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diff --git a/src/Core/Parser/Configuration.php b/src/Core/Parser/Configuration.php
index 49850cf7e..33e095377 100644
--- a/src/Core/Parser/Configuration.php
+++ b/src/Core/Parser/Configuration.php
@@ -12,6 +12,10 @@
  */
 class Configuration
 {
+    /**
+     * @var bool
+     */
+    protected $viewHelperArgumentEscapingEnabled = true;
 
     /**
      * Generic interceptors registered with the configuration.
@@ -27,6 +31,22 @@ class Configuration
      */
     protected $escapingInterceptors = [];
 
+    /**
+     * @return bool
+     */
+    public function isViewHelperArgumentEscapingEnabled()
+    {
+        return $this->viewHelperArgumentEscapingEnabled;
+    }
+
+    /**
+     * @param bool $viewHelperArgumentEscapingEnabled
+     */
+    public function setViewHelperArgumentEscapingEnabled($viewHelperArgumentEscapingEnabled): void
+    {
+        $this->viewHelperArgumentEscapingEnabled = (bool) $viewHelperArgumentEscapingEnabled;
+    }
+
     /**
      * Adds an interceptor to apply to values coming from object accessors.
      *
diff --git a/src/Core/Parser/TemplateParser.php b/src/Core/Parser/TemplateParser.php
index aee1c21cb..22be29cf3 100644
--- a/src/Core/Parser/TemplateParser.php
+++ b/src/Core/Parser/TemplateParser.php
@@ -489,7 +489,7 @@ protected function objectAccessorHandler(ParsingState $state, $objectAccessorStr
                 }
                 $viewHelper = $viewHelperResolver->createViewHelperInstance($singleMatch['NamespaceIdentifier'], $singleMatch['MethodIdentifier']);
                 if (strlen($singleMatch['ViewHelperArguments']) > 0) {
-                    $arguments = $this->recursiveArrayHandler($singleMatch['ViewHelperArguments'], $viewHelper);
+                    $arguments = $this->recursiveArrayHandler($state, $singleMatch['ViewHelperArguments'], $viewHelper);
                 } else {
                     $arguments = [];
                 }
@@ -563,28 +563,43 @@ protected function parseArguments($argumentsString, ViewHelperInterface $viewHel
         $undeclaredArguments = [];
         $matches = [];
         if (preg_match_all(Patterns::$SPLIT_PATTERN_TAGARGUMENTS, $argumentsString, $matches, PREG_SET_ORDER) > 0) {
-            $escapingEnabledBackup = $this->escapingEnabled;
-            $this->escapingEnabled = false;
             foreach ($matches as $singleMatch) {
                 $argument = $singleMatch['Argument'];
                 $value = $this->unquoteString($singleMatch['ValueQuoted']);
-                $argumentsObjectTree[$argument] = $this->buildArgumentObjectTree($value);
+                $escapingEnabledBackup = $this->escapingEnabled;
                 if (isset($argumentDefinitions[$argument])) {
                     $argumentDefinition = $argumentDefinitions[$argument];
-                    if ($argumentDefinition->getType() === 'boolean' || $argumentDefinition->getType() === 'bool') {
+                    $this->escapingEnabled = $this->escapingEnabled && $this->isArgumentEscaped($viewHelper, $argumentDefinition);
+                    $isBoolean = $argumentDefinition->getType() === 'boolean' || $argumentDefinition->getType() === 'bool';
+                    $argumentsObjectTree[$argument] = $this->buildArgumentObjectTree($value);
+                    if ($isBoolean) {
                         $argumentsObjectTree[$argument] = new BooleanNode($argumentsObjectTree[$argument]);
                     }
                 } else {
-                    $undeclaredArguments[$argument] = $argumentsObjectTree[$argument];
+                    $this->escapingEnabled = false;
+                    $undeclaredArguments[$argument] = $this->buildArgumentObjectTree($value);
                 }
+                $this->escapingEnabled = $escapingEnabledBackup;
             }
-            $this->escapingEnabled = $escapingEnabledBackup;
         }
         $this->abortIfRequiredArgumentsAreMissing($argumentDefinitions, $argumentsObjectTree);
         $viewHelper->validateAdditionalArguments($undeclaredArguments);
         return $argumentsObjectTree + $undeclaredArguments;
     }
 
