diff --git a/lib/sass/engine.rb b/lib/sass/engine.rb
index 6b30830f..dedf6772 100644
--- a/lib/sass/engine.rb
+++ b/lib/sass/engine.rb
@@ -413,9 +413,9 @@ END
       Tree::MixinNode.new(name, args.map {|s| parse_script(s)}, @options)
     end
 
-    def parse_script(script, line = nil)
+    def parse_script(script, line = nil, offset = 0)
       line ||= @line
-      Script.parse(script, line)
+      Script.parse(script, line, offset)
     end
     def import_paths
       paths = @options[:load_paths] || []
diff --git a/lib/sass/script.rb b/lib/sass/script.rb
index 68366873..0715d5f6 100644
--- a/lib/sass/script.rb
+++ b/lib/sass/script.rb
@@ -18,12 +18,12 @@ module Sass
     # The regular expression used to validate variables without matching
     VALIDATE = /^!\w+$/
 
-    def self.resolve(value, line, environment)
-      parse(value, line).perform(environment).to_s
+    def self.resolve(value, line, offset, environment)
+      parse(value, line, offset).perform(environment).to_s
     end
 
-    def self.parse(value, line)
-      Parser.parse(value)
+    def self.parse(value, line, offset)
+      Parser.parse(value, line, offset)
     rescue Sass::SyntaxError => e
       if e.message == "SassScript error"
         e.instance_eval do
diff --git a/lib/sass/script/lexer.rb b/lib/sass/script/lexer.rb
index c0869e9a..5a43e67c 100644
--- a/lib/sass/script/lexer.rb
+++ b/lib/sass/script/lexer.rb
@@ -38,8 +38,10 @@ module Sass
         :op => %r{(#{Regexp.union(*OP_NAMES.map{|s| Regexp.new(Regexp.escape(s) + (s =~ /\w$/ ? '(?:\b|$)' : ''))})})}
       }
 
-      def initialize(str)
+      def initialize(str, line, offset)
         @scanner = StringScanner.new(str)
+        @line = line
+        @offset = offset
       end
 
       def token
diff --git a/lib/sass/script/parser.rb b/lib/sass/script/parser.rb
index 49edecd4..f4131b9b 100644
--- a/lib/sass/script/parser.rb
+++ b/lib/sass/script/parser.rb
@@ -3,8 +3,8 @@ require 'sass/script/lexer'
 module Sass
   module Script
     class Parser
-      def initialize(str)
-        @lexer = Lexer.new(str)
+      def initialize(str, line, offset)
+        @lexer = Lexer.new(str, line, offset)
       end
 
       def parse
diff --git a/lib/sass/tree/node.rb b/lib/sass/tree/node.rb
index 26c02081..7201f64b 100644
--- a/lib/sass/tree/node.rb
+++ b/lib/sass/tree/node.rb
@@ -68,7 +68,7 @@ module Sass
           if escapes % 2 == 1
             str << '#{'
           else
-            str << Sass::Script.resolve(balance(scan, ?{, ?}, 1)[0][0...-1], line, environment)
+            str << Sass::Script.resolve(balance(scan, ?{, ?}, 1)[0][0...-1], line, scan.pos - scan.matchedsize, environment)
           end
         end
         
diff --git a/test/sass/functions_test.rb b/test/sass/functions_test.rb
index 8be04739..724e019a 100644
--- a/test/sass/functions_test.rb
+++ b/test/sass/functions_test.rb
@@ -78,11 +78,12 @@ class SassFunctionTest < Test::Unit::TestCase
   private
 
   def assert_rgb_hsl(rgb, hsl)
-    assert_equal(rgb, Sass::Script::Functions.hsl(*hsl.map(&Sass::Script::Parser.method(:parse))).value)
+    hsl = hsl.map {|v| Sass::Script::Parser.parse v, 0, 0 }
+    assert_equal(rgb, Sass::Script::Functions.hsl(*hsl).value)
   end
 
   def evaluate(value)
-    Sass::Script::Parser.parse(value).perform({}).to_s
+    Sass::Script::Parser.parse(value, 0, 0).perform({}).to_s
   end
 
   def assert_error_message(message, value)
diff --git a/test/sass/script_test.rb b/test/sass/script_test.rb
index f1aa0ddb..5ed7c1c2 100644
--- a/test/sass/script_test.rb
+++ b/test/sass/script_test.rb
@@ -6,7 +6,7 @@ class SassScriptTest < Test::Unit::TestCase
   include Sass::Script
 
   def eval(str, environment = {})
-    Sass::Script.resolve(str, 0, environment)
+    Sass::Script.resolve(str, 0, 0, environment)
   end
 
   def test_color_checks_input