diff --git a/api/src/main/java/net/kyori/adventure/text/TextReplacementRenderer.java b/api/src/main/java/net/kyori/adventure/text/TextReplacementRenderer.java
index ab7626b38..3ff1ceb27 100644
--- a/api/src/main/java/net/kyori/adventure/text/TextReplacementRenderer.java
+++ b/api/src/main/java/net/kyori/adventure/text/TextReplacementRenderer.java
@@ -47,6 +47,8 @@ private TextReplacementRenderer() {
   @Override
   public @NonNull Component render(final @NonNull Component component, final @NonNull State state) {
     if(!state.running) return component;
+    final boolean prevFirstMatch = state.firstMatch;
+    state.firstMatch = true;
 
     final List<Component> oldChildren = component.children();
     final int oldChildrenSize = oldChildren.size();
@@ -90,7 +92,7 @@ private TextReplacementRenderer() {
           if(children == null) {
             children = new ArrayList<>(oldChildrenSize + 2);
           }
-          if(state.replaceCount == 0) {
+          if(state.firstMatch) {
             // truncate parent to content before match
             modified = ((TextComponent) component).content(content.substring(0, matcher.start()));
           } else if(replacedUntil < matcher.start()) {
@@ -102,6 +104,7 @@ private TextReplacementRenderer() {
           }
         }
         state.replaceCount++;
+        state.firstMatch = false;
         replacedUntil = matcher.end();
       }
       if(replacedUntil < content.length()) {
@@ -171,6 +174,7 @@ private TextReplacementRenderer() {
       }
     }
 
+    state.firstMatch = prevFirstMatch;
     // Update the modified component with new children
     if(children != null) {
       return modified.children(children);
@@ -185,6 +189,7 @@ static final class State {
     boolean running = true;
     int matchCount = 0;
     int replaceCount = 0;
+    boolean firstMatch = true;
 
     State(final @NonNull Pattern pattern, final @NonNull BiFunction<MatchResult, TextComponent.Builder, @Nullable ComponentLike> replacement, final @NonNull IntFunction2<PatternReplacementResult> continuer) {
       this.pattern = pattern;
diff --git a/api/src/test/java/net/kyori/adventure/text/TextComponentTest.java b/api/src/test/java/net/kyori/adventure/text/TextComponentTest.java
index 9389b1d86..02a6dbc72 100644
--- a/api/src/test/java/net/kyori/adventure/text/TextComponentTest.java
+++ b/api/src/test/java/net/kyori/adventure/text/TextComponentTest.java
@@ -25,6 +25,7 @@
 
 import com.google.common.collect.ImmutableSet;
 import java.util.Collections;
+import java.util.regex.Matcher;
 import java.util.regex.Pattern;
 import java.util.stream.IntStream;
 import net.kyori.adventure.text.event.HoverEvent;
@@ -272,7 +273,35 @@ void testPartialReplaceHasIsolatedStyle() {
     });
 
     assertEquals(expectedReplacement, component.replaceText(Pattern.compile("Hello"), builder -> builder.content("Goodbye").color(NamedTextColor.LIGHT_PURPLE)));
+  }
+
+  // https://github.com/KyoriPowered/adventure/issues/197
+  @Test
+  void testReplaceSameInComponentAndEvent() {
+    final Component original = Component.text("/{0}", NamedTextColor.RED)
+      .hoverEvent(Component.text()
+        .append(Component.text("Click to run"))
+        .append(Component.space())
+        .append(Component.text("/{0}", NamedTextColor.RED)).build());
+
+    final Component expected = Component.text("/", NamedTextColor.RED)
+      .append(Component.text("mycommand"))
+      .hoverEvent(Component.text()
+        .append(Component.text("Click to run"))
+        .append(Component.space())
+      .append(Component.text("/", NamedTextColor.RED).append(Component.text("mycommand"))).build());
+
+    final Pattern replaceWith = Pattern.compile("\\{(\\d+)}");
+
+    final Component replaced = original.replaceText(replaceWith, b -> {
+      final Matcher matcher = replaceWith.matcher(b.content());
+      assertTrue(matcher.find());
+      assertEquals(0, Integer.parseInt(matcher.group(1))); // only one index in our test case
+
+      return Component.text("mycommand");
+    });
 
+    assertEquals(expected, replaced);
   }
 
   @Test