diff --git a/autotests/folding/test.pbl.fold b/autotests/folding/test.pbl.fold
--- a/autotests/folding/test.pbl.fold
+++ b/autotests/folding/test.pbl.fold
@@ -75,11 +75,11 @@
 	first_time_only = no
 	<beginfold id='4'>[lua]</beginfold id='4'>
 		code =<beginfold id='1'> <<</beginfold id='1'>
-			function narrator(t)
+			<beginfold id='7'>function</beginfold id='7'> narrator(t)
 				-- Behave like the [message] tag.
 				wesnoth.fire("message",
-				  { speaker = "narrator", message = t.sentence })
-			end
+				  <beginfold id='8'>{</beginfold id='8'> speaker = "narrator", message = t.sentence <endfold id='8'>}</endfold id='8'>)
+			<endfold id='7'>end</endfold id='7'>
 		<endfold id='1'>>></endfold id='1'>
 	<endfold id='4'>[/lua]</endfold id='4'>
 <endfold id='4'>[/event]</endfold id='4'>
diff --git a/autotests/html/test.pbl.html b/autotests/html/test.pbl.html
--- a/autotests/html/test.pbl.html
+++ b/autotests/html/test.pbl.html
@@ -81,25 +81,25 @@
 	<span style="color:#0057ae;">first_time_only </span>= no
 	<span style="font-weight:bold;">[lua]</span>
 		<span style="color:#0057ae;">code </span>=<span style="color:#bf0303;"> &lt;&lt;</span>
-<span style="color:#898887;">			function narrator(t)</span>
-<span style="color:#898887;">				-- Behave like the [message] tag.</span>
-<span style="color:#898887;">				wesnoth.fire(&quot;message&quot;,</span>
-<span style="color:#898887;">				  { speaker = &quot;narrator&quot;, message = t.sentence })</span>
-<span style="color:#898887;">			end</span>
-<span style="color:#898887;">		</span><span style="color:#bf0303;">&gt;&gt;</span>
+			<span style="font-weight:bold;">function</span> narrator(<span style="color:#5555ff;">t</span>)
+				<span style="color:#898887;">-- Behave like the [message] tag.</span>
+				<span style="color:#5555ff;">wesnoth</span>.fire(<span style="color:#bf0303;">&quot;message&quot;</span>,
+				  { <span style="color:#5555ff;">speaker</span> = <span style="color:#bf0303;">&quot;narrator&quot;</span>, <span style="color:#5555ff;">message</span> = <span style="color:#5555ff;">t</span>.<span style="color:#5555ff;">sentence</span> })
+			<span style="color:#a1a100;">end</span>
+		<span style="color:#bf0303;">&gt;&gt;</span>
 	<span style="font-weight:bold;">[/lua]</span>
 <span style="font-weight:bold;">[/event]</span>
 
