diff --git a/idea/idea-jvm/src/org/jetbrains/kotlin/idea/injection/InterpolatedStringInjectorProcessor.kt b/idea/idea-jvm/src/org/jetbrains/kotlin/idea/injection/InterpolatedStringInjectorProcessor.kt
index 1b431f39c5f..5a6bd5ff92f 100644
--- a/idea/idea-jvm/src/org/jetbrains/kotlin/idea/injection/InterpolatedStringInjectorProcessor.kt
+++ b/idea/idea-jvm/src/org/jetbrains/kotlin/idea/injection/InterpolatedStringInjectorProcessor.kt
@@ -23,7 +23,11 @@ import com.intellij.psi.PsiLanguageInjectionHost
 import org.intellij.plugins.intelliLang.inject.InjectedLanguage
 import org.intellij.plugins.intelliLang.inject.InjectorUtils
 import org.intellij.plugins.intelliLang.inject.config.BaseInjection
+import org.jetbrains.kotlin.idea.caches.resolve.analyze
 import org.jetbrains.kotlin.psi.*
+import org.jetbrains.kotlin.resolve.constants.evaluate.ConstantExpressionEvaluator
+import org.jetbrains.kotlin.types.TypeUtils
+import org.jetbrains.kotlin.utils.addToStdlib.safeAs
 import java.util.*
 
 data class InjectionSplitResult(val isUnparsable: Boolean, val ranges: List<Trinity<PsiLanguageInjectionHost, InjectedLanguage, TextRange>>)
@@ -54,22 +58,25 @@ fun splitLiteralToInjectionParts(injection: BaseInjection, literal: KtStringTemp
         val child = children[i]
         val partOffsetInParent = child.startOffsetInParent
 
+        @Suppress("IMPLICIT_CAST_TO_ANY")
         val part = when (child) {
             is KtLiteralStringTemplateEntry, is KtEscapeStringTemplateEntry -> {
                 val partSize = children.subList(i, len).asSequence()
-                        .takeWhile { it is KtLiteralStringTemplateEntry || it is KtEscapeStringTemplateEntry }
-                        .count()
+                    .takeWhile { it is KtLiteralStringTemplateEntry || it is KtEscapeStringTemplateEntry }
+                    .count()
                 i += partSize - 1
                 children[i]
             }
-            is KtSimpleNameStringTemplateEntry -> {
-                unparsable = true
-                child.expression?.text ?: NO_VALUE_NAME
-            }
-            is KtBlockStringTemplateEntry -> {
-                unparsable = true
-                NO_VALUE_NAME
-            }
+            is KtSimpleNameStringTemplateEntry ->
+                tryEvaluateConstant(child.expression) ?: run {
+                    unparsable = true
+                    child.expression?.text ?: NO_VALUE_NAME
+                }
+            is KtBlockStringTemplateEntry ->
+                tryEvaluateConstant(child.expression) ?: run {
+                    unparsable = true
+                    NO_VALUE_NAME
+                }
             else -> {
                 unparsable = true
                 child
@@ -97,4 +104,12 @@ fun splitLiteralToInjectionParts(injection: BaseInjection, literal: KtStringTemp
     return InjectionSplitResult(unparsable, result)
 }
 
+private fun tryEvaluateConstant(ktExpression: KtExpression?) =
+    ktExpression?.let { expression ->
+        ConstantExpressionEvaluator.getConstant(expression, expression.analyze())
+            ?.takeUnless { it.isError }
+            ?.getValue(TypeUtils.NO_EXPECTED_TYPE)
+            ?.safeAs<String>()
+    }
+
 private val NO_VALUE_NAME = "missingValue"
diff --git a/idea/tests/org/jetbrains/kotlin/psi/injection/StringInterpolationInjectionTest.kt b/idea/tests/org/jetbrains/kotlin/psi/injection/StringInterpolationInjectionTest.kt
new file mode 100644
index 00000000000..9cb1cfb9e90
--- /dev/null
+++ b/idea/tests/org/jetbrains/kotlin/psi/injection/StringInterpolationInjectionTest.kt
@@ -0,0 +1,75 @@
+/*
+ * Copyright 2010-2018 JetBrains s.r.o. Use of this source code is governed by the Apache 2.0 license
+ * that can be found in the license/LICENSE.txt file.
+ */
+
+package org.jetbrains.kotlin.psi.injection
+
+import com.intellij.lang.html.HTMLLanguage
+import com.intellij.lang.injection.InjectedLanguageManager
+import com.intellij.psi.PsiElement
+import com.intellij.psi.PsiFile
+import com.intellij.psi.injection.Injectable
+import com.intellij.testFramework.LightProjectDescriptor
+import junit.framework.TestCase
+import org.intellij.plugins.intelliLang.inject.InjectLanguageAction
+import org.jetbrains.kotlin.idea.test.KotlinLightCodeInsightFixtureTestCase
+import org.jetbrains.kotlin.idea.test.KotlinWithJdkAndRuntimeLightProjectDescriptor
+
+class StringInterpolationInjectionTest : KotlinLightCodeInsightFixtureTestCase() {
+
+    override fun getProjectDescriptor(): LightProjectDescriptor = KotlinWithJdkAndRuntimeLightProjectDescriptor.INSTANCE
+
+    fun testInterpolationSimpleName() = doTest(
+        """
+                        fun foo(){
+                            val body = "Hello!"
+                            "<html>${"$"}body</html><caret>"
+                        }
+                    """,
+        "<html>Hello!</html>"
+    )
+
+    fun testInterpolationBlock() = doTest(
+        """
+            const val a = "Hello "
+
+            fun foo(){
+                val body = "World!"
+                "<html>${"$"}{a + body}</html><caret>"
+            }
+                    """,
+        "<html>Hello World!</html>"
+    )
+
+    private fun doTest(text: String, expectedText: String) {
+        myFixture.configureByText("Injected.kt", text)
+
+        InjectLanguageAction.invokeImpl(
+            project,
+            myFixture.editor,
+            myFixture.file,
+            Injectable.fromLanguage(HTMLLanguage.INSTANCE)
+        )
+
+        val injectedElement = injectedElement ?: kotlin.test.fail("no injection")
+        TestCase.assertEquals(HTMLLanguage.INSTANCE, injectedElement.language)
+        val containingFile = injectedElement.containingFile
+        TestCase.assertEquals(expectedText, containingFile.text)
+        TestCase.assertFalse(
+            "Shouldn't be FRANKENSTEIN",
+            java.lang.Boolean.TRUE == containingFile.getUserData(InjectedLanguageManager.FRANKENSTEIN_INJECTION)
+        )
+    }
+
+    private val injectedLanguageManager: InjectedLanguageManager
+        get() = InjectedLanguageManager.getInstance(project)
+
+    private val injectedElement: PsiElement?
+        get() = injectedLanguageManager.findInjectedElementAt(topLevelFile, topLevelCaretPosition)
+
+    private val topLevelFile: PsiFile get() = file.let { injectedLanguageManager.getTopLevelFile(it) }
+
+    private val topLevelCaretPosition get() = editor.caretModel.offset
+
+}
\ No newline at end of file