diff --git a/wp-includes/js/tinymce/plugins/wptextpattern/plugin.js b/wp-includes/js/tinymce/plugins/wptextpattern/plugin.js
index e85a4857c2..236775034c 100644
--- a/wp-includes/js/tinymce/plugins/wptextpattern/plugin.js
+++ b/wp-includes/js/tinymce/plugins/wptextpattern/plugin.js
@@ -3,12 +3,46 @@
  *
  * @since 4.3.0
  *
- * This plugin can automatically format text patterns as you type. It includes two patterns:
+ * This plugin can automatically format text patterns as you type. It includes several groups of patterns.
+ *
+ * Start of line patterns:
+ *  As-you-type:
  *  - Unordered list (`* ` and `- `).
  *  - Ordered list (`1. ` and `1) `).
  *
+ *  On enter:
+ *  - h2 (## ).
+ *  - h3 (### ).
+ *  - h4 (#### ).
+ *  - h5 (##### ).
+ *  - h6 (###### ).
+ *  - blockquote (> ).
+ *  - hr (---).
+ *
+ * Inline patterns:
+ *  - <code> (`) (backtick).
+ *
  * If the transformation in unwanted, the user can undo the change by pressing backspace,
  * using the undo shortcut, or the undo button in the toolbar.
+ *
+ * Setting for the patterns can be overridden by plugins by using the `tiny_mce_before_init` PHP filter.
+ * The setting name is `wptextpattern` and the value is an object containing override arrays for each
+ * patterns group. There are three groups: "space", "enter", and "inline". Example (PHP):
+ *
+ * add_filter( 'tiny_mce_before_init', 'my_mce_init_wptextpattern' );
+ * function my_mce_init_wptextpattern( $init ) {
+ *   $init['wptextpattern'] = wp_json_encode( array(
+ *      'inline' => array(
+ *        array( 'delimiter' => '**', 'format' => 'bold' ),
+ *        array( 'delimiter' => '__', 'format' => 'italic' ),
+ *      ),
+ *   ) );
+ *
+ *   return $init;
+ * }
+ *
+ * Note that setting this will override the default text patterns. You will need to include them
+ * in your settings array if you want to keep them working.
  */
 ( function( tinymce, setTimeout ) {
 	if ( tinymce.Env.ie && tinymce.Env.ie < 9 ) {
@@ -46,19 +80,10 @@
 		];
 
 		var inlinePatterns = settings.inline || [
-			{ start: '`', end: '`', format: 'code' }
+			{ delimiter: '`', format: 'code' }
 		];
 
 		var canUndo;
-		var chars = [];
-
-		tinymce.each( inlinePatterns, function( pattern ) {
-			tinymce.each( ( pattern.start + pattern.end ).split( '' ), function( c ) {
-				if ( tinymce.inArray( chars, c ) === -1 ) {
-					chars.push( c );
-				}
-			} );
-		} );
 
 		editor.on( 'selectionchange', function() {
 			canUndo = null;
@@ -100,28 +125,44 @@
 				return;
 			}
 
-			// The ending character should exist in the patterns registered.
-			if ( tinymce.inArray( chars, node.data.charAt( offset - 1 ) ) === -1 ) {
-				return;
-			}
-
 			var string = node.data.slice( 0, offset );
+			var lastChar = node.data.charAt( offset - 1 );
 
 			tinymce.each( inlinePatterns, function( p ) {
-				var regExp = new RegExp( escapeRegExp( p.start ) + '\\S+' + escapeRegExp( p.end ) + '$' );
+				// Character before selection should be delimiter.
+				if ( lastChar !== p.delimiter.slice( -1 ) ) {
+					return;
+				}
+
+				var escDelimiter = escapeRegExp( p.delimiter );
+				var delimiterFirstChar = p.delimiter.charAt( 0 );
+				var regExp = new RegExp( '(.*)' + escDelimiter + '.+' + escDelimiter + '$' );
 				var match = string.match( regExp );
 
