diff --git a/src/cloudcode/sse-streamer.js b/src/cloudcode/sse-streamer.js
index 9d72bc0..7fb640a 100644
--- a/src/cloudcode/sse-streamer.js
+++ b/src/cloudcode/sse-streamer.js
@@ -123,8 +123,8 @@ export async function* streamSSEResponse(response, originalModel) {
                         };
 
                     } else if (part.text !== undefined) {
-                        // Skip empty text parts
-                        if (!part.text || part.text.trim().length === 0) {
+                        // Skip empty text parts (but preserve whitespace-only chunks for proper spacing)
+                        if (part.text === '') {
                             continue;
                         }
 
diff --git a/tests/run-all.cjs b/tests/run-all.cjs
index 95015d3..01256cd 100644
--- a/tests/run-all.cjs
+++ b/tests/run-all.cjs
@@ -18,7 +18,8 @@ const tests = [
     { name: 'Cross-Model Thinking', file: 'test-cross-model-thinking.cjs' },
     { name: 'OAuth No-Browser Mode', file: 'test-oauth-no-browser.cjs' },
     { name: 'Empty Response Retry', file: 'test-empty-response-retry.cjs' },
-    { name: 'Schema Sanitizer', file: 'test-schema-sanitizer.cjs' }
+    { name: 'Schema Sanitizer', file: 'test-schema-sanitizer.cjs' },
+    { name: 'Streaming Whitespace', file: 'test-streaming-whitespace.cjs' }
 ];
 
 async function runTest(test) {
diff --git a/tests/test-streaming-whitespace.cjs b/tests/test-streaming-whitespace.cjs
new file mode 100644
index 0000000..ad05fb2
--- /dev/null
+++ b/tests/test-streaming-whitespace.cjs
@@ -0,0 +1,119 @@
+/**
+ * Test Streaming Whitespace - Verifies that whitespace-only chunks are not dropped
+ *
+ * Reproduction for Issue #138: "Claude models swallow spaces between words"
+ */
+
+const { TextEncoder } = require('util');
+
+// Mock Response class
+class MockResponse {
+    constructor(chunks) {
+        this.body = {
+            getReader: () => {
+                let index = 0;
+                return {
+                    read: async () => {
+                        if (index >= chunks.length) {
+                            return { done: true, value: undefined };
+                        }
+                        const chunk = chunks[index++];
+                        const encoder = new TextEncoder();
+                        return { done: false, value: encoder.encode(chunk) };
+                    }
+                };
+            }
+        };
+    }
+}
+
+async function runTests() {
+    console.log('╔══════════════════════════════════════════════════════════════╗');
+    console.log('║           STREAMING WHITESPACE TEST SUITE                    ║');
+    console.log('╚══════════════════════════════════════════════════════════════╝\n');
+
+    // Dynamic import for ESM module
+    const { streamSSEResponse } = await import('../src/cloudcode/sse-streamer.js');
+
+    let passed = 0;
+    let failed = 0;
+
+    async function test(name, fn) {
+        try {
+            await fn();
+            console.log(`✓ ${name}`);
+            passed++;
+        } catch (e) {
+            console.log(`✗ ${name}`);
+            console.log(`  Error: ${e.message}`);
+            failed++;
+        }
+    }
+
+    function assertEqual(actual, expected, message = '') {
+        if (actual !== expected) {
+            throw new Error(`${message}\nExpected: "${expected}"\nActual: "${actual}"`);
+        }
+    }
+
+    // Test Case: Whitespace preservation
+    await test('Preserves whitespace-only chunks', async () => {
+        // Construct chunks that simulate the Google SSE format
+        // We split "Hello World" into "Hello", " ", "World"
+        const chunks = [
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: "Hello" }] } }] }) + '\n\n',
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: " " }] } }] }) + '\n\n',
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: "World" }] } }] }) + '\n\n'
+        ];
+
+        const response = new MockResponse(chunks);
+        const originalModel = 'claude-sonnet-4-5';
+
+        let fullText = '';
+        const generator = streamSSEResponse(response, originalModel);
+
+        for await (const event of generator) {
+            if (event.type === 'content_block_delta' && event.delta.type === 'text_delta') {
+                fullText += event.delta.text;
+            }
+        }
+
+        assertEqual(fullText, 'Hello World', 'Should preserve space between words');
+    });
+
+    // Test Case: Empty string (should be skipped)
+    await test('Skips truly empty strings but keeps newlines', async () => {
+        const chunks = [
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: "Line1" }] } }] }) + '\n\n',
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: "" }] } }] }) + '\n\n', // Empty
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: "\n" }] } }] }) + '\n\n', // Newline
+            'data: ' + JSON.stringify({ candidates: [{ content: { parts: [{ text: "Line2" }] } }] }) + '\n\n'
+        ];
+
+        const response = new MockResponse(chunks);
+        const originalModel = 'claude-sonnet-4-5';
+
+        let fullText = '';
+        const generator = streamSSEResponse(response, originalModel);
+
+        for await (const event of generator) {
+            if (event.type === 'content_block_delta' && event.delta.type === 'text_delta') {
+                fullText += event.delta.text;
+            }
+        }
+
+        assertEqual(fullText, 'Line1\nLine2', 'Should preserve newline but ignore empty string');
+    });
+
+    console.log('\n' + '═'.repeat(60));
+    console.log(`Tests completed: ${passed} passed, ${failed} failed`);
+
+    if (failed > 0) {
+        process.exit(1);
+    }
+}
+
+runTests().catch(err => {
+    console.error('Test suite failed:', err);
+    process.exit(1);
+});