diff --git a/.changeset/big-horses-sniff.md b/.changeset/big-horses-sniff.md
new file mode 100644
index 0000000000..bd6af5c8a5
--- /dev/null
+++ b/.changeset/big-horses-sniff.md
@@ -0,0 +1,5 @@
+---
+"@marko/runtime-tags": patch
+---
+
+Escape grave (`) characters in template literals
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/.name-cache.json b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/.name-cache.json
new file mode 100644
index 0000000000..db413faf9a
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/.name-cache.json
@@ -0,0 +1,5 @@
+{
+  "vars": {
+    "props": {}
+  }
+}
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/csr-sanitized.expected.md b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/csr-sanitized.expected.md
new file mode 100644
index 0000000000..84ef69bd22
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/csr-sanitized.expected.md
@@ -0,0 +1,12 @@
+# Render
+```html
+<div>
+  1` 
+  <span>
+    child`"'
+  </span>
+  <span>
+    ${value}
+  </span>
+</div>
+```
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/csr.expected.md b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/csr.expected.md
new file mode 100644
index 0000000000..25559b6e00
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/csr.expected.md
@@ -0,0 +1,17 @@
+# Render
+```html
+<div>
+  1` 
+  <span>
+    child`"'
+  </span>
+  <span>
+    ${value}
+  </span>
+</div>
+```
+
+# Mutations
+```
+INSERT div
+```
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/tags/child.js b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/tags/child.js
new file mode 100644
index 0000000000..64a9513ca1
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/tags/child.js
@@ -0,0 +1,6 @@
+export const $template = "<span>child`\"'</span><span>${value}</span>";
+export const $walks = /* over(2) */"c";
+export const $setup = () => {};
+const value = "No!!";
+import * as _ from "@marko/runtime-tags/debug/dom";
+export default /* @__PURE__ */_._template("__tests__/tags/child.marko", $template, $walks, $setup);
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/template.hydrate.js b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/template.hydrate.js
new file mode 100644
index 0000000000..3eb9cd79d3
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/template.hydrate.js
@@ -0,0 +1 @@
+// size: 0
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/template.js b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/template.js
new file mode 100644
index 0000000000..00b85ed7be
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/dom.expected/template.js
@@ -0,0 +1,10 @@
+export const $template = `<div><!>\` ${_child_template}</div>`;
+export const $walks = /* next(1), replace, over(2), beginChild, _child_walks, endChild, out(1) */`D%c/${_child_walks}&l`;
+import * as _ from "@marko/runtime-tags/debug/dom";
+import { $setup as _child, $template as _child_template, $walks as _child_walks } from "./tags/child.marko";
+const $count = /* @__PURE__ */_._let("count/2", ($scope, count) => _._text($scope["#text/0"], count));
+export function $setup($scope) {
+  _child($scope["#childScope/1"]);
+  $count($scope, 1);
+}
+export default /* @__PURE__ */_._template("__tests__/template.marko", $template, $walks, $setup);
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/html.expected/tags/child.js b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/html.expected/tags/child.js
new file mode 100644
index 0000000000..3246883e18
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/html.expected/tags/child.js
@@ -0,0 +1,6 @@
+const value = "No!!";
+import * as _ from "@marko/runtime-tags/debug/html";
+export default _._template("__tests__/tags/child.marko", input => {
+  const $scope0_id = _._scope_id();
+  _._html("<span>child`\"'</span><span>${value}</span>");
+});
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/html.expected/template.js b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/html.expected/template.js
new file mode 100644
index 0000000000..4cca5189e6
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/html.expected/template.js
@@ -0,0 +1,11 @@
+import * as _ from "@marko/runtime-tags/debug/html";
