diff --git a/test_parse_files.py b/test_parse_files.py
index bccb7b0..0abf7e0 100755
--- a/test_parse_files.py
+++ b/test_parse_files.py
@@ -1,65 +1,129 @@
 #!/usr/bin/env python
 import argparse
 import os
+import re
+import io
 import sys
-from itertools import zip_longest
+import traceback
+import difflib
 
 from godot_parser import load, parse
 
+# Regex to detect space sequences
+space_re = re.compile(r" +")
+# Regex to detect all spaces not surrounded by alphanumeric characters
+line_normalizer_re = re.compile(r"(?<=\W) +| +(?=\W)")
+# Regex to detect quotes and possible escape sequences
+find_quote_re = re.compile(r"(\\*\")")
 
-def _parse_and_test_file(filename: str) -> bool:
-    print("Parsing %s" % filename)
+def join_lines_within_quotes(input: list[str], unescape: bool):
+    buffer_list = []
+    lines = []
+    buffer = ""
+
+    for part in input:
+        # Find all quotes that are not escaped
+        # " is not escaped. \" is escaped. \\" is not escaped as \\ becomes \, leaving the quote unescaped
+        read_pos = 0
+        for match in find_quote_re.finditer(part):
+            span = match.span()
+            match_text = part[span[0]:span[1]]
+            buffer += part[read_pos:span[1]]
+            read_pos = span[1]
+            if len(match_text)%2 == 1:
+                buffer_list.append(buffer)
+                buffer = ""
+        buffer += part[read_pos:]
+
+        if (len(buffer_list) % 2 == 0) and buffer:
+            buffer_list.append(buffer)
+            buffer = ""
+
+        if buffer:
+            buffer += "\n"
+        else:
+            for i in range(len(buffer_list)):
+                if i%2 == 0:
+                    buffer_list[i] = space_re.sub(" ", buffer_list[i])
+                    buffer_list[i] = line_normalizer_re.sub("", buffer_list[i])
+                elif unescape:
+                    buffer_list[i] = buffer_list[i].encode('latin-1', 'backslashreplace').decode('unicode-escape')
+            lines.append("".join(buffer_list) + "\n")
+            buffer_list = []
+            buffer = ""
+
+    if buffer:
+        buffer_list.append(buffer)
+    if buffer_list:
+        for i in range(len(buffer_list)):
+            if i % 2 == 0:
+                buffer_list[i] = space_re.sub(" ", buffer_list[i])
+                buffer_list[i] = line_normalizer_re.sub("", buffer_list[i])
+            elif unescape:
+                buffer_list[i] = buffer_list[i].encode('latin-1', 'backslashreplace').decode('unicode-escape')
+        lines.append("".join(buffer_list) + "\n")
+
+    return lines
+
+
+def _parse_and_test_file(filename: str, verbose: bool, unescape: bool) -> bool:
+    if verbose:
+        print("Parsing %s" % filename)
     with open(filename, "r") as ifile:
-        contents = ifile.read()
+        original_file = ifile.read()
     try:
-        data = parse(contents)
+        parsed_file = str(parse(original_file))
     except Exception:
-        print("  Parsing error!")
-        import traceback
-
-        traceback.print_exc()
+        print("! Parsing error on %s" % filename, file=sys.stderr)
+        traceback.print_exc(file=sys.stderr)
         return False
 
-    f = load(filename)
-    with f.use_tree() as tree:
-        pass
-
-    data_lines = [l for l in str(data).split("\n") if l]
-    content_lines = [l for l in contents.split("\n") if l]
-    if data_lines != content_lines:
-        print("  Error!")
-        max_len = max([len(l) for l in content_lines])
-        if max_len < 100:
-            for orig, parsed in zip_longest(content_lines, data_lines, fillvalue=""):
-                c = " " if orig == parsed else "x"
-                print("%s <%s> %s" % (orig.ljust(max_len), c, parsed))
-        else:
-            for orig, parsed in zip_longest(
-                content_lines, data_lines, fillvalue="----EMPTY----"
-            ):
-                c = "    " if orig == parsed else "XXX)"
-                print("%s\n%s%s" % (orig, c, parsed))
-        return False
-    return True
+    original_file = join_lines_within_quotes(
+        [l.strip() for l in io.StringIO(original_file).readlines() if l.strip()],
+        unescape
+    )
+    parsed_file = join_lines_within_quotes(
+        [l.strip() for l in io.StringIO(str(parsed_file)).readlines() if l.strip()],
+        unescape
+    )
+
+    diff = difflib.context_diff(original_file, parsed_file, fromfile=filename, tofile="PARSED FILE")
+    diff = ["    "+"\n    ".join(l.strip().split("\n"))+"\n" for l in diff]
+
+    if(len(diff) == 0):
+        return True
+
+    print("! Difference detected on %s" % filename)
+    sys.stdout.writelines(diff)
+    return False
 
 
 def main():
     """Test the parsing of one tscn file or all files in directory"""
     parser = argparse.ArgumentParser(description=main.__doc__)
     parser.add_argument("file_or_dir", help="Parse file or files under this directory")
+    parser.add_argument("--all", action='store_true', help="Tests all files even if one fails")
+    parser.add_argument("--verbose", "-v", action='store_true', help="Prints all file paths as they're parsed")
+    parser.add_argument("--unescape", action='store_true', help="Attempts to unescape strings before comparison (Godot 4.5+ standard)")
     args = parser.parse_args()
     if os.path.isfile(args.file_or_dir):
-        _parse_and_test_file(args.file_or_dir)
+        _parse_and_test_file(args.file_or_dir, args.verbose, args.unescape)
     else:
+        all_passed = True
         for root, _dirs, files in os.walk(args.file_or_dir, topdown=False):
             for file in files:
                 ext = os.path.splitext(file)[1]
                 if ext not in [".tscn", ".tres"]:
                     continue
                 filepath = os.path.join(root, file)
-                if not _parse_and_test_file(filepath):
-                    sys.exit(1)
+                if not _parse_and_test_file(filepath, args.verbose, args.unescape):
+                    all_passed = False
+                    if not args.all:
+                        return 1
+
+        if all_passed:
+            print("All tests passed!")
 
 
 if __name__ == "__main__":
-    main()
+    sys.exit(main())