diff --git a/ginger.cabal b/ginger.cabal
--- a/ginger.cabal
+++ b/ginger.cabal
@@ -2,7 +2,7 @@
 -- documentation, see http://haskell.org/cabal/users-guide/
 
 name:                ginger
-version:             0.3.7.0
+version:             0.3.7.1
 synopsis:            An implementation of the Jinja2 template language in Haskell
 description:         Ginger is Jinja, minus the most blatant pythonisms. Wants
                      to be feature complete, but isn't quite there yet.
diff --git a/src/Text/Ginger/Parse.hs b/src/Text/Ginger/Parse.hs
--- a/src/Text/Ginger/Parse.hs
+++ b/src/Text/Ginger/Parse.hs
@@ -706,6 +706,7 @@
             c2 <- anyChar
             case c2 of
                 'n' -> return '\n'
+                'r' -> return '\r'
                 'b' -> return '\b'
                 'v' -> return '\v'
                 '0' -> return '\0'
diff --git a/test/Text/Ginger/SimulationTests.hs b/test/Text/Ginger/SimulationTests.hs
--- a/test/Text/Ginger/SimulationTests.hs
+++ b/test/Text/Ginger/SimulationTests.hs
@@ -38,8 +38,12 @@
             [] [] "- {%- set x=1 -%} -" "--"
         ]
     , testGroup "Literals"
-        [ testCase "String: \"foobar\"" $ mkTestHtml
-            [] [] "{{ \"foobar\" }}" "foobar"
+        [ testGroup "Strings"
+            [ testCase "String: \"foobar\"" $ mkTestHtml
+                [] [] "{{ \"foobar\" }}" "foobar"
+            , testCase "String: \"\\r\\n\\t\\b\"" $ mkTestHtml
+                [] [] "{{ \"\\r\\n\\t\\b\" }}" "\r\n\t\b"
+            ]
         , testGroup "Numbers"
             [ testCase "123" $ mkTestHtml
                 [] [] "{{ 123 }}" "123"