diff --git a/packages/angular_devkit/build_angular/src/builders/server/index.ts b/packages/angular_devkit/build_angular/src/builders/server/index.ts
index 9370037bfa24..e7a057c6793e 100644
--- a/packages/angular_devkit/build_angular/src/builders/server/index.ts
+++ b/packages/angular_devkit/build_angular/src/builders/server/index.ts
@@ -8,7 +8,8 @@
 
 import { BuilderContext, BuilderOutput, createBuilder } from '@angular-devkit/architect';
 import { runWebpack } from '@angular-devkit/build-webpack';
-import * as path from 'path';
+import { readFile } from 'node:fs/promises';
+import * as path from 'node:path';
 import { Observable, concatMap, from } from 'rxjs';
 import webpack, { Configuration } from 'webpack';
 import { ExecutionTransformer } from '../../transforms';
@@ -191,6 +192,8 @@ async function initialize(
   // Purge old build disk cache.
   await purgeStaleBuildCache(context);
 
+  await checkTsConfigForPreserveWhitespacesSetting(context, options.tsConfig);
+
   const browserslist = (await import('browserslist')).default;
   const originalOutputPath = options.outputPath;
   // Assets are processed directly by the builder except when watching
@@ -223,6 +226,32 @@ async function initialize(
   return { config: transformedConfig, i18n, projectRoot, projectSourceRoot };
 }
 
+async function checkTsConfigForPreserveWhitespacesSetting(
+  context: BuilderContext,
+  tsConfigPath: string,
+): Promise<void> {
+  // We don't use the `readTsConfig` method on purpose here.
+  // To only catch cases were `preserveWhitespaces` is set directly in the `tsconfig.server.json`,
+  // which in the majority of cases will cause a mistmatch between client and server builds.
+  // Technically we should check if `tsconfig.server.json` and `tsconfig.app.json` values match.
+
+  // But:
+  // 1. It is not guaranteed that `tsconfig.app.json` is used to build the client side of this app.
+  // 2. There is no easy way to access the build build config from the server builder.
+  // 4. This will no longer be an issue with a single compilation model were the same tsconfig is used for both browser and server builds.
+  const content = await readFile(path.join(context.workspaceRoot, tsConfigPath), 'utf-8');
+  const { parse } = await import('jsonc-parser');
+  const tsConfig = parse(content, [], { allowTrailingComma: true });
+  if (tsConfig.angularCompilerOptions?.preserveWhitespaces !== undefined) {
+    context.logger.warn(
+      `"preserveWhitespaces" was set in "${tsConfigPath}". ` +
+        'Make sure that this setting is set consistently in both "tsconfig.server.json" for your server side ' +
+        'and "tsconfig.app.json" for your client side. A mismatched value will cause hydration to break.\n' +
+        'For more information see: https://angular.io/guide/hydration#preserve-whitespaces',
+    );
+  }
+}
+
 /**
  * Add `@angular/platform-server` exports.
  * This is needed so that DI tokens can be referenced and set at runtime outside of the bundle.
diff --git a/packages/angular_devkit/build_angular/src/builders/server/tests/behavior/preserve_whitespaces_check_spec.ts b/packages/angular_devkit/build_angular/src/builders/server/tests/behavior/preserve_whitespaces_check_spec.ts
new file mode 100644
index 000000000000..3167310edb7d
--- /dev/null
+++ b/packages/angular_devkit/build_angular/src/builders/server/tests/behavior/preserve_whitespaces_check_spec.ts
@@ -0,0 +1,47 @@
+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import { logging } from '@angular-devkit/core';
+import { execute } from '../../index';
+import { BASE_OPTIONS, SERVER_BUILDER_INFO, describeBuilder } from '../setup';
+
+describeBuilder(execute, SERVER_BUILDER_INFO, (harness) => {
+  describe('Behavior: "preserveWhitespaces warning"', () => {
+    it('should not show warning when "preserveWhitespaces" is not set.', async () => {
+      harness.useTarget('server', {
+        ...BASE_OPTIONS,
+      });
+
+      const { logs } = await harness.executeOnce();
+      expect(logs).not.toContain(
+        jasmine.objectContaining<logging.LogEntry>({
+          message: jasmine.stringMatching('"preserveWhitespaces" was set in'),
+        }),
+      );
+    });
+    it('should show warning when "preserveWhitespaces" is set.', async () => {
+      harness.useTarget('server', {
+        ...BASE_OPTIONS,
+      });
+
+      await harness.modifyFile('src/tsconfig.server.json', (content) => {
+        const tsconfig = JSON.parse(content);
+        (tsconfig.angularCompilerOptions ??= {}).preserveWhitespaces = false;
+
+        return JSON.stringify(tsconfig);
+      });
+
+      const { logs } = await harness.executeOnce();
+      expect(logs).toContain(
+        jasmine.objectContaining<logging.LogEntry>({
+          message: jasmine.stringMatching('"preserveWhitespaces" was set in'),
+        }),
+      );
+    });
+  });
+});