diff --git a/src/View/BakeView.php b/src/View/BakeView.php
index 8ef89338dc9..ffe9f29e86e 100644
--- a/src/View/BakeView.php
+++ b/src/View/BakeView.php
@@ -92,10 +92,11 @@ protected function _evaluate($viewFile, $dataForView) {
 		];
 
 		$viewString = str_replace(array_keys($unPhp), array_values($unPhp), $viewString);
+		$viewString = preg_replace('/\n[ \t]+<% /', "\n<% ", $viewString);
 		$viewString = str_replace(array_keys($templatify), array_values($templatify), $viewString);
 		$viewString = preg_replace('/<\?=(.*)\?>\n(.)/', "<?=$1?>\n\n$2", $viewString);
 
-		$this->__viewFile = TMP . Inflector::slug(str_replace(ROOT, '', $viewFile)) . '.php';
+		$this->__viewFile = TMP . Inflector::slug(preg_replace('@.*Template[/\\\\]@', '', $viewFile)) . '.php';
 		file_put_contents($this->__viewFile, $viewString);
 
 		unset($randomString, $templatify, $viewFile, $viewString);
diff --git a/tests/TestCase/View/BakeViewTest.php b/tests/TestCase/View/BakeViewTest.php
index a6fb5052aae..66500517b19 100644
--- a/tests/TestCase/View/BakeViewTest.php
+++ b/tests/TestCase/View/BakeViewTest.php
@@ -99,4 +99,25 @@ public function testRenderNewlines() {
 			'Tags at the end of a line should not swallow new lines when rendered'
 		);
 	}
+
+	public function testSwallowLeadingWhitespace() {
+		$result = $this->View->render('view_tests/leading-whitespace');
+		$expected = $this->_getCompareTemplate('leading-whitespace');
+
+		$this->assertSame(
+			$expected,
+			$result,
+			'Leading whitespace in bake templates should not result in leading/loose whitespace in rendered results'
+		);
+	}
+
+/**
+ * _getCompareTemplate
+ *
+ * @param string $template
+ * @return string
+ */
+	protected function _getCompareTemplate($template) {
+		return file_get_contents(dirname(dirname(__DIR__)) . "/test_app/TestApp/Template/Bake/view_tests_compare/$template.ctp");
+	}
 }
diff --git a/tests/test_app/TestApp/Template/Bake/view_tests/leading-whitespace.ctp b/tests/test_app/TestApp/Template/Bake/view_tests/leading-whitespace.ctp
new file mode 100644
index 00000000000..2685e481370
--- /dev/null
+++ b/tests/test_app/TestApp/Template/Bake/view_tests/leading-whitespace.ctp
@@ -0,0 +1,13 @@
+<% foreach([1,2,3] as $number): %>
+	<%= $number %>
+<% endforeach; %>
+
+<% foreach([1,2,3] as $number): %>
+	number
+<% endforeach; %>
+
+This should make no difference:
+			<% foreach([1,2,3] as $number): %>
+	<%= $number %>
+			<% endforeach; %>
+And the previous line should not have leading whitespace.
diff --git a/tests/test_app/TestApp/Template/Bake/view_tests/newlines.ctp b/tests/test_app/TestApp/Template/Bake/view_tests/newlines.ctp
new file mode 100644
index 00000000000..d5314c16f5e
--- /dev/null
+++ b/tests/test_app/TestApp/Template/Bake/view_tests/newlines.ctp
@@ -0,0 +1,4 @@
+There should be a newline about here: <%= "" %>
+And this should be on the next line.
+
+There should be no new line after this<%= "" %>
diff --git a/tests/test_app/TestApp/Template/Bake/view_tests_compare/leading-whitespace.ctp b/tests/test_app/TestApp/Template/Bake/view_tests_compare/leading-whitespace.ctp
new file mode 100644
index 00000000000..38b06d92d1f
--- /dev/null
+++ b/tests/test_app/TestApp/Template/Bake/view_tests_compare/leading-whitespace.ctp
@@ -0,0 +1,13 @@
+	1
+	2
+	3
+
+	number
+	number
+	number
+
+This should make no difference:
+	1
+	2
+	3
+And the previous line should not have leading whitespace.