diff --git a/nodepool/logconfig.py b/nodepool/logconfig.py
index d8cbc0da8..3f296b1a1 100644
--- a/nodepool/logconfig.py
+++ b/nodepool/logconfig.py
@@ -25,6 +25,7 @@ _DEFAULT_SERVER_LOGGING_CONFIG = {
     'version': 1,
     'formatters': {
         'simple': {
+            'class': 'nodepool.logconfig.MultiLineFormatter',
             'format': '%(asctime)s %(levelname)s %(name)s: %(message)s'
         },
     },
@@ -89,6 +90,24 @@ def load_config(filename: str):
     return FileLoggingConfig(filename)
 
 
+class MultiLineFormatter(logging.Formatter):
+    def format(self, record):
+        rec = super().format(record)
+        ret = []
+        # Save the existing message and re-use this record object to
+        # format each line.
+        saved_msg = record.message
+        for i, line in enumerate(rec.split('\n')):
+            if i:
+                record.message = '  ' + line
+                ret.append(self.formatMessage(record))
+            else:
+                ret.append(line)
+        # Restore the message
+        record.message = saved_msg
+        return '\n'.join(ret)
+
+
 class LoggingConfig(object, metaclass=abc.ABCMeta):
 
     @abc.abstractmethod
diff --git a/releasenotes/notes/multiline-logging-b55f038e1077c7bb.yaml b/releasenotes/notes/multiline-logging-b55f038e1077c7bb.yaml
new file mode 100644
index 000000000..75009d9ad
--- /dev/null
+++ b/releasenotes/notes/multiline-logging-b55f038e1077c7bb.yaml
@@ -0,0 +1,5 @@
+---
+features:
+  - |
+    Multi-line log messages (such as tracebacks from image builds) are now
+    prefixed in the same manner as single-line messages.