diff --git a/ivlpp/lexor.lex b/ivlpp/lexor.lex
index 07b0a4b0b..653e5c1a9 100644
--- a/ivlpp/lexor.lex
+++ b/ivlpp/lexor.lex
@@ -268,7 +268,8 @@ keywords (line|include|define|undef|ifdef|ifndef|else|elsif|endif)
 <PCOMENT>`[a-zA-Z][a-zA-Z0-9_$]* {
     if (macro_needs_args(yytext+1)) yy_push_state(MA_START); else do_expand(0);
 }
-<PCOMENT>`\"     { fputc('\"', yyout); }
+<PCOMENT>`\"     { if (!istack->file) fputc('"', yyout); else REJECT; }
+<PCOMENT>`\\`\"  { if (!istack->file) fputs("\\\"", yyout); else REJECT; }
 
  /* Strings do not contain preprocessor directives or macro expansions.
   */
diff --git a/ivtest/ivltests/attrib_expr.v b/ivtest/ivltests/attrib_expr.v
index 537d5bc5c..070ba9aa0 100644
--- a/ivtest/ivltests/attrib_expr.v
+++ b/ivtest/ivltests/attrib_expr.v
@@ -74,9 +74,9 @@ endfunction
 
 (* attr = fn(10) *)     reg attr46;
 
-// Macro escaped
-`define A_MACRO(arg) (* attr = `"arg`" *)
-         `A_MACRO(test) reg attr47;
+// Macro escape only in a macro declaration
+`define MACRO(arg) (* attr = `"`\`"arg`\`"`" *)
+`MACRO(test) reg attr47;
 
 initial begin
   $display("PASSED");