diff --git a/util/squash b/util/squash
index f46e2f8..a015533 100755
--- a/util/squash
+++ b/util/squash
@@ -20,6 +20,7 @@ for my $arg (@ARGV) {
     my $in_pod = 0;
     my $in_section = '';
     my $ignore_lines = 0;
+    my $empty_lines = 0;
     while (<$fh>) {
         if (/#.*:squash-ignore-start:$/) {
             $in_section = 'ignore';
@@ -34,10 +35,22 @@ for my $arg (@ARGV) {
         }
 
         if ($in_section eq 'ignore') {
+            $empty_lines = 0 unless /^$/;
             $code .= $_;
             next;
         }
 
+        # Remove repeated newlines between paragraphs
+        # (Provided of course we're not in an 'ignore' section)
+        if (/^$/) {
+            ++$empty_lines;
+            if ($empty_lines > 1) {
+                next;
+            }
+        } else {
+            $empty_lines = 0;
+        }
+
         if (/#.*:squash-remove-start:$/) {
             $in_section = 'remove';
             next;
@@ -74,9 +87,6 @@ for my $arg (@ARGV) {
     close $fh;
 }
 
-# Remove repeated newlines between paragraphs
-$code =~ s/\n\n+/\n\n/gs;
-
 print $code;
 
 exit 0;