diff --git a/.changeset/young-ladybugs-decide.md b/.changeset/young-ladybugs-decide.md
new file mode 100644
index 0000000000..53284cbc37
--- /dev/null
+++ b/.changeset/young-ladybugs-decide.md
@@ -0,0 +1,6 @@
+---
+'@backstage/plugin-scaffolder-backend': patch
+'@backstage/plugin-scaffolder-node': patch
+---
+
+Add option to configure nunjucks with the `trimBlocks` and `lstripBlocks` options in the fetch:template action
diff --git a/plugins/scaffolder-backend/api-report.md b/plugins/scaffolder-backend/api-report.md
index cc16791390..c4a7656cd3 100644
--- a/plugins/scaffolder-backend/api-report.md
+++ b/plugins/scaffolder-backend/api-report.md
@@ -177,6 +177,8 @@ export function createFetchTemplateAction(options: {
     copyWithoutTemplating?: string[] | undefined;
     cookiecutterCompat?: boolean | undefined;
     replace?: boolean | undefined;
+    trimBlocks?: boolean | undefined;
+    lstripBlocks?: boolean | undefined;
   },
   JsonObject
 >;
diff --git a/plugins/scaffolder-backend/src/lib/templating/SecureTemplater.ts b/plugins/scaffolder-backend/src/lib/templating/SecureTemplater.ts
index 701863c7f6..607b1c6add 100644
--- a/plugins/scaffolder-backend/src/lib/templating/SecureTemplater.ts
+++ b/plugins/scaffolder-backend/src/lib/templating/SecureTemplater.ts
@@ -34,6 +34,7 @@ const { render, renderCompat } = (() => {
 
   const env = module.exports.configure({
     autoescape: false,
+    ...JSON.parse(nunjucksConfigs),
     tags: {
       variableStart: '\${{',
       variableEnd: '}}',
@@ -42,6 +43,7 @@ const { render, renderCompat } = (() => {
 
   const compatEnv = module.exports.configure({
     autoescape: false,
+    ...JSON.parse(nunjucksConfigs),
     tags: {
       variableStart: '{{',
       variableEnd: '}}',
@@ -102,13 +104,14 @@ export type TemplateFilter = _TemplateFilter;
  */
 export type TemplateGlobal = _TemplateGlobal;
 
-export interface SecureTemplaterOptions {
+interface SecureTemplaterOptions {
   /* Enables jinja compatibility and the "jsonify" filter */
   cookiecutterCompat?: boolean;
   /* Extra user-provided nunjucks filters */
   templateFilters?: Record<string, TemplateFilter>;
   /* Extra user-provided nunjucks globals */
   templateGlobals?: Record<string, TemplateGlobal>;
+  nunjucksConfigs?: { trimBlocks?: boolean; lstripBlocks?: boolean };
 }
 
 export type SecureTemplateRenderer = (
@@ -122,6 +125,7 @@ export class SecureTemplater {
       cookiecutterCompat,
       templateFilters = {},
       templateGlobals = {},
+      nunjucksConfigs = {},
     } = options;
 
     const isolate = new Isolate({ memoryLimit: 128 });
@@ -140,6 +144,8 @@ export class SecureTemplater {
       mkScript(nunjucksSource),
     );
 
+    await contextGlobal.set('nunjucksConfigs', JSON.stringify(nunjucksConfigs));
+
     const availableFilters = Object.keys(templateFilters);
 
     await contextGlobal.set(
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
index 26b249b76d..2a2c138708 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
@@ -69,6 +69,8 @@ export function createFetchTemplateAction(options: {
     copyWithoutTemplating?: string[];
     cookiecutterCompat?: boolean;
     replace?: boolean;
+    trimBlocks?: boolean;
+    lstripBlocks?: boolean;
   }>({
     id: 'fetch:template',
     description:
@@ -237,6 +239,10 @@ export function createFetchTemplateAction(options: {
           ...additionalTemplateFilters,
         },
         templateGlobals: additionalTemplateGlobals,
+        nunjucksConfigs: {
+          trimBlocks: ctx.input.trimBlocks,
+          lstripBlocks: ctx.input.lstripBlocks,
+        },
       });
 
       for (const location of allEntriesInTemplate) {