diff --git a/packages/compiler-core/__tests__/__snapshots__/compile.spec.ts.snap b/packages/compiler-core/__tests__/__snapshots__/compile.spec.ts.snap
index 9374c67c..7e156f32 100644
--- a/packages/compiler-core/__tests__/__snapshots__/compile.spec.ts.snap
+++ b/packages/compiler-core/__tests__/__snapshots__/compile.spec.ts.snap
@@ -11,7 +11,7 @@ return function render() {
       id: \\"foo\\",
       class: bar.baz
     }, [
-      _createVNode(_Text, null, _toString(world.burn()), 1 /* TEXT */),
+      _createVNode(_Text, null, _toString(world.burn()) + \\" \\", 1 /* TEXT */),
       (_openBlock(), ok
         ? _createBlock(\\"div\\", { key: 0 }, \\"yes\\")
         : _createBlock(_Fragment, { key: 1 }, [\\"no\\"])),
@@ -34,7 +34,7 @@ return function render() {
     id: \\"foo\\",
     class: _ctx.bar.baz
   }, [
-    createVNode(Text, null, toString(_ctx.world.burn()), 1 /* TEXT */),
+    createVNode(Text, null, toString(_ctx.world.burn()) + \\" \\", 1 /* TEXT */),
     (openBlock(), (_ctx.ok)
       ? createBlock(\\"div\\", { key: 0 }, \\"yes\\")
       : createBlock(Fragment, { key: 1 }, [\\"no\\"])),
@@ -56,7 +56,7 @@ export default function render() {
     id: \\"foo\\",
     class: _ctx.bar.baz
   }, [
-    createVNode(Text, null, toString(_ctx.world.burn()), 1 /* TEXT */),
+    createVNode(Text, null, toString(_ctx.world.burn()) + \\" \\", 1 /* TEXT */),
     (openBlock(), (_ctx.ok)
       ? createBlock(\\"div\\", { key: 0 }, \\"yes\\")
       : createBlock(Fragment, { key: 1 }, [\\"no\\"])),
diff --git a/packages/compiler-core/__tests__/__snapshots__/parse.spec.ts.snap b/packages/compiler-core/__tests__/__snapshots__/parse.spec.ts.snap
index 276821cd..40f635ff 100644
--- a/packages/compiler-core/__tests__/__snapshots__/parse.spec.ts.snap
+++ b/packages/compiler-core/__tests__/__snapshots__/parse.spec.ts.snap
@@ -245,7 +245,6 @@ Object {
           "type": 6,
           "value": Object {
             "content": "c",
-            "isEmpty": false,
             "loc": Object {
               "end": Object {
                 "column": 23,
@@ -331,7 +330,6 @@ Object {
           "type": 6,
           "value": Object {
             "content": "&#a;",
-            "isEmpty": false,
             "loc": Object {
               "end": Object {
                 "column": 22,
@@ -417,7 +415,6 @@ Object {
           "type": 6,
           "value": Object {
             "content": "ÿ",
-            "isEmpty": false,
             "loc": Object {
               "end": Object {
                 "column": 24,
@@ -503,7 +500,6 @@ Object {
           "type": 6,
           "value": Object {
             "content": "&#xg;",
-            "isEmpty": false,
             "loc": Object {
               "end": Object {
                 "column": 23,
@@ -556,7 +552,6 @@ Object {
       "children": Array [
         Object {
           "content": "c",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 16,
@@ -625,7 +620,6 @@ Object {
       "children": Array [
         Object {
           "content": "&#a;",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 15,
@@ -694,7 +688,6 @@ Object {
       "children": Array [
         Object {
           "content": "ÿ",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 17,
@@ -763,7 +756,6 @@ Object {
       "children": Array [
         Object {
           "content": "&#xg;",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 16,
@@ -902,7 +894,6 @@ Object {
           "children": Array [
             Object {
               "content": "cdata",
-              "isEmpty": false,
               "loc": Object {
                 "end": Object {
                   "column": 30,
@@ -993,7 +984,6 @@ Object {
       "children": Array [
         Object {
           "content": "�",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 21,
@@ -1062,7 +1052,6 @@ Object {
       "children": Array [
         Object {
           "content": "",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 18,
@@ -1131,7 +1120,6 @@ Object {
       "children": Array [
         Object {
           "content": "",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 17,
@@ -1235,7 +1223,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "",
-                "isEmpty": true,
                 "loc": Object {
