diff --git a/.gitattributes b/.gitattributes
new file mode 100644
index 00000000..6edcf864
--- /dev/null
+++ b/.gitattributes
@@ -0,0 +1 @@
+*.js    text eol=lf
diff --git a/lib/parse.js b/lib/parse.js
index 88f2ef5a..7288caab 100644
--- a/lib/parse.js
+++ b/lib/parse.js
@@ -497,10 +497,10 @@ function tokenizer($TEXT, filename, html5_comments, shebang) {
             S.template_braces.push(S.brace_counter);
         }
         var content = "", raw = "", ch, tok;
-        next();
-        while ((ch = next(true)) !== "`") {
+        next(true, true);
+        while ((ch = next(true, true)) !== "`") {
             if (ch === "$" && peek() === "{") {
-                next();
+                next(true, true);
                 S.brace_counter++;
                 tok = token(begin ? "template_head" : "template_substitution", content);
                 tok.begin = begin;
diff --git a/test/compress/dead-code.js b/test/compress/dead-code.js
index 652645d9..1fb06167 100644
--- a/test/compress/dead-code.js
+++ b/test/compress/dead-code.js
@@ -1,94 +1,94 @@
-dead_code_1: {
-    options = {
-        dead_code: true
-    };
-    input: {
-        function f() {
-            a();
-            b();
-            x = 10;
-            return;
-            if (x) {
-                y();
-            }
-        }
-    }
-    expect: {
-        function f() {
-            a();
-            b();
-            x = 10;
-            return;
-        }
-    }
-}
-
-dead_code_2_should_warn: {
-    options = {
-        dead_code: true
-    };
-    input: {
-        function f() {
-            g();
-            x = 10;
-            throw "foo";
-            // completely discarding the `if` would introduce some
-            // bugs.  UglifyJS v1 doesn't deal with this issue; in v2
-            // we copy any declarations to the upper scope.
-            if (x) {
-                y();
-                var x;
-                function g(){};
-                // but nested declarations should not be kept.
-                (function(){
-                    var q;
-                    function y(){};
-                })();
-            }
-        }
-    }
-    expect: {
-        function f() {
-            g();
-            x = 10;
-            throw "foo";
-            var x;
-            function g(){};
-        }
-    }
-}
-
-dead_code_constant_boolean_should_warn_more: {
-    options = {
-        dead_code    : true,
-        loops        : true,
-        booleans     : true,
-        conditionals : true,
-        evaluate     : true
-    };
-    input: {
-        while (!((foo && bar) || (x + "0"))) {
-            console.log("unreachable");
-            var foo;
-            function bar() {}
-        }
-        for (var x = 10, y; x && (y || x) && (!typeof x); ++x) {
-            asdf();
-            foo();
-            var moo;
-        }
-    }
-    expect: {
-        var foo;
-        function bar() {}
-        // nothing for the while
-        // as for the for, it should keep:
-        var x = 10, y;
-        var moo;
-    }
-}
-
-dead_code_block_decls_die: {
+dead_code_1: {
+    options = {
+        dead_code: true
+    };
+    input: {
+        function f() {
+            a();
+            b();
+            x = 10;
+            return;
+            if (x) {
+                y();
+            }
+        }
+    }
+    expect: {
+        function f() {
+            a();
+            b();
+            x = 10;
+            return;
+        }
+    }
+}
+
+dead_code_2_should_warn: {
+    options = {
+        dead_code: true
+    };
+    input: {
+        function f() {
+            g();
+            x = 10;
+            throw "foo";
+            // completely discarding the `if` would introduce some
+            // bugs.  UglifyJS v1 doesn't deal with this issue; in v2
+            // we copy any declarations to the upper scope.
+            if (x) {
+                y();
+                var x;
+                function g(){};
+                // but nested declarations should not be kept.
