diff --git a/packages/markitdown/src/markitdown/converters/_outlook_msg_converter.py b/packages/markitdown/src/markitdown/converters/_outlook_msg_converter.py
index 7717f62d8..ca060cabe 100644
--- a/packages/markitdown/src/markitdown/converters/_outlook_msg_converter.py
+++ b/packages/markitdown/src/markitdown/converters/_outlook_msg_converter.py
@@ -1,8 +1,13 @@
+import io
 import sys
 from typing import Any, Union, BinaryIO
+
+from charset_normalizer import from_bytes
+
 from .._stream_info import StreamInfo
 from .._base_converter import DocumentConverter, DocumentConverterResult
 from .._exceptions import MissingDependencyException, MISSING_DEPENDENCY_MESSAGE
+from ._html_converter import HtmlConverter
 
 # Try loading optional (but in this case, required) dependencies
 # Save reporting of any exceptions for later
@@ -26,9 +31,14 @@ class OutlookMsgConverter(DocumentConverter):
 
     Uses the olefile package to parse the .msg file structure and extract:
     - Email headers (From, To, Subject)
-    - Email body content
+    - Email body content, falling back to the HTML body for messages that
+      carry no plain-text part
     """
 
+    def __init__(self):
+        super().__init__()
+        self._html_converter = HtmlConverter()
+
     def accepts(
         self,
         file_stream: BinaryIO,
@@ -100,7 +110,7 @@ def convert(
 
         # Get headers
         headers = {
-            "From": self._get_stream_data(msg, "__substg1.0_0C1F001F"),
+            "From": self._get_sender(msg),
             "To": self._get_stream_data(msg, "__substg1.0_0E04001F"),
             "Subject": self._get_stream_data(msg, "__substg1.0_0037001F"),
         }
@@ -112,8 +122,11 @@ def convert(
 
         md_content += "\n## Content\n\n"
 
-        # Get email body
+        # Get email body. HTML-only messages leave PR_BODY empty and carry
+        # their content in PR_HTML instead.
         body = self._get_stream_data(msg, "__substg1.0_1000001F")
+        if not body:
+            body = self._get_html_body(msg)
         if body:
             md_content += body
 
@@ -124,8 +137,87 @@ def convert(
             title=headers.get("Subject"),
         )
 