                   "end": Object {
                     "column": 21,
@@ -1270,7 +1257,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "",
-                "isEmpty": true,
                 "loc": Object {
                   "end": Object {
                     "column": 27,
@@ -1493,7 +1479,6 @@ Object {
       "children": Array [
         Object {
           "content": "<",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 12,
@@ -1562,7 +1547,6 @@ Object {
       "children": Array [
         Object {
           "content": "</",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 13,
@@ -1707,7 +1691,6 @@ Object {
           "children": Array [
             Object {
               "content": "cdata",
-              "isEmpty": false,
               "loc": Object {
                 "end": Object {
                   "column": 30,
@@ -2138,7 +2121,6 @@ Object {
       "children": Array [
         Object {
           "content": "<!--console.log('hello')",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 33,
@@ -2207,7 +2189,6 @@ Object {
       "children": Array [
         Object {
           "content": "console.log('hello')",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 29,
@@ -2738,7 +2719,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 23,
@@ -2848,7 +2828,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -2958,7 +2937,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -3068,7 +3046,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 23,
@@ -3178,7 +3155,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -3288,7 +3264,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -3398,7 +3373,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 22,
@@ -3508,7 +3482,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "abc",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 22,
@@ -3967,7 +3940,6 @@ Object {
       "children": Array [
         Object {
           "content": "<�>",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 14,
@@ -4122,7 +4094,6 @@ Object {
       "children": Array [
         Object {
           "content": "a < b",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 16,
@@ -4191,7 +4162,6 @@ Object {
       "children": Array [
         Object {
           "content": "a ",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 13,
@@ -4312,7 +4282,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "/",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 21,
@@ -4623,7 +4592,6 @@ Object {
       "children": Array [
         Object {
           "content": "(",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 15,
@@ -4692,7 +4660,6 @@ Object {
       "children": Array [
         Object {
           "content": "@",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 16,
@@ -4761,7 +4728,6 @@ Object {
       "children": Array [
         Object {
           "content": "&",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 15,
@@ -4866,7 +4832,6 @@ class=\\"bar\\"></div>",
               "type": 6,
               "value": Object {
                 "content": "foo",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -4901,7 +4866,6 @@ class=\\"bar\\"></div>",
               "type": 6,
               "value": Object {
                 "content": "bar",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 12,
@@ -5013,7 +4977,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "foo",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -5048,7 +5011,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 35,
@@ -5395,7 +5357,6 @@ Object {
       "children": Array [
         Object {
           "content": "🿿",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 20,
@@ -5464,7 +5425,6 @@ Object {
       "children": Array [
         Object {
           "content": "￾",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 19,
@@ -5533,7 +5493,6 @@ Object {
       "children": Array [
         Object {
           "content": "�",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 18,
@@ -5602,7 +5561,6 @@ Object {
       "children": Array [
         Object {
           "content": "�",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 19,
@@ -5706,7 +5664,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "",
-                "isEmpty": true,