+                (function(){
+                    var q;
+                    function y(){};
+                })();
+            }
+        }
+    }
+    expect: {
+        function f() {
+            g();
+            x = 10;
+            throw "foo";
+            var x;
+            function g(){};
+        }
+    }
+}
+
+dead_code_constant_boolean_should_warn_more: {
+    options = {
+        dead_code    : true,
+        loops        : true,
+        booleans     : true,
+        conditionals : true,
+        evaluate     : true
+    };
+    input: {
+        while (!((foo && bar) || (x + "0"))) {
+            console.log("unreachable");
+            var foo;
+            function bar() {}
+        }
+        for (var x = 10, y; x && (y || x) && (!typeof x); ++x) {
+            asdf();
+            foo();
+            var moo;
+        }
+    }
+    expect: {
+        var foo;
+        function bar() {}
+        // nothing for the while
+        // as for the for, it should keep:
+        var x = 10, y;
+        var moo;
+    }
+}
+
+dead_code_block_decls_die: {
     options = {
         dead_code    : true,
         conditionals : true,
@@ -110,119 +110,119 @@ dead_code_block_decls_die: {
     }
 }
 
-dead_code_const_declaration: {
-    options = {
-        dead_code    : true,
-        loops        : true,
-        booleans     : true,
-        conditionals : true,
-        evaluate     : true
-    };
-    input: {
-        var unused;
-        const CONST_FOO = false;
-        if (CONST_FOO) {
-            console.log("unreachable");
-            var moo;
-            function bar() {}
-        }
-    }
-    expect: {
-        var unused;
-        const CONST_FOO = !1;
-        var moo;
-        function bar() {}
-    }
-}
-
-dead_code_const_annotation: {
-    options = {
-        dead_code    : true,
-        loops        : true,
-        booleans     : true,
-        conditionals : true,
-        evaluate     : true
-    };
-    input: {
-        var unused;
-        /** @const */ var CONST_FOO_ANN = false;
-        if (CONST_FOO_ANN) {
-            console.log("unreachable");
-            var moo;
-            function bar() {}
-        }
-    }
-    expect: {
-        var unused;
-        var CONST_FOO_ANN = !1;
-        var moo;
-        function bar() {}
-    }
-}
-
-dead_code_const_annotation_regex: {
-    options = {
-        dead_code    : true,
-        loops        : true,
-        booleans     : true,
-        conditionals : true,
-        evaluate     : true
-    };
-    input: {
-        var unused;
-        // @constraint this shouldn't be a constant
-        var CONST_FOO_ANN = false;
-        if (CONST_FOO_ANN) {
-            console.log("reachable");
-        }
-    }
-    expect: {
-        var unused;
-        var CONST_FOO_ANN = !1;
-        CONST_FOO_ANN && console.log('reachable');
-    }
-}
-
-dead_code_const_annotation_complex_scope: {
-    options = {
-        dead_code    : true,
-        loops        : true,
-        booleans     : true,
-        conditionals : true,
-        evaluate     : true
-    };
-    input: {
-        var unused_var;
-        /** @const */ var test = 'test';
-        // @const
-        var CONST_FOO_ANN = false;
-        var unused_var_2;
-        if (CONST_FOO_ANN) {
-            console.log("unreachable");
-            var moo;
-            function bar() {}
-        }
-        if (test === 'test') {
-            var beef = 'good';
-            /** @const */ var meat = 'beef';
-            var pork = 'bad';
-            if (meat === 'pork') {
-                console.log('also unreachable');
-            } else if (pork === 'good') {
-                console.log('reached, not const');
-            }
-        }
-    }
-    expect: {
-        var unused_var;
-        var test = 'test';
-        var CONST_FOO_ANN = !1;
-        var unused_var_2;
-        var moo;
-        function bar() {}
-        var beef = 'good';
-        var meat = 'beef';
-        var pork = 'bad';
-        'good' === pork && console.log('reached, not const');
