diff --git a/idea/src/META-INF/plugin.xml b/idea/src/META-INF/plugin.xml
index 8acca2d6ba1..84d32d3bd3c 100644
--- a/idea/src/META-INF/plugin.xml
+++ b/idea/src/META-INF/plugin.xml
@@ -458,6 +458,7 @@
                           id="KotlinEnterHandler" order="before EnterBetweenBracesHandler"/>
     <lang.smartEnterProcessor language="kotlin" implementationClass="org.jetbrains.kotlin.idea.editor.KotlinSmartEnterHandler"/>
     <backspaceHandlerDelegate implementation="org.jetbrains.kotlin.idea.editor.KotlinBackspaceHandler"/>
+    <backspaceHandlerDelegate implementation="org.jetbrains.kotlin.idea.editor.KotlinStringTemplateBackspaceHandler"/>
 
     <copyPastePostProcessor implementation="org.jetbrains.kotlin.idea.conversion.copy.ConvertJavaCopyPastePostProcessor"/>
     <copyPastePostProcessor implementation="org.jetbrains.kotlin.idea.codeInsight.KotlinCopyPasteReferenceProcessor"/>
diff --git a/idea/src/org/jetbrains/kotlin/idea/editor/KotlinStringTemplateBackspaceHandler.kt b/idea/src/org/jetbrains/kotlin/idea/editor/KotlinStringTemplateBackspaceHandler.kt
new file mode 100644
index 00000000000..10fbd523476
--- /dev/null
+++ b/idea/src/org/jetbrains/kotlin/idea/editor/KotlinStringTemplateBackspaceHandler.kt
@@ -0,0 +1,44 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.editor
+
+import com.intellij.codeInsight.CodeInsightSettings
+import com.intellij.codeInsight.editorActions.BackspaceHandlerDelegate
+import com.intellij.openapi.editor.Editor
+import com.intellij.openapi.editor.ex.EditorEx
+import com.intellij.psi.PsiFile
+import org.jetbrains.kotlin.lexer.KtTokens
+import org.jetbrains.kotlin.psi.KtFile
+
+class KotlinStringTemplateBackspaceHandler : BackspaceHandlerDelegate() {
+    override fun beforeCharDeleted(c: Char, file: PsiFile?, editor: Editor?) {
+        if (c != '{' || file !is KtFile || !CodeInsightSettings.getInstance().AUTOINSERT_PAIR_BRACKET) return
+
+        val offset = editor?.caretModel?.offset ?: return
+
+        val highlighter = (editor as EditorEx).highlighter
+        val iterator = highlighter.createIterator(offset)
+        if (iterator.tokenType != KtTokens.LONG_TEMPLATE_ENTRY_END) return
+        iterator.retreat()
+        if (iterator.tokenType != KtTokens.LONG_TEMPLATE_ENTRY_START) return
+        editor.document.deleteString(offset, offset + 1)
+    }
+
+    override fun charDeleted(c: Char, file: PsiFile?, editor: Editor?): Boolean {
+        return false
+    }
+}
\ No newline at end of file
diff --git a/idea/testData/editor/stringTemplateBackspaceHandler/escapedStringTemplate.kt b/idea/testData/editor/stringTemplateBackspaceHandler/escapedStringTemplate.kt
new file mode 100644
index 00000000000..cb91d36040a
--- /dev/null
+++ b/idea/testData/editor/stringTemplateBackspaceHandler/escapedStringTemplate.kt
@@ -0,0 +1 @@
+"\${<caret>}"
\ No newline at end of file
diff --git a/idea/testData/editor/stringTemplateBackspaceHandler/escapedStringTemplate_after.kt b/idea/testData/editor/stringTemplateBackspaceHandler/escapedStringTemplate_after.kt
new file mode 100644
index 00000000000..de27ab232de
--- /dev/null
+++ b/idea/testData/editor/stringTemplateBackspaceHandler/escapedStringTemplate_after.kt
@@ -0,0 +1 @@
+"\$<caret>}"
\ No newline at end of file
diff --git a/idea/testData/editor/stringTemplateBackspaceHandler/stringTemplateBrackets.kt b/idea/testData/editor/stringTemplateBackspaceHandler/stringTemplateBrackets.kt
new file mode 100644
index 00000000000..ace345d1e6f
--- /dev/null
+++ b/idea/testData/editor/stringTemplateBackspaceHandler/stringTemplateBrackets.kt
@@ -0,0 +1 @@
+"${<caret>}"
\ No newline at end of file
diff --git a/idea/testData/editor/stringTemplateBackspaceHandler/stringTemplateBrackets_after.kt b/idea/testData/editor/stringTemplateBackspaceHandler/stringTemplateBrackets_after.kt
new file mode 100644
index 00000000000..a7a0687106c
--- /dev/null
+++ b/idea/testData/editor/stringTemplateBackspaceHandler/stringTemplateBrackets_after.kt
@@ -0,0 +1 @@
+"$<caret>"
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/editor/AbstractEditorTest.java b/idea/tests/org/jetbrains/kotlin/idea/editor/AbstractEditorTest.java
new file mode 100644
index 00000000000..e02f0b67295
--- /dev/null
+++ b/idea/tests/org/jetbrains/kotlin/idea/editor/AbstractEditorTest.java
@@ -0,0 +1,40 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.editor;
+
+import com.intellij.openapi.util.io.FileUtil;
+import com.intellij.testFramework.EditorTestUtil;
+import com.intellij.testFramework.LightCodeInsightTestCase;
+import org.jetbrains.kotlin.idea.test.PluginTestCaseBase;
+
+import java.io.File;
+
+public abstract class AbstractEditorTest extends LightCodeInsightTestCase {
+    protected abstract String getBasePath();
+
+    protected String loadFile(String name) throws Exception {
+        return FileUtil.loadFile(new File(getBasePath(), name), true);
+    }
+
+    protected void configure() throws Exception {
+        configureFromFileText("a.kt", loadFile(getTestName(true) + ".kt"));
+    }
+
+    protected void check() throws Exception {
+        checkResultByText(loadFile(getTestName(true) + "_after.kt"));
+    }
+}
diff --git a/idea/tests/org/jetbrains/kotlin/idea/editor/KotlinCommenterTest.java b/idea/tests/org/jetbrains/kotlin/idea/editor/KotlinCommenterTest.java
index bcaf0565bc5..ba22424790f 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/editor/KotlinCommenterTest.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/editor/KotlinCommenterTest.java
@@ -23,7 +23,7 @@ import org.jetbrains.kotlin.idea.test.PluginTestCaseBase;
 