+import _child from "./tags/child.marko";
+export default _._template("__tests__/template.marko", input => {
+  const $scope0_id = _._scope_id();
+  let count = 1;
+  _._html(`<div>${_._escape(count)}${_._el_resume($scope0_id, "#text/0")}\` `);
+  _child({});
+  _._html("</div>");
+  _._scope($scope0_id, {}, "__tests__/template.marko", 0);
+  _._resume_branch($scope0_id);
+});
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/resume-sanitized.expected.md b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/resume-sanitized.expected.md
new file mode 100644
index 0000000000..84ef69bd22
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/resume-sanitized.expected.md
@@ -0,0 +1,12 @@
+# Render
+```html
+<div>
+  1` 
+  <span>
+    child`"'
+  </span>
+  <span>
+    ${value}
+  </span>
+</div>
+```
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/resume.expected.md b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/resume.expected.md
new file mode 100644
index 0000000000..fd9dc2207f
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/resume.expected.md
@@ -0,0 +1,24 @@
+# Render
+```html
+<html>
+  <head />
+  <body>
+    <div>
+      1
+      <!--M_*1 #text/0-->
+      ` 
+      <span>
+        child`"'
+      </span>
+      <span>
+        ${value}
+      </span>
+    </div>
+    <script>
+      WALKER_RUNTIME("M")("_");
+      M._.r = [_ =&gt; (_.a = [0,
+      {}])]
+    </script>
+  </body>
+</html>
+```
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/ssr-sanitized.expected.md b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/ssr-sanitized.expected.md
new file mode 100644
index 0000000000..0dc90cc6d8
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/ssr-sanitized.expected.md
@@ -0,0 +1,12 @@
+# Render End
+```html
+<div>
+  1` 
+  <span>
+    child`"'
+  </span>
+  <span>
+    ${value}
+  </span>
+</div>
+```
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/ssr.expected.md b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/ssr.expected.md
new file mode 100644
index 0000000000..f6e0ffab56
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/__snapshots__/ssr.expected.md
@@ -0,0 +1,46 @@
+# Write
+```html
+  <div>1<!--M_*1 #text/0-->` <span>child`"'</span><span>${value}</span></div><script>WALKER_RUNTIME("M")("_");M._.r=[_=>(_.a=[0,{}])]</script>
+```
+
+# Render End
+```html
+<html>
+  <head />
+  <body>
+    <div>
+      1
+      <!--M_*1 #text/0-->
+      ` 
+      <span>
+        child`"'
+      </span>
+      <span>
+        ${value}
+      </span>
+    </div>
+    <script>
+      WALKER_RUNTIME("M")("_");
+      M._.r = [_ =&gt; (_.a = [0,
+      {}])]
+    </script>
+  </body>
+</html>
+```
+
+# Mutations
+```
+INSERT html
+INSERT html/head
+INSERT html/body
+INSERT html/body/div
+INSERT html/body/div/#text0
+INSERT html/body/div/#comment
+INSERT html/body/div/#text1
+INSERT html/body/div/span0
+INSERT html/body/div/span0/#text
+INSERT html/body/div/span1
+INSERT html/body/div/span1/#text
+INSERT html/body/script
+INSERT html/body/script/#text
+```
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/tags/child.marko b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/tags/child.marko
new file mode 100644
index 0000000000..ee7a31f4de
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/tags/child.marko
@@ -0,0 +1,4 @@
+static const value = "No!!"
+<span>child`"'</span>
+<span>\${value}</span>
+<script>"`"</script>
\ No newline at end of file
diff --git a/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/template.marko b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/template.marko
new file mode 100644
index 0000000000..526b6906b4
--- /dev/null
+++ b/packages/runtime-tags/src/__tests__/fixtures/escape-html-strings/template.marko
@@ -0,0 +1,5 @@
+<let/count=1>
+<div>
+  ${count}`
+  <child />
+</div>
diff --git a/packages/runtime-tags/src/translator/core/html-comment.ts b/packages/runtime-tags/src/translator/core/html-comment.ts
index a9f7e69f11..9a1bc6c7b7 100644
--- a/packages/runtime-tags/src/translator/core/html-comment.ts
+++ b/packages/runtime-tags/src/translator/core/html-comment.ts
@@ -8,6 +8,7 @@ import {
 } from "@marko/compiler/babel-utils";
 
