diff --git a/src/noOctalLiteralRule.ts b/src/noOctalLiteralRule.ts
index 12039f222..deda4d82b 100644
--- a/src/noOctalLiteralRule.ts
+++ b/src/noOctalLiteralRule.ts
@@ -33,21 +33,26 @@ export class Rule extends Lint.Rules.AbstractRule {
 
 class NoOctalLiteral extends ErrorTolerantWalker {
     public visitNode(node: ts.Node) {
-        if (node.kind === ts.SyntaxKind.StringLiteral) {
+        if (node.kind === ts.SyntaxKind.StringLiteral || node.kind === ts.SyntaxKind.FirstTemplateToken) {
             this.failOnOctalString(<ts.LiteralExpression>node);
         }
         super.visitNode(node);
     }
 
     private failOnOctalString(node: ts.LiteralExpression) {
-        const match = /("|')(.*(\\-?[0-7]{1,3}(?![0-9])).*("|'))/g.exec(node.getText());
+        const match = /("|'|`)[^\\]*(\\+-?[0-7]{1,3}(?![0-9]))(?:.|\n|\t|\u2028|\u2029)*(?:\1)/g.exec(node.getText());
 
         if (match) {
-            const octalValue : string = match[3]; // match[3] is the matched octal value.
-            const startOfMatch = node.getStart() + node.getText().indexOf(octalValue);
-            const width = octalValue.length;
+            let octalValue: string = match[2]; // match[2] is the matched octal value.
+            const backslashCount: number = octalValue.lastIndexOf('\\') + 1;
+            if (backslashCount % 2 === 1) { // Make sure the string starts with an odd number of backslashes
+                octalValue = octalValue.substr(backslashCount - 1);
 
