diff --git a/manifest.json b/manifest.json
index 68a69ee1..2bcf7b53 100644
--- a/manifest.json
+++ b/manifest.json
@@ -1541,7 +1541,7 @@
       "tags": [
         "language"
       ],
-      "version": "0.2"
+      "version": "0.3"
     },
     {
       "description": "Syntax for ssh & sshd config files",
diff --git a/plugins/language_sh.lua b/plugins/language_sh.lua
index f8cf5521..8f38ca8d 100644
--- a/plugins/language_sh.lua
+++ b/plugins/language_sh.lua
@@ -1,21 +1,41 @@
 -- mod-version:3
 local syntax = require "core.syntax"
 
+local expansion_syntax = {
+  name = "Shell script parameter expansion",
+  symbols = {}
+}
+expansion_syntax.patterns = {
+    { pattern = { "%${", "}", "\\" }, type = "keyword2", syntax = expansion_syntax },
+    { pattern = "[^%$}]+",            type = "string" },
+    { pattern = "[%$}]",              type = "string" },
+}
+
+local string_syntax = {
+  name = "Shell script string",
+  patterns = {
+    { pattern = { "%${", "}", "\\" }, type = "keyword2", syntax = expansion_syntax },
+    { pattern = '[^%$"]+',            type = "string" },
+    { pattern = '[%$"]',              type = "string" },
+  },
+  symbols = {}
+}
+
 syntax.add {
   name = "Shell script",
-  files = { "%.sh$", "%.bash$", "^%.bashrc$", "^%.bash_profile$", "^%.profile$", "%.zsh$", "%.fish$" },
-  headers = "^#!.*bin.*sh\n",
+  files = { "%.sh$", "%.bash$", "%.bashrc$", "%.bash_profile$", "%.profile$", "%.zprofile$", "%.zsh$", "%.zshrc$", "%.fish$" },
+  headers = "^#!.*bin.*sh",
   comment = "#",
   patterns = {
     -- $# is a bash special variable and the '#' shouldn't be interpreted
     -- as a comment.
     { pattern = "$[%a_@*#][%w_]*",                type = "keyword2" },
     -- Comments
-    { pattern = "#.*\n",                          type = "comment"  },
+    { pattern = "#.*",                            type = "comment"  },
     -- Strings
-    { pattern = { '"', '"', '\\' },               type = "string"   },
-    { pattern = { "'", "'", '\\' },               type = "string"   },
-    { pattern = { '`', '`', '\\' },               type = "string"   },
+    { pattern = { '"', '"', '\\' },               type = "string", syntax = string_syntax },
+    { pattern = { "'", "'", '\\' },               type = "string"                         },
+    { pattern = { '`', '`', '\\' },               type = "string", syntax = ".sh"         },
     -- Ignore numbers that start with dots or slashes
     { pattern = "%f[%w_%.%/]%d[%d%.]*%f[^%w_%.]", type = "number"   },
     -- Operators
@@ -35,7 +55,7 @@ syntax.add {
     -- Match variable assignments
     { pattern = "[_%a][%w_]+%f[%+=]",              type = "keyword2" },
     -- Match variable expansions
-    { pattern = "${.-}",                           type = "keyword2" },
+    { pattern = { "${", "}", '\\' },               type = "keyword2", syntax = expansion_syntax },
     { pattern = "$[%d$%a_@*][%w_]*",               type = "keyword2" },
     -- Functions
     { pattern = "[%a_%-][%w_%-]*[%s]*%f[(]",       type = "function" },
@@ -95,4 +115,3 @@ syntax.add {
     ["false"]     = "literal"
   }
 }
-