diff --git a/.github/PULL_REQUEST_TEMPLATE.md b/.github/PULL_REQUEST_TEMPLATE.md
index 893f977b..ca390793 100644
--- a/.github/PULL_REQUEST_TEMPLATE.md
+++ b/.github/PULL_REQUEST_TEMPLATE.md
@@ -24,7 +24,6 @@ To check an item, place an "x" in the box like so: `- [x] Tests`
 - [ ] [Conventional Commits](https://www.conventionalcommits.org/)
 - [ ] Tests
 - [ ] Documentation
-- [ ] Types
 
 <!--
 Any other comments? Thank you for contributing!
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 93e1f49c..ec615998 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,14 @@
 
 All notable changes to this project will be documented in this file. See [standard-version](https://github.com/conventional-changelog/standard-version) for commit guidelines.
 
+## [5.0.1](https://github.com/remarkablemark/html-react-parser/compare/v5.0.0...v5.0.1) (2023-10-29)
+
+
+### Bug Fixes
+
+* **dom-to-react:** default props.children to undefined instead of null ([a6978c3](https://github.com/remarkablemark/html-react-parser/commit/a6978c31acde279437e502106cd39ef0d0a34b87))
+* **types:** add back `object` to `replace` option return type ([88eea66](https://github.com/remarkablemark/html-react-parser/commit/88eea66dfe8f1a57aeff7ea631eaf64541e0131f))
+
 ## [5.0.0](https://github.com/remarkablemark/html-react-parser/compare/v4.2.10...v5.0.0) (2023-10-29)
 
 
diff --git a/README.md b/README.md
index 4fbed292..5b8e6195 100644
--- a/README.md
+++ b/README.md
@@ -437,6 +437,20 @@ Migrated to TypeScript. CommonJS imports require the `.default` key:
 const parse = require('html-react-parser').default;
 ```
 
+If you're getting the error:
+
+```
+Argument of type 'ChildNode[]' is not assignable to parameter of type 'DOMNode[]'.
+```
+
+Then use type assertion:
+
+```ts
+domToReact(domNode.children as DOMNode[], options);
+```
+
+See [#1126](https://github.com/remarkablemark/html-react-parser/issues/1126#issuecomment-1784188447).
+
 ### v4
 
 [htmlparser2](https://github.com/fb55/htmlparser2) has been upgraded to [v9](https://github.com/fb55/htmlparser2/releases/tag/v9.0.0).
diff --git a/test/attributes-to-props.test.ts b/__tests__/attributes-to-props.test.ts
similarity index 100%
rename from test/attributes-to-props.test.ts
rename to __tests__/attributes-to-props.test.ts
diff --git a/test/data/html.ts b/__tests__/data/html.ts
similarity index 99%
rename from test/data/html.ts
rename to __tests__/data/html.ts
index abcc5e49..4d4027c7 100644
--- a/test/data/html.ts
+++ b/__tests__/data/html.ts
@@ -19,4 +19,4 @@ export const html = {
   form: '<input type="text" value="foo" checked="checked">',
   list: '<ol><li>One</li><li value="2">Two</li></ol>',
   template: '<template><article><p>Test</p></article></template>',
-};
+} as const;
diff --git a/test/data/index.ts b/__tests__/data/index.ts
similarity index 100%
rename from test/data/index.ts
rename to __tests__/data/index.ts
diff --git a/test/data/svg.ts b/__tests__/data/svg.ts
similarity index 97%
rename from test/data/svg.ts
rename to __tests__/data/svg.ts
index b3e28cbd..58c08c8f 100644
--- a/test/data/svg.ts
+++ b/__tests__/data/svg.ts
@@ -2,4 +2,4 @@ export const svg = {
   simple: '<svg viewBox="0 0 512 512" id="foo">Inner</svg>',
   complex:
     '<svg height="400" width="450"><path id="lineAB" d="M 100 350 l 150 -300" stroke="red" stroke-width="3" fill="none"></path><g stroke="black" stroke-width="3" fill="black"><circle id="pointA" cx="100" cy="350" r="3"></circle></g><g font-size="30" font-family="sans-serif" fill="black" stroke="none" text-anchor="middle"><text x="100" y="350" dx="-30">A</text></g>Your browser does not support inline SVG.</svg>',
-};
