diff --git a/CHANGELOG.md b/CHANGELOG.md
index accab0fc74f8..085cfca36103 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,7 @@
 
 - `[expect]` Display expectedDiff more carefully in toBeCloseTo ([#8389](https://github.com/facebook/jest/pull/8389))
 - `[jest-fake-timers]` `getTimerCount` will not include cancelled immediates ([#8764](https://github.com/facebook/jest/pull/8764))
+- `[jest-snapshot]` Remove only the added newlines in multiline snapshots ([#8859](https://github.com/facebook/jest/pull/8859))
 
 ### Chore & Maintenance
 
diff --git a/packages/jest-snapshot/src/__tests__/utils.test.ts b/packages/jest-snapshot/src/__tests__/utils.test.ts
index 85c757fe10d7..c96db37cc8cd 100644
--- a/packages/jest-snapshot/src/__tests__/utils.test.ts
+++ b/packages/jest-snapshot/src/__tests__/utils.test.ts
@@ -19,9 +19,11 @@ import {
   SNAPSHOT_GUIDE_LINK,
   SNAPSHOT_VERSION,
   SNAPSHOT_VERSION_WARNING,
+  addExtraLineBreaks,
   deepMerge,
   getSnapshotData,
   keyToTestName,
+  removeExtraLineBreaks,
   saveSnapshotFile,
   serialize,
   testNameToKey,
@@ -192,6 +194,78 @@ test('serialize handles \\r\\n', () => {
   expect(serializedData).toBe('\n"<div>\n</div>"\n');
 });
 
+describe('ExtraLineBreaks', () => {
+  test('0 empty string', () => {
+    const expected = '';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe(expected);
+    expect(removed).toBe(expected);
+  });
+
+  test('1 line has double quote marks at edges', () => {
+    const expected = '" one line "';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe(expected);
+    expect(removed).toBe(expected);
+  });
+
+  test('1 line has spaces at edges', () => {
+    const expected = ' one line ';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe(expected);
+    expect(removed).toBe(expected);
+  });
+
+  test('2 lines both are blank', () => {
+    const expected = '\n';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe('\n' + expected + '\n');
+    expect(removed).toBe(expected);
+  });
+
+  test('2 lines have double quote marks at edges', () => {
+    const expected = '"\n"';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe('\n' + expected + '\n');
+    expect(removed).toBe(expected);
+  });
+
+  test('2 lines first is blank', () => {
+    const expected = '\nsecond line ';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe('\n' + expected + '\n');
+    expect(removed).toBe(expected);
+  });
+
+  test('2 lines last is blank', () => {
+    const expected = ' first line\n';
+
+    const added = addExtraLineBreaks(expected);
+    const removed = removeExtraLineBreaks(added);
+
+    expect(added).toBe('\n' + expected + '\n');
+    expect(removed).toBe(expected);
+  });
+});
+
 describe('DeepMerge with property matchers', () => {
   const matcher = expect.any(String);
 
diff --git a/packages/jest-snapshot/src/index.ts b/packages/jest-snapshot/src/index.ts
index 401843374b9f..3526cbb687c6 100644
--- a/packages/jest-snapshot/src/index.ts
+++ b/packages/jest-snapshot/src/index.ts
@@ -349,8 +349,8 @@ const _toMatchSnapshot = ({
       `${RECEIVED_COLOR('Received value')} ` +
       `${actual}`;
   } else {
-    expected = (expected || '').trim();
-    actual = (actual || '').trim();
+    expected = utils.removeExtraLineBreaks(expected || '');
+    actual = utils.removeExtraLineBreaks(actual || '');
 
     // Assign to local variable because of declaration let expected:
     // TypeScript thinks it could change before report function is called.
diff --git a/packages/jest-snapshot/src/utils.ts b/packages/jest-snapshot/src/utils.ts
index 6819e67e85f9..254b1e677d59 100644
--- a/packages/jest-snapshot/src/utils.ts
+++ b/packages/jest-snapshot/src/utils.ts
@@ -123,11 +123,19 @@ export const getSnapshotData = (
   return {data, dirty};
 };
 
-// Extra line breaks at the beginning and at the end of the snapshot are useful
-// to make the content of the snapshot easier to read
-const addExtraLineBreaks = (string: string): string =>
+// Add extra line breaks at beginning and end of multiline snapshot
+// to make the content easier to read.
+export const addExtraLineBreaks = (string: string): string =>
   string.includes('\n') ? `\n${string}\n` : string;
 
+// Remove extra line breaks at beginning and end of multiline snapshot.
+// Instead of trim, which can remove additional newlines or spaces
+// at beginning or end of the content from a custom serializer.
+export const removeExtraLineBreaks = (string: string): string =>
+  string.length > 2 && string.startsWith('\n') && string.endsWith('\n')
+    ? string.slice(1, -1)
+    : string;
+
 export const serialize = (data: string): string =>
   addExtraLineBreaks(
     normalizeNewlines(