diff --git a/autotests/folding/craftenv.ps1.fold b/autotests/folding/craftenv.ps1.fold
--- a/autotests/folding/craftenv.ps1.fold
+++ b/autotests/folding/craftenv.ps1.fold
@@ -7,6 +7,8 @@
    string
 <endfold id='1'>"@</endfold id='1'>
 
+$foo = "Test `u{2013} String`nwith `"escapes`""
+
 #    this file sets some environment variables that are needed
 #    for finding programs and libraries etc.
 #    by Hannah von Reth <vonreth@kde.org>
diff --git a/autotests/html/craftenv.ps1.html b/autotests/html/craftenv.ps1.html
--- a/autotests/html/craftenv.ps1.html
+++ b/autotests/html/craftenv.ps1.html
@@ -13,6 +13,8 @@
 <span style="color:#bf0303;">   string</span>
 <span style="color:#bf0303;">&quot;@</span>
 
+<span style="color:#0057ae;">$foo</span> = <span style="color:#bf0303;">&quot;Test </span><span style="color:#924c9d;">`u{2013}</span><span style="color:#bf0303;"> String</span><span style="color:#924c9d;">`n</span><span style="color:#bf0303;">with </span><span style="color:#924c9d;">`&quot;</span><span style="color:#bf0303;">escapes</span><span style="color:#924c9d;">`&quot;</span><span style="color:#bf0303;">&quot;</span>
+
 <span style="color:#898887;">#    this file sets some environment variables that are needed</span>
 <span style="color:#898887;">#    for finding programs and libraries etc.</span>
 <span style="color:#898887;">#    by Hannah von Reth &lt;vonreth@kde.org&gt;</span>
diff --git a/autotests/input/craftenv.ps1 b/autotests/input/craftenv.ps1
--- a/autotests/input/craftenv.ps1
+++ b/autotests/input/craftenv.ps1
@@ -7,6 +7,8 @@
    string
 "@
 
+$foo = "Test `u{2013} String`nwith `"escapes`""
+
 #    this file sets some environment variables that are needed
 #    for finding programs and libraries etc.
 #    by Hannah von Reth <vonreth@kde.org>
diff --git a/autotests/reference/craftenv.ps1.ref b/autotests/reference/craftenv.ps1.ref
--- a/autotests/reference/craftenv.ps1.ref
+++ b/autotests/reference/craftenv.ps1.ref
@@ -7,6 +7,8 @@
 <HereString>   string</HereString><br/>
 <HereString>"@</HereString><br/>
 <Normal Text></Normal Text><br/>
+<Variable>$foo</Variable><Normal Text> </Normal Text><Symbol>=</Symbol><Normal Text> </Normal Text><String>"Test </String><String Char>`u{2013}</String Char><String> String</String><String Char>`n</String Char><String>with </String><String Char>`"</String Char><String>escapes</String><String Char>`"</String Char><String>"</String><br/>
+<Normal Text></Normal Text><br/>
 <Comment>#    this file sets some environment variables that are needed</Comment><br/>
 <Comment>#    for finding programs and libraries etc.</Comment><br/>
 <Comment>#    by Hannah von Reth <vonreth@kde.org></Comment><br/>
diff --git a/data/syntax/powershell.xml b/data/syntax/powershell.xml
--- a/data/syntax/powershell.xml
+++ b/data/syntax/powershell.xml
@@ -1,7 +1,7 @@
 <!DOCTYPE language SYSTEM "language.dtd">
 <language
   name="PowerShell"
-  version="4"
+  version="5"
   kateversion="5.0"
   extensions="*.ps1;*.ps1m;*.ps1d"
   section="Scripts"
@@ -892,7 +892,12 @@
         <RegExpr attribute="Symbol" context="Member" String="[.]{1,1}" />
         <AnyChar attribute="Symbol" context="#stay" String=":!%&amp;()+,-/.*&lt;=&gt;?[]|~^&#59;"/>
       </context>
+      <context attribute="String Char" lineEndContext="#stay" name="StringEscape">
+        <RegExpr attribute="String Char" String="`[`&quot;0abefnrtv]" context="#stay"/>
+        <RegExpr attribute="String Char" String="`u\{[0-9A-Fa-f]+\}" context="#stay"/>
+      </context>
       <context attribute="String" lineEndContext="#pop" name="String">
+        <IncludeRules context="StringEscape"/>
         <LineContinue attribute="String" context="#pop"/>
         <DetectChar attribute="String" context="#pop" char="&quot;"/>
       </context>
@@ -916,6 +921,7 @@
       <itemData name="Function"     defStyleNum="dsFunction" spellChecking="false"/>
       <itemData name="Data Type"    defStyleNum="dsDataType" spellChecking="false"/>
       <itemData name="String"       defStyleNum="dsString"/>
+      <itemData name="String Char"  defStyleNum="dsChar" spellChecking="false"/>
       <itemData name="HereString"       defStyleNum="dsVerbatimString"/>
       <itemData name="Comment"      defStyleNum="dsComment"/>
       <itemData name="Cmdlets"      defStyleNum="dsBuiltIn" spellChecking="false"/>