diff --git a/packages/playwright-core/src/utils/isomorphic/stringUtils.ts b/packages/playwright-core/src/utils/isomorphic/stringUtils.ts
index ed81c9a0335ee..7bdfe178d7b3b 100644
--- a/packages/playwright-core/src/utils/isomorphic/stringUtils.ts
+++ b/packages/playwright-core/src/utils/isomorphic/stringUtils.ts
@@ -83,7 +83,7 @@ export function cacheNormalizedWhitespaces() {
 export function normalizeWhiteSpace(text: string): string {
   let result = normalizedWhitespaceCache?.get(text);
   if (result === undefined) {
-    result = text.replace(/\u200b/g, '').trim().replace(/\s+/g, ' ');
+    result = text.replace(/\u200b/g, '').replace(/ /g, ' ').trim().replace(/\s+/g, ' ');
     normalizedWhitespaceCache?.set(text, result);
   }
   return result;
diff --git a/packages/playwright/src/matchers/matchers.ts b/packages/playwright/src/matchers/matchers.ts
index 8a8089e91e20f..acf4c5bcc89af 100644
--- a/packages/playwright/src/matchers/matchers.ts
+++ b/packages/playwright/src/matchers/matchers.ts
@@ -337,7 +337,7 @@ export function toHaveValue(
   options?: { timeout?: number },
 ) {
   return toMatchText.call(this, 'toHaveValue', locator, 'Locator', async (isNot, timeout) => {
-    const expectedText = serializeExpectedTextValues([expected]);
+    const expectedText = serializeExpectedTextValues([expected], { normalizeWhiteSpace: true });
     return await locator._expect('to.have.value', { expectedText, isNot, timeout });
   }, expected, options);
 }
diff --git a/tests/page/expect-to-have-value.spec.ts b/tests/page/expect-to-have-value.spec.ts
index 0518eac725fff..0fe70aeec7b72 100644
--- a/tests/page/expect-to-have-value.spec.ts
+++ b/tests/page/expect-to-have-value.spec.ts
@@ -45,6 +45,13 @@ test('should support failure', async ({ page }) => {
   expect(stripAnsi(error.message)).toContain('"Text content"');
 });
 
+test('should normalize whitespace', async ({ page }) => {
+  await page.setContent('<input id=node></input>');
+  const locator = page.locator('#node');
+  await locator.fill('foo&nbsp;bar\nbaz');
+  await expect(locator).toHaveValue('foo bar baz');
+});
+
 test.describe('toHaveValues with multi-select', () => {
   test('works with text', async ({ page }) => {
     await page.setContent(`