diff --git a/packages/cli/src/api/parsers/babel.js b/packages/cli/src/api/parsers/babel.js
index 3667c202..8060d995 100644
--- a/packages/cli/src/api/parsers/babel.js
+++ b/packages/cli/src/api/parsers/babel.js
@@ -73,7 +73,19 @@ function toStr(children, counter = 0) {
       }
     } else if (child.type === 'JSXText') {
       // Child is not a React element, append as-is
-      const chunk = child.value.trim().replace(/\s+/g, ' ');
+      let chunk = child.value;
+
+      // Try to mimic how JSX is parsed in runtime React
+      const [startMatch] = /^[\s\n]*/.exec(child.value);
+      if (startMatch.includes('\n')) {
+        chunk = chunk.substring(startMatch.length);
+      }
+
+      const [endMatch] = /[\s\n]*$/.exec(child.value);
+      if (endMatch.includes('\n')) {
+        chunk = chunk.substring(0, chunk.length - endMatch.length);
+      }
+
       if (chunk) { result.push(chunk); }
     } else if (
       child.type === 'JSXExpressionContainer'
@@ -195,7 +207,7 @@ function babelExtractPhrases(HASHES, source, relativeFile, options) {
 
       if (!string && elem.name.name === 'T' && node.children && node.children.length) {
         const [result] = toStr(node.children);
-        string = result.join(' ').trim();
+        string = result.join('').trim();
       }
 
       if (!string) return;
diff --git a/packages/react/src/components/T.jsx b/packages/react/src/components/T.jsx
index 140f8244..bac7abd0 100644
--- a/packages/react/src/components/T.jsx
+++ b/packages/react/src/components/T.jsx
@@ -49,7 +49,7 @@ export default function T({ _str, children, ...props }) {
   if (!children) { return t(_str, props); }
 
   const [templateArray, propsContainer] = toStr(children);
-  const templateString = templateArray.join(' ').trim();
+  const templateString = templateArray.join('').trim();
   const translation = t(templateString, props);
 
   const result = toElement(translation, propsContainer);
diff --git a/packages/react/src/utils/toStr.js b/packages/react/src/utils/toStr.js
index 7da07fd9..861f827d 100644
--- a/packages/react/src/utils/toStr.js
+++ b/packages/react/src/utils/toStr.js
@@ -64,8 +64,7 @@ export function toStr(children, counter = 0) {
       // Child is not a React element, append as-is
       /* eslint-disable no-lonely-if */
       if (typeof child === 'string' || child instanceof String) {
-        const chunk = child.trim().replace(/\s+/g, ' ');
-        if (chunk) { result.push(chunk); }
+        if (child) { result.push(child); }
       } else {
         result.push(child);
       }