diff --git a/__pycache__/nginxfmt.cpython-37.pyc b/__pycache__/nginxfmt.cpython-37.pyc
new file mode 100644
index 0000000..67f9adf
Binary files /dev/null and b/__pycache__/nginxfmt.cpython-37.pyc differ
diff --git a/nginxfmt.py b/nginxfmt.py
index 24e9160..57c7c35 100755
--- a/nginxfmt.py
+++ b/nginxfmt.py
@@ -20,6 +20,8 @@ INDENTATION = ' ' * 4
 TEMPLATE_VARIABLE_OPENING_TAG = '___TEMPLATE_VARIABLE_OPENING_TAG___'
 TEMPLATE_VARIABLE_CLOSING_TAG = '___TEMPLATE_VARIABLE_CLOSING_TAG___'
 
+TEMPLATE_BRACKET_OPENING_TAG = '___TEMPLATE_BRACKET_OPENING_TAG___'
+TEMPLATE_BRACKET_CLOSING_TAG = '___TEMPLATE_BRACKET_CLOSING_TAG___'
 
 def strip_line(single_line):
     """Strips the line and replaces neighbouring whitespaces with single space (except when within quotation marks)."""
@@ -85,6 +87,37 @@ def strip_variable_template_tags(line: str) -> str:
                   line,
                   flags=re.UNICODE)
 
+def apply_bracket_template_tags(content: str) -> str:
+    """ Replaces bracket { and } with tags, so subsequent formatting is easier."""
+    result = ""
+    in_quotes = False
+    last_c = ""
+
+    for c in content:
+        if (c == "\'" or c == "\"") and last_c != "\\":
+            in_quotes = reverse_in_quotes_status(in_quotes)
+        if in_quotes:
+            if c == "{":
+                result += TEMPLATE_BRACKET_OPENING_TAG
+            elif c == "}":
+                result += TEMPLATE_BRACKET_CLOSING_TAG
+            else:
+                result += c
+        else:
+            result += c
+        last_c = c
+    return result
+
+def reverse_in_quotes_status(status: bool) -> bool:
+    if status:
+        return False
+    return True
+
+def strip_bracket_template_tags(content: str) -> str:
+    """ Replaces tags back with { and } respectively."""
+    content = content.replace(TEMPLATE_BRACKET_OPENING_TAG, "{", -1)
+    content = content.replace(TEMPLATE_BRACKET_CLOSING_TAG, "}", -1)
+    return content
 
 def clean_lines(orig_lines) -> list:
     """Strips the lines and splits them if they contain curly brackets."""
@@ -147,12 +180,14 @@ def perform_indentation(lines):
 
 def format_config_contents(contents):
     """Accepts the string containing nginx configuration and returns formatted one. Adds newline at the end."""
+    contents = apply_bracket_template_tags(contents)
     lines = contents.splitlines()
     lines = clean_lines(lines)
     lines = join_opening_bracket(lines)
     lines = perform_indentation(lines)
 
     text = '\n'.join(lines)
+    text = strip_bracket_template_tags(text)
 
     for pattern, substitute in ((r'\n{3,}', '\n\n\n'), (r'^\n', ''), (r'\n$', '')):
         text = re.sub(pattern, substitute, text, re.MULTILINE)
diff --git a/test_nginxfmt.py b/test_nginxfmt.py
index 6eb9da7..69c1f83 100644
--- a/test_nginxfmt.py
+++ b/test_nginxfmt.py
@@ -89,6 +89,14 @@ class TestFormatter(unittest.TestCase):
         self.assertEqual('lorem ipsum " foo  bar zip " or "  dd aa  " mi',
                          strip_line('  lorem   ipsum   " foo  bar zip "  or \t "  dd aa  "  mi'))
 
+    def test_apply_bracket_template_tags(self):
+        self.assertEqual("\"aaa___TEMPLATE_BRACKET_OPENING_TAG___dd___TEMPLATE_BRACKET_CLOSING_TAG___bbb\"", apply_bracket_template_tags("\"aaa{dd}bbb\""))
+        self.assertEqual("\"aaa___TEMPLATE_BRACKET_OPENING_TAG___dd___TEMPLATE_BRACKET_CLOSING_TAG___bbb\"cc{cc}cc\"dddd___TEMPLATE_BRACKET_OPENING_TAG___eee___TEMPLATE_BRACKET_CLOSING_TAG___fff\"", apply_bracket_template_tags("\"aaa{dd}bbb\"cc{cc}cc\"dddd{eee}fff\""))
+
+    def test_strip_bracket_template_tags(self):
+        self.assertEqual("\"aaa{dd}bbb\"", strip_bracket_template_tags("\"aaa___TEMPLATE_BRACKET_OPENING_TAG___dd___TEMPLATE_BRACKET_CLOSING_TAG___bbb\""))
+        self.assertEqual("\"aaa{dd}bbb\"cc{cc}cc\"dddd{eee}fff\"", apply_bracket_template_tags("\"aaa___TEMPLATE_BRACKET_OPENING_TAG___dd___TEMPLATE_BRACKET_CLOSING_TAG___bbb\"cc{cc}cc\"dddd___TEMPLATE_BRACKET_OPENING_TAG___eee___TEMPLATE_BRACKET_CLOSING_TAG___fff\""))
+
     def test_variable_template_tags(self):
         self.assertEqual("foo bar ___TEMPLATE_VARIABLE_OPENING_TAG___myvar___TEMPLATE_VARIABLE_CLOSING_TAG___",
                          apply_variable_template_tags("foo bar ${myvar}"))