 				if ( ! match ) {
 					return;
 				}
 
-				// Don't allow pattern characters in the text.
-				if ( node.data.slice( match.index + p.start.length, offset - p.end.length ).indexOf( p.start.slice( 0, 1 ) ) !== -1 ) {
+				startOffset = match[1].length;
+				endOffset = offset - p.delimiter.length;
+
+				var before = string.charAt( startOffset - 1 );
+				var after = string.charAt( startOffset + p.delimiter.length );
+
+				// test*test* => format applied
+				// test *test* => applied
+				// test* test* => not applied
+				if ( startOffset && /\S/.test( before ) ) {
+					if ( /\s/.test( after ) || before === delimiterFirstChar ) {
+						return;
+					}
+				}
+
+				// Do not replace when only whitespace and delimiter characters.
+				if ( ( new RegExp( '^[\\s' + escapeRegExp( delimiterFirstChar ) + ']+$' ) ).test( string.slice( startOffset, endOffset ) ) ) {
 					return;
 				}
 
-				startOffset = match.index;
-				endOffset = offset - p.end.length;
 				pattern = p;
 
 				return false;
@@ -142,8 +183,8 @@
 					node = node.splitText( startOffset );
 					zero = node.splitText( offset - startOffset );
 
-					node.deleteData( 0, pattern.start.length );
-					node.deleteData( node.data.length - pattern.end.length, pattern.end.length );
+					node.deleteData( 0, pattern.delimiter.length );
+					node.deleteData( node.data.length - pattern.delimiter.length, pattern.delimiter.length );
 
 					editor.formatter.apply( pattern.format, {}, node );
 
