diff --git a/packages/scanner/src/__tests__/matchers.test.ts b/packages/scanner/src/__tests__/matchers.test.ts
index 696b52a..68bf7ef 100644
--- a/packages/scanner/src/__tests__/matchers.test.ts
+++ b/packages/scanner/src/__tests__/matchers.test.ts
@@ -59,6 +59,29 @@ describe("xss matcher", () => {
     const slugs = matches.map((m) => m.matchedPattern);
     expect(slugs).toContain("dangerouslySetInnerHTML");
   });
+
+  it("detects template interpolation mixed with HTML", () => {
+    const matches = xssMatcher.match(
+      "const unsafe = `<div data-user=${userInput}>${body}</div>`;",
+      "src/components/comment.tsx",
+    );
+    expect(matches.map((m) => m.matchedPattern)).toContain("template literal in HTML");
+  });
+
+  it("does not catastrophically backtrack on long generated HTML report lines", () => {
+    const longJsonLine = `app.report = ${JSON.stringify({
+      files: Object.fromEntries(
+        Array.from({ length: 3000 }, (_, i) => [
+          `packages/example-${i}/src/file.ts`,
+          { language: "typescript", mutants: [{ id: String(i), replacement: "${user.value}" }] },
+        ]),
+      ),
+    })};`;
+    const started = performance.now();
+    const matches = xssMatcher.match(longJsonLine, "reports/mutation/packages-acp/mutation.html");
+    expect(performance.now() - started).toBeLessThan(250);
+    expect(matches).toEqual([]);
+  });
 });
 
 describe("rce matcher", () => {
diff --git a/packages/scanner/src/matchers/xss.ts b/packages/scanner/src/matchers/xss.ts
index 9a1bd1c..7ba7a87 100644
--- a/packages/scanner/src/matchers/xss.ts
+++ b/packages/scanner/src/matchers/xss.ts
@@ -1,24 +1,97 @@
+import type { CandidateMatch } from "@deepsec/core";
 import type { MatcherPlugin } from "../types.js";
 import { regexMatcher } from "./utils.js";
 
+function contextSnippet(lines: string[], lineIndex: number): string {
+  const start = Math.max(0, lineIndex - 2);
+  const end = Math.min(lines.length, lineIndex + 3);
+  return lines.slice(start, end).join("\n");
+}
+
+function hasHtmlTagAfter(line: string, start: number): boolean {
+  for (let i = start; i < line.length - 1; i++) {
+    if (line.charCodeAt(i) !== 60 /* < */) continue;
+    const next = line.charCodeAt(i + 1);
+    const afterSlash = next === 47 /* / */ ? line.charCodeAt(i + 2) : next;
+    if ((afterSlash >= 65 && afterSlash <= 90) || (afterSlash >= 97 && afterSlash <= 122))
+      return true;
+  }
+  return false;
+}
+
+function hasInterpolationInsideHtmlTag(line: string): boolean {
+  let searchFrom = 0;
+  while (searchFrom < line.length) {
+    const tagStart = line.indexOf("<", searchFrom);
+    if (tagStart === -1) return false;
+
+    const next = line.charCodeAt(tagStart + 1);
+    const afterSlash = next === 47 /* / */ ? line.charCodeAt(tagStart + 2) : next;
+    if (!((afterSlash >= 65 && afterSlash <= 90) || (afterSlash >= 97 && afterSlash <= 122))) {
+      searchFrom = tagStart + 1;
+      continue;
+    }
+
+    const interpolation = line.indexOf("${", tagStart + 1);
+    if (interpolation === -1) return false;
+
+    const tagEnd = line.indexOf(">", tagStart + 1);
+    if (tagEnd === -1) return true;
+    if (interpolation < tagEnd) return true;
+
+    searchFrom = tagEnd + 1;
+  }
+  return false;
+}
+
+function findTemplateLiteralHtml(content: string): CandidateMatch[] {
+  const lines = content.split("\n");
+  const hitLines: number[] = [];
+  let snippet = "";
+
+  for (let i = 0; i < lines.length; i++) {
+    const line = lines[i];
+    const interpolation = line.indexOf("${");
+    if (interpolation === -1) continue;
+
+    if (hasHtmlTagAfter(line, interpolation + 2) || hasInterpolationInsideHtmlTag(line)) {
+      hitLines.push(i + 1);
+      if (!snippet) snippet = contextSnippet(lines, i);
+    }
+  }
+
+  return hitLines.length > 0
+    ? [
+        {
+          vulnSlug: "xss",
+          lineNumbers: hitLines,
+          snippet,
+          matchedPattern: "template literal in HTML",
+        },
+      ]
+    : [];
+}
+
 export const xssMatcher: MatcherPlugin = {
   noiseTier: "normal" as const,
   slug: "xss",
   description: "Unsafe innerHTML, dangerouslySetInnerHTML, template injection patterns",
   filePatterns: ["**/*.{ts,tsx,js,jsx,html,ejs,hbs}"],
   match(content, _filePath) {
-    return regexMatcher(
-      "xss",
-      [
-        { regex: /dangerouslySetInnerHTML/, label: "dangerouslySetInnerHTML" },
-        { regex: /\.innerHTML\s*=/, label: "innerHTML assignment" },
-        { regex: /\.outerHTML\s*=/, label: "outerHTML assignment" },
-        { regex: /document\.write\s*\(/, label: "document.write" },
-        { regex: /\$\{.*\}.*<\/?\w+>|<\w+[^>]*\$\{/, label: "template literal in HTML" },
-        { regex: /v-html\s*=/, label: "Vue v-html directive" },
-        { regex: /\[innerHTML\]\s*=/, label: "Angular innerHTML binding" },
-      ],
-      content,
-    );
+    return [
+      ...regexMatcher(
+        "xss",
+        [
+          { regex: /dangerouslySetInnerHTML/, label: "dangerouslySetInnerHTML" },
+          { regex: /\.innerHTML\s*=/, label: "innerHTML assignment" },
+          { regex: /\.outerHTML\s*=/, label: "outerHTML assignment" },
+          { regex: /document\.write\s*\(/, label: "document.write" },
+          { regex: /v-html\s*=/, label: "Vue v-html directive" },
+          { regex: /\[innerHTML\]\s*=/, label: "Angular innerHTML binding" },
+        ],
+        content,
+      ),
+      ...findTemplateLiteralHtml(content),
+    ];
   },
 };