diff --git a/examples/escaped.html b/examples/escaped.html
index 8be4ccb..ea25951 100644
--- a/examples/escaped.html
+++ b/examples/escaped.html
@@ -1 +1,2 @@
-<h1>{{title}}</h1>
\ No newline at end of file
+<h1>{{title}}</h1>
+But not {{entities}}.
diff --git a/examples/escaped.js b/examples/escaped.js
index fd8ab37..7a8baef 100644
--- a/examples/escaped.js
+++ b/examples/escaped.js
@@ -1,5 +1,6 @@
 var escaped = {
   title: function() {
     return "Bear > Shark";
-  }
+  },
+  entities: "&quot;"
 };
diff --git a/examples/escaped.txt b/examples/escaped.txt
index 7f4de76..73ac5ce 100644
--- a/examples/escaped.txt
+++ b/examples/escaped.txt
@@ -1 +1,2 @@
 <h1>Bear &gt; Shark</h1>
+But not &quot;.
diff --git a/mustache.js b/mustache.js
index 27fe6f2..a8a9cb2 100644
--- a/mustache.js
+++ b/mustache.js
@@ -208,7 +208,7 @@ var Mustache = function() {
       Does away with nasty characters
     */
     escape: function(s) {
-      return ((s == null) ? "" : s).toString().replace(/[&"<>\\]/g, function(s) {
+      return ((s == null) ? "" : s).toString().replace(/&(?!\w+;)|["<>\\]/g, function(s) {
         switch(s) {
           case "&": return "&amp;";
           case "\\": return "\\\\";;