                 "loc": Object {
                   "end": Object {
                     "column": 23,
@@ -5816,7 +5773,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "",
-                "isEmpty": true,
                 "loc": Object {
                   "end": Object {
                     "column": 23,
@@ -5926,7 +5882,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "",
-                "isEmpty": true,
                 "loc": Object {
                   "end": Object {
                     "column": 23,
@@ -6036,7 +5991,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar\\"",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -6146,7 +6100,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar'",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -6256,7 +6209,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar<div",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 27,
@@ -6366,7 +6318,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar=baz",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 27,
@@ -6476,7 +6427,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar\`",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -6679,7 +6629,6 @@ Object {
               "type": 6,
               "value": Object {
                 "content": "bar",
-                "isEmpty": false,
                 "loc": Object {
                   "end": Object {
                     "column": 24,
@@ -6933,7 +6882,6 @@ Object {
       "children": Array [
         Object {
           "content": "&unknown;",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 20,
@@ -7002,7 +6950,6 @@ Object {
       "children": Array [
         Object {
           "content": "</div>",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 21,
@@ -7325,7 +7272,6 @@ Object {
       "children": Array [
         Object {
           "content": "</div>",
-          "isEmpty": false,
           "loc": Object {
             "end": Object {
               "column": 17,
@@ -7647,7 +7593,6 @@ Object {
   "children": Array [
     Object {
       "content": "{{",
-      "isEmpty": false,
       "loc": Object {
         "end": Object {
           "column": 3,
@@ -7692,7 +7637,6 @@ Object {
   "children": Array [
     Object {
       "content": "{{ foo",
-      "isEmpty": false,
       "loc": Object {
         "end": Object {
           "column": 7,
diff --git a/packages/compiler-core/__tests__/parse.spec.ts b/packages/compiler-core/__tests__/parse.spec.ts
index 81735aa1..1266d534 100644
--- a/packages/compiler-core/__tests__/parse.spec.ts
+++ b/packages/compiler-core/__tests__/parse.spec.ts
@@ -21,7 +21,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some text',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 9, line: 1, column: 10 },
@@ -39,7 +38,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some text',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 9, line: 1, column: 10 },
@@ -56,7 +54,6 @@ describe('compiler: parse', () => {
       expect(text1).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some ',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 5, line: 1, column: 6 },
@@ -66,7 +63,6 @@ describe('compiler: parse', () => {
       expect(text2).toStrictEqual({
         type: NodeTypes.TEXT,
         content: ' text',
-        isEmpty: false,
         loc: {
           start: { offset: 20, line: 1, column: 21 },
           end: { offset: 25, line: 1, column: 26 },
@@ -83,7 +79,6 @@ describe('compiler: parse', () => {
       expect(text1).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some ',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 5, line: 1, column: 6 },
@@ -93,7 +88,6 @@ describe('compiler: parse', () => {
       expect(text2).toStrictEqual({
         type: NodeTypes.TEXT,
         content: ' text',
-        isEmpty: false,
         loc: {
           start: { offset: 21, line: 1, column: 22 },
           end: { offset: 26, line: 1, column: 27 },
@@ -110,7 +104,6 @@ describe('compiler: parse', () => {
       expect(text1).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some ',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 5, line: 1, column: 6 },
@@ -120,7 +113,6 @@ describe('compiler: parse', () => {
       expect(text2).toStrictEqual({
         type: NodeTypes.TEXT,
