diff --git a/packages/commonjs/src/generate-exports.js b/packages/commonjs/src/generate-exports.js
index 1c5faa41d..ce54bdc28 100644
--- a/packages/commonjs/src/generate-exports.js
+++ b/packages/commonjs/src/generate-exports.js
@@ -1,4 +1,4 @@
-export function wrapCode(magicString, uses, moduleName, exportsName) {
+export function wrapCode(magicString, uses, moduleName, exportsName, indentExclusionRanges) {
   const args = [];
   const passedArgs = [];
   if (uses.module) {
@@ -11,7 +11,7 @@ export function wrapCode(magicString, uses, moduleName, exportsName) {
   }
   magicString
     .trim()
-    .indent('\t')
+    .indent('\t', { exclude: indentExclusionRanges })
     .prepend(`(function (${args.join(', ')}) {\n`)
     .append(`\n} (${passedArgs.join(', ')}));`);
 }
diff --git a/packages/commonjs/src/transform-commonjs.js b/packages/commonjs/src/transform-commonjs.js
index 45507aa23..0d619194d 100644
--- a/packages/commonjs/src/transform-commonjs.js
+++ b/packages/commonjs/src/transform-commonjs.js
@@ -97,6 +97,7 @@ export default async function transformCommonjs(
   const replacedGlobal = [];
   const replacedDynamicRequires = [];
   const importedVariables = new Set();
+  const indentExclusionRanges = [];
 
   walk(ast, {
     enter(node, parent) {
@@ -395,6 +396,11 @@ export default async function transformCommonjs(
           if (!scope.parent) {
             topLevelDeclarations.push(node);
           }
+          return;
+        case 'TemplateElement':
+          if (node.value.raw.includes('\n')) {
+            indentExclusionRanges.push([node.start, node.end]);
+          }
       }
     },
 
@@ -527,11 +533,13 @@ export default async function transformCommonjs(
       );
 
   if (shouldWrap) {
-    wrapCode(magicString, uses, moduleName, exportsName);
+    wrapCode(magicString, uses, moduleName, exportsName, indentExclusionRanges);
   }
 
   if (usesRequireWrapper) {
-    magicString.trim().indent('\t');
+    magicString.trim().indent('\t', {
+      exclude: indentExclusionRanges
+    });
     magicString.prepend(
       `var ${isRequiredName};
 
diff --git a/packages/commonjs/test/fixtures/function/indent-multiline-strings/_config.js b/packages/commonjs/test/fixtures/function/indent-multiline-strings/_config.js
new file mode 100644
index 000000000..bdb057976
--- /dev/null
+++ b/packages/commonjs/test/fixtures/function/indent-multiline-strings/_config.js
@@ -0,0 +1,6 @@
+module.exports = {
+  description: 'indent does not affect multi-line string content',
+  pluginOptions: {
+    defaultIsModuleExports: false
+  }
+};
diff --git a/packages/commonjs/test/fixtures/function/indent-multiline-strings/dep.js b/packages/commonjs/test/fixtures/function/indent-multiline-strings/dep.js
new file mode 100644
index 000000000..a3ff3b43a
--- /dev/null
+++ b/packages/commonjs/test/fixtures/function/indent-multiline-strings/dep.js
@@ -0,0 +1,8 @@
+const main = require('./main.js');
+
+exports.value = `
+dep
+multi
+line
+string
+`;
diff --git a/packages/commonjs/test/fixtures/function/indent-multiline-strings/main.js b/packages/commonjs/test/fixtures/function/indent-multiline-strings/main.js
new file mode 100644
index 000000000..1b8ba7b78
--- /dev/null
+++ b/packages/commonjs/test/fixtures/function/indent-multiline-strings/main.js
@@ -0,0 +1,8 @@
+const dep = require('./dep.js');
+
+module.exports = `
+main
+multi
+line
+string
+`;
diff --git a/packages/commonjs/test/snapshots/function.js.md b/packages/commonjs/test/snapshots/function.js.md
index adb5ac68a..c55d02f1d 100644
--- a/packages/commonjs/test/snapshots/function.js.md
+++ b/packages/commonjs/test/snapshots/function.js.md
@@ -4834,6 +4834,62 @@ Generated by [AVA](https://avajs.dev).
       `,
     }
 
+## indent-multiline-strings
+
+> Snapshot 1
+
+    {
+      'main.js': `'use strict';␊
+      ␊
+      function getDefaultExportFromCjs (x) {␊
+      	return x && x.__esModule && Object.prototype.hasOwnProperty.call(x, 'default') ? x['default'] : x;␊
+      }␊
+      ␊
+      var main$1 = {exports: {}};␊
+      ␊
+      var dep = {};␊
+      ␊
+      var hasRequiredDep;␊
+      ␊
+      function requireDep () {␊
+      	if (hasRequiredDep) return dep;␊
+      	hasRequiredDep = 1;␊
+      	requireMain();␊
+      ␊
+      	dep.value = `␊
+      dep␊
+      multi␊
+      line␊
+      string␊
+      `;␊
+      	return dep;␊
+      }␊
+      ␊
+      var hasRequiredMain;␊
+      ␊
+      function requireMain () {␊
+      	if (hasRequiredMain) return main$1.exports;␊
+      	hasRequiredMain = 1;␊
+      	(function (module) {␊
+      		requireDep();␊
+      ␊
+      		module.exports = `␊
+      main␊
+      multi␊
+      line␊
+      string␊
+      `;␊
+      } (main$1));␊
+      	return main$1.exports;␊
+      }␊
+      ␊
+      var mainExports = requireMain();␊
+      var main = /*@__PURE__*/getDefaultExportFromCjs(mainExports);␊
+      ␊
+      module.exports = main;␊
+      `,
+    }
+
 ## index
 
 > Snapshot 1
diff --git a/packages/commonjs/test/snapshots/function.js.snap b/packages/commonjs/test/snapshots/function.js.snap
index 0115b4d03..51a89778b 100644
Binary files a/packages/commonjs/test/snapshots/function.js.snap and b/packages/commonjs/test/snapshots/function.js.snap differ