diff --git a/app/services/ember-cli.js b/app/services/ember-cli.js
index 79363b97..29bf60b1 100644
--- a/app/services/ember-cli.js
+++ b/app/services/ember-cli.js
@@ -270,7 +270,8 @@ export default Ember.Service.extend({
     // let templateCode = Ember.HTMLBars.precompile(code || '');
 
     // Compiles all templates at runtime.
-    return this.compileJs('export default Ember.HTMLBars.compile(`' + (code || '') + '`);', filePath);
+    const mungedCode = (code || '').replace(/\\/g, "\\\\"); // Prevent backslashes from being escaped
+    return this.compileJs('export default Ember.HTMLBars.compile(`' + mungedCode + '`);', filePath);
   },
 
   compileCss(code, moduleName) {
diff --git a/tests/acceptance/escape-test.js b/tests/acceptance/escape-test.js
new file mode 100644
index 00000000..2430fdde
--- /dev/null
+++ b/tests/acceptance/escape-test.js
@@ -0,0 +1,31 @@
+import Ember from 'ember';
+import { module, test } from 'qunit';
+import startApp from 'ember-twiddle/tests/helpers/start-app';
+
+module('Acceptance | escaping moustaches', {
+  beforeEach: function() {
+    this.application = startApp();
+  },
+
+  afterEach: function() {
+    Ember.run(this.application, 'destroy');
+  }
+});
+
+test('Able to escape moustache tag', function(assert) {
+
+  const files = [
+    {
+      filename: "application.template.hbs",
+      content: "\\{{Moustache}}"
+    }
+  ];
+
+  runGist(files);
+
+  andThen(function() {
+    const outputDiv = 'div';
+
+    assert.equal(outputContents(outputDiv), '{{Moustache}}', 'Moustache tag is escaped');
+  });
+});