diff --git a/tensorrt_llm/serve/tool_parser/deepseekv32_parser.py b/tensorrt_llm/serve/tool_parser/deepseekv32_parser.py
index 5098f148e3b2..f3d54dbe6e33 100644
--- a/tensorrt_llm/serve/tool_parser/deepseekv32_parser.py
+++ b/tensorrt_llm/serve/tool_parser/deepseekv32_parser.py
@@ -110,7 +110,10 @@ def _parse_parameters_from_xml(self, invoke_content: str) -> dict:
         for param_name, param_type, param_value in param_matches:
             # Convert value based on type
             if param_type == "true":  # string type
-                parameters[param_name] = param_value.strip()
+                # Taken as written: the encoder renders a string value verbatim
+                # between the tags, so its whitespace (a file's last newline, a
+                # line's indentation) is part of the value.
+                parameters[param_name] = param_value
             else:
                 # Try to parse as JSON for other types
                 try:
diff --git a/tests/unittest/llmapi/apps/test_tool_parsers.py b/tests/unittest/llmapi/apps/test_tool_parsers.py
index a427c5aa024f..8a8d00ef8fce 100644
--- a/tests/unittest/llmapi/apps/test_tool_parsers.py
+++ b/tests/unittest/llmapi/apps/test_tool_parsers.py
@@ -3160,6 +3160,53 @@ def test_deepseek_streaming_keeps_markdown_fences(
     assert parser_cls().detect_and_parse(text, sample_tools).normal_text == text
 
 
+def _dsml_tool_call(tag_prefix: str, block_name: str, name: str,
+                    string_arguments: dict[str, str]) -> str:
+    """A tool call as the DSML encoders render it: each string value verbatim."""
+    parameters = "\n".join(
+        f'<{tag_prefix}parameter name="{key}" string="true">{value}'
+        f"</{tag_prefix}parameter>" for key, value in string_arguments.items())
+    return (f"<{tag_prefix}{block_name}>\n"
+            f'<{tag_prefix}invoke name="{name}">\n{parameters}\n'
+            f"</{tag_prefix}invoke>\n</{tag_prefix}{block_name}>")
+
+
+@pytest.mark.parametrize("parser_cls,tag_prefix,block_name", [
+    (DeepSeekV32Parser, "｜DSML｜", "function_calls"),
+    (DeepSeekV4Parser, "｜DSML｜", "tool_calls"),
+    (DeepSeekV41Parser, "｜DSML｜ ", "calls"),
+])
+@pytest.mark.parametrize("streaming", [False, True])
+def test_dsml_string_parameter_values_are_kept_as_written(
+        sample_tools: list[ChatCompletionToolsParam],
+        parser_cls: type[BaseToolParser], tag_prefix: str, block_name: str,
+        streaming: bool) -> None:
+    """A string value's leading and trailing whitespace is part of the value.
+
+    An edit's ``old_string`` must match the file including its indentation,
+    and a written file keeps its last newline.
+    """
+    arguments = {
+        "location": "    indented line\n    second line",
+        "unit": "file content\n",
+    }
+    text = _dsml_tool_call(tag_prefix, block_name, "get_weather", arguments)
+
+    parser = parser_cls()
+    if streaming:
+        results = [
+            parser.parse_streaming_increment(text[i:i + 7], sample_tools)
+            for i in range(0, len(text), 7)
+        ]
+        calls = [call for result in results for call in result.calls]
+    else:
+        calls = parser.detect_and_parse(text, sample_tools).calls
+
+    assert [call.name for call in calls if call.name] == ["get_weather"]
+    assert json.loads("".join(call.parameters or ""
+                              for call in calls)) == arguments
+
+
 @pytest.mark.parametrize(
     "parser_cls, tool_call_text",
     [