diff --git a/src/compiler/compile/render-dom/wrappers/Fragment.ts b/src/compiler/compile/render-dom/wrappers/Fragment.ts
index f2e2ab7a7a57..bd20c9107fc3 100644
--- a/src/compiler/compile/render-dom/wrappers/Fragment.ts
+++ b/src/compiler/compile/render-dom/wrappers/Fragment.ts
@@ -42,6 +42,13 @@ function link(next: Wrapper, prev: Wrapper) {
 	if (next) next.prev = prev;
 }
 
+function trimmable_at(child: INode, next_sibling: Wrapper): boolean {
+	// Whitespace is trimmable if one of the following is true:
+	// The child and its sibling share a common nearest each block (not at an each block boundary)
+	// The next sibling's previous node is an each block
+	return (next_sibling.node.find_nearest(/EachBlock/) === child.find_nearest(/EachBlock/)) || next_sibling.node.prev.type === 'EachBlock';
+} 
+
 export default class FragmentWrapper {
 	nodes: Wrapper[];
 
@@ -85,7 +92,7 @@ export default class FragmentWrapper {
 				if (this.nodes.length === 0) {
 					const should_trim = (
 						// @ts-ignore todo: probably error, should it be next_sibling.node.data?
-						next_sibling ? (next_sibling.node.type === 'Text' && /^\s/.test(next_sibling.data)) : !child.has_ancestor('EachBlock')
+						next_sibling ? (next_sibling.node.type === 'Text' && /^\s/.test(next_sibling.data) && trimmable_at(child, next_sibling)) : !child.has_ancestor('EachBlock')
 					);
 
 					if (should_trim) {
diff --git a/test/runtime/samples/fragment-trailing-whitespace/_config.js b/test/runtime/samples/fragment-trailing-whitespace/_config.js
new file mode 100644
index 000000000000..2251d6dae813
--- /dev/null
+++ b/test/runtime/samples/fragment-trailing-whitespace/_config.js
@@ -0,0 +1,16 @@
+const message = "the quick brown fox jumps over the lazy dog";
+const expected = [...message].map(c => `<span>${c + " "}</span>`).join("");
+
+export default {
+	props: {
+		message
+	},
+
+	async test({ assert, target }) {
+		const firstSpanList = target.children[0];
+		assert.equal(firstSpanList.innerHTML, expected);
+
+		const secondSpanList = target.children[1];
+		assert.equal(secondSpanList.innerHTML, expected);
+	}
+};
diff --git a/test/runtime/samples/fragment-trailing-whitespace/main.svelte b/test/runtime/samples/fragment-trailing-whitespace/main.svelte
new file mode 100644
index 000000000000..f36f2694a614
--- /dev/null
+++ b/test/runtime/samples/fragment-trailing-whitespace/main.svelte
@@ -0,0 +1,11 @@
+<script>
+    let message = "the quick brown fox jumps over the lazy dog"
+</script>
+
+<div id="first">
+    {#each message as char}
+        <span>{char} </span>
+    {/each}
+</div>
+
+<div id="second">{#each message as char}<span>{char} </span>{/each}</div>
\ No newline at end of file