-            this.addFailureAt(startOfMatch, width, Rule.FAILURE_STRING + octalValue);
+                const startOfMatch = node.getStart() + node.getText().indexOf(octalValue);
+                const width = octalValue.length;
+
+                this.addFailureAt(startOfMatch, width, Rule.FAILURE_STRING + octalValue);
+            }
         }
     }
 }
diff --git a/src/tests/NoOctalLiteralTests.ts b/src/tests/NoOctalLiteralTests.ts
index b904ad46a..97de348db 100644
--- a/src/tests/NoOctalLiteralTests.ts
+++ b/src/tests/NoOctalLiteralTests.ts
@@ -16,7 +16,7 @@ describe('noOctalLiteralRule', () : void => {
      it('should fail on 3 digit octal literals', () : void => {
          const script : string = `
 /**
- * The following code should have no errors:
+ * The following code should have errors:
  */
 function demoScriptFail() {
     var a = "Sample text \\251";
@@ -65,7 +65,9 @@ function demoScriptFail1() {
     return "Sample text \\7";
     return "Sample text \\025";
     return "Sample text \\0";
+    return "Sample text \\\\\\0";
     return "Sample text \\-0";
+    return "Sample text \\\\\\-0";
     return "Sample text \\-035";
     return "Sample text \\-235";
 }`;
@@ -106,25 +108,39 @@ function demoScriptFail1() {
                  "startPosition": { "character": 25, "line": 11 }
              },
              {
+                "failure": "Octal literals should not be used: \\0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 27, "line": 12 }
+            },
+            {
                  "failure": "Octal literals should not be used: \\-0",
                  "name": "file.ts",
                  "ruleName": "no-octal-literal",
                  "ruleSeverity": "ERROR",
-                 "startPosition": { "character": 25, "line": 12 }
+                 "startPosition": { "character": 25, "line": 13 }
              },
              {
+                "failure": "Octal literals should not be used: \\-0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 27, "line": 14 }
+            },
+            {
                  "failure": "Octal literals should not be used: \\-035",
                  "name": "file.ts",
                  "ruleName": "no-octal-literal",
                  "ruleSeverity": "ERROR",
-                 "startPosition": { "character": 25, "line": 13 }
+                 "startPosition": { "character": 25, "line": 15 }
              },
              {
                  "failure": "Octal literals should not be used: \\-235",
                  "name": "file.ts",
                  "ruleName": "no-octal-literal",
                  "ruleSeverity": "ERROR",
-                 "startPosition": { "character": 25, "line": 14 }
+                 "startPosition": { "character": 25, "line": 16 }
              }
          ]);
      });
@@ -142,6 +158,8 @@ function demoScriptFail2() {
     return 'Sample text \\125';
     return 'Sample text \\0';
     return 'Sample text \\-0';
+    return 'Sample text \\\\\\0';
+    return 'Sample text \\\\\\-0';
     return 'Sample text \\-035';
     return 'Sample text \\-235';
 }`;
@@ -195,19 +213,184 @@ function demoScriptFail2() {
                 "ruleSeverity": "ERROR",
                 "startPosition": { "character": 25, "line": 12 }
             },
+            {
+                "failure": "Octal literals should not be used: \\0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 27, "line": 13 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\-0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 27, "line": 14 }
+            },
             {
                 "failure": "Octal literals should not be used: \\-035",
                 "name": "file.ts",
                 "ruleName": "no-octal-literal",
                 "ruleSeverity": "ERROR",
-                "startPosition": { "character": 25, "line": 13 }
+                "startPosition": { "character": 25, "line": 15 }
             },
             {
                 "failure": "Octal literals should not be used: \\-235",
                 "name": "file.ts",
                 "ruleName": "no-octal-literal",
                 "ruleSeverity": "ERROR",
-                "startPosition": { "character": 25, "line": 14 }
+                "startPosition": { "character": 25, "line": 16 }
+            }
+        ]);
+    });
+
+    it('should produce violations - batch3', () : void => {
+        const inputFile : string = `
+/**
+ * The following code should have errors:
+ */
+function demoScriptFail3() {
+    return \`Sample text \\351\`;
+    return \`Sample text \\354 more text\`;
+    return \`Sample text \\33\`;
+    return \`Sample text \\6\`;
+    return \`Sample text \\125\`;
+    return \`Sample text \\0\`;
+    return \`Sample text \\-0\`;
+    return \`Sample text \\\\\\0\`;
+    return \`Sample text \\\\\\-0\`;
+    return \`Sample text \\-035\`;
+    return \`Sample text \\-235\`;
+}`;
+        TestHelper.assertViolations(ruleName, inputFile, [
+            {
+                "failure": "Octal literals should not be used: \\351",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 6 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\354",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 7 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\33",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 8 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\6",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 9 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\125",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 10 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 11 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\-0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 12 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 27, "line": 13 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\-0",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 27, "line": 14 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\-035",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 15 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\-235",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 16 }
+            }
+        ]);
+    });
+
+    it('should produce violations - batch4', () : void => {
+        const inputFile : string = `
+/**
+ * The following code should have errors:
+ */
+function demoScriptFail4() {
+    return 'Sample text \\354 \\n more text';
+    return 'Sample text \\354 \\t more text';
+    return 'Sample text \\354 \\u2028 more text';
+    return 'Sample text \\354 \\u2029 more text';
+    return \`Sample text \\354
+more text\`;
+}`;
+        TestHelper.assertViolations(ruleName, inputFile, [
+            {
+                "failure": "Octal literals should not be used: \\354",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 6 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\354",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 7 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\354",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 8 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\354",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 9 }
+            },
+            {
+                "failure": "Octal literals should not be used: \\354",
+                "name": "file.ts",
+                "ruleName": "no-octal-literal",
+                "ruleSeverity": "ERROR",
+                "startPosition": { "character": 25, "line": 10 }
             }
         ]);
     });
diff --git a/test-data/NoOctalLiteral/NoOctalLiteralTestInput-passing.ts b/test-data/NoOctalLiteral/NoOctalLiteralTestInput-passing.ts
index 5ee28e66d..95d9926fc 100644
--- a/test-data/NoOctalLiteral/NoOctalLiteralTestInput-passing.ts
+++ b/test-data/NoOctalLiteral/NoOctalLiteralTestInput-passing.ts
@@ -1,4 +1,16 @@
 function demoScriptPass1() {
-    var x = "Sample text \xB2";
-    var y = "Sample text \0111"; // longer than octal
+    var w1 = "Sample text \xB2";
+    var x1 = "Sample text \0111"; // longer than octal
+    var y1 = "Sample text \\1";
+    var z1 = "Sample text \\\\1";
+
+    var w2 = 'Sample text \xB2';
+    var x2 = 'Sample text \0111'; // longer than octal
+    var y2 = 'Sample text \\1';
+    var z2 = 'Sample text \\\\1';
+
+    var w3 = `Sample text \xB2`;
+    var x3 = `Sample text \0111`; // longer than octal
+    var y3 = `Sample text \\1`;
+    var z3 = `Sample text \\\\1`;
 };