <br/> inline tag </llmlingua>"
+        matches = self._findall(text)
+        self.assertEqual(len(matches), 1)
+        # group 0 or group 2 holds rate (either position)
+        rate = matches[0][0] or matches[0][2]
+        self.assertEqual(rate, "0.4")
+
+
+if __name__ == "__main__":
+    unittest.main()