diff --git a/NEWS b/NEWS
index b4b06584..7399c5a5 100644
--- a/NEWS
+++ b/NEWS
@@ -1,3 +1,4 @@
+    - fix problem with escaped double quotes (Monte)
     - fix html_radios to not return an array (Monte)
     - fixed length in modifier.truncate.php (messju)
     - fixed handling of '$'-signs in trimwhitespace outputfilter (messju)
diff --git a/libs/Smarty_Compiler.class.php b/libs/Smarty_Compiler.class.php
index d50024c3..f126c6ae 100644
--- a/libs/Smarty_Compiler.class.php
+++ b/libs/Smarty_Compiler.class.php
@@ -1459,8 +1459,8 @@ class Smarty_Compiler extends Smarty {
 		} else {
 			$_return = $var_expr;
 		}
-		// replace double quoted string with single quotes
-		$_return = preg_replace('!"([^\$\']+)"!',"'\\1'",$_return);
+		// replace double quoted literal string with single quotes
+		$_return = preg_replace('!^"([\s\w]+)"$!',"'\\1'",$_return);
 		return $_return;
 	}