+    def _get_sender(self, msg: Any) -> Union[str, None]:
+        """Helper to resolve the sender's address, preferring SMTP over an Exchange DN.
+
+        PR_SENDER_EMAIL_ADDRESS (0x0C1F) only holds an email address when
+        PR_SENDER_ADDRTYPE (0x0C1E) is "SMTP". Messages sent through Exchange
+        set the address type to "EX" and store a Distinguished Name there
+        instead (e.g. "/O=EXCHANGELABS/OU=.../CN=RECIPIENTS/CN=..."), keeping
+        the real address in PR_SENDER_SMTP_ADDRESS (0x5D01).
+        """
+        # PR_SENDER_SMTP_ADDRESS, then PR_SENT_REPRESENTING_SMTP_ADDRESS.
+        for address_stream in ("__substg1.0_5D01001F", "__substg1.0_5D02001F"):
+            address = self._get_stream_data(msg, address_stream)
+            if address:
+                return address
+
+        # PR_SENDER_EMAIL_ADDRESS / PR_SENT_REPRESENTING_EMAIL_ADDRESS, each
+        # usable only when its address type is not the Exchange DN form.
+        for address_stream, addrtype_stream in (
+            ("__substg1.0_0C1F001F", "__substg1.0_0C1E001F"),
+            ("__substg1.0_0065001F", "__substg1.0_0064001F"),
+        ):
+            address = self._get_stream_data(msg, address_stream)
+            addrtype = self._get_stream_data(msg, addrtype_stream) or ""
+            if address and addrtype.upper() != "EX":
+                return address
+
+        # Nothing better on file: report the DN rather than dropping the header.
+        return self._get_stream_data(msg, "__substg1.0_0C1F001F")
+
+    def _get_html_body(self, msg: Any) -> Union[str, None]:
+        """Helper to convert the HTML body (PR_HTML, 0x1013) to markdown.
+
+        Used for messages that carry no plain-text body, where reading only
+        PR_BODY would silently drop the entire message content.
+        """
+        charset: Union[str, None] = None
+
+        # PR_HTML is normally a binary stream; some clients write the string variant.
+        html_bytes = self._read_stream(msg, "__substg1.0_10130102")
+        if not html_bytes:
+            html = self._get_stream_data(msg, "__substg1.0_1013001F")
+            if not html:
+                return None
+            html_bytes = html.encode("utf-8")
+            charset = "utf-8"
+        else:
+            # The stream carries no encoding of its own, so detect it rather
+            # than assuming UTF-8 and mangling non-ASCII text.
+            detected = from_bytes(html_bytes).best()
+            if detected is not None:
+                charset = detected.encoding
+
+        return self._html_converter.convert(
+            io.BytesIO(html_bytes),
+            StreamInfo(mimetype="text/html", extension=".html", charset=charset),
+        ).markdown
+
     def _get_stream_data(self, msg: Any, stream_path: str) -> Union[str, None]:
         """Helper to safely extract and decode stream data from the MSG file."""
+        data = self._read_stream(msg, stream_path)
+        if data is None:
+            return None
+
+        # Try UTF-16 first (common for .msg files)
+        try:
+            return data.decode("utf-16-le").strip()
+        except UnicodeDecodeError:
+            # Fall back to UTF-8
+            try:
+                return data.decode("utf-8").strip()
+            except UnicodeDecodeError:
+                # Last resort - ignore errors
+                return data.decode("utf-8", errors="ignore").strip()
+
+    def _read_stream(self, msg: Any, stream_path: str) -> Union[bytes, None]:
+        """Helper to safely read the raw bytes of a stream from the MSG file.
+
+        Binary properties (such as PR_HTML) must not go through
+        `_get_stream_data`: arbitrary bytes rarely fail a UTF-16 decode, so
+        they would come back as mojibake instead of raising.
+        """
         assert olefile is not None
         assert isinstance(
             msg, olefile.OleFileIO
@@ -133,17 +225,8 @@ def _get_stream_data(self, msg: Any, stream_path: str) -> Union[str, None]:
 
