diff --git a/src/compile/render-dom/Block.ts b/src/compile/render-dom/Block.ts
index 8a205e25fd..573a9863d8 100644
--- a/src/compile/render-dom/Block.ts
+++ b/src/compile/render-dom/Block.ts
@@ -409,12 +409,10 @@ export default class Block {
 		const localKey = this.key && this.getUniqueName('key');
 
 		return deindent`
-			${this.comment && `// ${escape(this.comment)}`}
-			function ${this.name}(#component, ${this.key ? `${localKey}, ` : ''}ctx) {
+			${this.comment && `// ${this.comment}`}
+			function ${this.name}(${this.alias('component')}, ${this.key ? `${localKey}, ` : ''}ctx) {
 				${this.getContents(localKey)}
 			}
-		`.replace(/(#+)(\w*)/g, (match: string, sigil: string, name: string) => {
-			return sigil === '#' ? this.alias(name) : sigil.slice(1) + name;
-		});
+		`;
 	}
 }
diff --git a/test/runtime/samples/hash-in-attribute/_config.js b/test/runtime/samples/hash-in-attribute/_config.js
new file mode 100644
index 0000000000..5e5726c48f
--- /dev/null
+++ b/test/runtime/samples/hash-in-attribute/_config.js
@@ -0,0 +1,26 @@
+export default {
+	preserveIdentifiers: true,
+
+	props: {
+		links: ['a', 'b', 'c']
+	},
+
+	html: `
+		<a href="x#a">x#a</a>
+		<a href="x#b">x#b</a>
+		<a href="x#c">x#c</a>
+	`,
+
+	test({ assert, component, target }) {
+		component.links = ['d', 'e', 'f'];
+
+		const links = [...target.querySelectorAll('a')];
+		assert.deepEqual(links.map(l => l.href), ['x#d', 'x#e', 'x#f']);
+
+		assert.htmlEqual(target.innerHTML, `
+			<a href="x#d">x#d</a>
+			<a href="x#e">x#e</a>
+			<a href="x#f">x#f</a>
+		`);
+	}
+};
\ No newline at end of file
diff --git a/test/runtime/samples/hash-in-attribute/main.html b/test/runtime/samples/hash-in-attribute/main.html
new file mode 100644
index 0000000000..0d1455b066
--- /dev/null
+++ b/test/runtime/samples/hash-in-attribute/main.html
@@ -0,0 +1,3 @@
+{#each links as link}
+	<a href="x#{link}">x#{link}</a>
+{/each}
\ No newline at end of file