diff --git a/docs/reference.md b/docs/reference.md
index 1f357bb..2d2b158 100644
--- a/docs/reference.md
+++ b/docs/reference.md
@@ -64,11 +64,19 @@ Comments are not written to the output.
 
 ## Literals & Operators
 
-MoonScript supports all the same primitive literals as Lua and uses the same
-syntax. This applies to numbers, strings, booleans, and `nil`.
+All of the primitive literals in Lua can be used. This applies to numbers,
+strings, booleans, and `nil`.
 
-MoonScript also supports all the same binary and unary operators. Additionally
-`!=` is as an alias for `~=`.
+All of Lua's binary and unary operators are available. Additionally `!=` is as
+an alias for `~=`.
+
+Unlike Lua, Line breaks are allowed inside of single and double quote strings
+without an escape sequence:
+
+```moon
+some_string = "Here is a string
+	that has a line break in it."
+```
 
 ## Function Literals
 
diff --git a/moonscript/compile/value.lua b/moonscript/compile/value.lua
index 19a160f..28b2cb3 100644
--- a/moonscript/compile/value.lua
+++ b/moonscript/compile/value.lua
@@ -13,6 +13,10 @@ end
 local concat, insert = table.concat, table.insert
 local unpack = util.unpack
 local table_delim = ","
+local string_chars = {
+  ["\r"] = "\\r",
+  ["\n"] = "\\n"
+}
 local value_compilers = {
   exp = function(self, node)
     local _comp
@@ -61,6 +65,9 @@ local value_compilers = {
   string = function(self, node)
     local _, delim, inner = unpack(node)
     local end_delim = delim:gsub("%[", "]")
+    if delim == "'" or delim == '"' then
+      inner = inner:gsub("[\r\n]", string_chars)
+    end
     return delim .. inner .. end_delim
   end,
   chain = function(self, node)
diff --git a/moonscript/compile/value.moon b/moonscript/compile/value.moon
index 52006ed..89b21e9 100644
--- a/moonscript/compile/value.moon
+++ b/moonscript/compile/value.moon
@@ -9,6 +9,11 @@ import unpack from util
 
 table_delim = ","
 
+string_chars = {
+  "\r": "\\r"
+  "\n": "\\n"
+}
+
 value_compilers =
   -- list of values separated by binary operators
   exp: (node) =>
@@ -31,6 +36,9 @@ value_compilers =
   string: (node) =>
     _, delim, inner = unpack node
     end_delim = delim\gsub "%[", "]"
+    if delim == "'" or delim == '"'
+      inner = inner\gsub "[\r\n]", string_chars
+
     delim..inner..end_delim
 
   chain: (node) =>
diff --git a/moonscript/parse.lua b/moonscript/parse.lua
index f6d04c2..a4e36b9 100644
--- a/moonscript/parse.lua
+++ b/moonscript/parse.lua
@@ -227,7 +227,7 @@ local function symx(chars)
 end
 
 local function simple_string(delim, allow_interpolation)
-	local inner = P('\\'..delim) + "\\\\" + (1 - S('\r\n'..delim))
+	local inner = P('\\'..delim) + "\\\\" + (1 - P(delim))
 	if allow_interpolation then
 		inter = symx"#{" * V"Exp" * sym"}"
 		inner = (C((inner - inter)^1) + inter / mark"interpolate")^0
diff --git a/tests/inputs/literals.moon b/tests/inputs/literals.moon
index 125b494..7f58b6e 100644
--- a/tests/inputs/literals.moon
+++ b/tests/inputs/literals.moon
@@ -23,3 +23,16 @@
 "another world"
 
 'what world'
+
+
+"
+hello world
+"
+
+'yeah
+what is going on
+here is something cool'
+
+
+nil
+
diff --git a/tests/outputs/literals.lua b/tests/outputs/literals.lua
index 93c0629..b49c57a 100644
--- a/tests/outputs/literals.lua
+++ b/tests/outputs/literals.lua
@@ -14,4 +14,7 @@ _ = [[ hello world ]]
 _ = [=[ hello world ]=]
 _ = [====[ hello world ]====]
 _ = "another world"
-return 'what world'
\ No newline at end of file
+_ = 'what world'
+_ = "\nhello world\n"
+_ = 'yeah\nwhat is going on\nhere is something cool'
+return nil
\ No newline at end of file