         content: ' text',
-        isEmpty: false,
         loc: {
           start: { offset: 32, line: 1, column: 33 },
           end: { offset: 37, line: 1, column: 38 },
@@ -142,7 +134,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'a < b',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 5, line: 1, column: 6 },
@@ -164,7 +155,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'a {{ b',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 6, line: 1, column: 7 },
@@ -184,7 +174,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '&ersand;',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 11, line: 1, column: 12 },
@@ -220,7 +209,6 @@ describe('compiler: parse', () => {
       expect(text1).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '&ampersand;',
-        isEmpty: false,
         loc: {
           start: { offset: 7, line: 1, column: 8 },
           end: { offset: 20, line: 1, column: 21 },
@@ -230,7 +218,6 @@ describe('compiler: parse', () => {
       expect(text2).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '&ersand;',
-        isEmpty: false,
         loc: {
           start: { offset: 23, line: 1, column: 24 },
           end: { offset: 37, line: 1, column: 38 },
@@ -240,7 +227,6 @@ describe('compiler: parse', () => {
       expect(text3).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '&!',
-        isEmpty: false,
         loc: {
           start: { offset: 40, line: 1, column: 41 },
           end: { offset: 47, line: 1, column: 48 },
@@ -267,7 +253,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '†',
-        isEmpty: false,
         loc: {
           start: { offset: 0, line: 1, column: 1 },
           end: { offset: 6, line: 1, column: 7 },
@@ -514,7 +499,6 @@ describe('compiler: parse', () => {
           {
             type: NodeTypes.TEXT,
             content: 'hello',
-            isEmpty: false,
             loc: {
               start: { offset: 5, line: 1, column: 6 },
               end: { offset: 10, line: 1, column: 11 },
@@ -713,7 +697,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: '',
-              isEmpty: true,
               loc: {
                 start: { offset: 8, line: 1, column: 9 },
                 end: { offset: 10, line: 1, column: 11 },
@@ -755,7 +738,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: '',
-              isEmpty: true,
               loc: {
                 start: { offset: 8, line: 1, column: 9 },
                 end: { offset: 10, line: 1, column: 11 },
@@ -797,7 +779,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: ">'",
-              isEmpty: false,
               loc: {
                 start: { offset: 8, line: 1, column: 9 },
                 end: { offset: 12, line: 1, column: 13 },
@@ -839,7 +820,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: '>"',
-              isEmpty: false,
               loc: {
                 start: { offset: 8, line: 1, column: 9 },
                 end: { offset: 12, line: 1, column: 13 },
@@ -881,7 +861,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: 'a/',
-              isEmpty: false,
               loc: {
                 start: { offset: 8, line: 1, column: 9 },
                 end: { offset: 10, line: 1, column: 11 },
@@ -923,7 +902,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: 'a',
-              isEmpty: false,
               loc: {
                 start: { offset: 8, line: 1, column: 9 },
                 end: { offset: 9, line: 1, column: 10 },
@@ -942,7 +920,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: 'c',
-              isEmpty: false,
               loc: {
                 start: { offset: 16, line: 1, column: 17 },
                 end: { offset: 19, line: 1, column: 20 },
@@ -971,7 +948,6 @@ describe('compiler: parse', () => {
             value: {
               type: NodeTypes.TEXT,
               content: '',
-              isEmpty: true,
               loc: {
                 start: { offset: 32, line: 1, column: 33 },
                 end: { offset: 34, line: 1, column: 35 },
@@ -1481,7 +1457,6 @@ describe('compiler: parse', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'hello',
-        isEmpty: false,
         loc: {
           start: { offset: 5, line: 1, column: 6 },
