diff --git a/crates/pgls_statement_splitter/src/splitter/common.rs b/crates/pgls_statement_splitter/src/splitter/common.rs
index 18703e592..f98b5cf84 100644
--- a/crates/pgls_statement_splitter/src/splitter/common.rs
+++ b/crates/pgls_statement_splitter/src/splitter/common.rs
@@ -224,6 +224,18 @@ pub(crate) fn unknown(p: &mut Splitter, exclude: &[SyntaxKind]) -> SplitterResul
                     begin_end(p)?;
                 }
             },
+            // When WITH_KW is excluded (e.g. inside CREATE) and followed by
+            // an identifier or RECURSIVE, it starts a CTE. Parse it as such
+            // so the following DML keyword is not treated as a new statement.
+            t if t == SyntaxKind::WITH_KW
+                && exclude.contains(&SyntaxKind::WITH_KW)
+                && matches!(
+                    p.look_ahead(true),
+                    SyntaxKind::IDENT | SyntaxKind::RECURSIVE_KW
+                ) =>
+            {
+                cte(p)?;
+            }
             t => match at_statement_start(t, exclude) {
                 Some(SyntaxKind::SELECT_KW) => {
                     let prev = p.look_back(true);
diff --git a/crates/pgls_statement_splitter/tests/data/create_table_with_storage__1.sql b/crates/pgls_statement_splitter/tests/data/create_table_with_storage__1.sql
new file mode 100644
index 000000000..98ed6429c
--- /dev/null
+++ b/crates/pgls_statement_splitter/tests/data/create_table_with_storage__1.sql
@@ -0,0 +1 @@
+CREATE TABLE foo (id int) WITH (fillfactor=70);
diff --git a/crates/pgls_statement_splitter/tests/data/create_view_with_cte__1.sql b/crates/pgls_statement_splitter/tests/data/create_view_with_cte__1.sql
new file mode 100644
index 000000000..1e0191929
--- /dev/null
+++ b/crates/pgls_statement_splitter/tests/data/create_view_with_cte__1.sql
@@ -0,0 +1 @@
+CREATE OR REPLACE VIEW profile_view AS WITH user_cte AS (SELECT * FROM accounts) SELECT * FROM user_cte;