+} as const;
diff --git a/test/dom-to-react.test.tsx b/__tests__/dom-to-react.test.tsx
similarity index 89%
rename from test/dom-to-react.test.tsx
rename to __tests__/dom-to-react.test.tsx
index 496939dd..92cafb54 100644
--- a/test/dom-to-react.test.tsx
+++ b/__tests__/dom-to-react.test.tsx
@@ -2,7 +2,7 @@ import htmlToDOM from 'html-dom-parser';
 
 import domToReact from '../src/dom-to-react';
 import * as utilities from '../src/utilities';
-import { Element } from '../src';
+import { Element, type DOMNode, type HTMLReactParserOptions } from '../src';
 
 import { render } from './helpers';
 import { html, svg } from './data';
@@ -84,7 +84,7 @@ describe('domToReact', () => {
 
   it('does not have `children` for void elements', () => {
     const reactElement = domToReact(htmlToDOM(html.img)) as JSX.Element;
-    expect(reactElement.props.children).toBe(null);
+    expect(reactElement.props.children).toBe(undefined);
   });
 
   it('does not throw an error for void elements', () => {
@@ -144,7 +144,7 @@ describe('domToReact', () => {
   });
 });
 
-describe('domToReact with library option', () => {
+describe('library option', () => {
   const React = require('react');
   const Preact = require('preact');
 
@@ -171,7 +171,17 @@ describe('domToReact with library option', () => {
   });
 });
 
-describe('domToReact replace option', () => {
+describe('replace option', () => {
+  it.each([undefined, null, 0, 1, true, false, {}])(
+    'does not replace for invalid return value %p',
+    (value) => {
+      const reactElement = domToReact(htmlToDOM('<br>'), {
+        replace: () => value,
+      }) as JSX.Element;
+      expect(reactElement).toEqual(<br />);
+    },
+  );
+
   it("does not set key if there's a single node", () => {
     const reactElement = domToReact(htmlToDOM(html.single), {
       replace: () => <div />,
@@ -208,9 +218,21 @@ describe('domToReact replace option', () => {
     expect(reactElements[0].key).toBe('0');
     expect(reactElements[1].key).toBe('myKey');
   });
+
+  it('replaces with children', () => {
+    const options: HTMLReactParserOptions = {
+      replace(domNode) {
+        if (domNode instanceof Element) {
+          return domToReact(domNode.children as DOMNode[], options);
+        }
+      },
+    };
+    const reactElement = domToReact(htmlToDOM('<div>test</div>'), options);
+    expect(reactElement).toEqual(<div>test</div>);
+  });
 });
 
-describe('domToReact transform option', () => {
+describe('transform option', () => {
   it('can wrap all elements', () => {
     const reactElement = domToReact(htmlToDOM(html.list), {
       transform: (reactNode, domNode, index) => {
diff --git a/test/esm/attributes-to-props.test.mjs b/__tests__/esm/attributes-to-props.test.mjs
similarity index 100%
rename from test/esm/attributes-to-props.test.mjs
rename to __tests__/esm/attributes-to-props.test.mjs
diff --git a/test/esm/dom-to-react.test.mjs b/__tests__/esm/dom-to-react.test.mjs
similarity index 100%
rename from test/esm/dom-to-react.test.mjs
rename to __tests__/esm/dom-to-react.test.mjs
diff --git a/test/esm/index.test.mjs b/__tests__/esm/index.test.mjs
similarity index 100%
rename from test/esm/index.test.mjs
rename to __tests__/esm/index.test.mjs
diff --git a/test/esm/utilities.test.mjs b/__tests__/esm/utilities.test.mjs
similarity index 100%
rename from test/esm/utilities.test.mjs
rename to __tests__/esm/utilities.test.mjs
diff --git a/test/helpers/index.ts b/__tests__/helpers/index.ts
similarity index 100%
rename from test/helpers/index.ts
rename to __tests__/helpers/index.ts
diff --git a/test/index.test.tsx b/__tests__/index.test.tsx
similarity index 100%
