diff --git a/docs/conf.py b/docs/conf.py
index e04d61f..79a769c 100644
--- a/docs/conf.py
+++ b/docs/conf.py
@@ -12,6 +12,7 @@
 #
 import os
 import sys
+
 from sphinx_tags import __version__
 
 sys.path.insert(0, os.path.abspath("../src"))
@@ -35,7 +36,7 @@
 extensions = ["sphinx_design", "sphinx_tags", "nbsphinx", "myst_parser"]
 
 tags_create_tags = True
-tags_create_badges = False
+tags_create_badges = True
 # tags_output_dir = "_tags"  # default
 tags_overview_title = "All tags"  # default: "Tags overview"
 tags_extension = ["rst", "md", "ipynb"]  # default: ["rst"]
diff --git a/src/sphinx_tags/__init__.py b/src/sphinx_tags/__init__.py
index 4993653..7bdff08 100644
--- a/src/sphinx_tags/__init__.py
+++ b/src/sphinx_tags/__init__.py
@@ -12,8 +12,8 @@
 from sphinx.errors import ExtensionError
 from sphinx.util.docutils import SphinxDirective
 from sphinx.util.logging import getLogger
-from sphinx.util.rst import textwidth
 from sphinx.util.matching import get_matching_files
+from sphinx.util.rst import textwidth
 
 __version__ = "0.4dev"
 
@@ -60,13 +60,16 @@ def run(self):
         # normalize white space and remove "\n"
         if self.arguments:
             page_tags.extend(
-                [_normalize_tag(tag) for tag in self.arguments[0].split(",")]
+                [_normalize_display_tag(tag) for tag in self.arguments[0].split(",")]
             )
         if self.content:
             # self.content: StringList(['different, tags,', 'separated'],
             #                          items=[(path, lineno), (path, lineno)])
             page_tags.extend(
-                [_normalize_tag(tag) for tag in ",".join(self.content).split(",")]
+                [
+                    _normalize_display_tag(tag)
+                    for tag in ",".join(self.content).split(",")
+                ]
             )
         # Remove empty elements from page_tags
         # (can happen after _normalize_tag())
@@ -153,7 +156,7 @@ class Tag:
 
     def __init__(self, name):
         self.items = []
-        self.name = name
+        self.name = _normalize_display_tag(name)
         self.file_basename = _normalize_tag(name, dashes=True)
 
     def create_file(
@@ -260,12 +263,13 @@ def __init__(self, entrypath: Path):
         tagblock = []
         reading = False
         for line in self.lines:
+            line = line.strip()
             if tagstart in line:
                 reading = True
                 line = line.split(tagstart)[1]
                 tagblock.extend(line.split(","))
             else:
-                if reading and line.strip() == tagend:
+                if reading and line == tagend:
                     # tagblock now contains at least one tag
                     if tagblock != [""]:
                         break
@@ -274,7 +278,7 @@ def __init__(self, entrypath: Path):
 
         self.tags = []
         if tagblock:
-            self.tags = [tag.strip().rstrip('"') for tag in tagblock if tag != ""]
+            self.tags = [_normalize_display_tag(tag) for tag in tagblock if tag]
 
     def assign_to_tags(self, tag_dict):
         """Append ourself to tags"""
@@ -300,6 +304,15 @@ def _normalize_tag(tag: str, dashes: bool = False) -> str:
     return re.sub(r"[\s\W]+", char, tag).lower().strip(char)
 
 
+def _normalize_display_tag(tag: str) -> str:
+    """Strip extra whitespace from a tag name for display purposes.
+
+    Example: '  Tag:with (extra   whitespace) ' -> 'Tag:with (extra whitespace)'
+    """
+    tag = tag.replace("\\n", "\n").strip('"').strip()
+    return re.sub(r"\s+", " ", tag)
+
+
 def tagpage(tags, outdir, title, extension, tags_index_head):
     """Creates Tag overview page.