 import { WalkCode } from "../../common/types";
+import { bodyToTextLiteral } from "../util/body-to-text-literal";
 import { generateUidIdentifier } from "../util/generate-uid";
 import isInvokedFunction from "../util/is-invoked-function";
 import { isOutputHTML } from "../util/marko-config";
@@ -180,23 +181,11 @@ export default {
           }
         }
       } else {
-        const templateQuasis: t.TemplateElement[] = [];
-        const templateExpressions: t.Expression[] = [];
-        let currentQuasi = "";
-        for (const child of tag.node.body.body) {
-          if (t.isMarkoText(child)) {
-            currentQuasi += child.value;
-          } else if (t.isMarkoPlaceholder(child)) {
-            templateQuasis.push(t.templateElement({ raw: currentQuasi }));
-            templateExpressions.push(child.value);
-            currentQuasi = "";
-          }
-        }
+        const textLiteral = bodyToTextLiteral(tag.node.body);
 
-        if (templateExpressions.length === 0) {
-          write`${currentQuasi}`;
+        if (t.isStringLiteral(textLiteral)) {
+          write`${textLiteral}`;
         } else {
-          templateQuasis.push(t.templateElement({ raw: currentQuasi }));
           addStatement(
             "render",
             getSection(tag),
@@ -209,7 +198,7 @@ export default {
                   getScopeAccessorLiteral(nodeBinding!),
                   true,
                 ),
-                t.templateLiteral(templateQuasis, templateExpressions),
+                textLiteral,
               ),
             ),
           );
diff --git a/packages/runtime-tags/src/translator/core/html-script.ts b/packages/runtime-tags/src/translator/core/html-script.ts
index cc92e853ef..a17e66ee83 100644
--- a/packages/runtime-tags/src/translator/core/html-script.ts
+++ b/packages/runtime-tags/src/translator/core/html-script.ts
@@ -12,6 +12,7 @@ import {
 
 import { getEventHandlerName, isEventHandler } from "../../common/helpers";
 import { WalkCode } from "../../common/types";
+import { bodyToTextLiteral } from "../util/body-to-text-literal";
 import evaluate from "../util/evaluate";
 import { generateUidIdentifier } from "../util/generate-uid";
 import isInvokedFunction from "../util/is-invoked-function";
@@ -405,29 +406,15 @@ export default {
           }
         }
       } else {
-        const templateQuasis: t.TemplateElement[] = [];
-        const templateExpressions: t.Expression[] = [];
-        let currentQuasi = "";
-        let referencePlaceholder: t.MarkoPlaceholder | undefined;
-        for (const child of tag.node.body.body) {
-          if (t.isMarkoText(child)) {
-            currentQuasi += child.value;
-          } else if (t.isMarkoPlaceholder(child)) {
-            referencePlaceholder ||= child;
-            templateQuasis.push(t.templateElement({ raw: currentQuasi }));
-            templateExpressions.push(child.value);
-            currentQuasi = "";
-          }
-        }
+        const textLiteral = bodyToTextLiteral(tag.node.body);
 
-        if (!referencePlaceholder) {
-          write`${currentQuasi}`;
+        if (t.isStringLiteral(textLiteral)) {
+          write`${textLiteral.value}`;
         } else {
-          templateQuasis.push(t.templateElement({ raw: currentQuasi }));
           addStatement(
             "render",
             getSection(tag),
-            referencePlaceholder.value.extra?.referencedBindings,
+            textLiteral.extra?.referencedBindings,
             t.expressionStatement(
               callRuntime(
                 "_text_content",
@@ -436,7 +423,7 @@ export default {
                   getScopeAccessorLiteral(nodeBinding!),
                   true,
                 ),
-                t.templateLiteral(templateQuasis, templateExpressions),
+                textLiteral,
               ),
             ),
           );
diff --git a/packages/runtime-tags/src/translator/core/html-style.ts b/packages/runtime-tags/src/translator/core/html-style.ts
index adf25c7980..45f1e2bc04 100644
--- a/packages/runtime-tags/src/translator/core/html-style.ts
+++ b/packages/runtime-tags/src/translator/core/html-style.ts
@@ -12,6 +12,7 @@ import {
 
