diff --git a/packages/compiler-core/__tests__/parse.spec.ts b/packages/compiler-core/__tests__/parse.spec.ts
index cdc2b09fd48..63d264eb7b0 100644
--- a/packages/compiler-core/__tests__/parse.spec.ts
+++ b/packages/compiler-core/__tests__/parse.spec.ts
@@ -2419,9 +2419,14 @@ describe('compiler: parse', () => {
         ...options,
       })
 
-    test('should still remove whitespaces at start/end inside an element', () => {
+    test('should preserve whitespaces at start/end inside a non-root element', () => {
       const ast = parse(`<div>   <span/>    </div>`)
-      expect((ast.children[0] as ElementNode).children.length).toBe(1)
+      expect((ast.children[0] as ElementNode).children.length).toBe(3)
+    })
+
+    test('should remove whitespaces at start/end inside a root element', () => {
+      const ast = parse(`   <span/>    `)
+      expect(ast.children).toMatchObject([{ type: NodeTypes.ELEMENT }])
     })
 
     test('should preserve whitespaces w/ newline between elements', () => {
@@ -2436,6 +2441,48 @@ describe('compiler: parse', () => {
       ])
     })
 
+    test('should preserve surrounding whitespace for element with text between comments', () => {
+      const ast = parse(`<div>   <!--comment-->Hi<!--comment--> </div>`)
+      expect(ast.children).toMatchObject([
+        {
+          type: NodeTypes.ELEMENT,
+          children: [
+            { type: NodeTypes.TEXT, content: ' ' },
+            { type: NodeTypes.COMMENT, content: 'comment' },
+            { type: NodeTypes.TEXT, content: 'Hi' },
+            { type: NodeTypes.COMMENT, content: 'comment' },
+            { type: NodeTypes.TEXT, content: ' ' },
+          ],
+        },
+      ])
+    })
+
+    test('should preserve surrounding whitespace for element with text between comments and newlines', () => {
+      const ast = parse(`<div>\n <!--comment-->Hi<!--comment-->\n</div>`)
+      expect(ast.children).toMatchObject([
+        {
+          type: NodeTypes.ELEMENT,
+          children: [
+            { type: NodeTypes.TEXT, content: ' ' },
+            { type: NodeTypes.COMMENT, content: 'comment' },
+            { type: NodeTypes.TEXT, content: 'Hi' },
+            { type: NodeTypes.COMMENT, content: 'comment' },
+            { type: NodeTypes.TEXT, content: ' ' },
+          ],
+        },
+      ])
+    })
+
+    test('should preserve whitespace for single element of only whitespace', () => {
+      const ast = parse(`<div> </div>`)
+      expect(ast.children).toMatchObject([
+        {
+          type: NodeTypes.ELEMENT,
+          children: [{ type: NodeTypes.TEXT, content: ' ' }],
+        },
+      ])
+    })
+
     test('should preserve whitespaces adjacent to comments', () => {
       const ast = parse(`<div/> \n <!--foo--> <div/>`)
       expect(ast.children.length).toBe(5)
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 2cd13bab036..65cf4ac3eb8 100644
--- a/packages/compiler-core/__tests__/transforms/__snapshots__/vSlot.spec.ts.snap
+++ b/packages/compiler-core/__tests__/transforms/__snapshots__/vSlot.spec.ts.snap
@@ -225,7 +225,30 @@ return function render(_ctx, _cache) {
     header: _withCtx(() => [" Header "]),
     default: _withCtx(() => [
       " ",
-      _createElementVNode("p")
+      " ",
+      _createElementVNode("p"),
+      " "
+    ]),
+    _: 1 /* STABLE */
+  }))
+}"
+`;
+
+exports[`compiler: transform component slots > with whitespace: 'preserve' > implicit default slot before and after template 1`] = `
+"const { createElementVNode: _createElementVNode, resolveComponent: _resolveComponent, withCtx: _withCtx, openBlock: _openBlock, createBlock: _createBlock } = Vue
+
+return function render(_ctx, _cache) {
+  const _component_Comp = _resolveComponent("Comp")
+
+  return (_openBlock(), _createBlock(_component_Comp, null, {
+    header: _withCtx(() => [" Header "]),
+    default: _withCtx(() => [
+      " ",
+      _createElementVNode("p"),
+      " ",
+      " ",
+      _createElementVNode("p"),
+      " "
     ]),
     _: 1 /* STABLE */
   }))
diff --git a/packages/compiler-core/__tests__/transforms/vSlot.spec.ts b/packages/compiler-core/__tests__/transforms/vSlot.spec.ts
index e0f44a064fb..5cce925e16b 100644
--- a/packages/compiler-core/__tests__/transforms/vSlot.spec.ts
+++ b/packages/compiler-core/__tests__/transforms/vSlot.spec.ts
@@ -965,6 +965,24 @@ describe('compiler: transform component slots', () => {
       expect(generate(root, { prefixIdentifiers: true }).code).toMatchSnapshot()
     })
 
