diff --git a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/util/GrStringUtil.java b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/util/GrStringUtil.java
index edb3b8798b1f..b7a948d5f302 100644
--- a/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/util/GrStringUtil.java
+++ b/plugins/groovy/src/org/jetbrains/plugins/groovy/lang/psi/util/GrStringUtil.java
@@ -741,6 +741,8 @@ public class GrStringUtil {
           if (index + 4 <= chars.length()) {
             try {
               int code = Integer.parseInt(chars.substring(index, index + 4), 16);
+              //line separators are invalid here
+              if (code == 0x000a || code == 0x000d) return false;
               c = chars.charAt(index);
               if (c == '+' || c == '-') return false;
               outChars.append((char)code);
diff --git a/plugins/groovy/testdata/highlighting/IncorrectEscaping.groovy b/plugins/groovy/testdata/highlighting/IncorrectEscaping.groovy
index f578bc6b9af4..bab3ad3a8d12 100644
--- a/plugins/groovy/testdata/highlighting/IncorrectEscaping.groovy
+++ b/plugins/groovy/testdata/highlighting/IncorrectEscaping.groovy
@@ -1,4 +1,6 @@
 print '\n'
+print <error descr="Illegal escape character in string literal">'\u000a'</error>
+print <error descr="Illegal escape character in string literal">"\u000d"</error>
 print <error descr="Illegal escape character in string literal">'\y'</error>
 ptint <error descr="Illegal escape character in string literal">"\n\a\t"</error>
 print <error descr="Illegal escape character in string literal">"\n\a${x}\t"</error>