 import { getEventHandlerName, isEventHandler } from "../../common/helpers";
 import { WalkCode } from "../../common/types";
+import { bodyToTextLiteral } from "../util/body-to-text-literal";
 import evaluate from "../util/evaluate";
 import { generateUidIdentifier } from "../util/generate-uid";
 import isInvokedFunction from "../util/is-invoked-function";
@@ -405,29 +406,15 @@ export default {
           }
         }
       } else {
-        const templateQuasis: t.TemplateElement[] = [];
-        const templateExpressions: t.Expression[] = [];
-        let currentQuasi = "";
-        let referencePlaceholder: t.MarkoPlaceholder | undefined;
-        for (const child of tag.node.body.body) {
-          if (t.isMarkoText(child)) {
-            currentQuasi += child.value;
-          } else if (t.isMarkoPlaceholder(child)) {
-            referencePlaceholder ||= child;
-            templateQuasis.push(t.templateElement({ raw: currentQuasi }));
-            templateExpressions.push(child.value);
-            currentQuasi = "";
-          }
-        }
+        const textLiteral = bodyToTextLiteral(tag.node.body);
 
-        if (!referencePlaceholder) {
-          write`${currentQuasi}`;
+        if (t.isStringLiteral(textLiteral)) {
+          write`${textLiteral}`;
         } else {
-          templateQuasis.push(t.templateElement({ raw: currentQuasi }));
           addStatement(
             "render",
             getSection(tag),
-            referencePlaceholder.value.extra?.referencedBindings,
+            textLiteral.extra?.referencedBindings,
             t.expressionStatement(
               callRuntime(
                 "_text_content",
@@ -436,7 +423,7 @@ export default {
                   getScopeAccessorLiteral(nodeBinding!),
                   true,
                 ),
-                t.templateLiteral(templateQuasis, templateExpressions),
+                textLiteral,
               ),
             ),
           );
diff --git a/packages/runtime-tags/src/translator/util/body-to-text-literal.ts b/packages/runtime-tags/src/translator/util/body-to-text-literal.ts
new file mode 100644
index 0000000000..90c8ed133a
--- /dev/null
+++ b/packages/runtime-tags/src/translator/util/body-to-text-literal.ts
@@ -0,0 +1,35 @@
+import { types as t } from "@marko/compiler";
+
+export function bodyToTextLiteral(body: t.MarkoTagBody) {
+  const templateQuasis: t.TemplateElement[] = [];
+  const templateExpressions: t.Expression[] = [];
+  let currentQuasi = "";
+  let placeholderExtra: t.MarkoPlaceholder["extra"];
+  for (const child of body.body) {
+    if (t.isMarkoText(child)) {
+      currentQuasi += child.value;
+    } else if (t.isMarkoPlaceholder(child)) {
+      placeholderExtra ||= child.value.extra;
+      templateQuasis.push(templateElement(currentQuasi, false));
+      templateExpressions.push(child.value);
+      currentQuasi = "";
+    }
+  }
+  if (templateExpressions.length) {
+    templateQuasis.push(templateElement(currentQuasi, true));
+    const literal = t.templateLiteral(templateQuasis, templateExpressions);
+    literal.extra = placeholderExtra;
+    return literal;
+  }
+  return t.stringLiteral(currentQuasi);
+}
+
+function templateElement(value: string, tail: boolean) {
+  return t.templateElement(
+    {
+      raw: value.replace(/`/g, "\\`"),
+      cooked: value,
+    },
+    tail,
+  );
+}
diff --git a/packages/runtime-tags/src/translator/util/normalize-string-expression.ts b/packages/runtime-tags/src/translator/util/normalize-string-expression.ts
index 852809b733..c0df1e7ec2 100644
--- a/packages/runtime-tags/src/translator/util/normalize-string-expression.ts
+++ b/packages/runtime-tags/src/translator/util/normalize-string-expression.ts
@@ -44,7 +44,7 @@ export default function normalizeStringExpression(
     strs.push(curStr);
 
     return t.templateLiteral(
-      strs.map((raw) => t.templateElement({ raw })),
+      strs.map((raw) => t.templateElement({ raw: raw.replace(/`/g, "\\`") })),
       exprs,
     );
   } else if (curStr) {