diff --git a/lib/prawn/text/formatted/fragment.rb b/lib/prawn/text/formatted/fragment.rb
index 3e7e2cf53..e01d423d2 100644
--- a/lib/prawn/text/formatted/fragment.rb
+++ b/lib/prawn/text/formatted/fragment.rb
@@ -209,9 +209,19 @@ def absolute_bottom_right
 
         def process_text(text)
           string = strip_zero_width_spaces(text)
+
           if exclude_trailing_white_space?
-            string = process_soft_hyphens(string.rstrip)
+            string = string.rstrip
+
+            if soft_hyphens_need_processing?(string)
+              string = process_soft_hyphens(string[0..-2]) + string[-1..-1]
+            end
+          else
+            if soft_hyphens_need_processing?(string)
+              string = process_soft_hyphens(string)
+            end
           end
+
           case direction
           when :rtl
             string.reverse
@@ -224,19 +234,20 @@ def exclude_trailing_white_space?
           @format_state[:exclude_trailing_white_space]
         end
 
+        def soft_hyphens_need_processing?(string)
+          string.length > 0 && normalized_soft_hyphen
+        end
+
         def normalized_soft_hyphen
           @format_state[:normalized_soft_hyphen]
         end
 
         def process_soft_hyphens(string)
-          if string.length > 0 && normalized_soft_hyphen
-            if string.encoding != normalized_soft_hyphen.encoding
-              string.force_encoding(normalized_soft_hyphen.encoding)
-            end
-            string[0..-2].gsub(normalized_soft_hyphen, "") + string[-1..-1]
-          else
-            string
+          if string.encoding != normalized_soft_hyphen.encoding
+            string.force_encoding(normalized_soft_hyphen.encoding)
           end
+
+          string.gsub(normalized_soft_hyphen, "")
         end
 
         def strip_zero_width_spaces(string)
diff --git a/spec/line_wrap_spec.rb b/spec/line_wrap_spec.rb
index 7b8e1d224..484953f30 100644
--- a/spec/line_wrap_spec.rb
+++ b/spec/line_wrap_spec.rb
@@ -128,25 +128,28 @@
     string.should == "hello#{Prawn::Text::SHY}"
   end
 
-  it "should not display soft hyphens except at the end of a line" do
-    string = @pdf.font.normalize_encoding("hello#{Prawn::Text::SHY}world")
-    array = [{ :text => string }]
+  it "should not display soft hyphens except at the end of a line " +
+     "for more than one element in format_array", :issue => 347 do
+    string1 = @pdf.font.normalize_encoding("hello#{Prawn::Text::SHY}world ")
+    string2 = @pdf.font.normalize_encoding("hi#{Prawn::Text::SHY}earth")
+    array = [{ :text => string1 }, { :text => string2 }]
     @arranger.format_array = array
     string = @line_wrap.wrap_line(:arranger => @arranger,
                                   :width => 300,
                                   :document => @pdf)
-    string.should == "helloworld"
+    string.should == "helloworld hiearth"
 
     @pdf.font("#{Prawn::DATADIR}/fonts/DejaVuSans.ttf")
     @line_wrap = Prawn::Text::Formatted::LineWrap.new
 
-    string = "hello#{Prawn::Text::SHY}world"
-    array = [{ :text => string }]
+    string1 = "hello#{Prawn::Text::SHY}world "
+    string2 = @pdf.font.normalize_encoding("hi#{Prawn::Text::SHY}earth")
+    array = [{ :text => string1 }, { :text => string2 }]
     @arranger.format_array = array
     string = @line_wrap.wrap_line(:arranger => @arranger,
                                   :width => 300,
                                   :document => @pdf)
-    string.should == "helloworld"
+    string.should == "helloworld hiearth"
   end
 
   it "should not break before a hard hyphen that follows a word" do