diff --git a/core/modules/widgets/importvariables.js b/core/modules/widgets/importvariables.js
index a8bb483b6..3e1ac3fc6 100644
--- a/core/modules/widgets/importvariables.js
+++ b/core/modules/widgets/importvariables.js
@@ -49,7 +49,7 @@ ImportVariablesWidget.prototype.execute = function(tiddlerList) {
 	this.tiddlerList = tiddlerList || this.wiki.filterTiddlers(this.filter,this);
 	// Accumulate the <$set> widgets from each tiddler
 	$tw.utils.each(this.tiddlerList,function(title) {
-		var parser = widgetPointer.wiki.parseTiddler(title,{parseAsInline:true, configTrimWhiteSpace:true});
+		var parser = widgetPointer.wiki.parseTiddler(title,{parseAsInline:true, configTrimWhiteSpace:false});
 		if(parser) {
 			var parseTreeNode = parser.tree[0];
 			while(parseTreeNode && ["setvariable","set","parameters"].indexOf(parseTreeNode.type) !== -1) {
diff --git a/editions/test/tiddlers/tests/data/importvariables/WithSetWidgets2.tid b/editions/test/tiddlers/tests/data/importvariables/WithSetWidgets2.tid
index 23fa58c57..b3ef64d7d 100644
--- a/editions/test/tiddlers/tests/data/importvariables/WithSetWidgets2.tid
+++ b/editions/test/tiddlers/tests/data/importvariables/WithSetWidgets2.tid
@@ -12,6 +12,7 @@ title: Output
 +
 title: Definitions
 
+\whitespace trim
 <$set name="one" value="elephant">
 <$set name="two" value="giraffe">
 </$set>
diff --git a/editions/test/tiddlers/tests/data/importvariables/WithSetWidgetsAndMacros.tid b/editions/test/tiddlers/tests/data/importvariables/WithSetWidgetsAndMacros.tid
index eaa81f38c..282896c88 100644
--- a/editions/test/tiddlers/tests/data/importvariables/WithSetWidgetsAndMacros.tid
+++ b/editions/test/tiddlers/tests/data/importvariables/WithSetWidgetsAndMacros.tid
@@ -14,6 +14,7 @@ title: Output
 +
 title: Definitions
 
+\whitespace trim
 \define name() Bugs Bunny
 \procedure address()
 Bunny Hill
diff --git a/editions/test/tiddlers/tests/data/transclude/Procedures-Whitespace2.tid b/editions/test/tiddlers/tests/data/transclude/Procedures-Whitespace2.tid
new file mode 100644
index 000000000..e6cd673bc
--- /dev/null
+++ b/editions/test/tiddlers/tests/data/transclude/Procedures-Whitespace2.tid
@@ -0,0 +1,25 @@
+title: Transclude/Procedures/Whitespace2
+description: Procedures should inherit whitespace settings from definition site
+type: text/vnd.tiddlywiki-multiple
+tags: [[$:/tags/wiki-test-spec]]
+
+title: Output
+
+\procedure testproc()
+This is a sentence    
+\end
+
+\define testmacro()
+This is a sentence    
+\end
+This is a sentence
+[<<testproc>>]
+[<<testmacro>>]
+
++
+title: ExpectedResult
+
+<p>This is a sentence
+[This is a sentence    ]
+[This is a sentence    ]
+</p>
\ No newline at end of file
diff --git a/editions/test/tiddlers/tests/data/transclude/Procedures-Whitespace3.tid b/editions/test/tiddlers/tests/data/transclude/Procedures-Whitespace3.tid
new file mode 100644
index 000000000..b043bceda
--- /dev/null
+++ b/editions/test/tiddlers/tests/data/transclude/Procedures-Whitespace3.tid
@@ -0,0 +1,30 @@
+title: Transclude/Procedures/Whitespace3
+description: Procedures should inherit whitespace settings from definition site
+type: text/vnd.tiddlywiki-multiple
+tags: [[$:/tags/wiki-test-spec]]
+
+title: Output
+
+\import Definitions
+
+This is a sentence
+[<<testproc>>]
+[<<testmacro>>]
+
++
+title: Definitions
+
+\procedure testproc()
+This is a sentence    
+\end
+
+\define testmacro()
+This is a sentence    
+\end
++
+title: ExpectedResult
+
+<p>This is a sentence
+[This is a sentence    ]
+[This is a sentence    ]
+</p>
\ No newline at end of file