diff --git a/packages/compiler-cli/src/ngtsc/annotations/src/component.ts b/packages/compiler-cli/src/ngtsc/annotations/src/component.ts
index 9f1805088c..5db7d33e45 100644
--- a/packages/compiler-cli/src/ngtsc/annotations/src/component.ts
+++ b/packages/compiler-cli/src/ngtsc/annotations/src/component.ts
@@ -869,12 +869,14 @@ export class ComponentDecoratorHandler implements
 
     // Unfortunately, the primary parse of the template above may not contain accurate source map
     // information. If used directly, it would result in incorrect code locations in template
-    // errors, etc. There are two main problems:
+    // errors, etc. There are three main problems:
     //
     // 1. `preserveWhitespaces: false` annihilates the correctness of template source mapping, as
     //    the whitespace transformation changes the contents of HTML text nodes before they're
     //    parsed into Angular expressions.
-    // 2. By default, the template parser strips leading trivia characters (like spaces, tabs, and
+    // 2. `preserveLineEndings: false` causes growing misalignments in templates that use '\r\n'
+    //    line endings, by normalizing them to '\n'.
+    // 3. By default, the template parser strips leading trivia characters (like spaces, tabs, and
     //    newlines). This also destroys source mapping information.
     //
     // In order to guarantee the correctness of diagnostics, templates are parsed a second time
@@ -885,6 +887,7 @@ export class ComponentDecoratorHandler implements
 
     const {nodes: diagNodes} = parseTemplate(templateStr, template.sourceMapUrl, {
       preserveWhitespaces: true,
+      preserveLineEndings: true,
       interpolationConfig: template.interpolationConfig,
       range: templateRange ?? undefined,
       escapedString,
diff --git a/packages/compiler-cli/test/ngtsc/template_typecheck_spec.ts b/packages/compiler-cli/test/ngtsc/template_typecheck_spec.ts
index f63a075015..fc060b6098 100644
--- a/packages/compiler-cli/test/ngtsc/template_typecheck_spec.ts
+++ b/packages/compiler-cli/test/ngtsc/template_typecheck_spec.ts
@@ -110,6 +110,23 @@ export declare class AnimationEvent {
       env.driveMain();
     });
 
+    it('should have accurate diagnostics in a template using crlf line endings', () => {
+      env.write('test.ts', `
+        import {Component} from '@angular/core';
+
+        @Component({
+          selector: 'test',
+          templateUrl: './test.html',
+        })
+        class TestCmp {}
+      `);
+      env.write('test.html', '<span>\r\n{{does_not_exist}}\r\n</span>');
+
+      const diags = env.driveDiagnostics();
+      expect(diags.length).toBe(1);
+      expect(getSourceCodeForDiagnostic(diags[0])).toBe('does_not_exist');
+    });
+
     it('should check regular attributes that are directive inputs', () => {
       env.tsconfig(
           {fullTemplateTypeCheck: true, strictInputTypes: true, strictAttributeTypes: true});
diff --git a/packages/compiler/src/render3/view/template.ts b/packages/compiler/src/render3/view/template.ts
index a1e77ada50..e7d7618cc8 100644
--- a/packages/compiler/src/render3/view/template.ts
+++ b/packages/compiler/src/render3/view/template.ts
@@ -2003,6 +2003,10 @@ export interface ParseTemplateOptions {
    * Include whitespace nodes in the parsed output.
    */
   preserveWhitespaces?: boolean;
+  /**
+   * Preserve original line endings instead of normalizing '\r\n' endings to '\n'.
+   */
+  preserveLineEndings?: boolean;
   /**
    * How to parse interpolation markers.
    */