diff --git a/lib/ace/mode/markdown_highlight_rules.js b/lib/ace/mode/markdown_highlight_rules.js
index 5533fdbd..e5146ae0 100644
--- a/lib/ace/mode/markdown_highlight_rules.js
+++ b/lib/ace/mode/markdown_highlight_rules.js
@@ -83,7 +83,7 @@ var MarkdownHighlightRules = function() {
         next  : "githubblock"
     }, { // block quote
         token : "string.blockquote",
-        regex : "^>[ ].+$",
+        regex : "^\\s*>\\s*(?:[*+-]|\\d+\\.)?\\s+",
         next  : "blockquote"
     }, { // HR * - _
         token : "constant",
@@ -165,16 +165,21 @@ var MarkdownHighlightRules = function() {
         }, {
             include : "basic", noEscape: true
         }, {
-            defaultToken : "list"
+            defaultToken : "list" //do not use markup.list to allow stling leading `*` differntly
         } ],
 
         "blockquote" : [ { // BLockquotes only escape on blank lines.
             token : "empty_line",
             regex : "^\\s*$",
             next  : "start"
+        }, { // block quote
+            token : "string.blockquote",
+            regex : "^\\s*>\\s*(?:[*+-]|\\d+\\.)?\\s+",
+            next  : "blockquote"
         }, {
-            token : "string",
-            regex : ".+"
+            include : "basic", noEscape: true
+        }, {
+            defaultToken : "string.blockquote"
         } ],
 
         "githubblock" : [ {