diff --git a/docs/changes/2.x/2.0.0.md b/docs/changes/2.x/2.0.0.md
index 2ee54698cc..a8c3cd596e 100644
--- a/docs/changes/2.x/2.0.0.md
+++ b/docs/changes/2.x/2.0.0.md
@@ -8,6 +8,8 @@
 
 - MsDoc Reader : Correct Font Size Calculation by [@oleibman](https://github.com/oleibman) fixing [#2526](https://github.com/PHPOffice/PHPWord/issues/2526) in [#2531](https://github.com/PHPOffice/PHPWord/pull/2531)
 
+- bug: TemplateProcessor fix multiline values [@gimler](https://github.com/gimler) fixing [#268](https://github.com/PHPOffice/PHPWord/issues/268), [#2323](https://github.com/PHPOffice/PHPWord/issues/2323) and [#2486](https://github.com/PHPOffice/PHPWord/issues/2486) in [#2522](https://github.com/PHPOffice/PHPWord/pull/2522)
+
 ### Miscellaneous
 
 - Bump dompdf/dompdf from 2.0.3 to 2.0.4 by [@dependabot](https://github.com/dependabot) in [#2530](https://github.com/PHPOffice/PHPWord/pull/2530)
diff --git a/src/PhpWord/TemplateProcessor.php b/src/PhpWord/TemplateProcessor.php
index 1ad901d480..27577499e5 100644
--- a/src/PhpWord/TemplateProcessor.php
+++ b/src/PhpWord/TemplateProcessor.php
@@ -357,6 +357,15 @@ public function setValue($search, $replace, $limit = self::MAXIMUM_REPLACEMENTS_
             $replace = $xmlEscaper->escape($replace);
         }
 
+        // convert carriage returns
+        if (is_array($replace)) {
+            foreach ($replace as &$item) {
+                $item = $this->replaceCarriageReturns($item);
+            }
+        } else {
+            $replace = $this->replaceCarriageReturns($replace);
+        }
+
         $this->tempDocumentHeaders = $this->setValueForPart($search, $replace, $this->tempDocumentHeaders, $limit);
         $this->tempDocumentMainPart = $this->setValueForPart($search, $replace, $this->tempDocumentMainPart, $limit);
         $this->tempDocumentFooters = $this->setValueForPart($search, $replace, $this->tempDocumentFooters, $limit);
@@ -1305,6 +1314,14 @@ protected function indexClonedVariables($count, $xmlBlock)
         return $results;
     }
 
+    /**
+     * Replace carriage returns with xml.
+     */
+    public function replaceCarriageReturns(string $string): string
+    {
+        return str_replace(["\r\n", "\r", "\n"], '</w:t><w:br/><w:t>', $string);
+    }
+
     /**
      * Replaces variables with values from array, array keys are the variable names.
      *
diff --git a/tests/PhpWordTests/TemplateProcessorTest.php b/tests/PhpWordTests/TemplateProcessorTest.php
index f2d2cfbf13..65d5cfe9d8 100644
--- a/tests/PhpWordTests/TemplateProcessorTest.php
+++ b/tests/PhpWordTests/TemplateProcessorTest.php
@@ -591,6 +591,24 @@ public function testSetValues(): void
         self::assertStringContainsString('Hello John Doe', $templateProcessor->getMainPart());
     }
 
+    /**
+     * @covers ::setValues
+     */
+    public function testSetValuesMultiLine(): void
+    {
+        $mainPart = '<?xml version="1.0" encoding="UTF-8"?>
+        <w:p>
+            <w:r>
+                <w:t xml:space="preserve">Address: ${address}</w:t>
+            </w:r>
+        </w:p>';
+
+        $templateProcessor = new TestableTemplateProcesor($mainPart);
+        $templateProcessor->setValues(['address' => "Peter Pan\nNeverland"]);
+
+        self::assertStringContainsString('Address: Peter Pan</w:t><w:br/><w:t>Neverland', $templateProcessor->getMainPart());
+    }
+
     /**
      * @covers ::setValues
      */