diff --git a/README.md b/README.md
index 2031647..37fe4ab 100644
--- a/README.md
+++ b/README.md
@@ -6,21 +6,36 @@ Outputs an AST defined by [parser.pegjs].
 The generated parser function takes two parameters, first the string to be
 parsed, and a second optional parameter `options`, an object.
 
-The options object contains arrays
+The `options` object contains arrays
 of keywords for `cardinal` and `ordinal` rules for the current locale – these
 are used to validate plural and selectordinal keys. If `options` or its fields
 are missing or set to false, the full set of valid [Unicode CLDR] keys is used:
 `'zero', 'one', 'two', 'few', 'many', 'other'`. To disable this check, pass in
 an empty array.
 
-The `options` object also supports a setting that makes the parser
-follow the ICU MessageFormat spec more closely: `strictFunctionParams`.
+The `options` object also supports two settings that make the parser
+follow the ICU MessageFormat spec more closely: `strictNumberSign` and `strictFunctionParams`.
+
+Inside a `plural` or `selectordinal` statement, a pound symbol (`#`) is replaced
+with the input number. By default, `#` is parsed as a special character
+in nested statements too, and can be escaped using apostrophes (`'#'`).
+
+Setting `strictNumberSign` to true will only parse `#` as a special character
+directly inside a `plural` or `selectordinal` statement.
+Outside those, `#` and `'#'` are parsed as literal text.
 
 By default, function parameters are split on commas and trimmed,
 so the parameters in `{x,fn,   a,   b   }` are parsed as `['a','b']`.
 Setting `strictFunctionParams` to true will result in a params array
 with a single element: `['   a,   b   ']`.
 
+The parser only supports the `DOUBLE_OPTIONAL` apostrophe mode.
+A single apostrophe only starts quoted literal text if preceded
+by a curly brace (`{}`) or a pound symbol (`#`) inside a
+`plural` or `selectordinal` statement, depending on the value of `strictNumberSign`.
+Otherwise, it is a literal apostrophe. A double apostrophe is always
+a literal apostrophe.
+
 [ICU MessageFormat]: https://messageformat.github.io/guide/
 [messageformat.js]: https://messageformat.github.io/
 [parser.pegjs]: ./parser.pegjs
diff --git a/parser.pegjs b/parser.pegjs
index 918bccb..30ac5ad 100644
--- a/parser.pegjs
+++ b/parser.pegjs
@@ -1,8 +1,12 @@
+{
+  var inPlural = false;
+}
+
 start = token*
 
 token
   = argument / select / plural / function
-  / '#' { return { type: 'octothorpe' }; }
+  / '#' & { return inPlural; } { return { type: 'octothorpe' }; }
   / str:char+ { return str.join(''); }
 
 argument = '{' _ arg:id _ '}' {
@@ -12,7 +16,7 @@ argument = '{' _ arg:id _ '}' {
     };
   }
 
-select = '{' _ arg:id _ ',' _ 'select' _ ',' _ cases:selectCase+ _ '}' {
+select = '{' _ arg:id _ ',' _ (m:'select' { if (options.strictNumberSign) { inPlural = false; } return m; }) _ ',' _ cases:selectCase+ _ '}' {
     return {
       type: 'select',
       arg: arg,
@@ -20,7 +24,7 @@ select = '{' _ arg:id _ ',' _ 'select' _ ',' _ cases:selectCase+ _ '}' {
     };
   }
 
-plural = '{' _ arg:id _ ',' _ type:('plural'/'selectordinal') _ ',' _ offset:offset? cases:pluralCase+ _ '}' {
+plural = '{' _ arg:id _ ',' _ type:(m:('plural'/'selectordinal') { inPlural = true; return m; } ) _ ',' _ offset:offset? cases:pluralCase+ _ '}' {
     var ls = ((type === 'selectordinal') ? options.ordinal : options.cardinal)
              || ['zero', 'one', 'two', 'few', 'many', 'other'];
     if (ls && ls.length) cases.forEach(function(c) {
@@ -29,6 +33,7 @@ plural = '{' _ arg:id _ ',' _ type:('plural'/'selectordinal') _ ',' _ offset:off
         ' Valid ' + type + ' keys for this locale are `' + ls.join('`, `') +
         '`, and explicit keys like `=0`.');
     });
+    inPlural = false;
     return {
       type: type,
       arg: arg,
@@ -37,7 +42,7 @@ plural = '{' _ arg:id _ ',' _ type:('plural'/'selectordinal') _ ',' _ offset:off
     };
   }
 
-function = '{' _ arg:id _ ',' _ key:id _ params:functionParams '}' {
+function = '{' _ arg:id _ ',' _ key:(m:id { if (options.strictNumberSign) { inPlural = false; } return m; }) _ params:functionParams '}' {
     return {
       type: 'function',
       arg: arg,
@@ -80,12 +85,20 @@ quotedCurly
   = "'{"str:inapos*"'" { return '\u007B'+str.join(''); }
   / "'}"str:inapos*"'" { return '\u007D'+str.join(''); }
 
