diff --git a/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/support/EnvironmentPropertySource.java b/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/support/EnvironmentPropertySource.java
index 00a47c28..d1e91bf8 100644
--- a/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/support/EnvironmentPropertySource.java
+++ b/spring-cloud-config-server/src/main/java/org/springframework/cloud/config/server/support/EnvironmentPropertySource.java
@@ -1,6 +1,7 @@
 package org.springframework.cloud.config.server.support;
 
 import java.util.Map;
+import java.util.regex.Pattern;
 
 import org.springframework.cloud.config.environment.Environment;
 import org.springframework.core.env.PropertySource;
@@ -22,11 +23,14 @@ public class EnvironmentPropertySource extends PropertySource<Environment> {
 		return standardEnvironment;
 	}
 
+	// "\${" (from text) or "\\${" from JSON to signal escaped placeholder
+	private static final Pattern ESCAPED_PLACEHOLDERS = Pattern.compile("[\\\\]{1,2}\\$\\{");
+
 	public static String resolvePlaceholders(StandardEnvironment preparedEnvironment,
 			String text) {
-		// Mask out escaped placeholders
-		text = text.replace("\\${", "$_{");
-		return preparedEnvironment.resolvePlaceholders(text).replace("$_{", "${");
+	    // Mask out escaped placeholders
+	    text = ESCAPED_PLACEHOLDERS.matcher(text).replaceAll("\\$_{");
+	    return preparedEnvironment.resolvePlaceholders(text).replace("$_{", "${");
 	}
 
 	public EnvironmentPropertySource(Environment sources) {
diff --git a/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/support/EnvironmentPropertySourceTest.java b/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/support/EnvironmentPropertySourceTest.java
new file mode 100644
index 00000000..58cc5211
--- /dev/null
+++ b/spring-cloud-config-server/src/test/java/org/springframework/cloud/config/server/support/EnvironmentPropertySourceTest.java
@@ -0,0 +1,18 @@
+package org.springframework.cloud.config.server.support;
+
+import static org.junit.Assert.assertEquals;
+import static org.springframework.cloud.config.server.support.EnvironmentPropertySource.resolvePlaceholders;
+
+import org.junit.Test;
+import org.springframework.core.env.StandardEnvironment;
+
+public class EnvironmentPropertySourceTest {
+  private final StandardEnvironment env = new StandardEnvironment();
+  
+  @Test
+  public void testEscapedPlaceholdersRemoved() {
+    assertEquals("${abc}", resolvePlaceholders(env, "\\${abc}"));
+    // JSON generated from jackson will be double escaped
+    assertEquals("${abc}", resolvePlaceholders(env, "\\\\${abc}"));
+  }
+}