diff --git a/translators/tmgmt_file/config/schema/tmgmt_file.schema.yml b/translators/tmgmt_file/config/schema/tmgmt_file.schema.yml
index f3ee335..032198c 100644
--- a/translators/tmgmt_file/config/schema/tmgmt_file.schema.yml
+++ b/translators/tmgmt_file/config/schema/tmgmt_file.schema.yml
@@ -13,3 +13,6 @@ tmgmt.translator.settings.file:
     xliff_processing:
       type: boolean
       label: Xliff HTML processing
+    xliff_cdata:
+      type: boolean
+      label: Xliff CDATA
diff --git a/translators/tmgmt_file/src/FileTranslatorUi.php b/translators/tmgmt_file/src/FileTranslatorUi.php
index 38de180..8b41fc3 100644
--- a/translators/tmgmt_file/src/FileTranslatorUi.php
+++ b/translators/tmgmt_file/src/FileTranslatorUi.php
@@ -41,6 +41,21 @@ class FileTranslatorUi extends TranslatorPluginUiBase {
       '#default_value' => $translator->getSetting('xliff_processing'),
     );
 
+    $form['xliff_cdata'] = array(
+      '#type' => 'checkbox',
+      '#title' => t('XLIFF CDATA'),
+      '#description' => t('Check to use CDATA for import/export.'),
+      '#default_value' => $translator->getSetting('xliff_cdata'),
+    );
+
+    $form['xliff_message'] = array(
+      '#type' => 'container',
+      '#markup' => t('By selecting CDATA option, XLIFF processing will be ignored.'),
+      '#attributes' => array(
+        'class' => array('messages messages--warning'),
+      ),
+    );
+
     $form['allow_override'] = array(
       '#type' => 'checkbox',
       '#title' => t('Allow to override the format per job'),
diff --git a/translators/tmgmt_file/src/Format/FormatInterface.php b/translators/tmgmt_file/src/Format/FormatInterface.php
index 49c89f8..82f547b 100644
--- a/translators/tmgmt_file/src/Format/FormatInterface.php
+++ b/translators/tmgmt_file/src/Format/FormatInterface.php
@@ -33,12 +33,14 @@ interface FormatInterface {
    *
    * @param $imported_file
    *   File path to the file to be imported.
+   * @param bool $is_file
+   *   (optional) Whether $imported_file is the path to a file or not.
    *
    * @return Job
    *   Returns the corresponding translation job entity if the import file is
    *   valid, FALSE otherwise.
    */
-  function validateImport($imported_file);
+  function validateImport($imported_file, $is_file = TRUE);
 
   /**
    * Converts an exported file content back to the translated data.
diff --git a/translators/tmgmt_file/src/Plugin/tmgmt/Translator/FileTranslator.php b/translators/tmgmt_file/src/Plugin/tmgmt/Translator/FileTranslator.php
index 1a5bc86..41314af 100644
--- a/translators/tmgmt_file/src/Plugin/tmgmt/Translator/FileTranslator.php
+++ b/translators/tmgmt_file/src/Plugin/tmgmt/Translator/FileTranslator.php
@@ -67,6 +67,7 @@ class FileTranslator extends TranslatorPluginBase {
       // Making this setting TRUE by default is more appropriate, however we
       // need to make it FALSE due to backwards compatibility.
       'xliff_processing' => FALSE,
+      'xliff_cdata' => FALSE,
     );
   }
 
