diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0c6316a1..94f0df35 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 
+- issue with not pruning in `m3u-prune` scriptlet if file contains carriage return
+  [#354](https://github.com/AdguardTeam/Scriptlets/issues/354)
 - issue with not overriding value in `set-constant` (only partially, for cases where single scriptlet is used)
   [#330](https://github.com/AdguardTeam/Scriptlets/issues/330)
 
diff --git a/src/scriptlets/m3u-prune.js b/src/scriptlets/m3u-prune.js
index e4ba056f..b310af10 100644
--- a/src/scriptlets/m3u-prune.js
+++ b/src/scriptlets/m3u-prune.js
@@ -307,7 +307,7 @@ export function m3uPrune(source, propsToRemove, urlToMatch = '') {
      */
     // TODO: make it compatible with $hls modifier
     const pruneM3U = (text) => {
-        let lines = text.split(/\n\r|\n|\r/);
+        let lines = text.split(/\r?\n/);
 
         if (text.includes(COMCAST_AD_MARKER.VMAP_AD_BREAK)) {
             lines = pruneVmapBlock(lines);
diff --git a/tests/scriptlets/m3u-prune.test.js b/tests/scriptlets/m3u-prune.test.js
index 0e1f9b02..227ef050 100644
--- a/tests/scriptlets/m3u-prune.test.js
+++ b/tests/scriptlets/m3u-prune.test.js
@@ -15,6 +15,9 @@ const M3U8_OBJECTS_PATH_03 = './test-files/manifestM3U8-03.m3u8';
 // From sbs.com - https://github.com/AdguardTeam/AdguardFilters/issues/88692
 // https://regex101.com/r/Kxtnng/1
 const M3U8_OBJECTS_PATH_04 = './test-files/manifestM3U8-04.m3u8';
+// https://github.com/AdguardTeam/Scriptlets/issues/354
+const M3U8_OBJECTS_CR = './test-files/manifestM3U8-carriage-return.m3u8';
+
 const nativeFetch = fetch;
 const nativeXhrOpen = XMLHttpRequest.prototype.open;
 const nativeConsole = console.log;
@@ -355,6 +358,25 @@ if (!isSupported) {
         done();
     });
 
+    test('fetch - remove ads carriage return', async (assert) => {
+        const M3U8_PATH = M3U8_OBJECTS_CR;
+        const MATCH_DATA = 'advert.com';
+
+        runScriptlet(name, [MATCH_DATA]);
+
+        const done = assert.async();
+
+        const response = await fetch(M3U8_PATH);
+        const responseM3U8 = await response.text();
+
+        assert.notOk(
+            responseM3U8.includes('advert.com'),
+            'check if "advert.com" has been removed',
+        );
+        assert.strictEqual(window.hit, 'FIRED', 'hit function fired');
+        done();
+    });
+
     test('xhr - no prune 1', async (assert) => {
         const METHOD = 'GET';
         const M3U8_PATH = M3U8_OBJECTS_PATH_01;
diff --git a/tests/scriptlets/test-files/manifestM3U8-carriage-return.m3u8 b/tests/scriptlets/test-files/manifestM3U8-carriage-return.m3u8
new file mode 100644
index 00000000..84f0c28e
--- /dev/null
+++ b/tests/scriptlets/test-files/manifestM3U8-carriage-return.m3u8
@@ -0,0 +1,15 @@
+#EXTM3U
+#EXT-X-VERSION:4
+#EXT-X-TARGETDURATION:6
+#EXT-X-MEDIA-SEQUENCE:1
+#EXT-X-PLAYLIST-TYPE:VOD
+#EXTINF:5.005,
+https://advert.com/foo.ts
+#EXT-X-DISCONTINUITY
+#EXTINF:6,
+https://example.com/segment1.ts
+#EXTINF:6,
+https://example.com/segment2.ts
+#EXTINF:6,
+https://example.com/segment3.ts
+#EXT-X-DISCONTINUITY