diff --git a/src/fileio.c b/src/fileio.c
index b6f4016..71ecf42 100644
--- a/src/fileio.c
+++ b/src/fileio.c
@@ -10301,7 +10301,10 @@
 		 * foo\,bar -> foo,bar
 		 * foo\ bar -> foo bar
 		 * Don't unescape \, * and others that are also special in a
-		 * regexp. */
+		 * regexp.
+		 * An escaped { must be unescaped since we use magic not
+		 * verymagic.
+		 */
 		if (*++p == '?'
 #ifdef BACKSLASH_IN_FILENAME
 			&& no_bslash
@@ -10309,7 +10312,8 @@
 			)
 		    reg_pat[i++] = '?';
 		else
-		    if (*p == ',' || *p == '%' || *p == '#' || *p == ' ')
+		    if (*p == ',' || *p == '%' || *p == '#'
+						    || *p == ' ' || *p == '{')
 			reg_pat[i++] = *p;
 		    else
 		    {
diff --git a/src/misc1.c b/src/misc1.c
index a9e6c8a..9581631 100644
--- a/src/misc1.c
+++ b/src/misc1.c
@@ -10457,6 +10457,54 @@
 }
 #endif
 
+static int has_env_var __ARGS((char_u *p));
+
+/*
+ * Return TRUE if "p" contains what looks like an environment variable.
+ * Allowing for escaping.
+ */
+    static int
+has_env_var(p)
+    char_u *p;
+{
+    for ( ; *p; mb_ptr_adv(p))
+    {
+	if (*p == '\\' && p[1] != NUL)
+	    ++p;
+	else if (vim_strchr((char_u *)
+#if defined(MSDOS) || defined(MSWIN) || defined(OS2)
+				    "$%"
+#else
+				    "$"
+#endif
+					, *p) != NULL)
+	    return TRUE;
+    }
+    return FALSE;
+}
+
+#ifdef SPECIAL_WILDCHAR
+static int has_special_wildchar __ARGS((char_u *p));
+
+/*
+ * Return TRUE if "p" contains a special wildcard character.
+ * Allowing for escaping.
+ */
+    static int
+has_special_wildchar(p)
+    char_u  *p;
+{
+    for ( ; *p; mb_ptr_adv(p))
+    {
+	if (*p == '\\' && p[1] != NUL)
+	    ++p;
+	else if (vim_strchr((char_u *)SPECIAL_WILDCHAR, *p) != NULL)
+	    return TRUE;
+    }
+    return FALSE;
+}
+#endif
+
 /*
  * Generic wildcard expansion code.
  *
@@ -10507,7 +10555,7 @@
      */
     for (i = 0; i < num_pat; i++)
     {
-	if (vim_strpbrk(pat[i], (char_u *)SPECIAL_WILDCHAR) != NULL
+	if (has_special_wildchar(pat[i])
 # ifdef VIM_BACKTICK
 		&& !(vim_backtick(pat[i]) && pat[i][1] == '=')
 # endif
@@ -10537,7 +10585,7 @@
 	    /*
 	     * First expand environment variables, "~/" and "~user/".
 	     */
-	    if (vim_strchr(p, '$') != NULL || *p == '~')
+	    if (has_env_var(p) || *p == '~')
 	    {
 		p = expand_env_save_opt(p, TRUE);
 		if (p == NULL)
@@ -10548,7 +10596,7 @@
 		 * variable, use the shell to do that.  Discard previously
 		 * found file names and start all over again.
 		 */
-		else if (vim_strchr(p, '$') != NULL || *p == '~')
+		else if (has_env_var(p) || *p == '~')
 		{
 		    vim_free(p);
 		    ga_clear_strings(&ga);
diff --git a/src/testdir/Make_amiga.mak b/src/testdir/Make_amiga.mak
index 5a24e6d..afc4a03 100644
--- a/src/testdir/Make_amiga.mak
+++ b/src/testdir/Make_amiga.mak
@@ -33,7 +33,7 @@
 		test76.out test77.out test78.out test79.out test80.out \
 		test81.out test82.out test83.out test84.out test88.out \
 		test89.out test90.out test91.out test92.out test93.out \
-		test94.out test95.out test96.out
+		test94.out test95.out test96.out test97.out
 
