diff --git a/src/compiler/compile/render_ssr/handlers/Element.ts b/src/compiler/compile/render_ssr/handlers/Element.ts
index ad5c421bc421..bd8d3eb02a57 100644
--- a/src/compiler/compile/render_ssr/handlers/Element.ts
+++ b/src/compiler/compile/render_ssr/handlers/Element.ts
@@ -12,7 +12,11 @@ export default function(node: Element, renderer: Renderer, options: RenderOption
 	slot_scopes: Map<any, any>;
 }) {
 
-	const children = remove_whitespace_children(node.children, node.next);
+	const children = (
+		options.preserveWhitespace
+			? node.children
+			: remove_whitespace_children(node.children, node.next)
+	);
 
 	// awkward special case
 	let node_contents;
diff --git a/src/compiler/compile/render_ssr/handlers/InlineComponent.ts b/src/compiler/compile/render_ssr/handlers/InlineComponent.ts
index 37f05a941c42..e90ad2ad2200 100644
--- a/src/compiler/compile/render_ssr/handlers/InlineComponent.ts
+++ b/src/compiler/compile/render_ssr/handlers/InlineComponent.ts
@@ -68,7 +68,11 @@ export default function(node: InlineComponent, renderer: Renderer, options: Rend
 
 	const slot_fns = [];
 
-	const children = remove_whitespace_children(node.children, node.next);
+	const children = (
+		options.preserveWhitespace
+			? node.children
+			: remove_whitespace_children(node.children, node.next)
+	);
 
 	if (children.length) {
 		const slot_scopes = new Map();
diff --git a/src/compiler/compile/render_ssr/index.ts b/src/compiler/compile/render_ssr/index.ts
index c87fe3bdd92b..156ee871211c 100644
--- a/src/compiler/compile/render_ssr/index.ts
+++ b/src/compiler/compile/render_ssr/index.ts
@@ -18,8 +18,14 @@ export default function ssr(
 
 	const { name } = component;
 
+	const children = (
+		options.preserveWhitespace
+			? component.fragment.children
+			: trim(component.fragment.children)
+	);
+
 	// create $$render function
-	renderer.render(trim(component.fragment.children), Object.assign({
+	renderer.render(children, Object.assign({
 		locate: component.locate
 	}, options));
 
diff --git a/test/server-side-rendering/index.js b/test/server-side-rendering/index.js
index ee1319845dfe..9b6ac848c30b 100644
--- a/test/server-side-rendering/index.js
+++ b/test/server-side-rendering/index.js
@@ -76,7 +76,11 @@ describe("ssr", () => {
 				if (css.code) fs.writeFileSync(`${dir}/_actual.css`, css.code);
 
 				try {
-					assert.htmlEqual(html, expectedHtml);
+					if (compileOptions.preserveWhitespace) {
+						assert.equal(html, expectedHtml);
+					} else {
+						assert.htmlEqual(html, expectedHtml);
+					}
 				} catch (error) {
 					if (shouldUpdateExpected()) {
 						fs.writeFileSync(`${dir}/_expected.html`, html);
diff --git a/test/server-side-rendering/samples/preserve-whitespace/_config.js b/test/server-side-rendering/samples/preserve-whitespace/_config.js
new file mode 100644
index 000000000000..bdc08c200be9
--- /dev/null
+++ b/test/server-side-rendering/samples/preserve-whitespace/_config.js
@@ -0,0 +1,5 @@
+export default {
+	compileOptions: {
+		preserveWhitespace: true
+	}
+};
diff --git a/test/server-side-rendering/samples/preserve-whitespace/_expected.html b/test/server-side-rendering/samples/preserve-whitespace/_expected.html
new file mode 100644
index 000000000000..dd1ac23c9dd0
--- /dev/null
+++ b/test/server-side-rendering/samples/preserve-whitespace/_expected.html
@@ -0,0 +1,11 @@
+
+<div>
+    <div>
+        <p> Some text </p>
+    </div>
+    <select>
+        <option value="1">1</option>
+        <option value="2">2</option>
+    </select>
+</div>
+
diff --git a/test/server-side-rendering/samples/preserve-whitespace/main.svelte b/test/server-side-rendering/samples/preserve-whitespace/main.svelte
new file mode 100644
index 000000000000..d5e1550966fe
--- /dev/null
+++ b/test/server-side-rendering/samples/preserve-whitespace/main.svelte
@@ -0,0 +1,12 @@
+
+<div>
+    <div>
+        <p> Some text </p>
+    </div>
+    <select>
+{#each [1, 2] as value}
+        <option>{value}</option>
+{/each}
+    </select>
+</div>
+