diff --git a/CHANGELOG.md b/CHANGELOG.md
index 04b3a55..4d5f63a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,6 @@
 # SqlQuery change log
 
-## 0.7.5 / Unreleased
+## 1.0.0 / Unreleased
 
 * [Added] Configurable SQL comment removal feature with `remove_comments` and `remove_comments_from` configuration options. Supports selective removal of single-line (`--`) and multi-line (`/* */`) comments while preserving comments within quoted strings (single, double, and PostgreSQL dollar quotes). Addresses https://github.com/sufleR/sql_query/issues/20
 
@@ -8,7 +8,7 @@
 
 * [Removed]
 
-* [Fixed]
+* [Fixed] Whitespace normalization now properly supports multiline ERB blocks. Previously, `prepared_for_logs` would corrupt SQL templates containing multiline ERB code blocks (e.g., `<% ... %>`) by normalizing whitespace before ERB processing. The new `WhitespaceNormalizer` class renders ERB first, then intelligently collapses whitespace while preserving content within SQL quoted strings (single quotes, double quotes, and escaped quotes).
 
 ## 0.7.4 / 2024-04-20
 
diff --git a/lib/sql_query.rb b/lib/sql_query.rb
index 11dfa20..5d7c16c 100644
--- a/lib/sql_query.rb
+++ b/lib/sql_query.rb
@@ -3,6 +3,7 @@
 require 'erb'
 require_relative 'sql_query/config'
 require_relative 'sql_query/comment_remover'
+require_relative 'sql_query/whitespace_normalizer'
 
 class SqlQuery
   attr_reader :connection
@@ -71,8 +72,12 @@ def self.configure
 
   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 quoted strings
+    WhitespaceNormalizer.new.normalize(rendered_sql)
   end
 
   def split_to_path_and_name(file)
diff --git a/lib/sql_query/whitespace_normalizer.rb b/lib/sql_query/whitespace_normalizer.rb
new file mode 100644
index 0000000..7c8028a
--- /dev/null
+++ b/lib/sql_query/whitespace_normalizer.rb
@@ -0,0 +1,111 @@
+# frozen_string_literal: true
+
+class SqlQuery
+  # Service class responsible for normalizing whitespace in SQL queries
+  # while preserving content within quoted strings.
+  #
+  # This class collapses multiple whitespace characters (spaces, tabs, newlines)
+  # into single spaces, except when they appear within SQL string literals.
+  #
+  # @example
+  #   normalizer = WhitespaceNormalizer.new
+  #   sql = "SELECT *\n  FROM  users\n  WHERE name = '  John  '"
+  #   normalizer.normalize(sql)
+  #   # => "SELECT * FROM users WHERE name = '  John  '"
+  class WhitespaceNormalizer
+    # Normalizes whitespace in the given SQL string
+    #
+    # @param sql [String] the SQL string to normalize
+    # @return [String] the normalized SQL string
+    def normalize(sql)
+      state = { in_single: false, in_double: false, prev_space: false }
+      result = []
+      i = 0
+
+      i = process_character(sql, i, result, state) while i < sql.length
+
+      result.join
+    end
+
+    private
+
+    # rubocop:disable Metrics/MethodLength
+    def process_character(sql, index, result, state)
+      char = sql[index]
+
+      if single_quote?(char, state)
+        process_single_quote(sql, index, result, state)
+      elsif double_quote?(char, state)
+        process_double_quote(sql, index, result, state)
+      elsif whitespace?(char)
+        process_whitespace(char, result, state)
+        index + 1
+      else
+        process_regular_char(char, result, state)
+        index + 1
+      end
+    end
+
+    def single_quote?(char, state)
+      char == "'" && !state[:in_double]
+    end
+
+    def double_quote?(char, state)
+      char == '"' && !state[:in_single]
+    end
+
+    def whitespace?(char)
+      char =~ /\s/
+    end
+    # rubocop:enable Metrics/MethodLength
+
+    # rubocop:disable Metrics/AbcSize
+    def process_single_quote(sql, index, result, state)
+      if state[:in_single] && index + 1 < sql.length && sql[index + 1] == "'"
+        # Doubled quote (escape) - add both
+        result << sql[index] << sql[index + 1]
+        state[:prev_space] = false
+        index + 2
+      else
+        # Normal quote - toggle state
+        state[:in_single] = !state[:in_single]
+        result << sql[index]
+        state[:prev_space] = false
+        index + 1
+      end
+    end
+
+    def process_double_quote(sql, index, result, state)
+      if state[:in_double] && index + 1 < sql.length && sql[index + 1] == '"'
+        # Doubled quote (escape) - add both
+        result << sql[index] << sql[index + 1]
+        state[:prev_space] = false
+        index + 2
+      else
+        # Normal quote - toggle state
+        state[:in_double] = !state[:in_double]
+        result << sql[index]
+        state[:prev_space] = false
+        index + 1
+      end
+    end
+
+    def process_whitespace(char, result, state)
+      if state[:in_single] || state[:in_double]
+        # Inside quotes: preserve whitespace
+        result << char
+        state[:prev_space] = false
+      elsif !state[:prev_space]
+        # Outside quotes: collapse to single space
+        result << ' '
+        state[:prev_space] = true
+      end
+    end
+
+    def process_regular_char(char, result, state)
+      result << char
+      state[:prev_space] = false
+    end
+    # rubocop:enable Metrics/AbcSize
+  end
+end
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 58fde99..52dd66b 100644
--- a/spec/sql_query_spec.rb
+++ b/spec/sql_query_spec.rb
@@ -211,6 +211,23 @@ 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 'collapses SQL whitespace while preserving ERB processing' do
+        result = query.prepared_for_logs
+        expect(result).to include("'val1' as field1")
+        expect(result).to include("'val2' as field2")
+        expect(result).not_to include("\n") # All newlines should be collapsed
+      end
+    end
   end
 
   describe 'comment removal integration' do