diff --git a/changelog/1058.bugfix.rst b/changelog/1058.bugfix.rst
new file mode 100644
index 0000000000..e6498926b1
--- /dev/null
+++ b/changelog/1058.bugfix.rst
@@ -0,0 +1 @@
+Update markdown utilities to escape headers and unordered lists.
diff --git a/disnake/utils.py b/disnake/utils.py
index 54781da834..285d17886f 100644
--- a/disnake/utils.py
+++ b/disnake/utils.py
@@ -10,6 +10,7 @@
 import os
 import pkgutil
 import re
+import string
 import sys
 import unicodedata
 import warnings
@@ -776,7 +777,8 @@ def resolve_template(code: Union[Template, str]) -> str:
     r"\{0}(?=([\s\S]*((?<!\{0})\{0})))".format(c) for c in ("*", "`", "_", "~", "|")
 )
 
-_MARKDOWN_ESCAPE_COMMON = r"^>(?:>>)?\s|\[.+\]\(.+\)"
+# todo: fix issue with lists including the preceeding spaces more sustainably
+_MARKDOWN_ESCAPE_COMMON = r"^>(?:>>)?\s|^#{1,3}\s|^(?P<keep>\s*?)?(?P<char>[-*])\s|\[.+\]\(.+\)"
 
 _MARKDOWN_ESCAPE_REGEX = re.compile(
     rf"(?P<markdown>{_MARKDOWN_ESCAPE_SUBREGEX}|{_MARKDOWN_ESCAPE_COMMON})", re.MULTILINE
@@ -813,7 +815,7 @@ def remove_markdown(text: str, *, ignore_links: bool = True) -> str:
 
     def replacement(match):
         groupdict = match.groupdict()
-        return groupdict.get("url", "")
+        return groupdict.get("url", "") or groupdict.get("keep", "")
 
     regex = _MARKDOWN_STOCK_REGEX
     if ignore_links:
@@ -847,12 +849,12 @@ def escape_markdown(text: str, *, as_needed: bool = False, ignore_links: bool =
     """
     if not as_needed:
 
-        def replacement(match):
+        def replacement(match: re.Match[str]) -> str:
             groupdict = match.groupdict()
             is_url = groupdict.get("url")
             if is_url:
                 return is_url
-            return "\\" + groupdict["markdown"]
+            return "".join(c if c in string.whitespace else "\\" + c for c in groupdict["markdown"])
 
         regex = _MARKDOWN_STOCK_REGEX
         if ignore_links:
diff --git a/tests/test_utils.py b/tests/test_utils.py
index 8c5ee4ec38..fdc930c7de 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -474,10 +474,32 @@ def test_resolve_template(url, expected) -> None:
             "hi a aaa\npy x uwu y",
             r"\*hi\* \~\~a\~ \|aaa\~\*\\\`\`" "\n" r"\`py x\`\`\` \_\_uwu\_\_ y",
         ),
+        (
+            r"## disnake",
+            "disnake",
+            r"\#\# disnake",
+        ),
+        (
+            r"""Inside is a long list of why markdown is an amazing tool
+- markdown supports lists
+ - honestly its a great tool that markdown supports said lists
+   - this is wrong but uh we'll get to that
+""",
+            r"""Inside is a long list of why markdown is an amazing tool
+markdown supports lists
+ honestly its a great tool that markdown supports said lists
+   this is wrong but uh we'll get to that
+""",
+            r"""Inside is a long list of why markdown is an amazing tool
+\- markdown supports lists
+ \- honestly its a great tool that markdown supports said lists
+   \- this is wrong but uh we'll get to that
+""",
+        ),
         (
             "aaaaa\n> h\n>> abc \n>>> te*st_",
             "aaaaa\nh\n>> abc \ntest",
-            "aaaaa\n\\> h\n>> abc \n\\>>> te\\*st\\_",
+            "aaaaa\n\\> h\n>> abc \n\\>\\>\\> te\\*st\\_",
         ),
         (
             "*h*\n> [li|nk](~~url~~) xyz **https://google.com/stuff?uwu=owo",