diff --git a/src/GHCMod/Options/ShellParse.hs b/src/GHCMod/Options/ShellParse.hs
index 2bcba0c..acd609b 100644
--- a/src/GHCMod/Options/ShellParse.hs
+++ b/src/GHCMod/Options/ShellParse.hs
@@ -16,6 +16,7 @@
 module GHCMod.Options.ShellParse (parseCmdLine) where
 
 import Data.Char
+import Data.List
 
 go :: String -> String -> [String] -> Bool -> [String]
 -- result
@@ -36,6 +37,8 @@ go (c:cl) curarg accargs quotes
   | otherwise = go cl (c:curarg) accargs quotes
 
 parseCmdLine :: String -> [String]
-parseCmdLine ('\\':comline) = go comline [] [] False
+parseCmdLine comline'
+  | Just comline <- stripPrefix "ascii-escape " $ dropWhile isSpace comline'
+  = go (dropWhile isSpace comline) [] [] False
 parseCmdLine [] = [""]
 parseCmdLine comline = words comline
diff --git a/test/ShellParseSpec.hs b/test/ShellParseSpec.hs
index 30274f9..5517a11 100644
--- a/test/ShellParseSpec.hs
+++ b/test/ShellParseSpec.hs
@@ -10,9 +10,9 @@ spec =
   describe "parseCmdLine" $ do
     it "splits arguments" $ do
       parseCmdLine "test command line" `shouldBe` ["test", "command", "line"]
-      parseCmdLine "\\test command line" `shouldBe` ["test", "command", "line"]
+      parseCmdLine "ascii-escape test command line" `shouldBe` ["test", "command", "line"]
     it "honors quoted segments if turned on" $
-      parseCmdLine "\\test command line \STXwith quoted segment\ETX"
+      parseCmdLine "ascii-escape test command line \STXwith quoted segment\ETX"
         `shouldBe` ["test", "command", "line", "with quoted segment"]
     it "doesn't honor quoted segments if turned off" $
       parseCmdLine "test command line \STXwith quoted segment\ETX"
@@ -20,5 +20,10 @@ spec =
     it "squashes multiple spaces" $ do
       parseCmdLine "test       command"
         `shouldBe` ["test", "command"]
-      parseCmdLine "\\test       command"
+      parseCmdLine "ascii-escape           test       command"
+        `shouldBe` ["test", "command"]
+    it "ingores leading spaces" $ do
+      parseCmdLine "     test       command"
+        `shouldBe` ["test", "command"]
+      parseCmdLine "   ascii-escape           test       command"
         `shouldBe` ["test", "command"]