diff --git a/markdown_it/rules_block/blockquote.py b/markdown_it/rules_block/blockquote.py
index 7f72b896..6575731d 100644
--- a/markdown_it/rules_block/blockquote.py
+++ b/markdown_it/rules_block/blockquote.py
@@ -296,6 +296,4 @@ def blockquote(state: StateBlock, startLine: int, endLine: int, silent: bool):
 
     state.blkIndent = oldIndent
 
-    state.lineMax += 1
-
     return True
diff --git a/markdown_it/rules_block/state_block.py b/markdown_it/rules_block/state_block.py
index 4b32219f..42b8fce3 100644
--- a/markdown_it/rules_block/state_block.py
+++ b/markdown_it/rules_block/state_block.py
@@ -147,8 +147,7 @@ def skipEmptyLines(self, from_pos: int) -> int:
                 ]:
                     break
             except IndexError:
-                from_pos += 1
-                break
+                pass
             from_pos += 1
         return from_pos
 
diff --git a/tests/test_port/fixtures/commonmark_extras.md b/tests/test_port/fixtures/commonmark_extras.md
index c2df5084..168b039d 100644
--- a/tests/test_port/fixtures/commonmark_extras.md
+++ b/tests/test_port/fixtures/commonmark_extras.md
@@ -673,3 +673,24 @@ Issue #205.  Space in link destination generates IndexError
 <p>[Contact](http:// mail.com)</p>
 <p>[Contact](mailto: mail@mail.com)</p>
 .
+
+Issue #204. Combination of blockquotes, list and newlines causes an IndexError
+.
+> QUOTE
++ UNORDERED LIST ITEM
+  > INDENTED QUOTE
+
+
+
+.
+<blockquote>
+<p>QUOTE</p>
+</blockquote>
+<ul>
+<li>UNORDERED LIST ITEM
+<blockquote>
+<p>INDENTED QUOTE</p>
+</blockquote>
+</li>
+</ul>
+.