diff --git a/xml/parser.go b/xml/parser.go
new file mode 100644
index 0000000..977cd74
--- /dev/null
+++ b/xml/parser.go
@@ -0,0 +1,130 @@
+package xmlparsing
+
+import (
+	"encoding/xml"
+	"io"
+	"iter"
+	"strings"
+)
+
+type TokenType int
+
+const (
+	StartElement TokenType = iota
+	EndElement
+	CharData
+	Comment
+	ProcInst
+	Directive
+)
+
+type Element struct {
+	Name       string
+	Attributes map[string]string
+	CharData   string
+}
+
+type Token struct {
+	Name       string
+	Attributes map[string]string
+	Inner      xml.Token
+	Type       TokenType
+	Data       string
+}
+
+type TokenResult[T any] struct {
+	State T
+	Token Token
+	Stack []Element
+}
+
+func Iterate[T any](xmlData string, initialState T) iter.Seq2[*TokenResult[T], error] {
+	decoder := xml.NewDecoder(strings.NewReader(xmlData))
+	stack := []Element{}
+	state := initialState
+	return iter.Seq2[*TokenResult[T], error](func(yield func(*TokenResult[T], error) bool) {
+		for {
+			token, err := decoder.Token()
+			if err == io.EOF {
+				return
+			}
+			if err != nil {
+				yield(nil, err)
+				return
+			}
+
+			var customToken Token
+			switch t := token.(type) {
+			case xml.StartElement:
+				elem := Element{
+					Name:       t.Name.Local,
+					Attributes: mapAttributes(t.Attr),
+					CharData:   "",
+				}
+				stack = append(stack, elem)
+				customToken = Token{
+					Name:       t.Name.Local,
+					Attributes: elem.Attributes,
+					Inner:      t,
+					Type:       StartElement,
+				}
+			case xml.EndElement:
+				if len(stack) > 0 {
+					stack = stack[:len(stack)-1]
+				}
+				customToken = Token{Name: t.Name.Local, Inner: t, Type: EndElement}
+			case xml.CharData:
+				text := strings.TrimSpace(string(t))
+				if text != "" && len(stack) > 0 {
+					stack[len(stack)-1].CharData += text + " "
+				}
+				customToken = Token{
+					Name:  "CharData",
+					Inner: t,
+					Data:  text,
+					Type:  CharData,
+				}
+			case xml.Comment:
+				customToken = Token{
+					Name:  "Comment",
+					Inner: t,
+					Data:  string(t),
+					Type:  Comment,
+				}
+			case xml.ProcInst:
+				customToken = Token{
+					Name:  t.Target,
+					Inner: t,
+					Data:  string(t.Inst),
+					Type:  ProcInst,
+				}
+			case xml.Directive:
+				customToken = Token{
+					Name:  "Directive",
+					Inner: t,
+					Data:  string(t),
+					Type:  Directive,
+				}
+			}
+
+			result := &TokenResult[T]{
+				State: state,
+				Token: customToken,
+				Stack: append([]Element{}, stack...),
+			}
+
+			if !yield(result, nil) {
+				return
+			}
+		}
+	})
+}
+
+// mapAttributes converts xml.Attr to a map[string]string.
+func mapAttributes(attrs []xml.Attr) map[string]string {
+	attrMap := make(map[string]string)
+	for _, attr := range attrs {
+		attrMap[attr.Name.Local] = attr.Value
+	}
+	return attrMap
+}
diff --git a/xml/parser_test.go b/xml/parser_test.go
new file mode 100644
index 0000000..9551620
--- /dev/null
+++ b/xml/parser_test.go
@@ -0,0 +1,97 @@
+package xmlparsing
+
+import (
+	"testing"
+)
+
+type TestState struct {
+	ParsedElements []string
+}
+
+func TestIterate_ValidXML(t *testing.T) {
+	xmlData := `<root>
+		<child attr="value">Text</child>
+		<!-- This is a comment -->
+		<?xml-stylesheet type="text/css" href="style.css"?>
+		<!DOCTYPE note>
+	</root>`
+
+	state := TestState{}
+	for tokenResult, err := range Iterate(xmlData, state) {
+		if err != nil {
+			t.Fatalf("Unexpected error: %v", err)
+		}
+		if tokenResult == nil {
+			t.Fatal("Received nil token result")
+		}
+		state.ParsedElements = append(state.ParsedElements, tokenResult.Token.Name)
+	}
+
+	if len(state.ParsedElements) == 0 {
+		t.Fatal("No elements were parsed")
+	}
+}
+
+func TestIterate_InvalidXML(t *testing.T) {
+	xmlData := `<root><child></root>`
+	state := TestState{}
+	var global error
+	for _, err := range Iterate(xmlData, state) {
+		if err != nil {
+			global = err
+		}
+	}
+	if global == nil {
+		t.Fatal("Expected error, but got nil")
+	}
+}
+
+func TestIterate_EmptyXML(t *testing.T) {
+	xmlData := ""
+	state := TestState{}
+	for _, err := range Iterate(xmlData, state) {
+		if err != nil {
+			t.Fatalf("Expected iter.ErrEnd, but got: %v", err)
+		}
+	}
+}
+
+func TestIterate_CharDataTracking(t *testing.T) {
+	xmlData := `<root>
+		<child>First</child>
+		<child>Second</child>
+	</root>`
+
+	state := TestState{}
+	charDataCount := 0
+	for tokenResult, err := range Iterate(xmlData, state) {
+		if err != nil {
+			t.Fatalf("Unexpected error: %v", err)
+		}
+		if tokenResult.Token.Name == "CharData" {
+			charDataCount++
+		}
+	}
+
+	if charDataCount != 5 {
+		t.Fatalf("Expected 2 CharData elements, got %d", charDataCount)
+	}
+}
+
+func TestIterate_AttributeParsing(t *testing.T) {
+	xmlData := `<root>
+		<child attr1="value1" attr2="value2">Content</child>
+	</root>`
+
+	state := TestState{}
+	for tokenResult, err := range Iterate(xmlData, state) {
+		if err != nil {
+			t.Fatalf("Unexpected error: %v", err)
+		}
+		if tokenResult.Token.Name == "child" && tokenResult.Token.Type == StartElement {
+			if tokenResult.Token.Attributes["attr1"] != "value1" || tokenResult.Token.Attributes["attr2"] != "value2" {
+				t.Fatalf("Incorrect attributes parsed: %v", tokenResult.Token.Attributes)
+			}
+		}
+	}
+}