+    protected function isArgumentEscaped(ViewHelperInterface $viewHelper, ArgumentDefinition $argumentDefinition = null)
+    {
+        $hasDefinition = $argumentDefinition instanceof ArgumentDefinition;
+        $isBoolean = $hasDefinition && ($argumentDefinition->getType() === 'boolean' || $argumentDefinition->getType() === 'bool');
+        $escapingEnabled = $this->configuration->isViewHelperArgumentEscapingEnabled();
+        $isArgumentEscaped = $hasDefinition && $argumentDefinition->getEscape() === true;
+        $isContentArgument = $hasDefinition && method_exists($viewHelper, 'resolveContentArgumentName') && $argumentDefinition->getName() === $viewHelper->resolveContentArgumentName();
+        if ($isContentArgument) {
+            return !$isBoolean && ($viewHelper->isChildrenEscapingEnabled() || $isArgumentEscaped);
+        }
+        return !$isBoolean && $escapingEnabled && $isArgumentEscaped;
+    }
+
     /**
      * Build up an argument object tree for the string in $argumentString.
      * This builds up the tree for a single argument value.
@@ -664,7 +679,7 @@ protected function textAndShorthandSyntaxHandler(ParsingState $state, $text, $co
                 && preg_match(Patterns::$SCAN_PATTERN_SHORTHANDSYNTAX_ARRAYS, $section, $matchedVariables) > 0
             ) {
                 // We only match arrays if we are INSIDE viewhelper arguments
-                $this->arrayHandler($state, $this->recursiveArrayHandler($matchedVariables['Array']));
+                $this->arrayHandler($state, $this->recursiveArrayHandler($state, $matchedVariables['Array']));
             } else {
                 // We ask custom ExpressionNode instances from ViewHelperResolver
                 // if any match our expression:
@@ -737,12 +752,13 @@ protected function arrayHandler(ParsingState $state, $arrayText)
      * - Variables
      * - sub-arrays
      *
+     * @param ParsingState $state
      * @param string $arrayText Array text
      * @param ViewHelperInterface|null $viewHelper ViewHelper instance - passed only if the array is a collection of arguments for an inline ViewHelper
      * @return NodeInterface[] the array node built up
      * @throws Exception
      */
-    protected function recursiveArrayHandler($arrayText, ViewHelperInterface $viewHelper = null)
+    protected function recursiveArrayHandler(ParsingState $state, $arrayText, ViewHelperInterface $viewHelper = null)
     {
         $undeclaredArguments = [];
         $argumentDefinitions = [];
@@ -755,14 +771,25 @@ protected function recursiveArrayHandler($arrayText, ViewHelperInterface $viewHe
             foreach ($matches as $singleMatch) {
                 $arrayKey = $this->unquoteString($singleMatch['Key']);
                 $assignInto = &$arrayToBuild;
-                if (!isset($argumentDefinitions[$arrayKey])) {
+                $isBoolean = false;
+                $argumentDefinition = null;
+                if (isset($argumentDefinitions[$arrayKey])) {
+                    $argumentDefinition = $argumentDefinitions[$arrayKey];
+                    $isBoolean = $argumentDefinitions[$arrayKey]->getType() === 'boolean' || $argumentDefinitions[$arrayKey]->getType() === 'bool';
+                } else {
                     $assignInto = &$undeclaredArguments;
                 }
 
+                $escapingEnabledBackup = $this->escapingEnabled;
+                $this->escapingEnabled = $this->escapingEnabled && $viewHelper instanceof ViewHelperInterface && $this->isArgumentEscaped($viewHelper, $argumentDefinition);
+
                 if (array_key_exists('Subarray', $singleMatch) && !empty($singleMatch['Subarray'])) {
-                    $assignInto[$arrayKey] = new ArrayNode($this->recursiveArrayHandler($singleMatch['Subarray']));
+                    $assignInto[$arrayKey] = new ArrayNode($this->recursiveArrayHandler($state, $singleMatch['Subarray']));
                 } elseif (!empty($singleMatch['VariableIdentifier'])) {
                     $assignInto[$arrayKey] = new ObjectAccessorNode($singleMatch['VariableIdentifier']);
+                    if ($viewHelper instanceof ViewHelperInterface && !$isBoolean) {
+                        $this->callInterceptor($assignInto[$arrayKey], InterceptorInterface::INTERCEPT_OBJECTACCESSOR, $state);
+                    }
                 } elseif (array_key_exists('Number', $singleMatch) && (!empty($singleMatch['Number']) || $singleMatch['Number'] === '0')) {
                     // Note: this method of casting picks "int" when value is a natural number and "float" if any decimals are found. See also NumericNode.
                     $assignInto[$arrayKey] = $singleMatch['Number'] + 0;
@@ -771,9 +798,11 @@ protected function recursiveArrayHandler($arrayText, ViewHelperInterface $viewHe
                     $assignInto[$arrayKey] = $this->buildArgumentObjectTree($argumentString);
                 }
 
-                if (isset($argumentDefinitions[$arrayKey]) && ($argumentDefinitions[$arrayKey]->getType() === 'boolean' || $argumentDefinitions[$arrayKey]->getType() === 'bool')) {
+                if ($isBoolean) {
                     $assignInto[$arrayKey] = new BooleanNode($assignInto[$arrayKey]);
                 }
+
+                $this->escapingEnabled = $escapingEnabledBackup;
             }
         }
         if ($viewHelper instanceof ViewHelperInterface) {
diff --git a/src/Core/ViewHelper/AbstractConditionViewHelper.php b/src/Core/ViewHelper/AbstractConditionViewHelper.php
index debffb7da..54fe13203 100644
--- a/src/Core/ViewHelper/AbstractConditionViewHelper.php
+++ b/src/Core/ViewHelper/AbstractConditionViewHelper.php
@@ -42,8 +42,8 @@ abstract class AbstractConditionViewHelper extends AbstractViewHelper
      */
     public function initializeArguments()
     {
-        $this->registerArgument('then', 'mixed', 'Value to be returned if the condition if met.', false);
-        $this->registerArgument('else', 'mixed', 'Value to be returned if the condition if not met.', false);
+        $this->registerArgument('then', 'mixed', 'Value to be returned if the condition if met.', false, null, true);
+        $this->registerArgument('else', 'mixed', 'Value to be returned if the condition if not met.', false, null, true);
     }
 