rename from test/index.test.tsx
rename to __tests__/index.test.tsx
diff --git a/test/integration/index.test.ts b/__tests__/integration/index.test.ts
similarity index 100%
rename from test/integration/index.test.ts
rename to __tests__/integration/index.test.ts
diff --git a/test/utilities.test.ts b/__tests__/utilities.test.ts
similarity index 100%
rename from test/utilities.test.ts
rename to __tests__/utilities.test.ts
diff --git a/benchmark/index.ts b/benchmark/index.ts
index d80d9989..2318fb5f 100644
--- a/benchmark/index.ts
+++ b/benchmark/index.ts
@@ -1,5 +1,6 @@
 import Benchmark from 'benchmark';
-import { html } from '../test/data';
+
+import { html } from '../__tests__/data';
 import parse from '../src';
 
 const suite = new Benchmark.Suite();
diff --git a/jest.config.ts b/jest.config.ts
index aa8939f6..184e7f96 100644
--- a/jest.config.ts
+++ b/jest.config.ts
@@ -11,6 +11,7 @@ const config: Config = {
     },
   },
   preset: 'ts-jest',
+  testMatch: ['**/__tests__/**/*.test.ts?(x)'],
 };
 
 export default config;
diff --git a/package-lock.json b/package-lock.json
index 135a564e..9d00f3f0 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "html-react-parser",
-  "version": "5.0.0",
+  "version": "5.0.1",
   "lockfileVersion": 2,
   "requires": true,
   "packages": {
     "": {
       "name": "html-react-parser",
-      "version": "5.0.0",
+      "version": "5.0.1",
       "hasInstallScript": true,
       "license": "MIT",
       "dependencies": {
diff --git a/package.json b/package.json
index 100e1fc9..ec5f2dda 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "html-react-parser",
-  "version": "5.0.0",
+  "version": "5.0.1",
   "description": "HTML to React parser.",
   "author": "Mark <mark@remarkablemark.org>",
   "main": "./lib/index.js",
@@ -31,10 +31,10 @@
     "postpublish": "pinst --enable",
     "prepublishOnly": "pinst --disable && npm run lint && npm run test:ci && npm run clean && npm run build",
     "size-limit": "size-limit",
-    "test": "jest --testPathIgnorePatterns test/integration",
+    "test": "jest --testPathIgnorePatterns __tests__/integration",
     "test:ci": "CI=true npm test -- --ci --colors",
-    "test:esm": "npm run build:cjs && node --test test/esm",
-    "test:integration": "npm run build && jest --coverage=false --env=jsdom test/integration",
+    "test:esm": "npm run build:cjs && node --test __tests__/esm",
+    "test:integration": "npm run build && jest --coverage=false --env=jsdom __tests__/integration",
     "test:watch": "npm test -- --watch"
   },
   "repository": {
diff --git a/src/dom-to-react.ts b/src/dom-to-react.ts
index 01eb41f6..70780e65 100644
--- a/src/dom-to-react.ts
+++ b/src/dom-to-react.ts
@@ -96,7 +96,7 @@ export default function domToReact(
       props = attributesToProps(element.attribs, element.name);
     }
 
-    let children = null;
+    let children;
 
     switch (node.type) {
       case 'script':
diff --git a/src/types.ts b/src/types.ts
index c7f0d9f3..d032410f 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -17,7 +17,9 @@ export interface HTMLReactParserOptions {
     [key: string]: any;
   };
 
-  replace?: (domNode: DOMNode) => JSX.Element | string | null | boolean | void;
+  replace?: (
+    domNode: DOMNode,
+  ) => JSX.Element | string | null | boolean | object | void;
 
   transform?: (
     reactNode: ReactNode,
diff --git a/tsconfig.json b/tsconfig.json
index 75785ae9..33ea506d 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -11,5 +11,5 @@
     "outDir": "lib",
     "jsx": "react-jsx"
   },
-  "include": ["benchmark", "src", "test"]
+  "include": ["__tests__", "benchmark", "src"]
 }