diff --git a/packages/lexical-markdown/src/MarkdownExport.ts b/packages/lexical-markdown/src/MarkdownExport.ts
index 066a212ae68..23402b35b8f 100644
--- a/packages/lexical-markdown/src/MarkdownExport.ts
+++ b/packages/lexical-markdown/src/MarkdownExport.ts
@@ -26,9 +26,10 @@ import {isEmptyParagraph, transformersByType} from './utils';
 
 export function createMarkdownExport(
   transformers: Array<Transformer>,
-  isNewlineDelimited: boolean = true,
+  shouldPreserveNewLines: boolean = false,
 ): (node?: ElementNode) => string {
   const byType = transformersByType(transformers);
+  const isNewlineDelimited = !shouldPreserveNewLines;
 
   // Export only uses text formats that are responsible for single format
   // e.g. it will filter out *** (bold, italic) and instead use separate ** and *
diff --git a/packages/lexical-markdown/src/MarkdownImport.ts b/packages/lexical-markdown/src/MarkdownImport.ts
index 2cdaea613a7..a8e4d0f61aa 100644
--- a/packages/lexical-markdown/src/MarkdownImport.ts
+++ b/packages/lexical-markdown/src/MarkdownImport.ts
@@ -45,7 +45,7 @@ type TextFormatTransformersIndex = Readonly<{
 
 export function createMarkdownImport(
   transformers: Array<Transformer>,
-  shouldIncludeBlankLines = false,
+  shouldPreserveNewLines = false,
 ): (markdownString: string, node?: ElementNode) => void {
   const byType = transformersByType(transformers);
   const textFormatTransformersIndex = createTextFormatTransformersIndex(
@@ -86,7 +86,7 @@ export function createMarkdownImport(
     const children = root.getChildren();
     for (const child of children) {
       if (
-        !shouldIncludeBlankLines &&
+        !shouldPreserveNewLines &&
         isEmptyParagraph(child) &&
         root.getChildrenSize() > 1
       ) {
diff --git a/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts b/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts
index 0a70d6bc1c2..e5eb74bda6e 100644
--- a/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts
+++ b/packages/lexical-markdown/src/__tests__/unit/LexicalMarkdown.test.ts
@@ -28,8 +28,7 @@ describe('Markdown', () => {
     md: string;
     skipExport?: true;
     skipImport?: true;
-    shouldIncludeBlankLines?: true;
-    isNewlineDelimited?: false;
+    shouldPreserveNewLines?: true;
   }>;
 
   const URL = 'https://lexical.dev';
@@ -152,13 +151,12 @@ describe('Markdown', () => {
     {
       html: '<h1><span style="white-space: pre-wrap;">Hello</span></h1><p><br></p><p><br></p><p><br></p><p><b><strong style="white-space: pre-wrap;">world</strong></b><span style="white-space: pre-wrap;">!</span></p>',
       md: '# Hello\n\n\n\n**world**!',
-      shouldIncludeBlankLines: true,
+      shouldPreserveNewLines: true,
     },
     {
       html: '<h1><span style="white-space: pre-wrap;">Hello</span></h1><p><span style="white-space: pre-wrap;">hi</span></p><p><br></p><p><b><strong style="white-space: pre-wrap;">world</strong></b></p><p><br></p><p><span style="white-space: pre-wrap;">hi</span></p><blockquote><span style="white-space: pre-wrap;">hello</span><br><span style="white-space: pre-wrap;">hello</span></blockquote><p><br></p><h1><span style="white-space: pre-wrap;">hi</span></h1><p><br></p><p><span style="white-space: pre-wrap;">hi</span></p>',
-      isNewlineDelimited: false,
       md: '# Hello\nhi\n\n**world**\n\nhi\n> hello\n> hello\n\n# hi\n\nhi',
-      shouldIncludeBlankLines: true,
+      shouldPreserveNewLines: true,
     },
     {
       // Import only: export will use * instead of _ due to registered transformers order
@@ -238,7 +236,7 @@ describe('Markdown', () => {
     html,
     md,
     skipImport,
-    shouldIncludeBlankLines,
+    shouldPreserveNewLines,
   } of IMPORT_AND_EXPORT) {
     if (skipImport) {
       continue;
@@ -262,7 +260,7 @@ describe('Markdown', () => {
             md,
             [...TRANSFORMERS, HIGHLIGHT_TEXT_MATCH_IMPORT],
             undefined,
-            shouldIncludeBlankLines,
+            shouldPreserveNewLines,
           ),
         {
           discrete: true,
@@ -275,7 +273,12 @@ describe('Markdown', () => {
     });
   }
 
-  for (const {html, md, skipExport, isNewlineDelimited} of IMPORT_AND_EXPORT) {
+  for (const {
+    html,
+    md,
+    skipExport,
+    shouldPreserveNewLines,
+  } of IMPORT_AND_EXPORT) {
     if (skipExport) {
       continue;
     }
@@ -312,7 +315,7 @@ describe('Markdown', () => {
             $convertToMarkdownString(
               TRANSFORMERS,
               undefined,
-              isNewlineDelimited,
+              shouldPreserveNewLines,
             ),
           ),
       ).toBe(md);
diff --git a/packages/lexical-markdown/src/index.ts b/packages/lexical-markdown/src/index.ts
index a62bb28f648..24d19291cbd 100644
--- a/packages/lexical-markdown/src/index.ts
+++ b/packages/lexical-markdown/src/index.ts
@@ -72,11 +72,11 @@ function $convertFromMarkdownString(
   markdown: string,
   transformers: Array<Transformer> = TRANSFORMERS,
   node?: ElementNode,
-  shouldIncludeBlankLines = false,
+  shouldPreserveNewLines = false,
 ): void {
   const importMarkdown = createMarkdownImport(
     transformers,
-    shouldIncludeBlankLines,
+    shouldPreserveNewLines,
   );
   return importMarkdown(markdown, node);
 }
@@ -84,9 +84,12 @@ function $convertFromMarkdownString(
 function $convertToMarkdownString(
   transformers: Array<Transformer> = TRANSFORMERS,
   node?: ElementNode,
-  isNewlineDelimited: boolean = true,
+  shouldPreserveNewLines: boolean = false,
 ): string {
-  const exportMarkdown = createMarkdownExport(transformers, isNewlineDelimited);
+  const exportMarkdown = createMarkdownExport(
+    transformers,
+    shouldPreserveNewLines,
+  );
   return exportMarkdown(node);
 }
 
diff --git a/packages/lexical-playground/src/plugins/ActionsPlugin/index.tsx b/packages/lexical-playground/src/plugins/ActionsPlugin/index.tsx
index 23ebbd485c1..2c710d6cc2d 100644
--- a/packages/lexical-playground/src/plugins/ActionsPlugin/index.tsx
+++ b/packages/lexical-playground/src/plugins/ActionsPlugin/index.tsx
@@ -174,13 +174,13 @@ export default function ActionsPlugin({
           PLAYGROUND_TRANSFORMERS,
           undefined, // node
           // TODO: make a playground setting for this in lexical-playground/src/Settings.tsx
-          true, // include blank lines
+          true, // shouldPreserveNewLines
         );
       } else {
         const markdown = $convertToMarkdownString(
           PLAYGROUND_TRANSFORMERS,
           undefined, //node
-          false, // isNewlineDelimited
+          true, // shouldPreserveNewLines
         );
         root
           .clear()