diff --git a/python/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java b/python/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java
index 003e2c1eb0f0..56c465762b3a 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyNamedParameterImpl.java
@@ -20,6 +20,7 @@ import com.intellij.navigation.ItemPresentation;
 import com.intellij.openapi.extensions.Extensions;
 import com.intellij.openapi.util.Pair;
 import com.intellij.openapi.util.Ref;
+import com.intellij.openapi.util.text.StringUtil;
 import com.intellij.psi.*;
 import com.intellij.psi.search.LocalSearchScope;
 import com.intellij.psi.search.SearchScope;
@@ -187,14 +188,20 @@ public class PyNamedParameterImpl extends PyBaseElementImpl<PyNamedParameterStub
 
     final PyExpression defaultValue = getDefaultValue();
     if (defaultValueShouldBeIncluded(includeDefaultValue, defaultValue, argumentType)) {
-      String representation = PyUtil.getReadableRepr(defaultValue, true);
-      if (defaultValue instanceof PyStringLiteralExpression) {
-        final Pair<String, String> quotes = PyStringLiteralUtil.getQuotes(defaultValue.getText());
-        if (quotes != null) {
-          representation = quotes.getFirst() + PyStringLiteralUtil.getStringValue(defaultValue) + quotes.getSecond();
-        }
+      final Pair<String, String> quotes = defaultValue instanceof PyStringLiteralExpression
+                                          ? PyStringLiteralUtil.getQuotes(defaultValue.getText())
+                                          : null;
+
+      sb.append("=");
+      if (quotes != null) {
+        final String value = ((PyStringLiteralExpression)defaultValue).getStringValue();
+        sb.append(quotes.getFirst());
+        StringUtil.escapeStringCharacters(value.length(), value, sb);
+        sb.append(quotes.getSecond());
+      }
+      else {
+        sb.append(PyUtil.getReadableRepr(defaultValue, true));
       }
-      sb.append("=").append(representation);
     }
 
     return sb.toString();
diff --git a/python/testData/paramInfo/EscapingInDefaultValue.py b/python/testData/paramInfo/EscapingInDefaultValue.py
new file mode 100644
index 000000000000..0d08ab15c51d
--- /dev/null
+++ b/python/testData/paramInfo/EscapingInDefaultValue.py
@@ -0,0 +1,5 @@
+def foo(p="\n", t="\t", r="\r"):
+    pass
+
+
+foo(<arg1>)
\ No newline at end of file
diff --git a/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java b/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java
index 457e516a943f..c06179c45d66 100644
--- a/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java
+++ b/python/testSrc/com/jetbrains/python/PyParameterInfoTest.java
@@ -606,6 +606,13 @@ public class PyParameterInfoTest extends LightMarkedTestCase {
     );
   }
 
+  // PY-23625
+  public void testEscapingInDefaultValue() {
+    final int offset = loadTest(1).get("<arg1>").getTextOffset();
+
+    feignCtrlP(offset).check("p: str=\"\\n\", t: str=\"\\t\", r: str=\"\\r\"", new String[]{"p: str=\"\\n\", "});
+  }
+
   /**
    * Imitates pressing of Ctrl+P; fails if results are not as expected.
    * @param offset offset of 'cursor' where Ctrl+P is pressed.