 <span style="font-weight:bold;">[event]</span>
 	<span style="color:#0057ae;">name </span>= turn 1
 	<span style="font-weight:bold;">[lua]</span>
-		<span style="color:#0057ae;">code </span>=<span style="color:#bf0303;"> &lt;&lt;</span><span style="color:#898887;"> narrator(...) </span><span style="color:#bf0303;">&gt;&gt;</span>
+		<span style="color:#0057ae;">code </span>=<span style="color:#bf0303;"> &lt;&lt;</span> narrator(...) <span style="color:#bf0303;">&gt;&gt;</span>
 		<span style="font-weight:bold;">[args]</span>
 			<span style="color:#0057ae;">sentence </span>= <span style="color:#bf0303;">_ &quot;Hello world!&quot;</span>
 		<span style="font-weight:bold;">[/args]</span>
 	<span style="font-weight:bold;">[/lua]</span>
 	<span style="font-weight:bold;">[lua]</span>
-		<span style="color:#0057ae;">code </span>=<span style="color:#bf0303;"> &lt;&lt;</span><span style="color:#898887;"> narrator(...) </span><span style="color:#bf0303;">&gt;&gt;</span>
+		<span style="color:#0057ae;">code </span>=<span style="color:#bf0303;"> &lt;&lt;</span> narrator(...) <span style="color:#bf0303;">&gt;&gt;</span>
 		<span style="font-weight:bold;">[args]</span>
 			<span style="color:#0057ae;">sentence </span>= <span style="color:#bf0303;">_ &quot;How are you today?&quot;</span>
 		<span style="font-weight:bold;">[/args]</span>
diff --git a/autotests/reference/test.pbl.ref b/autotests/reference/test.pbl.ref
--- a/autotests/reference/test.pbl.ref
+++ b/autotests/reference/test.pbl.ref
@@ -75,25 +75,25 @@
 <Normal WML Text>	</Normal WML Text><WML Attribute>first_time_only </WML Attribute><Normal WML Text>= no</Normal WML Text><br/>
 <Normal WML Text>	</Normal WML Text><WML Node>[lua]</WML Node><br/>
 <Normal WML Text>		</Normal WML Text><WML Attribute>code </WML Attribute><Normal WML Text>=</Normal WML Text><String> <<</String><br/>
-<Comment>			function narrator(t)</Comment><br/>
-<Comment>				-- Behave like the [message] tag.</Comment><br/>
-<Comment>				wesnoth.fire("message",</Comment><br/>
-<Comment>				  { speaker = "narrator", message = t.sentence })</Comment><br/>
-<Comment>			end</Comment><br/>
-<Comment>		</Comment><String>>></String><br/>
+<Normal Text>			</Normal Text><Keyword>function</Keyword><Normal Text> narrator</Normal Text><Symbols>(</Symbols><Variable>t</Variable><Symbols>)</Symbols><br/>
+<Normal Text>				</Normal Text><Comment>-- Behave like the [message] tag.</Comment><br/>
+<Normal Text>				</Normal Text><Variable>wesnoth</Variable><Symbols>.</Symbols><Normal Text>fire</Normal Text><Symbols>(</Symbols><Strings>"message"</Strings><Symbols>,</Symbols><br/>
+<Normal Text>				  </Normal Text><Symbols>{</Symbols><Normal Text> </Normal Text><Variable>speaker</Variable><Normal Text> </Normal Text><Symbols>=</Symbols><Normal Text> </Normal Text><Strings>"narrator"</Strings><Symbols>,</Symbols><Normal Text> </Normal Text><Variable>message</Variable><Normal Text> </Normal Text><Symbols>=</Symbols><Normal Text> </Normal Text><Variable>t</Variable><Symbols>.</Symbols><Variable>sentence</Variable><Normal Text> </Normal Text><Symbols>})</Symbols><br/>
+<Normal Text>			</Normal Text><Control>end</Control><br/>
+<Normal Text>		</Normal Text><String>>></String><br/>
 <Normal WML Text>	</Normal WML Text><WML Node>[/lua]</WML Node><br/>
 <WML Node>[/event]</WML Node><br/>
 <Normal WML Text></Normal WML Text><br/>
 <WML Node>[event]</WML Node><br/>
 <Normal WML Text>	</Normal WML Text><WML Attribute>name </WML Attribute><Normal WML Text>= turn 1</Normal WML Text><br/>
 <Normal WML Text>	</Normal WML Text><WML Node>[lua]</WML Node><br/>
-<Normal WML Text>		</Normal WML Text><WML Attribute>code </WML Attribute><Normal WML Text>=</Normal WML Text><String> <<</String><Comment> narrator(...) </Comment><String>>></String><br/>
+<Normal WML Text>		</Normal WML Text><WML Attribute>code </WML Attribute><Normal WML Text>=</Normal WML Text><String> <<</String><Normal Text> narrator</Normal Text><Symbols>(...)</Symbols><Normal Text> </Normal Text><String>>></String><br/>
 <Normal WML Text>		</Normal WML Text><WML Node>[args]</WML Node><br/>
 <Normal WML Text>			</Normal WML Text><WML Attribute>sentence </WML Attribute><Normal WML Text>= </Normal WML Text><String>_ "Hello world!"</String><br/>
 <Normal WML Text>		</Normal WML Text><WML Node>[/args]</WML Node><br/>
 <Normal WML Text>	</Normal WML Text><WML Node>[/lua]</WML Node><br/>
 <Normal WML Text>	</Normal WML Text><WML Node>[lua]</WML Node><br/>
-<Normal WML Text>		</Normal WML Text><WML Attribute>code </WML Attribute><Normal WML Text>=</Normal WML Text><String> <<</String><Comment> narrator(...) </Comment><String>>></String><br/>
+<Normal WML Text>		</Normal WML Text><WML Attribute>code </WML Attribute><Normal WML Text>=</Normal WML Text><String> <<</String><Normal Text> narrator</Normal Text><Symbols>(...)</Symbols><Normal Text> </Normal Text><String>>></String><br/>
 <Normal WML Text>		</Normal WML Text><WML Node>[args]</WML Node><br/>
 <Normal WML Text>			</Normal WML Text><WML Attribute>sentence </WML Attribute><Normal WML Text>= </Normal WML Text><String>_ "How are you today?"</String><br/>
 <Normal WML Text>		</Normal WML Text><WML Node>[/args]</WML Node><br/>
diff --git a/data/syntax/wml.xml b/data/syntax/wml.xml
--- a/data/syntax/wml.xml
+++ b/data/syntax/wml.xml
@@ -10,6 +10,7 @@
     * Fix infinite loop between the "section" & "error" contexts.
     * Only highlight tags with valid name format.
     * Don't highlight array indices as tags.
+    * Use new default styles & fix embedded Lua code.
 * 0.42
   - 2011-11-15 <shadowm2006@gmail.com>:
     * Added preprocessor directives: #error, #warning
@@ -59,7 +60,7 @@
     * Made the new #ifndef directive be recognized (implemented on Wesnoth 1.3.11 and later)
 -->
 