     /**
diff --git a/src/Core/ViewHelper/AbstractViewHelper.php b/src/Core/ViewHelper/AbstractViewHelper.php
index 975ecc22e..8edd703ce 100644
--- a/src/Core/ViewHelper/AbstractViewHelper.php
+++ b/src/Core/ViewHelper/AbstractViewHelper.php
@@ -158,11 +158,12 @@ public function isOutputEscapingEnabled()
      * @param string $description Description of the argument
      * @param boolean $required If TRUE, argument is required. Defaults to FALSE.
      * @param mixed $defaultValue Default value of argument
+     * @param bool|null $escape Can be toggled to TRUE to force escaping of variables and inline syntax passed as argument value.
      * @return \TYPO3Fluid\Fluid\Core\ViewHelper\AbstractViewHelper $this, to allow chaining.
      * @throws Exception
      * @api
      */
-    protected function registerArgument($name, $type, $description, $required = false, $defaultValue = null)
+    protected function registerArgument($name, $type, $description, $required = false, $defaultValue = null, $escape = null)
     {
         if (array_key_exists($name, $this->argumentDefinitions)) {
             throw new Exception(
@@ -170,7 +171,7 @@ protected function registerArgument($name, $type, $description, $required = fals
                 1253036401
             );
         }
-        $this->argumentDefinitions[$name] = new ArgumentDefinition($name, $type, $description, $required, $defaultValue);
+        $this->argumentDefinitions[$name] = new ArgumentDefinition($name, $type, $description, $required, $defaultValue, $escape);
         return $this;
     }
 
@@ -184,11 +185,12 @@ protected function registerArgument($name, $type, $description, $required = fals
      * @param string $description Description of the argument
      * @param boolean $required If TRUE, argument is required. Defaults to FALSE.
      * @param mixed $defaultValue Default value of argument
+     * @param bool|null $escape Can be toggled to TRUE to force escaping of variables and inline syntax passed as argument value.
      * @return \TYPO3Fluid\Fluid\Core\ViewHelper\AbstractViewHelper $this, to allow chaining.
      * @throws Exception
      * @api
      */
-    protected function overrideArgument($name, $type, $description, $required = false, $defaultValue = null)
+    protected function overrideArgument($name, $type, $description, $required = false, $defaultValue = null, $escape = null)
     {
         if (!array_key_exists($name, $this->argumentDefinitions)) {
             throw new Exception(
@@ -196,7 +198,7 @@ protected function overrideArgument($name, $type, $description, $required = fals
                 1279212461
             );
         }
-        $this->argumentDefinitions[$name] = new ArgumentDefinition($name, $type, $description, $required, $defaultValue);
+        $this->argumentDefinitions[$name] = new ArgumentDefinition($name, $type, $description, $required, $defaultValue, $escape);
         return $this;
     }
 
diff --git a/src/Core/ViewHelper/ArgumentDefinition.php b/src/Core/ViewHelper/ArgumentDefinition.php
index 13933b885..2f85b02b5 100644
--- a/src/Core/ViewHelper/ArgumentDefinition.php
+++ b/src/Core/ViewHelper/ArgumentDefinition.php
@@ -47,6 +47,21 @@ class ArgumentDefinition
      */
     protected $defaultValue = null;
 
+    /**
+     * Escaping instruction, in line with $this->escapeOutput / $this->escapeChildren on ViewHelpers.
+     *
+     * A value of NULL means "use default behavior" (which is to escape nodes contained in the value).
+     *
+     * A value of TRUE means "escape unless escaping is disabled" (e.g. if argument is used in a ViewHelper nested
+     * within f:format.raw which disables escaping, the argument will not be escaped).
+     *
+     * A value of FALSE means "never escape argument" (as in behavior of f:format.raw, which supports both passing
+     * argument as actual argument or as tag content, but wants neither to be escaped).
+     *
+     * @var bool|null
+     */
+    protected $escape = null;
+
     /**
      * Constructor for this argument definition.
      *
@@ -55,14 +70,16 @@ class ArgumentDefinition
      * @param string $description Description of argument
      * @param boolean $required TRUE if argument is required
      * @param mixed $defaultValue Default value
+     * @param bool|null $escape Whether or not argument is escaped, or uses default escaping behavior (see class var comment)
      */
-    public function __construct($name, $type, $description, $required, $defaultValue = null)
+    public function __construct($name, $type, $description, $required, $defaultValue = null, $escape = null)
     {
         $this->name = $name;
         $this->type = $type;
         $this->description = $description;
         $this->required = $required;
         $this->defaultValue = $defaultValue;
+        $this->escape = $escape;
     }
 