 .SUFFIXES: .in .out
 
@@ -146,3 +146,4 @@
 test94.out: test94.in
 test95.out: test95.in
 test96.out: test96.in
+test97.out: test97.in
diff --git a/src/testdir/Make_dos.mak b/src/testdir/Make_dos.mak
index 7204ae9..573a1df 100644
--- a/src/testdir/Make_dos.mak
+++ b/src/testdir/Make_dos.mak
@@ -32,7 +32,7 @@
 		test79.out test80.out test81.out test82.out test83.out \
 		test84.out test85.out test86.out test87.out test88.out \
 		test89.out test90.out test91.out test92.out test93.out \
-		test94.out test95.out test96.out
+		test94.out test95.out test96.out test97.out
 
 SCRIPTS32 =	test50.out test70.out
 
diff --git a/src/testdir/Make_ming.mak b/src/testdir/Make_ming.mak
index 8bcfe89..51c64ef 100644
--- a/src/testdir/Make_ming.mak
+++ b/src/testdir/Make_ming.mak
@@ -52,7 +52,7 @@
 		test79.out test80.out test81.out test82.out test83.out \
 		test84.out test85.out test86.out test87.out test88.out \
 		test89.out test90.out test91.out test92.out test93.out \
-		test94.out test95.out test96.out
+		test94.out test95.out test96.out test97.out
 
 SCRIPTS32 =	test50.out test70.out
 
diff --git a/src/testdir/Make_os2.mak b/src/testdir/Make_os2.mak
index 2d111e8..8c45229 100644
--- a/src/testdir/Make_os2.mak
+++ b/src/testdir/Make_os2.mak
@@ -33,7 +33,7 @@
 		test76.out test77.out test78.out test79.out test80.out \
 		test81.out test82.out test83.out test84.out test88.out \
 		test89.out test90.out test91.out test92.out test93.out \
-		test94.out test95.out test96.out
+		test94.out test95.out test96.out test97.out
 
 .SUFFIXES: .in .out
 
diff --git a/src/testdir/Make_vms.mms b/src/testdir/Make_vms.mms
index 3435dfc..a62b7ad 100644
--- a/src/testdir/Make_vms.mms
+++ b/src/testdir/Make_vms.mms
@@ -4,7 +4,7 @@
 # Authors:	Zoltan Arpadffy, <arpadffy@polarhome.com>
 #		Sandor Kopanyi,  <sandor.kopanyi@mailbox.hu>
 #
-# Last change:  2013 Jul 01
+# Last change:  2013 Jul 03
 #
 # This has been tested on VMS 6.2 to 8.3 on DEC Alpha, VAX and IA64.
 # Edit the lines in the Configuration section below to select.
@@ -78,7 +78,7 @@
 	 test77.out test78.out test79.out test80.out test81.out \
 	 test82.out test83.out test84.out test88.out test89.out \
 	 test90.out test91.out test92.out test93.out test94.out \
-	 test95.out test96.out
+	 test95.out test96.out test97.out
 
 # Known problems:
 # Test 30: a problem around mac format - unknown reason
diff --git a/src/testdir/Makefile b/src/testdir/Makefile
index 85b7c4d..bc525d9 100644
--- a/src/testdir/Makefile
+++ b/src/testdir/Makefile
@@ -29,7 +29,7 @@
 		test79.out test80.out test81.out test82.out test83.out \
 		test84.out test85.out test86.out test87.out test88.out \
 		test89.out test90.out test91.out test92.out test93.out \
-		test94.out test95.out test96.out
+		test94.out test95.out test96.out test97.out
 
 SCRIPTS_GUI = test16.out
 
diff --git a/src/testdir/test97.in b/src/testdir/test97.in
new file mode 100644
index 0000000..13e9dd5
--- /dev/null
+++ b/src/testdir/test97.in
@@ -0,0 +1,17 @@
+Test whether glob()/globpath() return correct results with certain escaped
+characters.
+
+STARTTEST
+:so small.vim
+:set shell=doesnotexist
+:e test.out
+:put =glob('Xxx\{')
+:put =glob('Xxx\$')
+:w! Xxx{
+:w! Xxx\$
+:put =glob('Xxx\{')
+:put =glob('Xxx\$')
+:w
+:qa!
+ENDTEST
+
diff --git a/src/testdir/test97.ok b/src/testdir/test97.ok
new file mode 100644
index 0000000..afa96a4
--- /dev/null
+++ b/src/testdir/test97.ok
@@ -0,0 +1,5 @@
+
+
+
+Xxx{
+Xxx$
diff --git a/src/version.c b/src/version.c
index e4c6d50..d735567 100644
--- a/src/version.c
+++ b/src/version.c
@@ -729,6 +729,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    1295,
+/**/
     1294,
 /**/
     1293,