diff --git a/demo/kitchen-sink/docs/coffeescript.coffee b/demo/kitchen-sink/docs/coffeescript.coffee
index 521fdc57..a7e50d08 100644
--- a/demo/kitchen-sink/docs/coffeescript.coffee
+++ b/demo/kitchen-sink/docs/coffeescript.coffee
@@ -17,4 +17,6 @@ do ->
         heregex  # comment
     ///imgy
     this isnt: `just JavaScript`
-    undefined
\ No newline at end of file
+    undefined
+    
+sentence = "#{ 22 / 7 } is a decent approximation of π"
\ No newline at end of file
diff --git a/lib/ace/mode/coffee_highlight_rules.js b/lib/ace/mode/coffee_highlight_rules.js
index 4f1be77b..ca5a0b9b 100644
--- a/lib/ace/mode/coffee_highlight_rules.js
+++ b/lib/ace/mode/coffee_highlight_rules.js
@@ -179,12 +179,14 @@ define(function(require, exports, module) {
             qstring : [{
                 token : "string",
                 regex : "[^\\\\']*(?:\\\\.[^\\\\']*)*'",
+                merge : true,
                 next : "start"
             }, stringfill],
             
             qqstring : [{
                 token : "string",
                 regex : '[^\\\\"]*(?:\\\\.[^\\\\"]*)*"',
+                merge : true,
                 next : "start"
             }, stringfill],
             
diff --git a/lib/ace/mode/coffee_tokenizer_test.js b/lib/ace/mode/coffee_tokenizer_test.js
index 9eeb55a2..20f8146d 100644
--- a/lib/ace/mode/coffee_tokenizer_test.js
+++ b/lib/ace/mode/coffee_tokenizer_test.js
@@ -53,6 +53,13 @@ module.exports = {
         var tokens = this.tokenizer.getLineTokens("for", "start").tokens;
         assert.equal(tokens.length, 1);
         assert.equal(tokens[0].type, "keyword");
+    },
+    
+    "test tokenize string with interpolation": function() {
+        var tokens = this.tokenizer.getLineTokens('"#{ 22 / 7 } is a decent approximation of π"', "start").tokens;
+        console.log(tokens);
+        assert.equal(tokens.length, 12);
+        //assert.equal(tokens[0].type, "keyword");
     }
 };