diff --git a/libs/vkd3d-shader/preproc.l b/libs/vkd3d-shader/preproc.l
index 60cd662e..5e8ed2eb 100644
--- a/libs/vkd3d-shader/preproc.l
+++ b/libs/vkd3d-shader/preproc.l
@@ -664,6 +664,21 @@ int yylex(YYSTYPE *lval, YYLTYPE *lloc, yyscan_t scanner)
                         break;
                     }
 
+                    /* Stringification is another special case. Unsurprisingly,
+                     * we need to stringify if this is an argument. More
+                     * surprisingly, we need to stringify even if it's not. */
+                    case T_HASHSTRING:
+                    {
+                        struct vkd3d_string_buffer buffer;
+
+                        vkd3d_string_buffer_init(&buffer);
+                        preproc_stringify(ctx, &buffer, text);
+                        if (current_arg)
+                            preproc_text_add(current_arg, buffer.buffer);
+                        vkd3d_string_buffer_cleanup(&buffer);
+                        break;
+                    }
+
                     case T_NEWLINE:
                         if (current_arg)
                             preproc_text_add(current_arg, " ");
diff --git a/tests/hlsl_d3d12.c b/tests/hlsl_d3d12.c
index 85a1548f..ef41235e 100644
--- a/tests/hlsl_d3d12.c
+++ b/tests/hlsl_d3d12.c
@@ -236,6 +236,27 @@ static void test_preprocess(void)
 
             "#",
         },
+        {
+            "#define KEY2(x) x\n"
+            "#define KEY(a) KEY2(#a)\n"
+            "KEY(apple)",
+
+            "\"apple\"",
+        },
+        {
+            "#define KEY2(x) #x\n"
+            "#define KEY(a) KEY2(#a)\n"
+            "KEY(apple)",
+
+            "\"\\\"apple\\\"\"",
+        },
+        {
+            "#define KEY2(x) #x\n"
+            "#define KEY(a) KEY2(#x)\n"
+            "KEY(apple)",
+
+            "\"\\\"x\\\"\"",
+        },
 
         /* #pragma is preserved. */
         {