         try:
             if msg.exists(stream_path):
-                data = msg.openstream(stream_path).read()
-                # Try UTF-16 first (common for .msg files)
-                try:
-                    return data.decode("utf-16-le").strip()
-                except UnicodeDecodeError:
-                    # Fall back to UTF-8
-                    try:
-                        return data.decode("utf-8").strip()
-                    except UnicodeDecodeError:
-                        # Last resort - ignore errors
-                        return data.decode("utf-8", errors="ignore").strip()
+                data: bytes = msg.openstream(stream_path).read()
+                return data
         except Exception:
             pass
         return None
diff --git a/packages/markitdown/tests/test_outlook_msg.py b/packages/markitdown/tests/test_outlook_msg.py
new file mode 100644
index 000000000..2414c4fc5
--- /dev/null
+++ b/packages/markitdown/tests/test_outlook_msg.py
@@ -0,0 +1,223 @@
+#!/usr/bin/env python3 -m pytest
+"""Tests for .msg files saved from Outlook 365 / Exchange.
+
+Two properties of such files break the naive reads:
+
+* ``PR_SENDER_EMAIL_ADDRESS`` (0x0C1F) holds an Exchange Distinguished Name
+  rather than an email address whenever ``PR_SENDER_ADDRTYPE`` (0x0C1E) is
+  ``EX``; the address lives in ``PR_SENDER_SMTP_ADDRESS`` (0x5D01).
+* HTML-only messages leave ``PR_BODY`` (0x1000) empty and store their content
+  in ``PR_HTML`` (0x1013), so reading only ``PR_BODY`` drops the whole message.
+
+A .msg file is an OLE2 compound file and nothing in the dependency set can
+write that container, so these tests serve the MAPI streams through a stand-in
+for ``olefile.OleFileIO`` instead of a binary fixture.
+"""
+import io
+
+import olefile
+
+from markitdown._stream_info import StreamInfo
+from markitdown.converters._outlook_msg_converter import OutlookMsgConverter
+
+EXCHANGE_DN = (
+    "/O=EXCHANGELABS/OU=EXCHANGE ADMINISTRATIVE GROUP"
+    " (FYDIBOHF23SPDLT)/CN=RECIPIENTS/CN=ab12cd34"
+)
+
+
+class _FakeMsg(olefile.OleFileIO):
+    """Serves a fixed set of MSG streams. ``_get_stream_data`` asserts the type."""
+
+    def __init__(self, streams):
+        self._streams = streams
+        # OleFileIO.__del__ reads this; we deliberately skip super().__init__.
+        self._we_opened_fp = False
+
+    def exists(self, path):
+        return path in self._streams
+
+    def openstream(self, path):
+        return io.BytesIO(self._streams[path])
+
+    def close(self):
+        pass
+
+
+def _unicode_stream(value: str) -> bytes:
+    """MAPI PT_UNICODE properties are stored little-endian UTF-16."""
+    return value.encode("utf-16-le")
+
+
+def _patch_olefile(monkeypatch, streams) -> None:
+    """Make ``olefile.OleFileIO(...)`` open the given streams instead of a file."""
+
+    class _PatchedOleFileIO(_FakeMsg):
+        def __init__(self, *_args, **_kwargs):
+            super().__init__(streams)
+
+    monkeypatch.setattr(olefile, "OleFileIO", _PatchedOleFileIO)
+
+
+def test_sender_prefers_smtp_address_over_exchange_dn() -> None:
+    msg = _FakeMsg(
+        {
+            "__substg1.0_0C1E001F": _unicode_stream("EX"),
+            "__substg1.0_0C1F001F": _unicode_stream(EXCHANGE_DN),
+            "__substg1.0_5D01001F": _unicode_stream("sender@example.com"),
+        }
+    )
+
+    assert OutlookMsgConverter()._get_sender(msg) == "sender@example.com"
+
+
+def test_sender_prefers_sent_representing_smtp_address() -> None:
+    msg = _FakeMsg(
+        {
+            "__substg1.0_0C1E001F": _unicode_stream("EX"),
+            "__substg1.0_0C1F001F": _unicode_stream(EXCHANGE_DN),
+            "__substg1.0_5D02001F": _unicode_stream("delegate@example.com"),
+        }
+    )
+
+    assert OutlookMsgConverter()._get_sender(msg) == "delegate@example.com"
+
+
+def test_sender_skips_exchange_dn_for_sent_representing_address() -> None:
+    msg = _FakeMsg(
+        {
+            "__substg1.0_0C1E001F": _unicode_stream("EX"),
+            "__substg1.0_0C1F001F": _unicode_stream(EXCHANGE_DN),
+            "__substg1.0_0064001F": _unicode_stream("SMTP"),
+            "__substg1.0_0065001F": _unicode_stream("onbehalf@example.com"),
+        }
+    )
+
+    assert OutlookMsgConverter()._get_sender(msg) == "onbehalf@example.com"
+
+