           end: { offset: 10, line: 1, column: 11 },
diff --git a/packages/compiler-core/__tests__/transforms/__snapshots__/hoistStatic.spec.ts.snap b/packages/compiler-core/__tests__/transforms/__snapshots__/hoistStatic.spec.ts.snap
index 1bb57f3d..47d6ed8c 100644
--- a/packages/compiler-core/__tests__/transforms/__snapshots__/hoistStatic.spec.ts.snap
+++ b/packages/compiler-core/__tests__/transforms/__snapshots__/hoistStatic.spec.ts.snap
@@ -173,7 +173,12 @@ exports[`compiler: hoistStatic transform prefixIdentifiers hoist nested static t
 "const _Vue = Vue
 const _createVNode = Vue.createVNode
 
-const _hoisted_1 = _createVNode(\\"span\\", null, [\\"foo \\", _toString(1), _toString(true)])
+const _hoisted_1 = _createVNode(\\"span\\", null, [
+  \\"foo \\",
+  _toString(1),
+  \\" \\",
+  _toString(true)
+])
 
 return function render() {
   with (this) {
diff --git a/packages/compiler-core/__tests__/transforms/__snapshots__/vSlot.spec.ts.snap b/packages/compiler-core/__tests__/transforms/__snapshots__/vSlot.spec.ts.snap
index 266e2f6f..dd819d03 100644
--- a/packages/compiler-core/__tests__/transforms/__snapshots__/vSlot.spec.ts.snap
+++ b/packages/compiler-core/__tests__/transforms/__snapshots__/vSlot.spec.ts.snap
@@ -160,6 +160,7 @@ return function render() {
         default: ({ bar }) => [toString(foo), toString(bar), toString(_ctx.baz)],
         _compiled: true
       }, 256 /* DYNAMIC_SLOTS */),
+      \\" \\",
       toString(foo),
       toString(_ctx.bar),
       toString(_ctx.baz)
diff --git a/packages/compiler-core/__tests__/transforms/hoistStatic.spec.ts b/packages/compiler-core/__tests__/transforms/hoistStatic.spec.ts
index 1fb81f93..b0058485 100644
--- a/packages/compiler-core/__tests__/transforms/hoistStatic.spec.ts
+++ b/packages/compiler-core/__tests__/transforms/hoistStatic.spec.ts
@@ -495,6 +495,10 @@ describe('compiler: hoistStatic transform', () => {
                   isConstant: true
                 }
               },
+              {
+                type: NodeTypes.TEXT,
+                content: ` `
+              },
               {
                 type: NodeTypes.INTERPOLATION,
                 content: {
diff --git a/packages/compiler-core/__tests__/transforms/vSlot.spec.ts b/packages/compiler-core/__tests__/transforms/vSlot.spec.ts
index 4ba645cc..bf48b6cb 100644
--- a/packages/compiler-core/__tests__/transforms/vSlot.spec.ts
+++ b/packages/compiler-core/__tests__/transforms/vSlot.spec.ts
@@ -314,6 +314,10 @@ describe('compiler: transform component slots', () => {
               }
             },
             // test scope
+            {
+              type: NodeTypes.TEXT,
+              content: ` `
+            },
             {
               type: NodeTypes.INTERPOLATION,
               content: {
diff --git a/packages/compiler-core/src/ast.ts b/packages/compiler-core/src/ast.ts
index 4a53de66..9ba06608 100644
--- a/packages/compiler-core/src/ast.ts
+++ b/packages/compiler-core/src/ast.ts
@@ -160,7 +160,6 @@ export interface SuspenseNode extends BaseElementNode {
 export interface TextNode extends Node {
   type: NodeTypes.TEXT
   content: string
-  isEmpty: boolean
 }
 
 export interface CommentNode extends Node {
diff --git a/packages/compiler-core/src/parse.ts b/packages/compiler-core/src/parse.ts
index 4785118d..8c8516aa 100644
--- a/packages/compiler-core/src/parse.ts
+++ b/packages/compiler-core/src/parse.ts
@@ -197,21 +197,52 @@ function parseChildren(
 
     if (Array.isArray(node)) {
       for (let i = 0; i < node.length; i++) {
-        pushNode(context, nodes, node[i])
+        pushNode(nodes, node[i])
       }
     } else {
-      pushNode(context, nodes, node)
+      pushNode(nodes, node)
     }
   }
 
-  return nodes
+  // Whitespace management for more efficient output
+  // (same as v2 whitespance: 'condense')
+  let removedWhitespace = false
+  for (let i = 0; i < nodes.length; i++) {
+    const node = nodes[i]
+    if (node.type === NodeTypes.TEXT) {
+      if (!node.content.trim()) {
+        const prev = nodes[i - 1]
+        const next = nodes[i + 1]
+        // If:
+        // - the whitespace is the first or last node, or:
+        // - the whitespace contains newline AND is between two element or comments
+        // Then the whitespace is ignored.