+    test('implicit default slot before and after template', () => {
+      const source = `
+      <Comp>
+        <p/>
+        <template #header> Header </template>
+        <p/>
+      </Comp>
+      `
+      const { root } = parseWithSlots(source, {
+        whitespace: 'preserve',
+      })
+
+      expect(
+        `Extraneous children found when component already has explicitly named default slot.`,
+      ).not.toHaveBeenWarned()
+      expect(generate(root, { prefixIdentifiers: true }).code).toMatchSnapshot()
+    })
+
     test('should not generate whitespace only default slot', () => {
       const source = `
       <Comp>
diff --git a/packages/compiler-core/src/parser.ts b/packages/compiler-core/src/parser.ts
index 3eb3a976f4e..b200c542604 100644
--- a/packages/compiler-core/src/parser.ts
+++ b/packages/compiler-core/src/parser.ts
@@ -647,7 +647,7 @@ function onCloseTag(el: ElementNode, end: number, isImplied = false) {
 
   // whitespace management
   if (!tokenizer.inRCDATA) {
-    el.children = condenseWhitespace(children)
+    el.children = condenseWhitespace(children, false)
   }
 
   if (ns === Namespaces.HTML && currentOptions.isIgnoreNewlineTag(tag)) {
@@ -832,7 +832,10 @@ function isUpperCase(c: number) {
 }
 
 const windowsNewlineRE = /\r\n/g
-function condenseWhitespace(nodes: TemplateChildNode[]): TemplateChildNode[] {
+function condenseWhitespace(
+  nodes: TemplateChildNode[],
+  isRoot: boolean,
+): TemplateChildNode[] {
   const shouldCondense = currentOptions.whitespace !== 'preserve'
   let removedWhitespace = false
   for (let i = 0; i < nodes.length; i++) {
@@ -843,13 +846,12 @@ function condenseWhitespace(nodes: TemplateChildNode[]): TemplateChildNode[] {
           const prev = nodes[i - 1] && nodes[i - 1].type
           const next = nodes[i + 1] && nodes[i + 1].type
           // Remove if:
-          // - the whitespace is the first or last node, or:
+          // - the whitespace is the first or last node on a root template, or:
           // - (condense mode) the whitespace is between two comments, or:
           // - (condense mode) the whitespace is between comment and element, or:
           // - (condense mode) the whitespace is between two elements AND contains newline
           if (
-            !prev ||
-            !next ||
+            ((isRoot || shouldCondense) && (!prev || !next)) ||
             (shouldCondense &&
               ((prev === NodeTypes.COMMENT &&
                 (next === NodeTypes.COMMENT || next === NodeTypes.ELEMENT)) ||
@@ -1080,7 +1082,7 @@ export function baseParse(input: string, options?: ParserOptions): RootNode {
   const root = (currentRoot = createRoot([], input))
   tokenizer.parse(currentInput)
   root.loc = getLoc(0, input.length)
-  root.children = condenseWhitespace(root.children)
+  root.children = condenseWhitespace(root.children, true)
   currentRoot = null
   return root
 }
diff --git a/packages/vue/__tests__/e2e/TransitionGroup.spec.ts b/packages/vue/__tests__/e2e/TransitionGroup.spec.ts
index 62d89db4e31..80ae381e88b 100644
--- a/packages/vue/__tests__/e2e/TransitionGroup.spec.ts
+++ b/packages/vue/__tests__/e2e/TransitionGroup.spec.ts
@@ -623,24 +623,34 @@ describe('e2e: TransitionGroup', () => {
         app.mount('#app')
       })
 
-      expect(await html('#container')).toBe(`<div class="test">foo</div>` + ` `)
+      expect(await html('#container')).toBe(
+        `  ` + `<div class="test">foo</div>` + `   `,
+      )
 
       expect(await htmlWhenTransitionStart()).toBe(
-        `<div class="test">foo</div>` +
+        `  ` +
+          `<div class="test">foo</div>` +
           ` ` +
-          `<div class="test test-enter-from test-enter-active">bar</div>`,
+          `<div class="test test-enter-from test-enter-active">bar</div>` +
+          `  `,
       )
 
       await nextFrame()
       expect(await html('#container')).toBe(
-        `<div class="test">foo</div>` +
+        `  ` +
+          `<div class="test">foo</div>` +
           ` ` +
-          `<div class="test test-enter-active test-enter-to">bar</div>`,
+          `<div class="test test-enter-active test-enter-to">bar</div>` +
+          `  `,
       )
 
       await transitionFinish(duration)
       expect(await html('#container')).toBe(
-        `<div class="test">foo</div>` + ` ` + `<div class="test">bar</div>`,
+        `  ` +
+          `<div class="test">foo</div>` +
+          ` ` +
+          `<div class="test">bar</div>` +
+          `  `,
       )
     },
     E2E_TIMEOUT,