diff --git a/demos/blocklyfactory/app_controller.js b/demos/blocklyfactory/app_controller.js
index 735834bf0..d9a092132 100644
--- a/demos/blocklyfactory/app_controller.js
+++ b/demos/blocklyfactory/app_controller.js
@@ -123,7 +123,7 @@ AppController.prototype.exportBlockLibraryToFile = function() {
   // Concatenate the xmls, each separated by a blank line.
   var blockLibText = this.formatBlockLibForExport_(blockLib);
   // Get file name.
-  var filename = prompt('Enter the file name under which to save your block' +
+  var filename = prompt('Enter the file name under which to save your block ' +
       'library.');
   // Download file if all necessary parameters are provided.
   if (filename) {
@@ -138,38 +138,60 @@ AppController.prototype.exportBlockLibraryToFile = function() {
  * Converts an object mapping block type to xml to text file for output.
  * @private
  *
- * @param {!Object} blockXmlMap - object mapping block type to xml
- * @return {string} String of each block's xml separated by a new line.
+ * @param {!Object} blockXmlMap - Object mapping block type to xml.
+ * @return {string} Xml text containing the block xmls.
  */
 AppController.prototype.formatBlockLibForExport_ = function(blockXmlMap) {
-  var blockXmls = [];
+  // Create DOM for XML.
+  var xmlDom = goog.dom.createDom('xml', {
+    'xmlns':"http://www.w3.org/1999/xhtml"
+  });
+
+  // Append each block node to xml dom.
   for (var blockType in blockXmlMap) {
-    blockXmls.push(blockXmlMap[blockType]);
+    var blockXmlDom = Blockly.Xml.textToDom(blockXmlMap[blockType]);
+    var blockNode = blockXmlDom.firstElementChild;
+    xmlDom.appendChild(blockNode);
   }
-  return blockXmls.join("\n\n");
+
+  // Return the xml text.
+  return Blockly.Xml.domToText(xmlDom);
 };
 
 /**
  * Converts imported block library to an object mapping block type to block xml.
  * @private
  *
- * @param {string} xmlText - String containing each block's xml optionally
- *    separated by whitespace.
+ * @param {string} xmlText - String representation of an xml with each block as
+ *    a child node.
  * @return {!Object} object mapping block type to xml text.
  */
 AppController.prototype.formatBlockLibForImport_ = function(xmlText) {
-  // Get array of xmls.
-  var xmlText = goog.string.collapseWhitespace(xmlText);
-  var blockXmls = goog.string.splitLimit(xmlText, '</xml>', 500);
+  var xmlDom = Blockly.Xml.textToDom(xmlText);
 
-  // Create and populate map.
+  // Get array of xmls. Use an asterisk (*) instead of a tag name for the XPath
+  // selector, to match all elements at that level and get all factory_base
+  // blocks.
+  var blockNodes = goog.dom.xml.selectNodes(xmlDom, '*');
+
+  // Create empty map. The line below creates a  truly empy object. It doesn't
+  // have built-in attributes/functions such as length or toString.
   var blockXmlTextMap = Object.create(null);
-  // The line above is equivalent of {} except that this object is TRULY
-  // empty. It doesn't have built-in attributes/functions such as length or
-  // toString.
-  for (var i = 0, xmlText; xmlText = blockXmls[i]; i++) {
+
+  // Populate map.
+  for (var i = 0, blockNode; blockNode = blockNodes[i]; i++) {
+
+    // Add outer xml tag to the block for proper injection in to the
+    // main workspace.
+    // Create DOM for XML.
+    var xmlDom = goog.dom.createDom('xml', {
+      'xmlns':"http://www.w3.org/1999/xhtml"
+    });
+    xmlDom.appendChild(blockNode);
+
+    var xmlText = Blockly.Xml.domToText(xmlDom);
     var blockType = this.getBlockTypeFromXml_(xmlText);
-    // TODO(quachtina96): Make the xml pretty before storing in map.
+
     blockXmlTextMap[blockType] = xmlText;
   }
 
@@ -185,9 +207,9 @@ AppController.prototype.formatBlockLibForImport_ = function(xmlText) {
  * @return {string} The block type that corresponds to the provided xml text.
  */
 AppController.prototype.getBlockTypeFromXml_ = function(xmlText) {
-  var xmlText = Blockly.Options.parseToolboxTree(xmlText);
+  var xmlDom = Blockly.Xml.textToDom(xmlText);
   // Find factory base block.
-  var factoryBaseBlockXml = xmlText.getElementsByTagName('block')[0];
+  var factoryBaseBlockXml = xmlDom.getElementsByTagName('block')[0];
   // Get field elements from factory base.
   var fields = factoryBaseBlockXml.getElementsByTagName('field');
   for (var i = 0; i < fields.length; i++) {
@@ -206,7 +228,8 @@ AppController.prototype.getBlockTypeFromXml_ = function(xmlText) {
  * @param {!Element} blockLibraryDropdown - HTML select element from which the
  *    user selects a block to work on.
  */
-AppController.prototype.onSelectedBlockChanged = function(blockLibraryDropdown) {
+AppController.prototype.onSelectedBlockChanged
+    = function(blockLibraryDropdown) {
   // Get selected block type.
   var blockType = this.blockLibraryController.getSelectedBlockType(
       blockLibraryDropdown);
diff --git a/demos/blocklyfactory/factory_utils.js b/demos/blocklyfactory/factory_utils.js
index 76d12a464..d8d004c04 100644
--- a/demos/blocklyfactory/factory_utils.js
+++ b/demos/blocklyfactory/factory_utils.js
@@ -871,4 +871,4 @@ FactoryUtils.defineAndGetBlockTypes = function(blockDefsString, format) {
   }
 
   return blockTypes;
-};
\ No newline at end of file
+};