diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/template/MacroParserTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/template/MacroParserTest.java
index 16856971d0a7..18655337b98e 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/template/MacroParserTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/template/MacroParserTest.java
@@ -52,4 +52,10 @@ public class MacroParserTest extends LightIdeaTestCase {
     assertTrue(parameters [0] instanceof ConstantNode);
     assertTrue(parameters [1] instanceof ConstantNode);
   }
+
+  public void testSlashEscape() {
+    Expression e = MacroParser.parse("\"test\\\\test\\n\\t\\f\\x\"");
+    Result result = assertInstanceOf(e, ConstantNode.class).calculateResult(null);
+    assertEquals("test\\test\n\t\fx", assertInstanceOf(result, TextResult.class).getText());
+  }
 }
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/template/impl/MacroParser.java b/platform/lang-impl/src/com/intellij/codeInsight/template/impl/MacroParser.java
index f204e4817c1d..5700498b13d2 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/template/impl/MacroParser.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/template/impl/MacroParser.java
@@ -21,10 +21,12 @@ import com.intellij.codeInsight.template.Expression;
 import com.intellij.codeInsight.template.Macro;
 import com.intellij.codeInsight.template.macro.MacroFactory;
 import com.intellij.lexer.Lexer;
+import com.intellij.openapi.diagnostic.Logger;
 import com.intellij.psi.tree.IElementType;
 
 @VisibleForTesting
 public class MacroParser {
+  private static final Logger LOG = Logger.getInstance("#com.intellij.codeInsight.template.impl.MacroParser");
 
   //-----------------------------------------------------------------------------------
   public static Expression parse(String expression) {
@@ -62,13 +64,11 @@ public class MacroParser {
     String token = getString(lexer, expression);
     if (tokenType == MacroTokenType.STRING_LITERAL) {
       advance(lexer);
-
-      return new ConstantNode(token.substring(1, token.length() - 1).replaceAll("\\\\n", "\n").
-        replaceAll("\\\\r", "\r").replaceAll("\\\\t", "\t").replaceAll("\\\\f", "\f").replaceAll("\\\\(.)", "$1"));
+      return new ConstantNode(parseStringLiteral(token));
     }
 
     if (tokenType != MacroTokenType.IDENTIFIER) {
-      System.out.println("Bad macro syntax: Not identifier: " + token);
+      LOG.info("Bad macro syntax: Not identifier: " + token);
       advance(lexer);
       return new ConstantNode("");
     }
@@ -91,12 +91,31 @@ public class MacroParser {
     advance(lexer);
     parseParameters(macroCallNode, lexer, expression);
     if (lexer.getTokenType() != MacroTokenType.RPAREN) {
-      System.out.println("Bad macro syntax: ) expected: " + expression);
+      LOG.info("Bad macro syntax: ) expected: " + expression);
     }
     advance(lexer);
     return macroCallNode;
   }
 
+  private static String parseStringLiteral(String token) {
+    StringBuilder sb = new StringBuilder(token.length() - 2);
+    int i = 1;
+    while (i < token.length() - 1) {
+      char c = token.charAt(i);
+      if (c == '\\') {
+        c = token.charAt(++i);
+        if (c == 'n') sb.append('\n');
+        else if (c == 't') sb.append('\t');
+        else if (c == 'f') sb.append('\f');
+        else sb.append(c);
+      } else {
+        sb.append(c);
+      }
+      i++;
+    }
+    return sb.toString();
+  }
+
   private static void parseParameters(MacroCallNode macroCallNode, Lexer lexer, String expression) {
     if (lexer.getTokenType() != MacroTokenType.RPAREN) {
       while (lexer.getTokenType() != null) {