diff --git a/packages/richtext-lexical/src/features/blocks/server/linesFromMatchToContentAndPropsString.ts b/packages/richtext-lexical/src/features/blocks/server/linesFromMatchToContentAndPropsString.ts
index ef3c81961..e99c132c9 100644
--- a/packages/richtext-lexical/src/features/blocks/server/linesFromMatchToContentAndPropsString.ts
+++ b/packages/richtext-lexical/src/features/blocks/server/linesFromMatchToContentAndPropsString.ts
@@ -159,9 +159,6 @@ export function linesFromStartToContentAndPropsString({
     }
   }
 
-  // Replace all \n with spaces
-  propsString = propsString.replace(/\n/g, ' ').trim()
-
   const afterEndLine = linesCopy[endLineIndex].trim().slice(endlineLastCharIndex)
 
   return {
diff --git a/test/lexical-mdx/int.spec.ts b/test/lexical-mdx/int.spec.ts
index 27b7d5de5..f8679aae1 100644
--- a/test/lexical-mdx/int.spec.ts
+++ b/test/lexical-mdx/int.spec.ts
@@ -1401,6 +1401,27 @@ Some line [Start of link
         },
       },
     },
+    {
+      input: `
+<PackageInstallOptions
+  update
+  packageId="Line"
+  someObject={{test: \`Line 1
+
+Line 2\`}}
+  ignored>
+</PackageInstallOptions>
+`,
+      inputAfterConvertFromEditorJSON: `<PackageInstallOptions packageId="Line" update someObject={{"test":"Line 1\\n\\nLine 2"}}/>`,
+      blockNode: {
+        fields: {
+          blockType: 'PackageInstallOptions',
+          packageId: 'Line',
+          someObject: { test: 'Line 1\n\nLine 2' },
+          update: true,
+        },
+      },
+    },
   ]
 
   const INPUT_AND_OUTPUT: Tests = INPUT_AND_OUTPUTBase //.filter((test) => test.debugFlag)
diff --git a/test/lexical-mdx/mdx/jsxBlocks/packageInstallOptions.ts b/test/lexical-mdx/mdx/jsxBlocks/packageInstallOptions.ts
index d9b18e557..c78f4a69c 100644
--- a/test/lexical-mdx/mdx/jsxBlocks/packageInstallOptions.ts
+++ b/test/lexical-mdx/mdx/jsxBlocks/packageInstallOptions.ts
@@ -10,6 +10,7 @@ export const PackageInstallOptions: Block = {
         someNestedObject: props?.someNestedObject,
         uniqueId: props?.uniqueId,
         update: props?.update,
+        someObject: props?.someObject,
       }
     },
     export: ({ fields, lexicalToMarkdown }) => {
@@ -20,6 +21,7 @@ export const PackageInstallOptions: Block = {
           someNestedObject: fields?.someNestedObject,
           uniqueId: fields?.uniqueId,
           update: fields?.update,
+          someObject: fields?.someObject,
         },
       }
     },
@@ -27,12 +29,16 @@ export const PackageInstallOptions: Block = {
   fields: [
     {
       name: 'packageId',
-      type: 'text',
+      type: 'textarea',
     },
     {
       name: 'global',
       type: 'checkbox',
     },
+    {
+      name: 'someObject',
+      type: 'json',
+    },
     {
       name: 'update',
       type: 'checkbox',