diff --git a/lib/lexer.js b/lib/lexer.js
index 9a85d642..b80d471a 100644
--- a/lib/lexer.js
+++ b/lib/lexer.js
@@ -171,7 +171,7 @@
     // to distinguish from division, so we borrow some basic heuristics from
     // JavaScript and Ruby.
     Lexer.prototype.regex_token = function regex_token() {
-      var _a, flags, regex, str;
+      var flags, regex, str;
       if (!(this.chunk.match(REGEX_START))) {
         return false;
       }
@@ -182,7 +182,7 @@
         return false;
       }
       regex += ((flags = this.chunk.substr(regex.length).match(REGEX_FLAGS)));
-      if (((0 < (_a = regex.indexOf('${'))) && (_a < regex.indexOf('}'))) || regex.match(REGEX_INTERPOLATION)) {
+      if (regex.match(REGEX_INTERPOLATION)) {
         str = regex.substring(1).split('/')[0];
         str = str.replace(REGEX_ESCAPE, function(escaped) {
           return '\\' + escaped;
@@ -406,8 +406,9 @@
     // contents of the string. This method allows us to have strings within
     // interpolations within strings etc...
     Lexer.prototype.balanced_string = function balanced_string(str) {
-      var _a, _b, _c, _d, close, delimited, i, levels, open, pair;
+      var _a, _b, _c, _d, close, delimited, i, levels, open, pair, slash;
       delimited = Array.prototype.slice.call(arguments, 1);
+      slash = delimited[0][0] === '/';
       levels = [];
       i = 0;
       while (i < str.length) {
@@ -433,13 +434,13 @@
             break;
           }
         }
-        if (!(levels.length)) {
+        if (!levels.length || slash && starts(str, '\n', i)) {
           break;
         }
         i += 1;
       }
       if (levels.length) {
-        if (delimited[0][0] === '/') {
+        if (slash) {
           return false;
         }
         throw new Error("SyntaxError: Unterminated " + (levels.pop()[0]) + " starting on line " + (this.line + 1));
@@ -606,7 +607,7 @@
   ASSIGNMENT = /^(:|=)$/;
   // Regex-matching-regexes.
   REGEX_START = /^\/[^\/ ]/;
-  REGEX_INTERPOLATION = /[^\\]\$[a-zA-Z_@]/;
+  REGEX_INTERPOLATION = /([^\\]\$[a-zA-Z_@]|[^\\]\$\{.*[^\\]\})/;
   REGEX_FLAGS = /^[imgy]{0,4}/;
   REGEX_ESCAPE = /\\[^\$]/g;
   // Token cleaning regexes.
diff --git a/src/lexer.coffee b/src/lexer.coffee
index 2da32ec7..c2908e43 100644
--- a/src/lexer.coffee
+++ b/src/lexer.coffee
@@ -130,7 +130,7 @@ exports.Lexer: class Lexer
     return false if     include NOT_REGEX, @tag()
     return false unless regex: @balanced_token ['/', '/']
     regex += (flags: @chunk.substr(regex.length).match(REGEX_FLAGS))
-    if (0 < regex.indexOf('${') < regex.indexOf('}')) or regex.match REGEX_INTERPOLATION
+    if regex.match REGEX_INTERPOLATION
       str: regex.substring(1).split('/')[0]
       str: str.replace REGEX_ESCAPE, (escaped) -> '\\' + escaped
       @tokens: @tokens.concat [['(', '('], ['NEW', 'new'], ['IDENTIFIER', 'RegExp'], ['CALL_START', '(']]
@@ -307,6 +307,7 @@ exports.Lexer: class Lexer
   # contents of the string. This method allows us to have strings within
   # interpolations within strings etc...
   balanced_string: (str, delimited...) ->
+    slash: delimited[0][0] is '/'
     levels: []
     i: 0
     while i < str.length
@@ -324,10 +325,10 @@ exports.Lexer: class Lexer
           levels.push(pair)
           i += open.length - 1
           break
-      break unless levels.length
+      break if not levels.length or slash and starts str, '\n', i
       i += 1
     if levels.length
-      return false if delimited[0][0] is '/'
+      return false if slash
       throw new Error "SyntaxError: Unterminated ${levels.pop()[0]} starting on line ${@line + 1}"
     return false if i is 0
     return str.substring(0, i)
@@ -472,7 +473,7 @@ ASSIGNMENT    : /^(:|=)$/
 
 # Regex-matching-regexes.
 REGEX_START        : /^\/[^\/ ]/
-REGEX_INTERPOLATION: /[^\\]\$[a-zA-Z_@]/
+REGEX_INTERPOLATION: /([^\\]\$[a-zA-Z_@]|[^\\]\$\{.*[^\\]\})/
 REGEX_FLAGS        : /^[imgy]{0,4}/
 REGEX_ESCAPE       : /\\[^\$]/g
 
diff --git a/test/test_literals.coffee b/test/test_literals.coffee
index 03e483b7..1ad0efa9 100644
--- a/test/test_literals.coffee
+++ b/test/test_literals.coffee
@@ -31,6 +31,13 @@ money$: 'dollars'
 ok money$ is 'dollars'
 
 
+multiline: "one
+            two
+            three"
+
+ok multiline is 'one two three'
+
+
 ok {a: (num) -> num is 10 }.a 10
 
 
diff --git a/test/test_regexps.coffee b/test/test_regexps.coffee
index bce336fd..6ef0018f 100644
--- a/test/test_regexps.coffee
+++ b/test/test_regexps.coffee
@@ -9,4 +9,6 @@ y: 4
 x: 2
 g: 1
 
-ok y / x/g is 2
\ No newline at end of file
+ok y / x/g is 2
+
+ok 'http://google.com'.match(/:\/\/goog/)
\ No newline at end of file