     /**
@@ -114,4 +131,12 @@ public function getDefaultValue()
     {
         return $this->defaultValue;
     }
+
+    /**
+     * @return bool|null
+     */
+    public function getEscape()
+    {
+        return $this->escape;
+    }
 }
diff --git a/src/Core/ViewHelper/TagBuilder.php b/src/Core/ViewHelper/TagBuilder.php
index 6916696b4..2c845eda9 100644
--- a/src/Core/ViewHelper/TagBuilder.php
+++ b/src/Core/ViewHelper/TagBuilder.php
@@ -191,6 +191,9 @@ public function ignoreEmptyAttributes($ignoreEmptyAttributes)
      */
     public function addAttribute($attributeName, $attributeValue, $escapeSpecialCharacters = true)
     {
+        if ($escapeSpecialCharacters) {
+            $attributeName = htmlspecialchars($attributeName);
+        }
         if ($attributeName === 'data' && (is_array($attributeValue) || $attributeValue instanceof \Traversable)) {
             foreach ($attributeValue as $name => $value) {
                 $this->addAttribute('data-' . $name, $value, $escapeSpecialCharacters);
diff --git a/src/Core/ViewHelper/Traits/CompileWithContentArgumentAndRenderStatic.php b/src/Core/ViewHelper/Traits/CompileWithContentArgumentAndRenderStatic.php
index b5567dba9..d37957873 100644
--- a/src/Core/ViewHelper/Traits/CompileWithContentArgumentAndRenderStatic.php
+++ b/src/Core/ViewHelper/Traits/CompileWithContentArgumentAndRenderStatic.php
@@ -116,7 +116,7 @@ protected function buildRenderChildrenClosure()
     /**
      * @return string
      */
-    protected function resolveContentArgumentName()
+    public function resolveContentArgumentName()
     {
         if (empty($this->contentArgumentName)) {
             $registeredArguments = call_user_func_array([$this, 'prepareArguments'], []);
diff --git a/src/ViewHelpers/Format/RawViewHelper.php b/src/ViewHelpers/Format/RawViewHelper.php
index 812a519dd..b80c08261 100644
--- a/src/ViewHelpers/Format/RawViewHelper.php
+++ b/src/ViewHelpers/Format/RawViewHelper.php
@@ -64,7 +64,7 @@ class RawViewHelper extends AbstractViewHelper
      */
     public function initializeArguments()
     {
-        $this->registerArgument('value', 'mixed', 'The value to output');
+        $this->registerArgument('value', 'mixed', 'The value to output', false, null, false);
     }
 
     /**
diff --git a/tests/Functional/Cases/Escaping/EscapingTest.php b/tests/Functional/Cases/Escaping/EscapingTest.php
index ad00608ea..645312b10 100644
--- a/tests/Functional/Cases/Escaping/EscapingTest.php
+++ b/tests/Functional/Cases/Escaping/EscapingTest.php
@@ -7,6 +7,7 @@
 use TYPO3Fluid\Fluid\Core\ViewHelper\ViewHelperInterface;
 use TYPO3Fluid\Fluid\Tests\Functional\BaseFunctionalTestCase;
 use TYPO3Fluid\Fluid\Tests\Functional\Fixtures\ViewHelpers\MutableTestViewHelper;
+use TYPO3Fluid\Fluid\Tests\Functional\Fixtures\ViewHelpers\TagBasedTestViewHelper;
 use TYPO3Fluid\Fluid\Tests\Functional\Fixtures\ViewHelpers\TestViewHelperResolver;
 use TYPO3Fluid\Fluid\Tests\Unit\Core\Rendering\RenderingContextFixture;
 use TYPO3Fluid\Fluid\View\TemplateView;
@@ -64,13 +65,13 @@ public function testWithEscapingBehaviorsNullWithoutContentOrOutputArguments()
 
     public function testWithEscapingBehaviorsNullWithOutputArgument()
     {
+        // When both escapeOutput and escapeChildren are null, output escaping is enabled and children escaping is disabled (because output is escaped there is no need to escsape children explicitly).
+        // The case therefore escapes both static HTML and variables/inline in arguments.
         $viewHelper = (new MutableTestViewHelper())->withOutputArgument();
         $this->assertSame(self::ESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag with variable');
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
-
-        // TODO: possible undesired behavior, double encoded variable
-        $this->assertSame('&lt;div&gt;&amp;lt;script&amp;gt;alert(1)&amp;lt;/script&amp;gt;&lt;/div&gt;', $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
+        $this->assertSame(self::ESCAPED_WRAPPED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
     }
 
     public function testWithEscapingBehaviorsNullWithContentArgument()
@@ -83,6 +84,7 @@ public function testWithEscapingBehaviorsNullWithContentArgument()
     /*
      * Escape children = false
      * Escape output = null
+     * Escape argument = null
      */
 
     public function testWithEscapChildrenFalseWithoutContentOrOutputArguments()
@@ -102,22 +104,23 @@ public function testWithEscapChildrenFalseWithContentArgument()
 
     public function testWithEscapeChildrenFalseWithOutputArgument()
     {
+        // Output argument is not escaped (it is not a content argument) because output escaping is OFF. Developer who wrote ViewHelper would be responsible for escaping.
         $viewHelper = (new MutableTestViewHelper())->withOutputArgument()->withEscapeChildren(false);
         $this->assertSame(self::ESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag child variable');
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
-
-        // TODO: possible undesired behavior, double encoded variable
-        $this->assertSame('&lt;div&gt;&amp;lt;script&amp;gt;alert(1)&amp;lt;/script&amp;gt;&lt;/div&gt;', $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
+        $this->assertSame(self::ESCAPED_WRAPPED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
     }
 
