diff --git a/packages/compiler-cli/src/ngtsc/translator/src/translator.ts b/packages/compiler-cli/src/ngtsc/translator/src/translator.ts
index 77456f8677..b951c820b5 100644
--- a/packages/compiler-cli/src/ngtsc/translator/src/translator.ts
+++ b/packages/compiler-cli/src/ngtsc/translator/src/translator.ts
@@ -552,27 +552,49 @@ export class TypeTranslatorVisitor implements ExpressionVisitor, TypeVisitor {
 function createLocalizedStringTaggedTemplate(
     ast: LocalizedString, context: Context, visitor: ExpressionVisitor) {
   let template: ts.TemplateLiteral;
+  const length = ast.messageParts.length;
   const metaBlock = ast.serializeI18nHead();
-  if (ast.messageParts.length === 1) {
+  if (length === 1) {
     template = ts.createNoSubstitutionTemplateLiteral(metaBlock.cooked, metaBlock.raw);
   } else {
+    // Create the head part
     const head = ts.createTemplateHead(metaBlock.cooked, metaBlock.raw);
     const spans: ts.TemplateSpan[] = [];
-    for (let i = 1; i < ast.messageParts.length; i++) {
+    // Create the middle parts
+    for (let i = 1; i < length - 1; i++) {
       const resolvedExpression = ast.expressions[i - 1].visitExpression(visitor, context);
       const templatePart = ast.serializeI18nTemplatePart(i);
-      const templateMiddle = ts.createTemplateMiddle(templatePart.cooked, templatePart.raw);
+      const templateMiddle = createTemplateMiddle(templatePart.cooked, templatePart.raw);
       spans.push(ts.createTemplateSpan(resolvedExpression, templateMiddle));
     }
-    if (spans.length > 0) {
-      // The last span is supposed to have a tail rather than a middle
-      spans[spans.length - 1].literal.kind = ts.SyntaxKind.TemplateTail;
-    }
+    // Create the tail part
+    const resolvedExpression = ast.expressions[length - 2].visitExpression(visitor, context);
+    const templatePart = ast.serializeI18nTemplatePart(length - 1);
+    const templateTail = createTemplateTail(templatePart.cooked, templatePart.raw);
+    spans.push(ts.createTemplateSpan(resolvedExpression, templateTail));
+    // Put it all together
     template = ts.createTemplateExpression(head, spans);
   }
   return ts.createTaggedTemplate(ts.createIdentifier('$localize'), template);
 }
 
+
+// HACK: Use this in place of `ts.createTemplateMiddle()`.
+// Revert once https://github.com/microsoft/TypeScript/issues/35374 is fixed
+function createTemplateMiddle(cooked: string, raw: string): ts.TemplateMiddle {
+  const node: ts.TemplateLiteralLikeNode = ts.createTemplateHead(cooked, raw);
+  node.kind = ts.SyntaxKind.TemplateMiddle;
+  return node as ts.TemplateMiddle;
+}
+
+// HACK: Use this in place of `ts.createTemplateTail()`.
+// Revert once https://github.com/microsoft/TypeScript/issues/35374 is fixed
+function createTemplateTail(cooked: string, raw: string): ts.TemplateTail {
+  const node: ts.TemplateLiteralLikeNode = ts.createTemplateHead(cooked, raw);
+  node.kind = ts.SyntaxKind.TemplateTail;
+  return node as ts.TemplateTail;
+}
+
 /**
  * Translate the `LocalizedString` node into a `$localize` call using the imported
  * `__makeTemplateObject` helper for ES5 formatted output.
diff --git a/packages/compiler-cli/test/compliance/mock_compile.ts b/packages/compiler-cli/test/compliance/mock_compile.ts
index 859451d81d..6d55d1a376 100644
--- a/packages/compiler-cli/test/compliance/mock_compile.ts
+++ b/packages/compiler-cli/test/compliance/mock_compile.ts
@@ -78,7 +78,7 @@ function tokenizeBackTickString(str: string): Piece[] {
   const pieces: Piece[] = ['`'];
   // Unescape backticks that are inside the backtick string
   // (we had to double escape them in the test string so they didn't look like string markers)
-  str = str.replace(/\\\\\\`/, '\\`');
+  str = str.replace(/\\\\\\`/g, '\\`');
   const backTickPieces = str.slice(2, -2).split(BACKTICK_INTERPOLATION);
   backTickPieces.forEach((backTickPiece) => {
     if (BACKTICK_INTERPOLATION.test(backTickPiece)) {
diff --git a/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts b/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts
index 30002b1b0b..b1af024abd 100644
--- a/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts
+++ b/packages/compiler-cli/test/compliance/r3_view_compiler_i18n_spec.ts
@@ -956,23 +956,40 @@ describe('i18n support in the template compiler', () => {
 
     it('should properly escape quotes in content', () => {
       const input = `
-        <div i18n>Some text 'with single quotes', "with double quotes" and without quotes.</div>
+        <div i18n>Some text 'with single quotes', "with double quotes", \`with backticks\` and without quotes.</div>
       `;
 
       const output = String.raw `
         var $I18N_0$;
         if (ngI18nClosureMode) {
-            const $MSG_EXTERNAL_4924931801512133405$$APP_SPEC_TS_0$ = goog.getMsg("Some text 'with single quotes', \"with double quotes\" and without quotes.");
+            const $MSG_EXTERNAL_4924931801512133405$$APP_SPEC_TS_0$ = goog.getMsg("Some text 'with single quotes', \"with double quotes\", ` +
+          '`with backticks`' + String.raw ` and without quotes.");
             $I18N_0$ = $MSG_EXTERNAL_4924931801512133405$$APP_SPEC_TS_0$;
         }
         else {
-            $I18N_0$ = $localize \`Some text 'with single quotes', "with double quotes" and without quotes.\`;
+            $I18N_0$ = $localize \`Some text 'with single quotes', "with double quotes", \\\`with backticks\\\` and without quotes.\`;
         }
       `;
 
       verify(input, output);
     });
 
+    it('should handle interpolations wrapped in backticks', () => {
+      const input = '<div i18n>`{{ count }}`</div>';
+      const output = String.raw `
+      var $I18N_0$;
+      if (ngI18nClosureMode) {
+          const $MSG_APP_SPEC_TS_1$ = goog.getMsg("` +
+          '`{$interpolation}`' + String.raw `", { "interpolation": "\uFFFD0\uFFFD" });
+          $I18N_0$ = $MSG_APP_SPEC_TS_1$;
+      }
+      else {
+          $I18N_0$ = $localize \`\\\`$` +
+          String.raw `{"\uFFFD0\uFFFD"}:INTERPOLATION:\\\`\`;
+      }`;
+      verify(input, output);
+    });
+
     it('should handle i18n attributes with plain-text content', () => {
       const input = `
         <div i18n>My i18n block #1</div>