 import java.io.File;
 
-public class KotlinCommenterTest extends LightCodeInsightTestCase {
+public class KotlinCommenterTest extends AbstractEditorTest {
     private static final String BASE_PATH =
             new File(PluginTestCaseBase.getTestDataPathBase(), "/editor/commenter/").getAbsolutePath();
 
@@ -45,15 +45,8 @@ public class KotlinCommenterTest extends LightCodeInsightTestCase {
         check();
     }
 
-    private void configure() throws Exception {
-        configureFromFileText("a.kt", loadFile(getTestName(true) + ".kt"));
-    }
-
-    private void check() throws Exception {
-        checkResultByText(loadFile(getTestName(true) + "_after.kt"));
-    }
-
-    protected static String loadFile(String name) throws Exception {
-        return FileUtil.loadFile(new File(BASE_PATH, name), true);
+    @Override
+    protected String getBasePath() {
+        return BASE_PATH;
     }
 }
diff --git a/idea/tests/org/jetbrains/kotlin/idea/editor/StringTemplateBackspaceHandlerTest.kt b/idea/tests/org/jetbrains/kotlin/idea/editor/StringTemplateBackspaceHandlerTest.kt
new file mode 100644
index 00000000000..a0a3f229a19
--- /dev/null
+++ b/idea/tests/org/jetbrains/kotlin/idea/editor/StringTemplateBackspaceHandlerTest.kt
@@ -0,0 +1,44 @@
+/*
+ * Copyright 2010-2016 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.idea.editor
+
+import com.intellij.openapi.actionSystem.IdeActions
+import com.intellij.testFramework.EditorTestUtil
+import org.jetbrains.kotlin.idea.test.PluginTestCaseBase
+import java.io.File
+
+class StringTemplateBackspaceHandlerTest : AbstractEditorTest() {
+    val path = File(PluginTestCaseBase.getTestDataPathBase(), "/editor/stringTemplateBackspaceHandler/").getAbsolutePath()
+
+    override fun getBasePath(): String? {
+        return path
+    }
+
+    fun testStringTemplateBrackets() {
+        doTest()
+    }
+
+    fun testEscapedStringTemplate() {
+        doTest()
+    }
+
+    fun doTest() {
+        configure()
+        EditorTestUtil.executeAction(getEditor(), IdeActions.ACTION_EDITOR_BACKSPACE)
+        check()
+    }
+}