     /*
      * Escape children = null
      * Escape output = false
+     * Escape arguments = false
      */
 
     public function testWithEscapOutputFalseWithoutContentOrOutputArguments()
     {
+        // Child content and content argument are treated the same based on escape-children state. Children escaping is ON because escape output is OFF and escape children has no decision.
         $viewHelper = (new MutableTestViewHelper())->withEscapeOutput(false);
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test>{value}</test:test>'), 'Tag child variable');
@@ -128,39 +131,34 @@ public function testWithEscapOutputFalseWithoutContentOrOutputArguments()
 
     public function testWithEscapeOutputFalseWithContentArgument()
     {
-        $viewHelper = (new MutableTestViewHelper())->withContentArgument()->withEscapeOutput(false);
+        // Child content and content argument are treated the same based on escape-children state. Children escaping is ON because escape output is OFF and escape children has no decision.
+        $viewHelper = (new MutableTestViewHelper())->withContentArgument(false)->withEscapeOutput(false);
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
-
-        // TODO: security case - argument must be escaped!
-        #$this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(content: value)}'), 'Inline pass of variable');
-
-        // TODO: inconsistent case - argument is quoted and is escaped, which does not happen if the argument is NOT quoted
-        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(content: "{value}")}'), 'Inline pass of variable');
-
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(content: value)}'), 'Inline variable in argument');
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(content: "{value}")}'), 'Inline pass of variable, quoted');
         $this->assertSame(self::ESCAPED_WRAPPED_STATIC_PROTECTED, $this->renderCode($viewHelper, '<test:test><div>{value}</div></test:test>'), 'Tag child variable with static HTML');
     }
 
     public function testWithEscapeOutputFalseWithOutputArgument()
     {
-        $viewHelper = (new MutableTestViewHelper())->withOutputArgument()->withEscapeOutput(false);
+        // Output argument is not escaped (it is not a content argument) because output escaping is OFF. Developer who wrote ViewHelper would be responsible for escaping.
+        $viewHelper = (new MutableTestViewHelper())->withOutputArgument(false)->withEscapeOutput(false);
         $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag child variable');
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
-
-        // TODO: inconsistent case - argument is quoted and is escaped, which does not happen if the argument is NOT quoted
-        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(output: "{value}")}'), 'Inline output argument');
-
-        // TODO: possibly undesired behavior, escapes argument though output should be unescaped / children should be escaped but value is not passed as child
-        $this->assertSame(self::ESCAPED_WRAPPED_STATIC_PROTECTED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(output: "{value}")}'), 'Inline output argument');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
     }
 
     /*
      * Escape children = true
      * Escape output = false
+     * Escape arguments = false
      */
 
     public function testWithEscapOutputFalseWithEscapeChildrenTrueWithoutContentOrOutputArguments()
     {
+        // Output is escaped because children are escaped. Children are escaped because escape-output is OFF and no explicit decision is made for escape-children, causing escape-children to be ON.
         $viewHelper = (new MutableTestViewHelper())->withEscapeOutput(false)->withEscapeChildren(true);
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test>{value}</test:test>'), 'Tag child variable');
@@ -169,34 +167,31 @@ public function testWithEscapOutputFalseWithEscapeChildrenTrueWithoutContentOrOu
 
     public function testWithEscapeOutputFalseWithEscapeChildrenTrueWithContentArgument()
     {
-        $viewHelper = (new MutableTestViewHelper())->withContentArgument()->withEscapeOutput(false)->withEscapeChildren(true);
+        // Child content is escaped because escape-output is OFF but an explicit decision for escape-children has been made to turn it ON.
+        $viewHelper = (new MutableTestViewHelper())->withContentArgument(false)->withEscapeOutput(false)->withEscapeChildren(true);
         $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
         $this->assertSame(self::ESCAPED_WRAPPED_STATIC_PROTECTED, $this->renderCode($viewHelper, '<test:test><div>{value}</div></test:test>'), 'Tag child variable with static HTML');
     }
 
     public function testWithEscapeOutputFalseWithEscapeChildrenTrueWithOutputArgument()
     {
-        $viewHelper = (new MutableTestViewHelper())->withOutputArgument()->withEscapeOutput(false)->withEscapeChildren(true);
+        // Output argument is not escaped (it is not a content argument) because escape-output is OFF and escape-children is not considered (it is an argument, not a child). Developer who wrote ViewHelper would be responsible for escaping.
+        $viewHelper = (new MutableTestViewHelper())->withOutputArgument(false)->withEscapeOutput(false)->withEscapeChildren(true);
         $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag child variable');
-
-        // TODO: security case - argument must be escaped!
-        #$this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
-
-        // TODO: inconsistent case - argument is quoted and is escaped, which does not happen if the argument is NOT quoted
-        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(output: "{value}")}'), 'Inline output argument');
-
-        // TODO: possibly undesired behavior, escapes argument though output should be unescaped and value is not passed as child
-        $this->assertSame(self::ESCAPED_WRAPPED_STATIC_PROTECTED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(output: "{value}")}'), 'Inline output argument');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
     }
 
     /*
      * Escape children = false
      * Escape output = false
+     * Escape arguments = false
      */
 
     public function testWithEscapOutputFalseWithEscapeChildrenFalseWithoutContentOrOutputArguments()
     {
+        // Nothing is escaped because all escaping is off.
         $viewHelper = (new MutableTestViewHelper())->withEscapeOutput(false)->withEscapeChildren(false);
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<test:test>{value}</test:test>'), 'Tag child variable');
@@ -205,25 +200,135 @@ public function testWithEscapOutputFalseWithEscapeChildrenFalseWithoutContentOrO
 
