diff --git a/pkg/engine/renderer/parser.go b/pkg/engine/renderer/parser.go
index a6fe1bf9a..2d912751b 100644
--- a/pkg/engine/renderer/parser.go
+++ b/pkg/engine/renderer/parser.go
@@ -14,7 +14,7 @@ import (
 // If the type is not known in the scheme, it tries to parse it as Unstructured
 // TODO(av) could we use something else than a global scheme here? Should we somehow inject it?
 func YamlToObject(yaml string) (objs []runtime.Object, err error) {
-	sepYamlfiles := strings.Split(yaml, "---")
+	sepYamlfiles := strings.Split(yaml, "\n---\n")
 	for _, f := range sepYamlfiles {
 		if f == "\n" || f == "" {
 			// ignore empty cases
diff --git a/pkg/engine/renderer/parser_test.go b/pkg/engine/renderer/parser_test.go
index 03c807f4d..993c6f5e8 100644
--- a/pkg/engine/renderer/parser_test.go
+++ b/pkg/engine/renderer/parser_test.go
@@ -7,13 +7,17 @@ import (
 )
 
 func TestParseKubernetesObjects_UnknownType(t *testing.T) {
-	_, err := YamlToObject(`apiVersion: monitoring.coreos.com/v1
+	objects, err := YamlToObject(`apiVersion: monitoring.coreos.com/v1
 kind: ServiceMonitor
 metadata:
   labels:
     app: prometheus-operator
     release: prometheus-kubeaddons
   name: spark-cluster-monitor
+  annotations:
+    foo: |-
+      ---
+      multiline
 spec:
   endpoints:
     - interval: 5s
@@ -25,6 +29,7 @@ spec:
 	if err != nil {
 		t.Errorf("Expecting no error but got %s", err)
 	}
+	assert.Equal(t, 1, len(objects))
 }
 
 func TestParseKubernetesObjects_KnownType(t *testing.T) {