diff --git a/src/org/jetbrains/jet/j2k/ast/IdentifierImpl.java b/src/org/jetbrains/jet/j2k/ast/IdentifierImpl.java
index 9a75669b02d..98e94522b1d 100644
--- a/src/org/jetbrains/jet/j2k/ast/IdentifierImpl.java
+++ b/src/org/jetbrains/jet/j2k/ast/IdentifierImpl.java
@@ -9,6 +9,7 @@ public class IdentifierImpl extends Expression implements Identifier {
   private final String myName;
   private boolean myHasDollar = false;
   private boolean myIsNullable = true;
+  private boolean myQuotingNeeded = true;
 
   public IdentifierImpl(String name) {
     myName = name;
@@ -25,6 +26,11 @@ public class IdentifierImpl extends Expression implements Identifier {
     myIsNullable = isNullable;
   }
 
+  public IdentifierImpl(String name, boolean hasDollar, boolean isNullable, boolean quotingNeeded) {
+    this(name, hasDollar,  isNullable);
+    myQuotingNeeded = quotingNeeded;
+  }
+
   @Override
   public boolean isEmpty() {
     return myName.length() == 0;
@@ -39,17 +45,17 @@ public class IdentifierImpl extends Expression implements Identifier {
     return myIsNullable;
   }
 
-  private static String ifNeedQuote(String name) {
-    if (ONLY_KOTLIN_KEYWORDS.contains(name) || name.contains("$"))
-      return quote(name);
-    return name;
+  private String ifNeedQuote() {
+    if (myQuotingNeeded && (ONLY_KOTLIN_KEYWORDS.contains(myName) || myName.contains("$")))
+      return quote(myName);
+    return myName;
   }
 
   @NotNull
   @Override
   public String toKotlin() {
     if (myHasDollar)
-      return DOLLAR + ifNeedQuote(myName);
-    return ifNeedQuote(myName);
+      return DOLLAR + ifNeedQuote();
+    return ifNeedQuote();
   }
 }
\ No newline at end of file
diff --git a/src/org/jetbrains/jet/j2k/visitors/ExpressionVisitor.java b/src/org/jetbrains/jet/j2k/visitors/ExpressionVisitor.java
index 45faf494c5b..ab9df6b8beb 100644
--- a/src/org/jetbrains/jet/j2k/visitors/ExpressionVisitor.java
+++ b/src/org/jetbrains/jet/j2k/visitors/ExpressionVisitor.java
@@ -160,6 +160,7 @@ public class ExpressionVisitor extends StatementVisitor {
 
     final Object value = expression.getValue();
     String text = expression.getText();
+    boolean isQuotingNeeded = true;
 
     final PsiType type = expression.getType();
     if (type != null) {
@@ -172,8 +173,13 @@ public class ExpressionVisitor extends StatementVisitor {
         text = text.replace("L", "").replace("l", "");
       if (canonicalTypeStr.equals("int") || canonicalTypeStr.equals("java.lang.Integer")) // need for hex support
         text = value != null ? value.toString() : text;
+
+      if (canonicalTypeStr.equals("java.lang.String"))
+        isQuotingNeeded = false;
+      if (canonicalTypeStr.equals("char") || canonicalTypeStr.equals("java.lang.Character"))
+        isQuotingNeeded = false;
     }
-    myResult = new LiteralExpression(new IdentifierImpl(text));
+    myResult = new LiteralExpression(new IdentifierImpl(text, false, false, isQuotingNeeded));
   }
 
   @Override
diff --git a/testData/ast/literalExpression/file/dollarInsideString.jav b/testData/ast/literalExpression/file/dollarInsideString.jav
new file mode 100644
index 00000000000..51039d40d25
--- /dev/null
+++ b/testData/ast/literalExpression/file/dollarInsideString.jav
@@ -0,0 +1,14 @@
+package demo;
+
+class Test {
+  void test() {
+    String name = "$$$$";
+    name = name.replaceAll("\\$[0-9]+", "\\$")
+
+    char c = '$';
+    System.out.println(c);
+
+    Character C = '$';
+    System.out.println(C);
+  }
+}
\ No newline at end of file
diff --git a/testData/ast/literalExpression/file/dollarInsideString.kt b/testData/ast/literalExpression/file/dollarInsideString.kt
new file mode 100644
index 00000000000..fdc29f01466
--- /dev/null
+++ b/testData/ast/literalExpression/file/dollarInsideString.kt
@@ -0,0 +1,11 @@
+namespace demo
+open class Test() {
+open fun test() : Unit {
+var name : String? = "$$$$"
+name = name?.replaceAll("\\$[0-9]+", "\\$")
+var c : Char = '$'
+System.out?.println(c)
+var C : Char? = '$'
+System.out?.println(C)
+}
+}
\ No newline at end of file