     public function testWithEscapeOutputFalseWithEscapeChildrenFalseWithContentArgument()
     {
-        $viewHelper = (new MutableTestViewHelper())->withContentArgument()->withEscapeOutput(false)->withEscapeChildren(false);
+        // Child variable is not escaped because all escaping is off, including specific argument escaping.
+        $viewHelper = (new MutableTestViewHelper())->withContentArgument(false)->withEscapeOutput(false)->withEscapeChildren(false);
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
         $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test><div>{value}</div></test:test>'), 'Tag child variable with static HTML');
     }
 
     public function testWithEscapeOutputFalseWithEscapeChildrenFalseWithOutputArgument()
     {
-        $viewHelper = (new MutableTestViewHelper())->withOutputArgument()->withEscapeOutput(false)->withEscapeChildren(false);
+        // Argument is not escaped because all escaping is off, including specific argument escaping.
+        $viewHelper = (new MutableTestViewHelper())->withOutputArgument(false)->withEscapeOutput(false)->withEscapeChildren(false);
         $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag child variable');
         $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{f:if(condition: 1, then: value)}'), 'Inline output argument (f:if)');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
+    }
 
-        // TODO: expected to break after introducing mandatory argument escaping on f:if then+else
-        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{f:if(condition: 1, then: value)}'), 'Inline output argument (f:if)');
+    /*
+     * Escape children = false
+     * Escape output = false
+     * Escape arguments = null
+     */
 
-        // TODO: possibly undesired behavior, escapes argument though output should be unescaped and value is not passed as child
+    public function testWithEscapeOutputFalseWithEscapeChildrenFalseWithEscapeArgumentNullWithContentArgument()
+    {
+        // All escaping is off, output will not be escaped
+        $viewHelper = (new MutableTestViewHelper())->withContentArgument(null)->withEscapeOutput(false)->withEscapeChildren(false);
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test><div>{value}</div></test:test>'), 'Tag child variable with static HTML');
+    }
+
+    public function testWithEscapeOutputFalseWithEscapeChildrenFalseWithEscapeArgumentNullWithOutputArgument()
+    {
+        // All escaping is off, output will not be escaped
+        $viewHelper = (new MutableTestViewHelper())->withOutputArgument(null)->withEscapeOutput(false)->withEscapeChildren(false);
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag child variable');
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
+    }
+
+    /*
+     * Escape children = false
+     * Escape output = false
+     * Escape arguments = true
+     */
+
+    public function testWithEscapeOutputFalseWithEscapeChildrenFalseWithEscapeArgumentTrueWithContentArgument()
+    {
+        // Child variable is not escaped because both output and child escaping is off.
+        $viewHelper = (new MutableTestViewHelper())->withContentArgument(true)->withEscapeOutput(false)->withEscapeChildren(false);
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
+        $this->assertSame(self::UNESCAPED_WRAPPED, $this->renderCode($viewHelper, '<test:test><div>{value}</div></test:test>'), 'Tag child variable with static HTML');
+    }
+
+    public function testWithEscapeOutputFalseWithEscapeChildrenFalseWithEscapeArgumentTrueWithOutputArgument()
+    {
+        // Output argument is escaped despite both escape-output and escape-children being OFF, because argument was explicitly requested to be escaped.
+        $viewHelper = (new MutableTestViewHelper())->withOutputArgument(true)->withEscapeOutput(false)->withEscapeChildren(false);
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test output="{value}" />'), 'Tag child variable');
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(output: value)}'), 'Inline output argument');
+        $this->assertSame(self::ESCAPED_WRAPPED_STATIC_PROTECTED, $this->renderCode($viewHelper, '<test:test output="<div>{value}</div>" />'), 'Tag with variable and static HTML');
         $this->assertSame(self::ESCAPED_WRAPPED_STATIC_PROTECTED, $this->renderCode($viewHelper, '{test:test(output: "<div>{value}</div>")}'), 'Inline with static HTML');
     }
 
