diff --git a/src/main/java/com/google/devtools/build/lib/bazel/rules/ninja/lexer/NinjaLexerStep.java b/src/main/java/com/google/devtools/build/lib/bazel/rules/ninja/lexer/NinjaLexerStep.java
index 7ce48d1..1dbec92 100644
--- a/src/main/java/com/google/devtools/build/lib/bazel/rules/ninja/lexer/NinjaLexerStep.java
+++ b/src/main/java/com/google/devtools/build/lib/bazel/rules/ninja/lexer/NinjaLexerStep.java
@@ -46,7 +46,7 @@
 public class NinjaLexerStep {
   private static final ImmutableSortedSet<Byte> IDENTIFIER_SYMBOLS =
       createByteSet("abcdefghijklmnopqrstuvwxyzABCDEFGHIJKLMNOPQRSTUVWXYZ0123456789_-");
-  private static final ImmutableSortedSet<Byte> TEXT_STOPPERS = createByteSet("\n\r \t#$:\u0000");
+  private static final ImmutableSortedSet<Byte> TEXT_STOPPERS = createByteSet("\n\r \t$:\u0000");
   // We allow # symbol in the path, so the comment on the line with path can only start with space.
   private static final ImmutableSortedSet<Byte> PATH_STOPPERS = createByteSet("\n\r \t$:|\u0000");
 
diff --git a/src/test/java/com/google/devtools/build/lib/bazel/rules/ninja/NinjaParserStepTest.java b/src/test/java/com/google/devtools/build/lib/bazel/rules/ninja/NinjaParserStepTest.java
index ad54205..665c7f0 100644
--- a/src/test/java/com/google/devtools/build/lib/bazel/rules/ninja/NinjaParserStepTest.java
+++ b/src/test/java/com/google/devtools/build/lib/bazel/rules/ninja/NinjaParserStepTest.java
@@ -49,7 +49,7 @@
     doTestSimpleVariable("a=b\nc", "a", "b");
     doTestSimpleVariable("a=b # comment", "a", "b");
     doTestSimpleVariable("a.b.c =    some long:    value", "a.b.c", "some long:    value");
-    doTestSimpleVariable("a_11_24-rt.15= ^&%=#@", "a_11_24-rt.15", "^&%=");
+    doTestSimpleVariable("a_11_24-rt.15= ^&%=#@", "a_11_24-rt.15", "^&%=#@");
   }
 
   @Test
@@ -163,6 +163,20 @@
   }
 
   @Test
+  public void testNinjaRuleWithHash() throws Exception {
+    // Additionally test the situation when we get more line separators in the end.
+    NinjaParserStep parser =
+        createParser(
+            "rule testRule  \n"
+                + " command = executable --flag $TARGET $out && sed -e 's/#.*$$//' -e '/^$$/d'\n"
+                + " description = Test rule for $TARGET");
+    NinjaRule ninjaRule = parser.parseNinjaRule();
+    assertThat(ninjaRule.getVariables().get(NinjaRuleVariable.COMMAND).getRawText())
+        // Variables are wrapped with {} by print function, $$ escape sequence is unescaped.
+        .isEqualTo("executable --flag ${TARGET} ${out} && sed -e 's/#.*$//' -e '/^$/d'");
+  }
+
+  @Test
   public void testVariableWithoutValue() throws Exception {
     NinjaParserStep parser =
         createParser(