diff --git a/lib/mixins/template-stamp.html b/lib/mixins/template-stamp.html
index 11472e16f6..6d222abeea 100644
--- a/lib/mixins/template-stamp.html
+++ b/lib/mixins/template-stamp.html
@@ -204,7 +204,7 @@
if (!template._templateInfo) {
let templateInfo = template._templateInfo = {};
templateInfo.nodeInfoList = [];
- templateInfo.stripWhiteSpace = Polymer.legacyOptimizations ||
+ templateInfo.stripWhiteSpace =
(outerTemplateInfo && outerTemplateInfo.stripWhiteSpace) ||
template.hasAttribute('strip-whitespace');
this._parseTemplateContent(template, templateInfo, {parent: null});