diff --git a/demo/kitchen-sink/docs/Makefile b/demo/kitchen-sink/docs/Makefile
index 867c7cec..9b0b31ac 100644
--- a/demo/kitchen-sink/docs/Makefile
+++ b/demo/kitchen-sink/docs/Makefile
@@ -86,6 +86,12 @@ plugins-client/lib.ace/www/worker/worker-language.js plugins-client/lib.ace/www/
 	node Makefile.dryice.js worker
 	cp node_modules/ace/build/src/worker* plugins-client/lib.ace/www/worker
 
+define 
+
+ifeq
+
+override
+
 # copies built ace modes
 mode:
 	mkdir -p plugins-client/lib.ace/www/mode
diff --git a/demo/kitchen-sink/modelist.js b/demo/kitchen-sink/modelist.js
index 58edfbbe..c50fffe8 100644
--- a/demo/kitchen-sink/modelist.js
+++ b/demo/kitchen-sink/modelist.js
@@ -51,7 +51,7 @@ var modesByName = {
     liquid:     ["Liquid"       , "liquid"],
     lua:        ["Lua"          , "lua"],
     luapage:    ["LuaPage"      , "lp"], // http://keplerproject.github.com/cgilua/manual.html#templates
-    makefile:   ["Makefile"     , "Makefile"],
+    makefile:   ["Makefile"     , "GNUmakefile|makefile|Makefile|OCamlMakefile|make"],
     markdown:   ["Markdown"     , "md|markdown"],
     ocaml:      ["OCaml"        , "ml|mli"],
     perl:       ["Perl"         , "pl|pm"],
diff --git a/lib/ace/mode/makefile_highlight_rules.js b/lib/ace/mode/makefile_highlight_rules.js
index e647616c..38267547 100644
--- a/lib/ace/mode/makefile_highlight_rules.js
+++ b/lib/ace/mode/makefile_highlight_rules.js
@@ -1,37 +1,3 @@
-/* ***** BEGIN LICENSE BLOCK *****
- * Distributed under the BSD license:
- *
- * Copyright (c) 2010, Ajax.org B.V.
- * All rights reserved.
- * 
- * Redistribution and use in source and binary forms, with or without
- * modification, are permitted provided that the following conditions are met:
- *     * Redistributions of source code must retain the above copyright
- *       notice, this list of conditions and the following disclaimer.
- *     * Redistributions in binary form must reproduce the above copyright
- *       notice, this list of conditions and the following disclaimer in the
- *       documentation and/or other materials provided with the distribution.
- *     * Neither the name of Ajax.org B.V. nor the
- *       names of its contributors may be used to endorse or promote products
- *       derived from this software without specific prior written permission.
- * 
- * THIS SOFTWARE IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS "AS IS" AND
- * ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
- * WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE
- * DISCLAIMED. IN NO EVENT SHALL AJAX.ORG B.V. BE LIABLE FOR ANY
- * DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES
- * (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES;
- * LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND
- * ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT
- * (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS
- * SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
- *
- * Contributor(s):
- *
- * Garen J. Torikian < gjtorikian AT gmail DOT com >
- *
- * ***** END LICENSE BLOCK ***** */
-
 define(function(require, exports, module) {
 "use strict";
 
@@ -54,11 +20,6 @@ var MakefileHighlightRules = function() {
     this.$rules = 
         {
     "start": [
-        {
-            "token": [ "variable.other.makefile" ],
-            "regex": "^(?:\\w|[-_])+\\s*\\??=",
-            "next": "state_1"
-        },
         {
             "token": "string.interpolated.backtick.makefile",
             "regex": "`",
@@ -70,22 +31,12 @@ var MakefileHighlightRules = function() {
             "next": "comment"
         },
         {
-            "token": [ "keyword.control.makefile", "keyword.control.makefile"],
-            "regex": "^(\\s*)\\b(\\-??include|ifeq|ifneq|ifdef|ifndef|else|endif|vpath|export|unexport|define|endef|override)\\b"
+            "token": [ "keyword.control.makefile"],
+            "regex": "^(?:\\s*\\b)(\\-??include|ifeq|ifneq|ifdef|ifndef|else|endif|vpath|export|unexport|define|endef|override)(?:\\b)"
         },
-        {
+        {// ^([^\t ]+(\s[^\t ]+)*:(?!\=))\s*.*
             "token": ["entity.name.function.makefile", "text"],
-            "regex": "(^(?:[^\t ]+(?:\s[^\t ]+)*:))(\s*.*)"
-        }
-    ],
-    "state_1": [
-        {
-            "regex": "\\\\\\n"
-        },
-        {
-            "token": "TODO",
-            "regex": "$",
-            "next": "start"
+            "regex": "^([^\\t ]+(?:\\s[^\\t ]+)*:)(\\s*.*)"
         }
     ],
     "comment": [