diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/constants/CompileTimeConstantResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/constants/CompileTimeConstantResolver.java
index 779b35b9481..823a3183238 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/constants/CompileTimeConstantResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/constants/CompileTimeConstantResolver.java
@@ -250,7 +250,8 @@ public class CompileTimeConstantResolver {
         if (error != null) {
             return error;
         }
-        return new StringValue(unescapedText);
+
+        return new StringValue(unescapedText.substring(3, unescapedText.length() - 3));
     }
 
     @NotNull
diff --git a/compiler/testData/codegen/rawStrings.jet b/compiler/testData/codegen/rawStrings.jet
new file mode 100644
index 00000000000..a2f427814ef
--- /dev/null
+++ b/compiler/testData/codegen/rawStrings.jet
@@ -0,0 +1,6 @@
+fun box() : String {
+  val s = """ foo \n bar """
+  if (s != " foo \\n bar ") return "Fail: '$s'"
+
+  return "OK"
+}
\ No newline at end of file
diff --git a/compiler/tests/org/jetbrains/jet/codegen/StringsTest.java b/compiler/tests/org/jetbrains/jet/codegen/StringsTest.java
new file mode 100644
index 00000000000..bbba589480d
--- /dev/null
+++ b/compiler/tests/org/jetbrains/jet/codegen/StringsTest.java
@@ -0,0 +1,12 @@
+package org.jetbrains.jet.codegen;
+
+/**
+ * @author yole
+ * @author alex.tkachman
+ */
+public class StringsTest extends CodegenTestCase {
+
+    public void testRawStrings() throws Exception {
+        blackBoxFile("rawStrings.jet");
+    }
+}