diff --git a/lib/grammar.js b/lib/grammar.js
index 0a2214c4..e87ad25a 100644
--- a/lib/grammar.js
+++ b/lib/grammar.js
@@ -373,7 +373,7 @@
     // A language extension to CoffeeScript from the outside. We simply pass
     // it through unaltered.
     Extension: [o("EXTENSION", function() {
-        return $1;
+        return yytext;
       })
     ],
     // The condition portion of a while loop.
diff --git a/lib/parser.js b/lib/parser.js
index 6a37b945..4c324a17 100755
--- a/lib/parser.js
+++ b/lib/parser.js
@@ -245,7 +245,7 @@ case 117:this.$ = new ThrowNode($$[$0-2+2-1]);
 break;
 case 118:this.$ = new ParentheticalNode($$[$0-3+2-1]);
 break;
-case 119:this.$ = $$[$0-1+1-1];
+case 119:this.$ = yytext;
 break;
 case 120:this.$ = new WhileNode($$[$0-2+2-1]);
 break;
diff --git a/src/grammar.coffee b/src/grammar.coffee
index 891d68c8..a7e418dd 100644
--- a/src/grammar.coffee
+++ b/src/grammar.coffee
@@ -357,7 +357,7 @@ grammar: {
   # A language extension to CoffeeScript from the outside. We simply pass
   # it through unaltered.
   Extension: [
-    o "EXTENSION",                              -> $1
+    o "EXTENSION",                              -> yytext
   ]
 
   # The condition portion of a while loop.
diff --git a/test/test_compilation.coffee b/test/test_compilation.coffee
index 23186f8e..00a06b4b 100644
--- a/test/test_compilation.coffee
+++ b/test/test_compilation.coffee
@@ -5,27 +5,30 @@ js: CoffeeScript.compile("one\r\ntwo", {no_wrap: on})
 ok js is "one;\ntwo;"
 
 
-# Try out language extensions to CoffeeScript. (Not yet working.)
+# Try out language extensions to CoffeeScript.
 
-# class SplitNode extends BaseNode
-#   type: 'Split'
-#
-#   constructor: (variable) ->
-#     @variable: variable
-#
-#   compile_node: (o) ->
-#     "${variable}.split('')"
-#
-# CoffeeScript.extend ->
-#   return false unless variable: @match /^--(\w+)--/, 1
-#   @i += variable.length + 4
-#   node: new SplitNode(variable)
-#   p node
-#   @token 'EXTENSION', node
-#   true
-#
-# js: CoffeeScript.tokens('print --tobesplit--', {no_wrap: on})
-#
-# p js
-#
-# Lexer.extensions: []
\ No newline at end of file
+# Create the Node were going to add -- a literal syntax for splitting
+# strings into letters.
+class SplitNode extends BaseNode
+  type: 'Split'
+
+  constructor: (variable) ->
+    @variable: variable
+
+  compile_node: (o) ->
+    "'${@variable}'.split('')"
+
+# Extend CoffeeScript with our lexing function that matches --wordgoeshere--
+# and creates a SplitNode.
+CoffeeScript.extend ->
+  return false unless variable: @match /^--(\w+)--/, 1
+  @i += variable.length + 4
+  @token 'EXTENSION', new SplitNode(variable)
+  true
+
+# Compile with the extension.
+js: CoffeeScript.compile('return --tobesplit--', {no_wrap: on})
+
+ok js is "return 'tobesplit'.split('');"
+
+Lexer.extensions: []
\ No newline at end of file