diff --git a/RELEASE-NOTES.txt b/RELEASE-NOTES.txt
index d9bc6611d6..7c85f17778 100644
--- a/RELEASE-NOTES.txt
+++ b/RELEASE-NOTES.txt
@@ -2,7 +2,7 @@
 ------
 * Prefill caption for image blocks when available on the Media library
 * New block: Buttons. From now you’ll be able to add the individual Button block only inside the Buttons block
-* [iOS]: Video in video blocks can now be played inline on the editor.
+* Fix bug where whitespaces at start of text blocks were being removed
 * Add support for upload options in Cover block
 * [Android] Floating toolbar, previously located above nested blocks, is now placed at the top of the screen
 * [iOS] Floating toolbar, previously located above nested blocks, is now placed at the bottom of the screen
diff --git a/RNTAztecView.podspec b/RNTAztecView.podspec
index 8408e4ccba..3145b8ae39 100644
--- a/RNTAztecView.podspec
+++ b/RNTAztecView.podspec
@@ -18,6 +18,6 @@ Pod::Spec.new do |s|
   s.xcconfig         = {'OTHER_LDFLAGS' => '-lxml2',
                         'HEADER_SEARCH_PATHS' => '/usr/include/libxml2'}
   s.dependency         'React-Core'
-  s.dependency         'WordPress-Aztec-iOS', '~> 1.17.1'
+  s.dependency         'WordPress-Aztec-iOS', '~> 1.18.0'
 
 end
diff --git a/ios/Podfile b/ios/Podfile
index 95cf03ad35..b721d1973e 100644
--- a/ios/Podfile
+++ b/ios/Podfile
@@ -39,7 +39,7 @@ target 'gutenberg' do
   pod 'Folly', :podspec => '../node_modules/react-native/third-party-podspecs/Folly.podspec'
   pod 'RNTAztecView', :path => '../RNTAztecView.podspec'
   #Use for testing non official versions of Aztec
-  #pod 'WordPress-Aztec-iOS', :git => 'https://github.com/wordpress-mobile/WordPress-Aztec-iOS.git', :commit => 'edf1c9ae758b946e76bb9de6efc9135d2c2a4b43'
+  #pod 'WordPress-Aztec-iOS', :git => 'https://github.com/wordpress-mobile/WordPress-Aztec-iOS.git', :commit => '29dff741f4b19435d75f21179e27766337de8e9d'
   pod 'Gutenberg', :path => '../Gutenberg.podspec'
 
   target 'gutenbergTests' do
diff --git a/ios/Podfile.lock b/ios/Podfile.lock
index 4f5688bb44..35063d6f2a 100644
--- a/ios/Podfile.lock
+++ b/ios/Podfile.lock
@@ -241,8 +241,8 @@ PODS:
     - React
   - RNTAztecView (1.26.0):
     - React-Core
-    - WordPress-Aztec-iOS (~> 1.17.1)
-  - WordPress-Aztec-iOS (1.17.1)
+    - WordPress-Aztec-iOS (~> 1.18.0)
+  - WordPress-Aztec-iOS (1.18.0)
   - Yoga (1.14.0)
 
 DEPENDENCIES:
@@ -393,10 +393,10 @@ SPEC CHECKSUMS:
   ReactCommon: 198c7c8d3591f975e5431bec1b0b3b581aa1c5dd
   ReactNativeDarkMode: f61376360c5d983907e5c316e8e1c853a8c2f348
   RNSVG: 68a534a5db06dcbdaebfd5079349191598caef7b
-  RNTAztecView: 65e1984620590339bb1bcced6f5e914cba8df2f5
-  WordPress-Aztec-iOS: 319620514af963ca519bd83b96a2c0ebdf3a0f03
+  RNTAztecView: db66aa89626b70a40c25f7bd06e7d7588fdf85db
+  WordPress-Aztec-iOS: fae5d158879dfd6f36c8d0ff0cc111a0b8e36790
   Yoga: f2a7cd4280bfe2cca5a7aed98ba0eb3d1310f18b
 
-PODFILE CHECKSUM: 7c7e4c82bf2c9ed08e515c352b72fc2d70b4ba48
+PODFILE CHECKSUM: 8fc85c086e46c9bb555a0c4ebda2e57ceae0a8d6
 
 COCOAPODS: 1.8.4
diff --git a/react-native-aztec/android/build.gradle b/react-native-aztec/android/build.gradle
index bf0829fb24..1455e7c948 100644
--- a/react-native-aztec/android/build.gradle
+++ b/react-native-aztec/android/build.gradle
@@ -12,7 +12,7 @@ buildscript {
         wordpressUtilsVersion = '1.22'
         espressoVersion = '3.0.1'
 
-        aztecVersion = 'v1.3.40'
+        aztecVersion = 'v1.3.41'
     }
 
     repositories {
diff --git a/react-native-aztec/android/src/main/java/org/wordpress/mobile/ReactNativeAztec/ReactAztecText.java b/react-native-aztec/android/src/main/java/org/wordpress/mobile/ReactNativeAztec/ReactAztecText.java
index 76a85b68c0..b422fdf1b8 100644
--- a/react-native-aztec/android/src/main/java/org/wordpress/mobile/ReactNativeAztec/ReactAztecText.java
+++ b/react-native-aztec/android/src/main/java/org/wordpress/mobile/ReactNativeAztec/ReactAztecText.java
@@ -186,6 +186,11 @@ public boolean shouldSkipTidying() {
         return isPreTag();
     }
 
+    @Override
+    public boolean shouldIgnoreWhitespace() {
+        return false;
+    }
+
     // VisibleForTesting from {@link TextInputEventsTestCase}.
     public void requestFocusFromJS() {
         mIsJSSettingFocus = true;
diff --git a/react-native-aztec/ios/RNTAztecView/RCTAztecView.swift b/react-native-aztec/ios/RNTAztecView/RCTAztecView.swift
index 1e6d202c00..31910f5ff8 100644
--- a/react-native-aztec/ios/RNTAztecView/RCTAztecView.swift
+++ b/react-native-aztec/ios/RNTAztecView/RCTAztecView.swift
@@ -136,6 +136,7 @@ class RCTAztecView: Aztec.TextView {
         addPlaceholder()
         textDragInteraction?.isEnabled = false
         storage.htmlConverter.characterToReplaceLastEmptyLine = Character(.zeroWidthSpace)
+        storage.htmlConverter.shouldCollapseSpaces = false
         shouldNotifyOfNonUserChanges = false
         disableLinkTapRecognizer()
         preBackgroundColor = .clear