+def test_sender_keeps_smtp_addrtype_address() -> None:
+    # The common non-Exchange case must keep behaving exactly as before.
+    msg = _FakeMsg(
+        {
+            "__substg1.0_0C1E001F": _unicode_stream("SMTP"),
+            "__substg1.0_0C1F001F": _unicode_stream("plain@example.com"),
+        }
+    )
+
+    assert OutlookMsgConverter()._get_sender(msg) == "plain@example.com"
+
+
+def test_sender_falls_back_to_dn_when_no_smtp_address_exists() -> None:
+    # Nothing better on file: keep the DN rather than dropping the header.
+    msg = _FakeMsg(
+        {
+            "__substg1.0_0C1E001F": _unicode_stream("EX"),
+            "__substg1.0_0C1F001F": _unicode_stream(EXCHANGE_DN),
+        }
+    )
+
+    assert OutlookMsgConverter()._get_sender(msg) == EXCHANGE_DN
+
+
+def test_html_only_body_is_converted_to_markdown() -> None:
+    msg = _FakeMsg(
+        {
+            "__substg1.0_10130102": (
+                b"<html><body><h1>Status</h1><p>Hello <b>world</b></p></body></html>"
+            ),
+        }
+    )
+
+    body = OutlookMsgConverter()._get_html_body(msg)
+
+    assert body is not None
+    assert "# Status" in body
+    assert "Hello **world**" in body
+    # The HTML must be converted, not passed through verbatim.
+    assert "<p>" not in body
+
+
+def test_html_body_reads_the_string_property_variant() -> None:
+    msg = _FakeMsg(
+        {
+            "__substg1.0_1013001F": _unicode_stream(
+                "<html><body><p>String variant</p></body></html>"
+            ),
+        }
+    )
+
+    assert "String variant" in (OutlookMsgConverter()._get_html_body(msg) or "")
+
+
+def test_html_body_decodes_non_utf8_bytes() -> None:
+    # PR_HTML carries no encoding of its own; assuming UTF-8 mangles this.
+    msg = _FakeMsg(
+        {
+            "__substg1.0_10130102": (
+                "<html><body><p>Grüße aus München</p></body></html>".encode("cp1252")
+            ),
+        }
+    )
+
+    assert "Grüße aus München" in (OutlookMsgConverter()._get_html_body(msg) or "")
+
+
+def test_html_body_absent_returns_none() -> None:
+    assert OutlookMsgConverter()._get_html_body(_FakeMsg({})) is None
+
+
+def test_html_body_skips_an_empty_binary_property() -> None:
+    # An empty binary stream must not mask a populated string variant.
+    msg = _FakeMsg(
+        {
+            "__substg1.0_10130102": b"",
+            "__substg1.0_1013001F": _unicode_stream(
+                "<html><body><p>Fallback body</p></body></html>"
+            ),
+        }
+    )
+
+    assert "Fallback body" in (OutlookMsgConverter()._get_html_body(msg) or "")
+
+
+def test_plain_text_body_wins_over_html(monkeypatch) -> None:
+    streams = {
+        "__substg1.0_0037001F": _unicode_stream("Q3 planning"),
+        "__substg1.0_0E04001F": _unicode_stream("recipient@example.com"),
+        "__substg1.0_0C1E001F": _unicode_stream("SMTP"),
+        "__substg1.0_0C1F001F": _unicode_stream("sender@example.com"),
+        "__substg1.0_1000001F": _unicode_stream("The plain text body."),
+        "__substg1.0_10130102": b"<html><body><p>The HTML body.</p></body></html>",
+    }
+    _patch_olefile(monkeypatch, streams)
+
+    result = OutlookMsgConverter().convert(
+        io.BytesIO(b""), StreamInfo(extension=".msg")
+    )
+
+    assert "The plain text body." in result.markdown
+    assert "The HTML body." not in result.markdown
+
+
+def test_convert_renders_exchange_message(monkeypatch) -> None:
+    # End-to-end shape of the message reported in #1188: Exchange sender, no
+    # plain-text body.
+    streams = {
+        "__substg1.0_0037001F": _unicode_stream("Q3 planning"),
+        "__substg1.0_0E04001F": _unicode_stream("recipient@example.com"),
+        "__substg1.0_0C1E001F": _unicode_stream("EX"),
+        "__substg1.0_0C1F001F": _unicode_stream(EXCHANGE_DN),
+        "__substg1.0_5D01001F": _unicode_stream("sender@example.com"),
+        "__substg1.0_10130102": b"<html><body><p>Hello <b>world</b></p></body></html>",
+    }
+    _patch_olefile(monkeypatch, streams)
+
+    result = OutlookMsgConverter().convert(
+        io.BytesIO(b""), StreamInfo(extension=".msg")
+    )
+
+    assert "**From:** sender@example.com" in result.markdown
+    assert "EXCHANGELABS" not in result.markdown
+    assert "Hello **world**" in result.markdown
+    assert result.title == "Q3 planning"