diff --git a/src/utils/compileSlots.ts b/src/utils/compileSlots.ts
index 90d715acd..f0f12a6d7 100644
--- a/src/utils/compileSlots.ts
+++ b/src/utils/compileSlots.ts
@@ -1,7 +1,8 @@
 import { compile } from '@vue/compiler-dom'
 import * as vue from 'vue'
 
-export function processSlot(template = '', Vue = vue) {
+export function processSlot(source = '', Vue = vue) {
+  let template = source.trim()
   const hasWrappingTemplate = template && template.startsWith('<template')
 
   // allow content without `template` tag, for easier testing
diff --git a/tests/mountingOptions/slots.spec.ts b/tests/mountingOptions/slots.spec.ts
index b052383f6..1a9e65be4 100644
--- a/tests/mountingOptions/slots.spec.ts
+++ b/tests/mountingOptions/slots.spec.ts
@@ -141,9 +141,13 @@ describe('slots', () => {
     })
 
     it('allows passing a scoped slot via string with no destructuring using the v-slot syntax ', () => {
+      // Note: there is intentionally a carriage return after the first ` in the scoped key.
+      // https://github.com/vuejs/vue-test-utils-next/issues/202
       const wrapper = mount(ComponentWithSlots, {
         slots: {
-          scoped: `<template v-slot:scoped="params"><div>Just a plain {{ params.boolean }} {{ params.string }}</div></template>`
+          scoped: `
+            <template v-slot:scoped="params"><div>Just a plain {{ params.boolean }} {{ params.string }}</div></template>
+          `
         }
       })