diff --git a/modules/core/src/compiler/pipeline/text_interpolation_parser.js b/modules/core/src/compiler/pipeline/text_interpolation_parser.js
index 4300201de1..cf1588ccdc 100644
--- a/modules/core/src/compiler/pipeline/text_interpolation_parser.js
+++ b/modules/core/src/compiler/pipeline/text_interpolation_parser.js
@@ -1,4 +1,4 @@
-import {RegExpWrapper, StringWrapper} from 'facade/lang';
+import {RegExpWrapper, StringWrapper, isPresent} from 'facade/lang';
 import {Node, DOM} from 'facade/dom';
 
 import {CompileStep} from './compile_step';
@@ -7,6 +7,7 @@ import {CompileControl} from './compile_control';
 
 // TODO(tbosch): Cannot make this const/final right now because of the transpiler...
 var INTERPOLATION_REGEXP = RegExpWrapper.create('\\{\\{(.*?)\\}\\}');
+var QUOTE_REGEXP = RegExpWrapper.create("'");
 
 /**
  * Parses interpolations in direct text child nodes of the current element.
@@ -27,23 +28,30 @@ export class TextInterpolationParser extends CompileStep {
   }
 
   _parseTextNode(pipelineElement, node, nodeIndex) {
-    // TODO: escape fixed string quotes
-    // TODO: add braces around the expression
-    // TODO: suppress empty strings
-    // TODO: add stringify formatter
+    // TODO: add stringify formatter when we support formatters
     var parts = StringWrapper.split(node.nodeValue, INTERPOLATION_REGEXP);
     if (parts.length > 1) {
+      var expression = '';
       for (var i=0; i<parts.length; i++) {
+        var expressionPart = null;
         if (i%2 === 0) {
           // fixed string
-          parts[i] = "'" + parts[i] + "'";
+          if (parts[i].length > 0) {
+            expressionPart = "'" + StringWrapper.replaceAll(parts[i], QUOTE_REGEXP, "\\'") + "'";
+          }
         } else {
           // expression
-          parts[i] = "" + parts[i] + "";
+          expressionPart = "(" + parts[i] + ")";
+        }
+        if (isPresent(expressionPart)) {
+          if (expression.length > 0) {
+            expression += '+';
+          }
+          expression += expressionPart;
         }
       }
       DOM.setText(node, ' ');
-      pipelineElement.addTextNodeBinding(nodeIndex, parts.join('+'));
+      pipelineElement.addTextNodeBinding(nodeIndex, expression);
     }
   }
 }
diff --git a/modules/core/test/compiler/pipeline/text_interpolation_parser_spec.js b/modules/core/test/compiler/pipeline/text_interpolation_parser_spec.js
index e73cc181f5..886b884164 100644
--- a/modules/core/test/compiler/pipeline/text_interpolation_parser_spec.js
+++ b/modules/core/test/compiler/pipeline/text_interpolation_parser_spec.js
@@ -13,15 +13,32 @@ export function main() {
     it('should find text interpolation in normal elements', () => {
       var results = createPipeline().process(createElement('<div>{{expr1}}<span></span>{{expr2}}</div>'));
       var bindings = results[0].textNodeBindings;
-      expect(MapWrapper.get(bindings, 0)).toEqual("''+expr1+''");
-      expect(MapWrapper.get(bindings, 2)).toEqual("''+expr2+''");
+      expect(MapWrapper.get(bindings, 0)).toEqual("(expr1)");
+      expect(MapWrapper.get(bindings, 2)).toEqual("(expr2)");
     });
 
     it('should find text interpolation in template elements', () => {
       var results = createPipeline().process(createElement('<template>{{expr1}}<span></span>{{expr2}}</template>'));
       var bindings = results[0].textNodeBindings;
-      expect(MapWrapper.get(bindings, 0)).toEqual("''+expr1+''");
-      expect(MapWrapper.get(bindings, 2)).toEqual("''+expr2+''");
+      expect(MapWrapper.get(bindings, 0)).toEqual("(expr1)");
+      expect(MapWrapper.get(bindings, 2)).toEqual("(expr2)");
+    });
+
+    it('should allow multiple expressions', () => {
+      var results = createPipeline().process(createElement('<div>{{expr1}}{{expr2}}</div>'));
+      var bindings = results[0].textNodeBindings;
+      expect(MapWrapper.get(bindings, 0)).toEqual("(expr1)+(expr2)");
+    });
+
+    it('should allow fixed text before, in between and after expressions', () => {
+      var results = createPipeline().process(createElement('<div>a{{expr1}}b{{expr2}}c</div>'));
+      var bindings = results[0].textNodeBindings;
+      expect(MapWrapper.get(bindings, 0)).toEqual("'a'+(expr1)+'b'+(expr2)+'c'");
+    });
+
+    it('should escape quotes in fixed parts', () => {
+      var results = createPipeline().process(createElement("<div>'\"a{{expr1}}</div>"));
+      expect(MapWrapper.get(results[0].textNodeBindings, 0)).toEqual("'\\'\"a'+(expr1)");
     });
   });
 }
diff --git a/modules/facade/src/lang.dart b/modules/facade/src/lang.dart
index aab695d4e6..989c7fd9e2 100644
--- a/modules/facade/src/lang.dart
+++ b/modules/facade/src/lang.dart
@@ -76,6 +76,10 @@ class StringWrapper {
   static equals(String s, String s2) {
     return s == s2;
   }
+
+  static String replaceAll(String s, RegExp from, String replace) {
+    return s.replaceAll(from, replace);
+  }
 }
 
 class StringJoiner {
diff --git a/modules/facade/src/lang.es6 b/modules/facade/src/lang.es6
index 62c66aef1b..552bffd571 100644
--- a/modules/facade/src/lang.es6
+++ b/modules/facade/src/lang.es6
@@ -66,6 +66,10 @@ export class StringWrapper {
   static equals(s:string, s2:string) {
     return s === s2;
   }
+
+  static replaceAll(s:string, from:RegExp, replace:string) {
+    return s.replace(from.multiple, replace);
+  }
 }
 
 export class StringJoiner {