diff --git a/bvm/ballerina-runtime/src/main/java/io/ballerina/runtime/internal/XmlTreeBuilder.java b/bvm/ballerina-runtime/src/main/java/io/ballerina/runtime/internal/XmlTreeBuilder.java
index 7d1748bd58e9..7a287cdaa070 100644
--- a/bvm/ballerina-runtime/src/main/java/io/ballerina/runtime/internal/XmlTreeBuilder.java
+++ b/bvm/ballerina-runtime/src/main/java/io/ballerina/runtime/internal/XmlTreeBuilder.java
@@ -128,6 +128,8 @@ public BXml parse() {
                         readComment(xmlStreamReader);
                         break;
                     case CDATA:
+                        readCData(xmlStreamReader);
+                        break;
                     case CHARACTERS:
                         readText(xmlStreamReader);
                         readNext = true;
@@ -158,6 +160,10 @@ private void readPI(XMLStreamReader xmlStreamReader) {
         siblingDeque.peek().add(xmlItem);
     }
 
+    private void readCData(XMLStreamReader xmlStreamReader) {
+        siblingDeque.peek().add(new XmlText(xmlStreamReader.getText()));
+    }
+
     private void readText(XMLStreamReader xmlStreamReader) throws XMLStreamException {
         StringBuilder textBuilder = new StringBuilder();
         while (xmlStreamReader.getEventType() == CHARACTERS) {
diff --git a/langlib/langlib-test/src/test/resources/test-src/xmllib_test.bal b/langlib/langlib-test/src/test/resources/test-src/xmllib_test.bal
index 34843030f15b..794e26c793db 100644
--- a/langlib/langlib-test/src/test/resources/test-src/xmllib_test.bal
+++ b/langlib/langlib-test/src/test/resources/test-src/xmllib_test.bal
@@ -943,6 +943,10 @@ function fromStringTest() {
     if !(d[3] is xml:Comment) {
         panic error("Assertion error: not a comment");
     }
+
+    string xmlString = string `<Description><![CDATA[OK]]></Description>`;
+    xml xmlWithCData = checkpanic xml:fromString(xmlString);
+    assertEquals(xmlWithCData, xml `<Description>OK</Description>`);
 }
 
 function testXmlIteratorNextInvocations() {