diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/KtPsiFactory.kt b/compiler/frontend/src/org/jetbrains/kotlin/psi/KtPsiFactory.kt
index acd20840b5e..dce1aa4fff0 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/KtPsiFactory.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/KtPsiFactory.kt
@@ -376,7 +376,8 @@ class KtPsiFactory @JvmOverloads constructor(private val project: Project, val m
     }
 
     fun createBlockStringTemplateEntry(expression: KtExpression): KtStringTemplateEntryWithExpression {
-        val stringTemplateExpression = createExpression("\"\${" + expression.text + "}\"") as KtStringTemplateExpression
+        // We don't want reformatting here as it can potentially change something in raw strings
+        val stringTemplateExpression = createExpressionByPattern("\"$\${$0}\"", expression, reformat = false) as KtStringTemplateExpression
         return stringTemplateExpression.entries[0] as KtStringTemplateEntryWithExpression
     }