diff --git a/wp-includes/js/tinymce/plugins/wptextpattern/plugin.min.js b/wp-includes/js/tinymce/plugins/wptextpattern/plugin.min.js
index 3622f4d7ab..c4e7cbba50 100644
--- a/wp-includes/js/tinymce/plugins/wptextpattern/plugin.min.js
+++ b/wp-includes/js/tinymce/plugins/wptextpattern/plugin.min.js
@@ -1 +1 @@
-!function(a,b){function c(a){return a.replace(/[\-\[\]\/\{\}\(\)\*\+\?\.\\\^\$\|]/g,"\\$&")}a.Env.ie&&a.Env.ie<9||a.PluginManager.add("wptextpattern",function(d){function e(){var e,f,g,h,i,k=d.selection.getRng(),l=k.startContainer,m=k.startOffset;if(l&&3===l.nodeType&&l.data.length&&m&&a.inArray(p,l.data.charAt(m-1))!==-1){var n=l.data.slice(0,m);a.each(o,function(a){var b=new RegExp(c(a.start)+"\\S+"+c(a.end)+"$"),d=n.match(b);if(d&&l.data.slice(d.index+a.start.length,m-a.end.length).indexOf(a.start.slice(0,1))===-1)return e=d.index,f=m-a.end.length,g=a,!1}),g&&(h=d.formatter.get(g.format),h&&h[0].inline&&(d.undoManager.add(),d.undoManager.transact(function(){l.insertData(m,"\ufeff"),l=l.splitText(e),i=l.splitText(m-e),l.deleteData(0,g.start.length),l.deleteData(l.data.length-g.end.length,g.end.length),d.formatter.apply(g.format,{},l),d.selection.setCursorLocation(i,1)}),b(function(){j="space",d.once("selectionchange",function(){var a;i&&(a=i.data.indexOf("\ufeff"),a!==-1&&i.deleteData(a,a+1))})})))}}function f(a){var b,c=d.dom.getParent(a,"p");if(c){for(;(b=c.firstChild)&&3!==b.nodeType;)c=b;if(b)return b.data||(b=b.nextSibling&&3===b.nextSibling.nodeType?b.nextSibling:null),b}}function g(){var c,e,g=d.selection.getRng(),h=g.startContainer;h&&f(h)===h&&(c=h.parentNode,e=h.data,a.each(m,function(a){var f=e.match(a.regExp);if(f&&g.startOffset===f[0].length)return d.undoManager.add(),d.undoManager.transact(function(){h.deleteData(0,f[0].length),c.innerHTML||c.appendChild(document.createElement("br")),d.selection.setCursorLocation(c),d.execCommand(a.cmd)}),b(function(){j="space"}),!1}))}function h(){var c,e,g,h=d.selection.getRng(),k=h.startContainer,l=f(k),m=n.length;if(l){for(c=l.data;m--;)if(n[m].start){if(0===c.indexOf(n[m].start)){e=n[m];break}}else if(n[m].regExp&&n[m].regExp.test(c)){e=n[m];break}e&&(l===k&&a.trim(c)===e.start||d.once("keyup",function(){d.undoManager.add(),d.undoManager.transact(function(){e.format?(d.formatter.apply(e.format,{},l),l.replaceData(0,l.data.length,i(l.data.slice(e.start.length)))):e.element&&(g=l.parentNode&&l.parentNode.parentNode,g&&g.replaceChild(document.createElement(e.element),l.parentNode))}),b(function(){j="enter"})}))}}function i(a){return a?a.replace(/^\s+/,""):""}var j,k=a.util.VK,l=d.settings.wptextpattern||{},m=l.space||[{regExp:/^[*-]\s/,cmd:"InsertUnorderedList"},{regExp:/^1[.)]\s/,cmd:"InsertOrderedList"}],n=l.enter||[{start:"##",format:"h2"},{start:"###",format:"h3"},{start:"####",format:"h4"},{start:"#####",format:"h5"},{start:"######",format:"h6"},{start:">",format:"blockquote"},{regExp:/^(-){3,}$/,element:"hr"}],o=l.inline||[{start:"`",end:"`",format:"code"}],p=[];a.each(o,function(b){a.each((b.start+b.end).split(""),function(b){a.inArray(p,b)===-1&&p.push(b)})}),d.on("selectionchange",function(){j=null}),d.on("keydown",function(a){(j&&27===a.keyCode||"space"===j&&a.keyCode===k.BACKSPACE)&&(d.undoManager.undo(),a.preventDefault(),a.stopImmediatePropagation()),k.metaKeyPressed(a)||(a.keyCode===k.ENTER?h():a.keyCode===k.SPACEBAR?b(g):a.keyCode>47&&!(a.keyCode>=91&&a.keyCode<=93)&&b(e))},!0)})}(window.tinymce,window.setTimeout);
\ No newline at end of file