+quoted
+  = quotedCurly
+  / quotedOcto:(("'#"str:inapos*"'" { return "#"+str.join(''); }) & { return inPlural; }) { return quotedOcto[0]; }
+  / "'"
+
 quotedFunctionParams
   = quotedCurly
   / "'"
 
 char
-  = [^{}#\\\0-\x08\x0e-\x1f\x7f]
+  = doubleapos
+  / quoted
+  / octo:'#' & { return !inPlural; } { return octo; }
+  / [^{}#\\\0-\x08\x0e-\x1f\x7f]
   / '\\\\' { return '\\'; }
   / '\\#' { return '#'; }
   / '\\{' { return '\u007B'; }
diff --git a/test.js b/test.js
index b2540f0..4478231 100644
--- a/test.js
+++ b/test.js
@@ -80,6 +80,19 @@ describe("Replacement", function() {
     expect(parse('one {plural} ')[1].arg).to.eql('plural');
   });
 
+  it("should correctly handle apostrophes", function() {
+    // This mirrors the default DOUBLE_OPTIONAL behavior of ICU.
+    expect(parse("I see '{many}'")[0]).to.eql("I see {many}");
+    expect(parse("I said '{''Wow!''}'")[0]).to.eql("I said {'Wow!'}");
+    expect(parse("I don't know")[0]).to.eql("I don't know");
+    expect(parse("I don''t know")[0]).to.eql("I don't know");
+    expect(parse("A'a''a'A")[0]).to.eql("A'a'a'A");
+    expect(parse("A'{a''a}'A")[0]).to.eql("A{a'a}A");
+
+    // # and | are not special here.
+    expect(parse("A '#' A")[0]).to.eql("A '#' A");
+    expect(parse("A '|' A")[0]).to.eql("A '|' A");
+  });
 });
 describe("Simple arguments", function() {
 
@@ -216,6 +229,30 @@ describe("Plurals", function() {
     ).to.eql(4);
   });
 
+  it("should support quoting", function() {
+    expect(parse("{NUM, plural, one{{x,date,y-M-dd # '#'}} two{two}}")[0].cases[0].tokens[0].type).to.eql('function');
+    expect(parse("{NUM, plural, one{{x,date,y-M-dd # '#'}} two{two}}")[0].cases[0].tokens[0].arg).to.eql('x');
+    expect(parse("{NUM, plural, one{{x,date,y-M-dd # '#'}} two{two}}")[0].cases[0].tokens[0].key).to.eql('date');
+    // Octothorpe is not special here regardless of strict number sign
+    expect(parse("{NUM, plural, one{{x,date,y-M-dd # '#'}} two{two}}")[0].cases[0].tokens[0].params[0]).to.eql("y-M-dd # '#'");
+
+    expect(parse("{NUM, plural, one{# '' #} two{two}}")[0].cases[0].tokens[0].type).to.eql('octothorpe');
+    expect(parse("{NUM, plural, one{# '' #} two{two}}")[0].cases[0].tokens[1]).to.eql(" ' ");
+    expect(parse("{NUM, plural, one{# '' #} two{two}}")[0].cases[0].tokens[2].type).to.eql('octothorpe');
+    expect(parse("{NUM, plural, one{# '#'} two{two}}")[0].cases[0].tokens[0].type).to.eql('octothorpe');
+    expect(parse("{NUM, plural, one{# '#'} two{two}}")[0].cases[0].tokens[1]).to.eql(" #");
+
+    expect(parse("{NUM, plural, one{one#} two{two}}")[0].cases[0].tokens[0]).to.eql('one');
+    expect(parse("{NUM, plural, one{one#} two{two}}")[0].cases[0].tokens[1].type).to.eql('octothorpe');
+
+    // without strict number sign
+    expect(parse("{NUM, plural, one{# {VAR,select,key{# '#' one#}}} two{two}}")[0].cases[0].tokens[2].cases[0].tokens[0].type).to.eql('octothorpe')
+    expect(parse("{NUM, plural, one{# {VAR,select,key{# '#' one#}}} two{two}}")[0].cases[0].tokens[2].cases[0].tokens[1]).to.eql(' # one')
+    expect(parse("{NUM, plural, one{# {VAR,select,key{# '#' one#}}} two{two}}")[0].cases[0].tokens[2].cases[0].tokens[2].type).to.eql('octothorpe')
+    // with strict number sign
+    expect(parse("{NUM, plural, one{# {VAR,select,key{# '#' one#}}} two{two}}", { strictNumberSign: true })[0].cases[0].tokens[2].cases[0].tokens[0]).to.eql('# \'#\' one#')
+  });
+
 });
 describe("Ordinals", function() {