diff --git a/lib/sql_query.rb b/lib/sql_query.rb
index 23b7b04..3795851 100644
--- a/lib/sql_query.rb
+++ b/lib/sql_query.rb
@@ -78,8 +78,16 @@ def initialize
 
   def prepare_query(for_logs)
     query_template = File.read(file_path)
-    query_template = query_template.gsub(/(\n|\s)+/, ' ') if for_logs
-    ERB.new(query_template).result(binding)
+    rendered_sql = ERB.new(query_template).result(binding)
+
+    return rendered_sql unless for_logs
+
+    # Normalize whitespace while preserving SQL quoted strings
+    # Matches: 'single-quoted' OR "double-quoted" OR (whitespace)
+    # Only captures whitespace when NOT inside quotes
+    rendered_sql.gsub(/'(?:[^'\\]|\\.)*'|"(?:[^"\\]|\\.)*"|(\s+)/) do |match|
+      ::Regexp.last_match(1) ? ' ' : match # Replace whitespace with space, preserve quoted strings
+    end
   end
 
   def split_to_path_and_name(file)
diff --git a/spec/spec_helper.rb b/spec/spec_helper.rb
index 67a4845..0349788 100644
--- a/spec/spec_helper.rb
+++ b/spec/spec_helper.rb
@@ -33,23 +33,13 @@ def BigDecimal.new(...)
     mocks.verify_partial_doubles = true
   end
 
-  connection_config = if ENV['CI']
-                        {
-                          adapter: 'postgresql',
-                          host: 'localhost',
-                          username: 'postgres',
-                          password: 'postgres',
-                          database: 'sqlquery_test'
-                        }
-                      else
-                        {
-                          adapter: 'postgresql',
-                          host: 'localhost',
-                          username: 'sqlquery',
-                          password: 'sqlquery',
-                          database: 'sqlquery'
-                        }
-                      end
+  connection_config = {
+    adapter: 'postgresql',
+    host: 'localhost',
+    username: 'postgres',
+    password: 'postgres',
+    database: 'sqlquery_test'
+  }
 
   ActiveRecord::Base.establish_connection(connection_config)
 
diff --git a/spec/sql_queries/multiline_erb.sql.erb b/spec/sql_queries/multiline_erb.sql.erb
new file mode 100644
index 0000000..8ba41f7
--- /dev/null
+++ b/spec/sql_queries/multiline_erb.sql.erb
@@ -0,0 +1,9 @@
+<%
+  field1 = @field1 || 'default1'
+  field2 = @field2 || 'default2'
+%>
+SELECT
+  <%= quote field1 %> as field1,
+  <%= quote field2 %> as field2
+FROM players
+WHERE email = <%= quote @email %>
diff --git a/spec/sql_query_spec.rb b/spec/sql_query_spec.rb
index 390153b..11cbb70 100644
--- a/spec/sql_query_spec.rb
+++ b/spec/sql_query_spec.rb
@@ -211,6 +211,22 @@ class Model < ActiveRecord::Base
           .to eq("SELECT * FROM players WHERE email = '   e@mail.dev   ' ")
       end
     end
+
+    context 'when template has multiline ERB blocks' do
+      let(:file_name) { :multiline_erb }
+      let(:options) { { email: 'test@dev.com', field1: 'val1', field2: 'val2' } }
+      let(:query) { described_class.new(file_name, options) }
+
+      it 'processes multiline ERB correctly without syntax errors' do
+        expect { query.prepared_for_logs }.not_to raise_error
+      end
+
+      it 'includes rendered values in prepared_for_logs output' do
+        result = query.prepared_for_logs
+        expect(result).to include("'val1' as field1")
+        expect(result).to include("'val2' as field2")
+      end
+    end
   end
 
   describe '.config' do