diff --git a/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts b/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts
index 486773d5eb91..94c2032c2587 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/ReactiveScopes/CodegenReactiveFunction.ts
@@ -1712,9 +1712,10 @@ function codegenInstructionValue(
       break;
     }
     case 'JsxExpression': {
+      const isBuiltinTag = instrValue.tag.kind === 'BuiltinTag';
       const attributes: Array<t.JSXAttribute | t.JSXSpreadAttribute> = [];
       for (const attribute of instrValue.props) {
-        attributes.push(codegenJsxAttribute(cx, attribute));
+        attributes.push(codegenJsxAttribute(cx, attribute, isBuiltinTag));
       }
       let tagValue =
         instrValue.tag.kind === 'Identifier'
@@ -2123,9 +2124,28 @@ function codegenInstructionValue(
  */
 const STRING_REQUIRES_EXPR_CONTAINER_PATTERN =
   /[\u{0000}-\u{001F}\u{007F}\u{0080}-\u{FFFF}\u{010000}-\u{10FFFF}]|"|\\/u;
+
+/**
+ * The Babel JSX transform (@babel/plugin-transform-react-jsx) normalizes
+ * newlines followed by whitespace in plain JSX string attributes:
+ *
+ *   value.value = value.value.replace(/\n\s+/g, " ");
+ *
+ * However, this normalization is skipped for JSXExpressionContainer values.
+ * When the compiler wraps strings in expression containers (because they
+ * match STRING_REQUIRES_EXPR_CONTAINER_PATTERN), the JSX transform bypasses
+ * normalization. The server code (uncompiled or differently compiled) goes
+ * through the standard normalization, creating a hydration mismatch.
+ *
+ * We apply the same normalization here before the expression container check,
+ * ensuring compiled output matches the behavior of non-compiled code.
+ */
+const JSX_STRING_NEWLINE_PATTERN = /\n\s+/g;
+
 function codegenJsxAttribute(
   cx: Context,
   attribute: JsxAttribute,
+  isBuiltinTag: boolean,
 ): t.JSXAttribute | t.JSXSpreadAttribute {
   switch (attribute.kind) {
     case 'JsxAttribute': {
@@ -2145,6 +2165,18 @@ function codegenJsxAttribute(
       switch (innerValue.type) {
         case 'StringLiteral': {
           value = innerValue;
+          if (
+            isBuiltinTag &&
+            !cx.fbtOperands.has(attribute.place.identifier.id)
+          ) {
+            const normalized = value.value.replace(
+              JSX_STRING_NEWLINE_PATTERN,
+              ' ',
+            );
+            if (normalized !== value.value) {
+              value = createStringLiteral(value.loc, normalized);
+            }
+          }
           if (
             STRING_REQUIRES_EXPR_CONTAINER_PATTERN.test(value.value) &&
             !cx.fbtOperands.has(attribute.place.identifier.id)
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-expression.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-expression.expect.md
new file mode 100644
index 000000000000..0dd4c5b6eeac
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-expression.expect.md
@@ -0,0 +1,36 @@
+
+## Input
+
+```javascript
+function Component() {
+  return (
+    <div
+      className={"foo\nbar"}
+    >
+      Hello
+    </div>
+  );
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+function Component() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <div className={"foo\nbar"}>Hello</div>;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-expression.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-expression.js
new file mode 100644
index 000000000000..80b337cec273
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-expression.js
@@ -0,0 +1,9 @@
+function Component() {
+  return (
+    <div
+      className={"foo\nbar"}
+    >
+      Hello
+    </div>
+  );
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-hydration.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-hydration.expect.md
new file mode 100644
index 000000000000..1481c4b9a8ec
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-hydration.expect.md
@@ -0,0 +1,43 @@
+
+## Input
+
+```javascript
+function Component() {
+  return (
+    <div
+      className="
+        flex min-h-screen items-center
+        dark:bg-black
+      "
+    >
+      Hello
+    </div>
+  );
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+function Component() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = (
+      <div className=" flex min-h-screen items-center dark:bg-black ">
+        Hello
+      </div>
+    );
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-hydration.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-hydration.js
new file mode 100644
index 000000000000..57a8948561eb
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-hydration.js
@@ -0,0 +1,12 @@
+function Component() {
+  return (
+    <div
+      className="
+        flex min-h-screen items-center
+        dark:bg-black
+      "
+    >
+      Hello
+    </div>
+  );
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-newline-indent.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-newline-indent.expect.md
new file mode 100644
index 000000000000..83970c76b8f8
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-newline-indent.expect.md
@@ -0,0 +1,36 @@
+
+## Input
+
+```javascript
+function Component() {
+  return (
+    <div
+      className={"foo\n  bar\n  baz"}
+    >
+      Hello
+    </div>
+  );
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+function Component() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <div className="foo bar baz">Hello</div>;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-newline-indent.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-newline-indent.js
new file mode 100644
index 000000000000..fe81bd1cf61f
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-classname-newline-indent.js
@@ -0,0 +1,9 @@
+function Component() {
+  return (
+    <div
+      className={"foo\n  bar\n  baz"}
+    >
+      Hello
+    </div>
+  );
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-component-prop-preserved.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-component-prop-preserved.expect.md
new file mode 100644
index 000000000000..6e979b28bea5
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-component-prop-preserved.expect.md
@@ -0,0 +1,34 @@
+
+## Input
+
+```javascript
+function Component() {
+  return (
+    <MyComponent
+      data={"foo\nbar"}
+    />
+  );
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+function Component() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <MyComponent data={"foo\nbar"} />;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-component-prop-preserved.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-component-prop-preserved.js
new file mode 100644
index 000000000000..931d1bf2223b
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-component-prop-preserved.js
@@ -0,0 +1,7 @@
+function Component() {
+  return (
+    <MyComponent
+      data={"foo\nbar"}
+    />
+  );
+}
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-title-attribute.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-title-attribute.expect.md
new file mode 100644
index 000000000000..c18f93fb808b
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-title-attribute.expect.md
@@ -0,0 +1,37 @@
+
+## Input
+
+```javascript
+function Component() {
+  return (
+    <div
+      title="line1
+        line2"
+    >
+      Hello
+    </div>
+  );
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime";
+function Component() {
+  const $ = _c(1);
+  let t0;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t0 = <div title="line1 line2">Hello</div>;
+    $[0] = t0;
+  } else {
+    t0 = $[0];
+  }
+  return t0;
+}
+
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-title-attribute.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-title-attribute.js
new file mode 100644
index 000000000000..08c874456747
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/repro-multiline-title-attribute.js
@@ -0,0 +1,10 @@
+function Component() {
+  return (
+    <div
+      title="line1
+        line2"
+    >
+      Hello
+    </div>
+  );
+}