diff --git a/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Html.php b/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Html.php
index 5c8a6d3..e015d41 100644
--- a/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Html.php
+++ b/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Html.php
@@ -83,7 +83,7 @@ class Html implements FormatInterface {
   /**
    * {@inheritdoc}
    */
-  public function validateImport($imported_file) {
+  public function validateImport($imported_file, $is_file = TRUE) {
     $dom = new \DOMDocument();
     if (!$dom->loadHTMLFile($imported_file)) {
       return FALSE;
diff --git a/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Xliff.php b/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Xliff.php
index 533b1b3..9067005 100644
--- a/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Xliff.php
+++ b/translators/tmgmt_file/src/Plugin/tmgmt_file/Format/Xliff.php
@@ -120,7 +120,7 @@ class Xliff extends \XMLWriter implements FormatInterface {
       $this->writeRaw($this->processForExport($element['#text'], $key_array));
     }
     elseif ($job->getSetting('xliff_cdata')) {
-      $this->writeCdata($element['#text']);
+      $this->writeCdata(trim($element['#text']));
     }
     else {
       $this->text($element['#text']);
@@ -220,14 +220,14 @@ class Xliff extends \XMLWriter implements FormatInterface {
   /**
    * {@inheritdoc}
    */
-  public function validateImport($imported_file) {
+  public function validateImport($imported_file, $is_file = TRUE) {
     // Validates imported XLIFF file.
     // Checks:
     // - Job ID
     // - Target ans source languages
     // - Content integrity.
 
-    $xml = $this->getImportedXML($imported_file);
+    $xml = $this->getImportedXML($imported_file, $is_file);
     if ($xml === FALSE) {
       drupal_set_message(t('The imported file is not a valid XML.'), 'error');
       return FALSE;
@@ -353,6 +353,11 @@ class Xliff extends \XMLWriter implements FormatInterface {
     if (empty($this->importedTransUnits)) {
       $reader = new \XMLReader();
       foreach ($this->importedXML->xpath('//xliff:trans-unit') as $unit) {
+        if ($job->getSetting('xliff_cdata')) {
+          $this->importedTransUnits[(string) $unit['id']]['#text'] = (string) $unit->target;
+          continue;
+        }
+
         $reader->XML($unit->target->asXML());
         $reader->read();
         $this->importedTransUnits[(string) $unit['id']]['#text'] =
diff --git a/translators/tmgmt_file/src/Tests/FileTranslatorTest.php b/translators/tmgmt_file/src/Tests/FileTranslatorTest.php
index f6d6c01..ef57aa1 100644
--- a/translators/tmgmt_file/src/Tests/FileTranslatorTest.php
+++ b/translators/tmgmt_file/src/Tests/FileTranslatorTest.php
@@ -139,6 +139,44 @@ class FileTranslatorTest extends TMGMTTestBase {
   }
 
   /**
+   * Test the CDATA option for XLIFF export and import.
+   */
+  function testXLIFFCDATA() {
+    $translator = $this->createTranslator([
+      'plugin' => 'file',
+      'settings' => [
+        'export_format' => 'xlf',
+        'xliff_cdata' => TRUE,
+      ]
+    ]);
+
+    // Get the source text.
+    $source_text = trim(file_get_contents(drupal_get_path('module', 'tmgmt') . '/tests/testing_html/sample.html'));
+
+    // Create a new job with XLIFF CDATA option enabled.
+    $job = $this->createJob();
+    $job->translator = $translator->id();
+    $job->addItem('test_html_source', 'test', '1');
+    $job->requestTranslation();
+    $targets = $this->getTransUnitsContent($job);
+
+    // Add CDATA prefix to source text to assert that target source data was
+    // properly updated.
+    $cdata_source_text = '<![CDATA[' . html_entity_decode($source_text) . ']]>';
+    $this->assertEqual(trim(html_entity_decode($targets['0']['source'])), $cdata_source_text);
+
+    // Disable XLIFF CDATA and assert that target source data was handled as
+    // text.
+    $translator->setSetting('xliff_cdata', FALSE)->save();
+    $job = $this->createJob();
+    $job->translator = $translator->id();
+    $job->addItem('test_html_source', 'test', '1');
+    $job->requestTranslation();
+    $targets = $this->getTransUnitsContent($job);
+    $this->assertEqual(trim(html_entity_decode($targets['0']['source'])), $source_text);
+  }
+
+  /**
    * Gets trans-unit content from the XLIFF file that has been exported for the
    * given job as last.
    */