+    /*
+     * Escape children = true
+     * Escape output = false
+     * Escape arguments = null
+     */
+
+    public function testEscapeContentArgumentWithEscapeChildrenTrueWithEscapeOutputOffEscapesArgument()
+    {
+        // Content argument is escaped because because escape-output is OFF but escape-children is ON and content argument is treated as child.
+        $viewHelper = (new MutableTestViewHelper())->withEscapeChildren(true)->withEscapeOutput(false)->withContentArgument(null);
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{value -> test:test()}'), 'Inline pass of variable');
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '{test:test(content: value)}'), 'Inline with content argument');
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test content="{value}" />'), 'Tag with content argument');
+        $this->assertSame(self::ESCAPED, $this->renderCode($viewHelper, '<test:test>{value}</test:test>'), 'Tag with child variable');
+    }
+
+    /*
+     * Disabling otherwise enabled escaping
+     */
+
+    public function testArgumentNotEscapedIfDisabledByFormatRawButNormallyWouldBeEscapedByOutputEscaping()
+    {
+        // Output is not escaped because VH is surrounded by f:format.raw, overriding escape-output, escape-children and escaping flag in ArgumentDefinition.
+        $viewHelper = (new MutableTestViewHelper())->withEscapeOutput(true)->withEscapeChildren(true)->withContentArgument(true);
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<f:format.raw>{value -> test:test()}</f:format.raw>'), 'Inline pass of variable surrounded by format.raw');
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{value -> test:test() -> f:format.raw()}'), 'Inline pass of variable chained with format.raw');
+    }
+
+    public function testArgumentNotEscapedEvenIfArgumentRequestedEscapedBecauseChainingWithFormatRawOverridesArgumentEscaping()
+    {
+        // Content argument is not escaped, despite flag in ArgumentDefinition, because argument is chained with f:format.raw which overrides argument escaping.
+        $viewHelper = (new MutableTestViewHelper())->withEscapeOutput(false)->withEscapeChildren(false)->withContentArgument(true);
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<test:test content="{value -> f:format.raw()}" />'), 'Tag with argument chained with format.raw');
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{test:test(content: "{value -> f:format.raw()}")}'), 'Inline with argument chained with format.raw');
+    }
+
+    public function testArgumentNotEscapedIfDisabledByFormatRawButNormallyWouldBeEscapedByArgumentEscaping()
+    {
+        // Child is not escaped because VH is surrounded by f:format.raw, overriding escaping flag in ArgumentDefinition.
+        $viewHelper = (new MutableTestViewHelper())->withEscapeOutput(false)->withEscapeChildren(false);
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '<f:format.raw>{value -> test:test()}</f:format.raw>'), 'Inline pass of variable surrounded by format.raw');
+        $this->assertSame(self::UNESCAPED, $this->renderCode($viewHelper, '{value -> test:test() -> f:format.raw()}'), 'Inline pass of variable chained with format.raw');
+    }
+
+    /*
+     * TagBasedViewHelper attribute escaping
+     */
+
+    public function testTagBasedViewHelperEscapesAttributes()
+    {
+        // Tag ViewHelper attributes are always escaped; the only way to disable this escaping is for the VH to manually add the attribute and explicitly disable conversion of special HTML chars.
+        $viewHelper = new TagBasedTestViewHelper();
+        $this->assertSame('<div class="' . self::ESCAPED . '" />', $this->renderCode($viewHelper, '<test:test class="{value}" />'), 'Tag attribute is escaped');
+        $this->assertSame('<div data-foo="' . self::ESCAPED . '" />', $this->renderCode($viewHelper, '<test:test data="{foo: value}" />'), 'Tag data attribute values are escaped');
+        $this->assertSame('<div foo="' . self::ESCAPED . '" />', $this->renderCode($viewHelper, '<test:test additionalAttributes="{foo: value}" />'), 'Tag additional attributes values are escaped');
+        $this->assertSame('<div data-&gt;' . self::ESCAPED . '&lt;="1" />', $this->renderCode($viewHelper, '<test:test data=\'{"><script>alert(1)</script><": 1}\' />'), 'Tag data attribute keys are escaped');
+        $this->assertSame('<div &gt;' . self::ESCAPED . '&lt;="1" />', $this->renderCode($viewHelper, '<test:test additionalAttributes=\'{"><script>alert(1)</script><": 1}\' />'), 'Tag additional attributes keys are escaped');
+
+        // Disabled: bug detected, handleAdditionalArguments on AbstractTagBasedViewHelper does assign the tag attribute, but following this call,
+        // the initialize() method is called which resets the TagBuilder and in turn removes the data- prefixed attributes which are then not re-assigned.
+        // Regression caused by https://github.com/TYPO3/Fluid/pull/419.
+        //$this->assertSame('<div data-foo="' . self::ESCAPED . '" />', $this->renderCode($viewHelper, '<test:test data-foo="{value}" />'), 'Tag unregistered data attribute is escaped');
+    }
+
     /**
      * @return array
      */
@@ -279,11 +384,11 @@ public function getTemplateCodeFixturesAndExpectations()
                 ['<strong>Bla</strong>'],
                 ['&lt;strong&gt;Bla&lt;/strong&gt;'],
             ],
-            'EscapeChildrenEnabledAndEscapeOutputDisabled: Inline syntax with argument in quotes, does encode variable value (encoded before passed to VH)' => [
+            'EscapeChildrenEnabledAndEscapeOutputDisabled: Inline syntax with argument in quotes, does not encode variable value' => [
                 '{test:escapeChildrenEnabledAndEscapeOutputDisabled(content: \'{settings.test}\')}',
                 $this->variables,
-                ['&lt;strong&gt;Bla&lt;/strong&gt;'],
                 ['<strong>Bla</strong>'],
+                ['&lt;strong&gt;Bla&lt;/strong&gt;'],
             ],
             'EscapeChildrenEnabledAndEscapeOutputDisabled: Tag syntax with nested inline syntax and children rendering, does not encode variable value' => [
                 '<test:escapeChildrenEnabledAndEscapeOutputDisabled content="{settings.test -> test:escapeChildrenEnabledAndEscapeOutputDisabled()}" />',
@@ -327,11 +432,11 @@ public function getTemplateCodeFixturesAndExpectations()
                 ['<strong>Bla</strong>'],
                 ['&lt;strong&gt;Bla&lt;/strong&gt;'],
             ],
-            'EscapeChildrenDisabledAndEscapeOutputDisabled: Inline syntax with argument in quotes, does encode variable value (encoded before passed to VH)' => [
+            'EscapeChildrenDisabledAndEscapeOutputDisabled: Inline syntax with argument in quotes, does not encode variable value' => [
                 '{test:escapeChildrenDisabledAndEscapeOutputDisabled(content: \'{settings.test}\')}',
                 $this->variables,
-                ['&lt;strong&gt;Bla&lt;/strong&gt;'],
                 ['<strong>Bla</strong>'],
+                ['&lt;strong&gt;Bla&lt;/strong&gt;'],
             ],
             'EscapeChildrenDisabledAndEscapeOutputDisabled: Tag syntax with nested inline syntax and children rendering, does not encode variable value' => [
                 '<test:escapeChildrenDisabledAndEscapeOutputDisabled content="{settings.test -> test:escapeChildrenDisabledAndEscapeOutputDisabled()}" />',
diff --git a/tests/Functional/Fixtures/ViewHelpers/MutableTestViewHelper.php b/tests/Functional/Fixtures/ViewHelpers/MutableTestViewHelper.php
index c5bf98144..332c9a14a 100644
--- a/tests/Functional/Fixtures/ViewHelpers/MutableTestViewHelper.php
+++ b/tests/Functional/Fixtures/ViewHelpers/MutableTestViewHelper.php
@@ -24,16 +24,16 @@ public function setEscapeOutput($escapeOutput): void
         $this->escapeOutput = $escapeOutput;
     }
 
