diff --git a/lib/ace/mode/_test/text_php.txt b/lib/ace/mode/_test/text_php.txt
index b76aa8a53f2..8d18ff42f37 100644
--- a/lib/ace/mode/_test/text_php.txt
+++ b/lib/ace/mode/_test/text_php.txt
@@ -1,4 +1,13 @@
 <?php
+$bar = <<<EOD
+highlightingWithNoSpaces
+doesn't break
+EOD;
+
+lorem('ipsum', <<<TEST
+foo bar
+TEST
+);
 
 function nfact($n) {
     if ($n == 0) {
diff --git a/lib/ace/mode/_test/tokens_php.json b/lib/ace/mode/_test/tokens_php.json
index 715945cb10b..f5a2b0f1684 100644
--- a/lib/ace/mode/_test/tokens_php.json
+++ b/lib/ace/mode/_test/tokens_php.json
@@ -1,6 +1,43 @@
 [[
    "php-start",
   ["support.php_tag","<?php"]
+],[
+   ["php-heredoc","EOD"],
+  ["variable","$bar"],
+  ["text"," "],
+  ["keyword.operator","="],
+  ["text"," "],
+  ["markup.list","<<<EOD"]
+],[
+   ["php-heredoc","EOD"],
+  ["string","highlightingWithNoSpaces"]
+],[
+   ["php-heredoc","EOD"],
+  ["string","doesn't break"]
+],[
+   "php-start",
+  ["markup.list","EOD"],
+  ["punctuation.operator",";"]
+],[
+   "php-start"
+],[
+   ["php-heredoc","TEST"],
+  ["identifier","lorem"],
+  ["paren.lparen","("],
+  ["string","'ipsum'"],
+  ["punctuation.operator",","],
+  ["text"," "],
+  ["markup.list","<<<TEST"]
+],[
+   ["php-heredoc","TEST"],
+  ["string","foo bar"]
+],[
+   "php-start",
+  ["markup.list","TEST"]
+],[
+   "php-start",
+  ["paren.rparen",")"],
+  ["punctuation.operator",";"]
 ],[
    "php-start"
 ],[
@@ -169,4 +206,4 @@
   ["constant.language.escape.reference.xml","&js;"]
 ],[
    "start"
-]]
+]]
\ No newline at end of file
diff --git a/lib/ace/mode/php_highlight_rules.js b/lib/ace/mode/php_highlight_rules.js
index 829f99564cf..0c8288b232f 100644
--- a/lib/ace/mode/php_highlight_rules.js
+++ b/lib/ace/mode/php_highlight_rules.js
@@ -1018,15 +1018,18 @@ sql_regcase'.split('|')
         ],
         "heredoc" : [
             {
-                onMatch : function(value, currentSate, stack) {
-                    if (stack[1] != value)
+                onMatch : function(value, currentState, stack) {
+                    if (stack[1] != value) {
+                        this.next = "";
                         return "string";
+                    }
                     stack.shift();
                     stack.shift();
+                    this.next = this.nextState;
                     return "markup.list";
                 },
                 regex : "^\\w+(?=;?$)",
-                next: "start"
+                nextState: "start"
             }, {
                 token: "string",
                 regex : ".*"