diff --git a/plugins/android/src/org/jetbrains/android/intentions/AndroidAddStringResourceAction.java b/plugins/android/src/org/jetbrains/android/intentions/AndroidAddStringResourceAction.java
index 428c40d72d73..47d47568c64e 100644
--- a/plugins/android/src/org/jetbrains/android/intentions/AndroidAddStringResourceAction.java
+++ b/plugins/android/src/org/jetbrains/android/intentions/AndroidAddStringResourceAction.java
@@ -184,7 +184,7 @@ public class AndroidAddStringResourceAction extends AbstractIntentionAction impl
     final AndroidFacet facet = AndroidFacet.getInstance(file);
     assert facet != null;
 
-    value = value.replace("'", "\\'").replace("\"", "\\\"");
+    value = AndroidResourceUtil.normalizeXmlResourceValue(value);
 
     final String aPackage = getPackage(facet);
     if (aPackage == null) {
diff --git a/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java b/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java
index 8d98f268d299..525c75c81bd5 100644
--- a/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java
+++ b/plugins/android/src/org/jetbrains/android/newProject/AndroidModuleBuilder.java
@@ -67,6 +67,7 @@ import org.jetbrains.android.sdk.AndroidPlatform;
 import org.jetbrains.android.sdk.AndroidSdkUtils;
 import org.jetbrains.android.util.AndroidBundle;
 import org.jetbrains.android.util.AndroidCommonUtils;
+import org.jetbrains.android.util.AndroidResourceUtil;
 import org.jetbrains.android.util.AndroidUtils;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
@@ -418,11 +419,13 @@ public class AndroidModuleBuilder extends JavaModuleBuilder {
       }
     }
 
+    final String normalizedAppName = AndroidResourceUtil.normalizeXmlResourceValue(myApplicationName);
+
     if (appNameResElement == null) {
-      manager.addValueResource("string", appNameResource, myApplicationName);
+      manager.addValueResource("string", appNameResource, normalizedAppName);
     }
     else {
-      appNameResElement.setStringValue(myApplicationName);
+      appNameResElement.setStringValue(normalizedAppName);
     }
 
     final Manifest manifest = facet.getManifest();
diff --git a/plugins/android/src/org/jetbrains/android/util/AndroidResourceUtil.java b/plugins/android/src/org/jetbrains/android/util/AndroidResourceUtil.java
index 53e348ad7f02..602bff3ea171 100644
--- a/plugins/android/src/org/jetbrains/android/util/AndroidResourceUtil.java
+++ b/plugins/android/src/org/jetbrains/android/util/AndroidResourceUtil.java
@@ -60,6 +60,11 @@ public class AndroidResourceUtil {
   private AndroidResourceUtil() {
   }
 
+  @NotNull
+  public static String normalizeXmlResourceValue(@NotNull String value) {
+    return value.replace("'", "\\'").replace("\"", "\\\"");
+  }
+
   static {
     REFERRABLE_RESOURCE_TYPES.addAll(Arrays.asList(ResourceType.values()));
     REFERRABLE_RESOURCE_TYPES.remove(ResourceType.ATTR);