-    public function registerArgument($name, $type, $description, $required = false, $defaultValue = null)
+    public function registerArgument($name, $type, $description, $required = false, $defaultValue = null, $escaped = null)
     {
-        return parent::registerArgument($name, $type, $description, $required, $defaultValue);
+        return parent::registerArgument($name, $type, $description, $required, $defaultValue, $escaped);
     }
 
     public function withContentArgument($escaped = null): self
     {
         // TODO: set escaping behavior if $escaped !== null
         $clone = clone $this;
-        $clone->registerArgument('content', 'string', 'Content argument');
+        $clone->registerArgument('content', 'string', 'Content argument', false, null, $escaped);
         return $clone;
     }
 
@@ -41,7 +41,7 @@ public function withOutputArgument($escaped = null): self
     {
         // TODO: set escaping behavior if $escaped !== null
         $clone = clone $this;
-        $clone->registerArgument('output', 'string', 'Content argument', true);
+        $clone->registerArgument('output', 'string', 'Content argument', true, null, $escaped);
         return $clone;
     }
 
@@ -59,6 +59,11 @@ public function withEscapeOutput($escapeOutput): self
         return $clone;
     }
 
+    public function resolveContentArgumentName()
+    {
+        return 'content';
+    }
+
     public function render()
     {
         $argumentDefinitions = $this->prepareArguments();
diff --git a/tests/Functional/Fixtures/ViewHelpers/TagBasedTestViewHelper.php b/tests/Functional/Fixtures/ViewHelpers/TagBasedTestViewHelper.php
new file mode 100644
index 000000000..ddd11829b
--- /dev/null
+++ b/tests/Functional/Fixtures/ViewHelpers/TagBasedTestViewHelper.php
@@ -0,0 +1,17 @@
+<?php
+namespace TYPO3Fluid\Fluid\Tests\Functional\Fixtures\ViewHelpers;
+
+use TYPO3Fluid\Fluid\Core\ViewHelper\AbstractTagBasedViewHelper;
+
+class TagBasedTestViewHelper extends AbstractTagBasedViewHelper
+{
+    public function prepareArguments()
+    {
+        // Override to avoid the static cache of registered ViewHelper arguments; will always return
+        // only those arguments that are registered in this particular instance.
+        $this->argumentDefinitions = [];
+        $this->registerUniversalTagAttributes();
+        $this->initializeArguments();
+        return $this->argumentDefinitions;
+    }
+}
\ No newline at end of file
diff --git a/tests/Unit/Core/Parser/TemplateParserTest.php b/tests/Unit/Core/Parser/TemplateParserTest.php
index 008f8efda..fd4a0ce77 100644
--- a/tests/Unit/Core/Parser/TemplateParserTest.php
+++ b/tests/Unit/Core/Parser/TemplateParserTest.php
@@ -450,7 +450,7 @@ public function objectAccessorHandlerCallsInitializeViewHelperAndAddItToStackIfV
         );
         $templateParser->setRenderingContext(new RenderingContextFixture());
         $templateParser->expects($this->at(0))->method('recursiveArrayHandler')
-            ->with('arguments: {0: \'foo\'}')->will($this->returnValue(['arguments' => ['foo']]));
+            ->with($mockState, 'arguments: {0: \'foo\'}')->will($this->returnValue(['arguments' => ['foo']]));
         $templateParser->expects($this->at(1))->method('initializeViewHelperAndAddItToStack')
             ->with($mockState, 'f', 'format.printf', ['arguments' => ['foo']])->will($this->returnValue(true));
         $templateParser->expects($this->at(2))->method('initializeViewHelperAndAddItToStack')
@@ -1004,6 +1004,7 @@ public function dataProviderRecursiveArrayHandler()
      */
     public function testRecursiveArrayHandler($string, $expected)
     {
+        $state = new ParsingState();
         $resolver = $this->getMock(ViewHelperResolver::class, ['isNamespaceIgnored']);
         $resolver->expects($this->any())->method('isNamespaceIgnored')->willReturn(true);
         $context = new RenderingContextFixture();
@@ -1013,7 +1014,7 @@ public function testRecursiveArrayHandler($string, $expected)
         $templateParser->setRenderingContext($context);
         $method = new \ReflectionMethod($templateParser, 'recursiveArrayHandler');
         $method->setAccessible(true);
-        $result = $method->invokeArgs($templateParser, [$string]);
+        $result = $method->invokeArgs($templateParser, [$state, $string]);
 
         $this->assertEquals($expected, $result);
     }