-    }
-}
+dead_code_const_declaration: {
+    options = {
+        dead_code    : true,
+        loops        : true,
+        booleans     : true,
+        conditionals : true,
+        evaluate     : true
+    };
+    input: {
+        var unused;
+        const CONST_FOO = false;
+        if (CONST_FOO) {
+            console.log("unreachable");
+            var moo;
+            function bar() {}
+        }
+    }
+    expect: {
+        var unused;
+        const CONST_FOO = !1;
+        var moo;
+        function bar() {}
+    }
+}
+
+dead_code_const_annotation: {
+    options = {
+        dead_code    : true,
+        loops        : true,
+        booleans     : true,
+        conditionals : true,
+        evaluate     : true
+    };
+    input: {
+        var unused;
+        /** @const */ var CONST_FOO_ANN = false;
+        if (CONST_FOO_ANN) {
+            console.log("unreachable");
+            var moo;
+            function bar() {}
+        }
+    }
+    expect: {
+        var unused;
+        var CONST_FOO_ANN = !1;
+        var moo;
+        function bar() {}
+    }
+}
+
+dead_code_const_annotation_regex: {
+    options = {
+        dead_code    : true,
+        loops        : true,
+        booleans     : true,
+        conditionals : true,
+        evaluate     : true
+    };
+    input: {
+        var unused;
+        // @constraint this shouldn't be a constant
+        var CONST_FOO_ANN = false;
+        if (CONST_FOO_ANN) {
+            console.log("reachable");
+        }
+    }
+    expect: {
+        var unused;
+        var CONST_FOO_ANN = !1;
+        CONST_FOO_ANN && console.log('reachable');
+    }
+}
+
+dead_code_const_annotation_complex_scope: {
+    options = {
+        dead_code    : true,
+        loops        : true,
+        booleans     : true,
+        conditionals : true,
+        evaluate     : true
+    };
+    input: {
+        var unused_var;
+        /** @const */ var test = 'test';
+        // @const
+        var CONST_FOO_ANN = false;
+        var unused_var_2;
+        if (CONST_FOO_ANN) {
+            console.log("unreachable");
+            var moo;
+            function bar() {}
+        }
+        if (test === 'test') {
+            var beef = 'good';
+            /** @const */ var meat = 'beef';
+            var pork = 'bad';
+            if (meat === 'pork') {
+                console.log('also unreachable');
+            } else if (pork === 'good') {
+                console.log('reached, not const');
+            }
+        }
+    }
+    expect: {
+        var unused_var;
+        var test = 'test';
+        var CONST_FOO_ANN = !1;
+        var unused_var_2;
+        var moo;
+        function bar() {}
+        var beef = 'good';
+        var meat = 'beef';
+        var pork = 'bad';
+        'good' === pork && console.log('reached, not const');
+    }
+}
diff --git a/test/compress/template-string.js b/test/compress/template-string.js
index 20f7f0c4..739c1547 100644
--- a/test/compress/template-string.js
+++ b/test/compress/template-string.js
@@ -341,3 +341,39 @@ escape_dollar_curly: {
     }
     expect_exact: "console.log(`\\${ beep }`);console.log(`1\\${2-0}\\${3-0}4`);console.log(`\\${not an expression}`);"
 }
+
+template_starting_with_newline: {
+    options = {
+        dead_code: true
+    }
+    input: {
+        function foo(e) {
+            return `
+this is a template string!`;
+        };
+    } expect_exact: "function foo(e){return`\nthis is a template string!`}"
+}
+
+template_with_newline: {
+    options = {
+        dead_code: true
+    }
+    input: {
+        function foo(e) {
+            return `yep,
+this is a template string!`;
+        };
+    } expect_exact: "function foo(e){return`yep,\nthis is a template string!`}"
+}
+
+template_ending_with_newline: {
+    options = {
+        dead_code: true
+    }
+    input: {
+        function foo(e) {
+            return `this is a template string!
+`;
+        };
+    } expect_exact: "function foo(e){return`this is a template string!\n`}"
+}
\ No newline at end of file