diff --git a/src/Literate.jl b/src/Literate.jl
index 8142081..47e85c3 100644
--- a/src/Literate.jl
+++ b/src/Literate.jl
@@ -522,6 +522,7 @@ function markdown(inputfile, outputdir=pwd(); config::AbstractDict=Dict(), kwarg
         else # isa(chunk, CodeChunk)
             iocode = IOBuffer()
             codefence = config["codefence"]::Pair
+            execute = config["execute"]::Bool
             write(iocode, codefence.first)
             # make sure the code block is finalized if we are printing to ```@example
             # (or ````@example, any number of backticks >= 3 works)
@@ -531,17 +532,17 @@ function markdown(inputfile, outputdir=pwd(); config::AbstractDict=Dict(), kwarg
             write(iocode, '\n')
             for line in chunk.lines
                 # filter out trailing #hide (unless leaving it for Documenter)
-                if !(endswith(line, "#hide") && !isdocumenter(config))
+                if !endswith(line, "#hide") || (isdocumenter(config) && !execute)
                     write(iocode, line, '\n')
                 end
             end
-            if isdocumenter(config) && REPL.ends_with_semicolon(chunk.lines[end])
+            if isdocumenter(config) && !execute && REPL.ends_with_semicolon(chunk.lines[end])
                 write(iocode, "nothing #hide\n")
             end
             write(iocode, codefence.second, '\n')
-            write_code = !(all(l -> endswith(l, "#hide"), chunk.lines) && !isdocumenter(config))
+            write_code = !all(l -> endswith(l, "#hide"), chunk.lines) || (isdocumenter(config) && !execute)
             write_code && write(iomd, seekstart(iocode))
-            if config["execute"]::Bool
+            if execute
                 execute_markdown!(iomd, sb, join(chunk.lines, '\n'), outputdir;
                                   inputfile=config["literate_inputfile"],
                                   flavor=config["flavor"],
diff --git a/test/runtests.jl b/test/runtests.jl
index 9d34427..a149f58 100644
--- a/test/runtests.jl
+++ b/test/runtests.jl
@@ -810,6 +810,11 @@ end end
                 #-
                 print("hello there")
                 nothing
+                #-
+                a = 2 + 2
+                print("a: ", a); nothing #hide
+                #-
+                47 #hide
                 """)
             Literate.markdown(inputfile, outdir; execute=true)
             markdown = read(joinpath(outdir, "inputfile.md"), String)
@@ -825,6 +830,12 @@ end end
             @test !occursin("246", markdown) # empty output because trailing ;
             @test !occursin("```\nnothing\n```", markdown) # empty output because nothing as return value
             @test occursin("```\nhello there\n```", markdown) # nothing as return value, non-empty stdout
+            @test occursin("```julia\na = 2 + 2\n```", markdown) # line with `#hide` removed
+            @test occursin("```\na: 4\n```", markdown) # nothing as return value, non-empty stdout
+            @test !occursin("```julia\n47 #hide\n```", markdown) # line with `#hide` removed
+            @test !occursin("```julia\n```", markdown) # no empty code block
+            @test occursin("```\n47\n```", markdown) # return value (even though line/block removed)
+
             # FranklinFlavor
             Literate.markdown(inputfile, outdir; execute=true, flavor=Literate.FranklinFlavor())
             markdown = read(joinpath(outdir, "inputfile.md"), String)