-<language name="Wesnoth Markup Language" section="Markup" extensions="*.cfg;*.pbl;*.CFG;*.PBL" version="4"
+<language name="Wesnoth Markup Language" section="Markup" extensions="*.cfg;*.pbl;*.CFG;*.PBL" version="5"
           kateversion="5.0" casesensitive="true" author="Zachary Palmer (zep01@bahj.com), modif. by Ignacio Riquelme Morelle (shadowm2006@gmail.com) and Jonathan Schmidt-Dominé (devel@the-user.org)" license="GPL">
     <highlighting>
         <list name="alerts_wml_utils">
@@ -123,14 +124,14 @@
                 <IncludeRules context="##Pango" includeAttrib="false"/>
             </context>
 
-            <context attribute="String" name="luastring" lineEndContext="#stay">
+            <context attribute="Normal WML Text" name="luastring" lineEndContext="#stay">
                 <Detect2Chars char="&gt;" char1="&gt;" attribute="String" context="#pop" endRegion="wml_lua" />
-                <IncludeRules context="##Lua" includeAttrib="true"/>
+                <IncludeRules context="Normal##Lua" includeAttrib="true"/>
             </context>
             
-            <context attribute="Macro String" name="luamacrostring" lineEndContext="#stay">
+            <context attribute="Normal WML Text" name="luamacrostring" lineEndContext="#stay">
                 <Detect2Chars char="&gt;" char1="&gt;" attribute="Macro String" context="#pop" endRegion="wml_lua" />
-                <IncludeRules context="##Lua" includeAttrib="true"/>
+                <IncludeRules context="Normal##Lua" includeAttrib="true"/>
             </context>
             
             <context attribute="Comment" lineEndContext="#pop" name="comment">
@@ -196,8 +197,8 @@
             <itemData name="Comment" defStyleNum="dsComment" />
             <itemData name="Macro/Include" defStyleNum="dsFunction" />
             <itemData name="WML Node" defStyleNum="dsKeyword" />
-            <itemData name="WML Attribute" defStyleNum="dsDataType" />
-            <itemData name="Preprocessor" defStyleNum="dsOthers" />
+            <itemData name="WML Attribute" defStyleNum="dsAttribute" />
+            <itemData name="Preprocessor" defStyleNum="dsPreprocessor" />
             <itemData name="Error" defStyleNum="dsError" />
             <itemData name="Macro String" defStyleNum="dsChar" />
             <itemData name="Variable Substitution" defStyleNum="dsDecVal" />