diff --git a/README.md b/README.md
--- a/README.md
+++ b/README.md
@@ -62,3 +62,5 @@
 You may optionally specify separators using `$sep$`, as in the
 example above.
 
+Anything between the sequence `$--` and the end of the line
+will be treated as a comment.
diff --git a/doctemplates.cabal b/doctemplates.cabal
--- a/doctemplates.cabal
+++ b/doctemplates.cabal
@@ -1,7 +1,7 @@
 name:                doctemplates
-version:             0.1.0.2
+version:             0.2
 synopsis:            Pandoc-style document templates
-description:         Please see README.md
+description:         A simple text templating system used by pandoc.
 homepage:            https://github.com/jgm/doctemplates#readme
 license:             BSD3
 license-file:        LICENSE
diff --git a/src/Text/DocTemplates.hs b/src/Text/DocTemplates.hs
--- a/src/Text/DocTemplates.hs
+++ b/src/Text/DocTemplates.hs
@@ -215,6 +215,7 @@
                             pFor <|>
                             pNewline <|>
                             pVar <|>
+                            pComment <|>
                             pLit <|>
                             pEscapedDollar)
   return $ sp <> rest
@@ -242,6 +243,10 @@
 
 pEscapedDollar :: Parser Template
 pEscapedDollar = lit "$" <$ P.try (P.string "$$")
+
+pComment :: Parser Template
+pComment =
+  mempty <$ (P.try (P.string "$--") >> P.skipMany (P.satisfy (/='\n')))
 
 pVar :: Parser Template
 pVar = var <$> (P.try $ P.char '$' *> pIdent <* P.char '$')
diff --git a/test/Spec.hs b/test/Spec.hs
--- a/test/Spec.hs
+++ b/test/Spec.hs
@@ -34,6 +34,11 @@
         (object ["m" .= (5 :: Integer), "n" .= (7.3 :: Double)])
         `shouldBe`
         (Right "5 and 7.3" :: Either String Text)
+    it "handles comments" $ do
+      applyTemplate "hello $--there and $m$\nbar"
+        (object ["m" .= (5 :: Integer)])
+        `shouldBe`
+        (Right "hello \nbar" :: Either String Text)
     it "fails with an incorrect template" $ do
       applyTemplate "$if(x$and$endif$" (object [])
         `shouldBe`