diff --git a/lib/ace/mode/latex_highlight_rules.js b/lib/ace/mode/latex_highlight_rules.js
index 3057c0de..43ee0394 100644
--- a/lib/ace/mode/latex_highlight_rules.js
+++ b/lib/ace/mode/latex_highlight_rules.js
@@ -4,11 +4,22 @@ define(function(require, exports, module) {
 var oop = require("../lib/oop");
 var TextHighlightRules = require("./text_highlight_rules").TextHighlightRules;
 
-var LatexHighlightRules = function() {   
+var LatexHighlightRules = function() {  
+
     this.$rules = {
         "start" : [{
-            // A tex command e.g. \foo
             token : "keyword",
+            regex : "\\\\(documentclass|usepackage|label)"
+        },{
+            token : "constant.character.escape",
+            regex : "\\\\{2}"
+        },{
+            token : "storage.type",
+            regex : "\\\\(:?begin|end)",
+            next  : "block"
+        },{
+            // A tex command e.g. \foo
+            token : "storage.type",
             regex : "\\\\(?:[^a-zA-Z]|[a-zA-Z]+)"
         }, {
             // Curly and square braces
@@ -18,19 +29,40 @@ var LatexHighlightRules = function() {
             // Curly and square braces
             token : "rparen",
             regex : "[\\])}]"
-        }, {
-            // Inline math between two $ symbols
-            token : "string",
-            regex : "\\$(?:(?:\\\\.)|(?:[^\\$\\\\]))*?\\$"
         }, {
             // A comment. Tex comments start with % and go to 
             // the end of the line
             token : "comment",
             regex : "%.*$"
+        },{
+            // An equation
+            token : "string",
+            regex : "\\${1,2}",
+            next  : "equation"
+        }],
+        "block" : [{
+            token : ["","variable.parameter",""],
+            regex : "({)([^}\\s]*)(}?)",
+            next  : "start"
+        },{
+            token : "",
+            regex : "",
+            next  : "start"
+        }],
+        "equation" : [{
+            token : "string",
+            regex : "\\${1,2}",
+            next  : "start"
+        },{
+            token : "constant.character.escape",
+            regex : "\\\\(?:[^a-zA-Z]|[a-zA-Z]+)"
+        },{
+            token : "string",
+            regex : "."
         }]
+
     };
 };
-
 oop.inherits(LatexHighlightRules, TextHighlightRules);
 
 exports.LatexHighlightRules = LatexHighlightRules;