+        if (
+          !prev ||
+          !next ||
+          ((prev.type === NodeTypes.ELEMENT ||
+            prev.type === NodeTypes.COMMENT) &&
+            (next.type === NodeTypes.ELEMENT ||
+              next.type === NodeTypes.COMMENT) &&
+            /[\r\n]/.test(node.content))
+        ) {
+          removedWhitespace = true
+          nodes[i] = null as any
+        } else {
+          // Otherwise, condensed consecutive whitespace inside the text down to
+          // a single space
+          node.content = ' '
+        }
+      } else {
+        node.content = node.content.replace(/\s+/g, ' ')
+      }
+    }
+  }
+
+  return removedWhitespace ? nodes.filter(node => node !== null) : nodes
 }
 
-function pushNode(
-  context: ParserContext,
-  nodes: TemplateChildNode[],
-  node: TemplateChildNode
-): void {
+function pushNode(nodes: TemplateChildNode[], node: TemplateChildNode): void {
   // ignore comments in production
   /* istanbul ignore next */
   if (!__DEV__ && node.type === NodeTypes.COMMENT) {
@@ -219,20 +250,15 @@ function pushNode(
   }
 
   if (node.type === NodeTypes.TEXT) {
-    if (node.isEmpty) {
-      return
-    }
-
+    const prev = last(nodes)
     // Merge if both this and the previous node are text and those are
     // consecutive. This happens for cases like "a < b".
-    const prev = last(nodes)
     if (
       prev &&
       prev.type === NodeTypes.TEXT &&
       prev.loc.end.offset === node.loc.start.offset
     ) {
       prev.content += node.content
-      prev.isEmpty = prev.content.trim().length === 0
       prev.loc.end = node.loc.end
       prev.loc.source += node.loc.source
       return
@@ -624,7 +650,6 @@ function parseAttribute(
     value: value && {
       type: NodeTypes.TEXT,
       content: value.content,
-      isEmpty: value.content.trim().length === 0,
       loc: value.loc
     },
     loc
@@ -729,6 +754,7 @@ function parseText(context: ParserContext, mode: TextModes): TextNode {
   __DEV__ && assert(context.source.length > 0)
 
   const [open] = context.options.delimiters
+  // TODO could probably use some perf optimization
   const endIndex = Math.min(
     ...[
       context.source.indexOf('<', 1),
@@ -745,8 +771,7 @@ function parseText(context: ParserContext, mode: TextModes): TextNode {
   return {
     type: NodeTypes.TEXT,
     content,
-    loc: getSelection(context, start),
-    isEmpty: !content.trim()
+    loc: getSelection(context, start)
   }
 }
 
diff --git a/packages/compiler-dom/__tests__/parse.spec.ts b/packages/compiler-dom/__tests__/parse.spec.ts
index a202eda4..aa05c557 100644
--- a/packages/compiler-dom/__tests__/parse.spec.ts
+++ b/packages/compiler-dom/__tests__/parse.spec.ts
@@ -25,7 +25,6 @@ describe('DOM parser', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some<div>text</div>and<!--comment-->',
-        isEmpty: false,
         loc: {
           start: { offset: 10, line: 1, column: 11 },
           end: { offset: 46, line: 1, column: 47 },
@@ -42,7 +41,6 @@ describe('DOM parser', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '&',
-        isEmpty: false,
         loc: {
           start: { offset: 10, line: 1, column: 11 },
           end: { offset: 15, line: 1, column: 16 },
@@ -62,7 +60,6 @@ describe('DOM parser', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some<div>text</div>and<!--comment-->',
-        isEmpty: false,
         loc: {
           start: { offset: 7, line: 1, column: 8 },
           end: { offset: 43, line: 1, column: 44 },
@@ -79,7 +76,6 @@ describe('DOM parser', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: '&amp;',
-        isEmpty: false,
         loc: {
           start: { offset: 7, line: 1, column: 8 },
           end: { offset: 12, line: 1, column: 13 },
@@ -95,7 +91,6 @@ describe('DOM parser', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'some text',
-        isEmpty: false,
         loc: {
           start: { offset: 14, line: 1, column: 15 },
           end: { offset: 23, line: 1, column: 24 },
@@ -196,7 +191,6 @@ describe('DOM parser', () => {
       expect(text).toStrictEqual({
         type: NodeTypes.TEXT,
         content: 'hello</textarea</textarea0>',
-        isEmpty: false,
         loc: {
           start: { offset: 10, line: 1, column: 11 },
           end: { offset: 37, line: 1, column: 38 },