diff --git a/homeassistant/components/generic/config_flow.py b/homeassistant/components/generic/config_flow.py
index 1b484821788..5c61966808d 100644
--- a/homeassistant/components/generic/config_flow.py
+++ b/homeassistant/components/generic/config_flow.py
@@ -114,7 +114,7 @@ def get_image_type(image):
     if fmt is None:
         # if imghdr can't figure it out, could be svg.
         with contextlib.suppress(UnicodeDecodeError):
-            if image.decode("utf-8").startswith("<svg"):
+            if image.decode("utf-8").lstrip().startswith("<svg"):
                 return "svg+xml"
     return fmt
 
diff --git a/tests/components/generic/test_config_flow.py b/tests/components/generic/test_config_flow.py
index 65bd8f7e386..b3811f61acc 100644
--- a/tests/components/generic/test_config_flow.py
+++ b/tests/components/generic/test_config_flow.py
@@ -110,6 +110,21 @@ async def test_form_only_stillimage(hass, fakeimg_png, user_flow):
     assert respx.calls.call_count == 1
 
 
+@respx.mock
+async def test_form_only_svg_whitespace(hass, fakeimgbytes_svg, user_flow):
+    """Test we complete ok if svg starts with whitespace, issue #68889."""
+    fakeimgbytes_wspace_svg = bytes("  \n ", encoding="utf-8") + fakeimgbytes_svg
+    respx.get("http://127.0.0.1/testurl/1").respond(stream=fakeimgbytes_wspace_svg)
+
+    data = TESTDATA.copy()
+    data.pop(CONF_STREAM_SOURCE)
+    result2 = await hass.config_entries.flow.async_configure(
+        user_flow["flow_id"],
+        data,
+    )
+    assert result2["type"] == data_entry_flow.RESULT_TYPE_CREATE_ENTRY
+
+
 @respx.mock
 async def test_form_rtsp_mode(hass, fakeimg_png, mock_av_open, user_flow):
     """Test we complete ok if the user enters a stream url."""