diff --git a/demo/kitchen-sink/docs/sh.sh b/demo/kitchen-sink/docs/sh.sh
index 361d04b6..b1da400d 100755
--- a/demo/kitchen-sink/docs/sh.sh
+++ b/demo/kitchen-sink/docs/sh.sh
@@ -30,7 +30,6 @@ get_repo() {
     fi
 }
 
-x=(1 2 3)
 echo ${#x[@]}
 
 if repo=`get_repo $@`; then
diff --git a/lib/ace/mode/sh_highlight_rules.js b/lib/ace/mode/sh_highlight_rules.js
index 58cd83c9..af20852f 100644
--- a/lib/ace/mode/sh_highlight_rules.js
+++ b/lib/ace/mode/sh_highlight_rules.js
@@ -78,8 +78,8 @@ var ShHighlightRules = function() {
 
     this.$rules = {
         "start" : [ {
-            token : "comment",
-            regex : "[^\{]#.*$"
+            token : ["comment"],
+            regex : /(?:^|\s)(#.*$)/
         }, {
             token : "string",           // " string
             regex : '"(?:[^\\\\]|\\\\.)*?"'