diff --git a/lib/ace/mode/folding/latex.js b/lib/ace/mode/folding/latex.js
index be950f1d..6f20b22e 100644
--- a/lib/ace/mode/folding/latex.js
+++ b/lib/ace/mode/folding/latex.js
@@ -74,7 +74,7 @@ oop.inherits(FoldMode, BaseFoldMode);
 
         var stream = new TokenIterator(session, row, column);
         var token = stream.getCurrentToken();
-        if (!token || token.type !== "storage.type")
+        if (!token || !(token.type == "storage.type" || token.type == "constant.character.escape"))
             return;
 
         var val = token.value;
@@ -96,7 +96,7 @@ oop.inherits(FoldMode, BaseFoldMode);
 
         stream.step = dir === -1 ? stream.stepBackward : stream.stepForward;
         while(token = stream.step()) {
-            if (token.type !== "storage.type")
+            if (!token || !(token.type == "storage.type" || token.type == "constant.character.escape"))
                 continue;
             var level = keywords[token.value];
             if (!level)