+!function(a,b){function c(a){return a.replace(/[\-\[\]\/\{\}\(\)\*\+\?\.\\\^\$\|]/g,"\\$&")}a.Env.ie&&a.Env.ie<9||a.PluginManager.add("wptextpattern",function(d){function e(){var e,f,g,h,i,k=d.selection.getRng(),l=k.startContainer,m=k.startOffset;if(l&&3===l.nodeType&&l.data.length&&m){var n=l.data.slice(0,m),p=l.data.charAt(m-1);a.each(o,function(a){if(p===a.delimiter.slice(-1)){var b=c(a.delimiter),d=a.delimiter.charAt(0),h=new RegExp("(.*)"+b+".+"+b+"$"),i=n.match(h);if(i){e=i[1].length,f=m-a.delimiter.length;var j=n.charAt(e-1),k=n.charAt(e+a.delimiter.length);if(!(e&&/\S/.test(j)&&(/\s/.test(k)||j===d)||new RegExp("^[\\s"+c(d)+"]+$").test(n.slice(e,f))))return g=a,!1}}}),g&&(h=d.formatter.get(g.format),h&&h[0].inline&&(d.undoManager.add(),d.undoManager.transact(function(){l.insertData(m,"\ufeff"),l=l.splitText(e),i=l.splitText(m-e),l.deleteData(0,g.delimiter.length),l.deleteData(l.data.length-g.delimiter.length,g.delimiter.length),d.formatter.apply(g.format,{},l),d.selection.setCursorLocation(i,1)}),b(function(){j="space",d.once("selectionchange",function(){var a;i&&(a=i.data.indexOf("\ufeff"),a!==-1&&i.deleteData(a,a+1))})})))}}function f(a){var b,c=d.dom.getParent(a,"p");if(c){for(;(b=c.firstChild)&&3!==b.nodeType;)c=b;if(b)return b.data||(b=b.nextSibling&&3===b.nextSibling.nodeType?b.nextSibling:null),b}}function g(){var c,e,g=d.selection.getRng(),h=g.startContainer;h&&f(h)===h&&(c=h.parentNode,e=h.data,a.each(m,function(a){var f=e.match(a.regExp);if(f&&g.startOffset===f[0].length)return d.undoManager.add(),d.undoManager.transact(function(){h.deleteData(0,f[0].length),c.innerHTML||c.appendChild(document.createElement("br")),d.selection.setCursorLocation(c),d.execCommand(a.cmd)}),b(function(){j="space"}),!1}))}function h(){var c,e,g,h=d.selection.getRng(),k=h.startContainer,l=f(k),m=n.length;if(l){for(c=l.data;m--;)if(n[m].start){if(0===c.indexOf(n[m].start)){e=n[m];break}}else if(n[m].regExp&&n[m].regExp.test(c)){e=n[m];break}e&&(l===k&&a.trim(c)===e.start||d.once("keyup",function(){d.undoManager.add(),d.undoManager.transact(function(){e.format?(d.formatter.apply(e.format,{},l),l.replaceData(0,l.data.length,i(l.data.slice(e.start.length)))):e.element&&(g=l.parentNode&&l.parentNode.parentNode,g&&g.replaceChild(document.createElement(e.element),l.parentNode))}),b(function(){j="enter"})}))}}function i(a){return a?a.replace(/^\s+/,""):""}var j,k=a.util.VK,l=d.settings.wptextpattern||{},m=l.space||[{regExp:/^[*-]\s/,cmd:"InsertUnorderedList"},{regExp:/^1[.)]\s/,cmd:"InsertOrderedList"}],n=l.enter||[{start:"##",format:"h2"},{start:"###",format:"h3"},{start:"####",format:"h4"},{start:"#####",format:"h5"},{start:"######",format:"h6"},{start:">",format:"blockquote"},{regExp:/^(-){3,}$/,element:"hr"}],o=l.inline||[{delimiter:"`",format:"code"}];d.on("selectionchange",function(){j=null}),d.on("keydown",function(a){(j&&27===a.keyCode||"space"===j&&a.keyCode===k.BACKSPACE)&&(d.undoManager.undo(),a.preventDefault(),a.stopImmediatePropagation()),k.metaKeyPressed(a)||(a.keyCode===k.ENTER?h():a.keyCode===k.SPACEBAR?b(g):a.keyCode>47&&!(a.keyCode>=91&&a.keyCode<=93)&&b(e))},!0)})}(window.tinymce,window.setTimeout);
\ No newline at end of file
diff --git a/wp-includes/js/tinymce/wp-tinymce.js.gz b/wp-includes/js/tinymce/wp-tinymce.js.gz
index c212d1feb4..5f02c27425 100644
Binary files a/wp-includes/js/tinymce/wp-tinymce.js.gz and b/wp-includes/js/tinymce/wp-tinymce.js.gz differ
diff --git a/wp-includes/version.php b/wp-includes/version.php
index 6703fe25f9..d934c047ae 100644
--- a/wp-includes/version.php
+++ b/wp-includes/version.php
@@ -4,7 +4,7 @@
  *
  * @global string $wp_version
  */
-$wp_version = '4.7-beta2-39149';
+$wp_version = '4.7-beta2-39150';
 
 /**
  * Holds the WordPress DB revision, increments when changes are made to the WordPress DB schema.