diff --git a/ktlint-ruleset-standard/src/main/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRule.kt b/ktlint-ruleset-standard/src/main/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRule.kt
index 0989fdea13..0199aee8e6 100644
--- a/ktlint-ruleset-standard/src/main/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRule.kt
+++ b/ktlint-ruleset-standard/src/main/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRule.kt
@@ -161,7 +161,7 @@ public class StringTemplateIndentRule :
             ?.takeIf { it.elementType == ElementType.EQ }
             ?.closingParenthesisOfFunctionOrNull()
             ?.prevLeaf()
-            ?.let { it.isWhiteSpaceWithNewline() }
+            ?.isWhiteSpaceWithNewline()
             ?: false
 
     private fun ASTNode.closingParenthesisOfFunctionOrNull() =
@@ -292,7 +292,13 @@ public class StringTemplateIndentRule :
         indent: String,
         emit: (offset: Int, errorMessage: String, canBeAutoCorrected: Boolean) -> AutocorrectDecision,
     ) {
-        val firstNodeAfterOpeningQuotes = node.firstChildNode.nextLeaf() ?: return
+        val firstNodeAfterOpeningQuotes =
+            node
+                // The string template can start with an INTERPOLATION_PREFIX (multi dollar string interpolation, see
+                // https://kotlinlang.org/docs/strings.html#multi-dollar-string-interpolation), which is to be skipped.
+                .findChildByType(OPEN_QUOTE)
+                ?.nextLeaf()
+                ?: return
         if (firstNodeAfterOpeningQuotes.text.isNotBlank()) {
             emit(
                 firstNodeAfterOpeningQuotes.startOffset + firstNodeAfterOpeningQuotes.text.length,
diff --git a/ktlint-ruleset-standard/src/test/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRuleTest.kt b/ktlint-ruleset-standard/src/test/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRuleTest.kt
index bd13578a1e..d361250103 100644
--- a/ktlint-ruleset-standard/src/test/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRuleTest.kt
+++ b/ktlint-ruleset-standard/src/test/kotlin/com/pinterest/ktlint/ruleset/standard/rules/StringTemplateIndentRuleTest.kt
@@ -500,4 +500,16 @@ class StringTemplateIndentRuleTest {
             """.trimIndent()
         stringTemplateIndentRuleAssertThat(code).hasNoLintViolations()
     }
+
+    @Test
+    fun `Issue 2885 - Given a multiline string template prefix with a multi-dollar interpolation prefix`() {
+        val code =
+            """
+            val foo =
+                $$$MULTILINE_STRING_QUOTE
+                Some text
+                $MULTILINE_STRING_QUOTE.trimIndent()
+            """.trimIndent()
+        stringTemplateIndentRuleAssertThat(code).hasNoLintViolations()
+    }
 }