diff --git a/projects/ngx-editor/src/lib/Editor.ts b/projects/ngx-editor/src/lib/Editor.ts
index 1965b6d..036ea12 100644
--- a/projects/ngx-editor/src/lib/Editor.ts
+++ b/projects/ngx-editor/src/lib/Editor.ts
@@ -138,22 +138,25 @@ class Editor {
     }
 
     const { state } = this.view;
-    const { tr, doc } = state;
 
     const newDoc = parseContent(content, this.schema, this.options.parseOptions);
 
-    tr.replaceWith(0, state.doc.content.size, newDoc);
-
     // don't emit if both content is same
-    if (doc.eq(tr.doc)) {
+    if (state.doc.eq(newDoc)) {
       return;
     }
 
-    if (!tr.docChanged) {
-      return;
-    }
+    // Create a new state to avoid recording this change in the undo history.
+    // This prevents Ctrl/Cmd+Z from clearing the initial content.
+    const newState = EditorState.create({
+      doc: newDoc,
+      schema: this.schema,
+      plugins: state.plugins,
+    });
+    this.view.updateState(newState);
 
-    this.view.dispatch(tr);
+    const json = newState.doc.toJSON();
+    this.valueChangesSubject.next(json);
   }
 
   registerPlugin(plugin: Plugin): void {
diff --git a/projects/ngx-editor/src/lib/editor.component.spec.ts b/projects/ngx-editor/src/lib/editor.component.spec.ts
index 006def4..5192fed 100644
--- a/projects/ngx-editor/src/lib/editor.component.spec.ts
+++ b/projects/ngx-editor/src/lib/editor.component.spec.ts
@@ -2,6 +2,7 @@ import { Component } from '@angular/core';
 import { ComponentFixture, TestBed } from '@angular/core/testing';
 import { AbstractControl, FormControl, FormGroup, ReactiveFormsModule } from '@angular/forms';
 import { By } from '@angular/platform-browser';
+import { undo } from 'prosemirror-history';
 
 import Editor from './Editor';
 import { NgxEditorComponent } from './editor.component';
@@ -61,6 +62,51 @@ describe('NgxEditorComponent', () => {
     fixture.detectChanges();
     expect(component.editor.view.state.doc.textContent).toBe('');
   });
+
+  it('should not clear initial value on undo', () => {
+    component.writeValue('Hello world!');
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Hello world!');
+
+    // undo with no user edits should not clear content
+    undo(component.editor.view.state, component.editor.view.dispatch);
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Hello world!');
+
+    // simulate a user edit by inserting text via a transaction
+    const { state } = component.editor.view;
+    const tr = state.tr.insertText(' Goodbye!', state.doc.content.size - 1);
+    component.editor.view.dispatch(tr);
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Hello world! Goodbye!');
+
+    // undo should revert the user edit back to the initial value
+    undo(component.editor.view.state, component.editor.view.dispatch);
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Hello world!');
+  });
+
+  it('should reset undo history on programmatic setContent calls', () => {
+    component.writeValue('Initial');
+    fixture.detectChanges();
+
+    // simulate a user edit
+    const { state } = component.editor.view;
+    const tr = state.tr.insertText(' edit', state.doc.content.size - 1);
+    component.editor.view.dispatch(tr);
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Initial edit');
+
+    // programmatic setContent resets history
+    component.writeValue('Replaced');
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Replaced');
+
+    // undo should have no effect since history was reset
+    undo(component.editor.view.state, component.editor.view.dispatch);
+    fixture.detectChanges();
+    expect(component.editor.view.state.doc.textContent).toBe('Replaced');
+  });
 });
 
 describe('NgxEditorComponent: Reactive Forms API', () => {