diff --git a/src/libexpr/parser.y b/src/libexpr/parser.y
index 923997bf6..61a93c718 100644
--- a/src/libexpr/parser.y
+++ b/src/libexpr/parser.y
@@ -309,6 +309,7 @@ void yyerror(YYLTYPE * loc, yyscan_t scanner, ParseData * data, const char * err
 %token IND_STRING_OPEN IND_STRING_CLOSE
 %token ELLIPSIS
 
+%right '$'
 %right IMPL
 %left OR
 %left AND
@@ -377,6 +378,7 @@ expr_op
   | expr_op '*' expr_op { $$ = new ExprCall(CUR_POS, new ExprVar(data->symbols.create("__mul")), {$1, $3}); }
   | expr_op '/' expr_op { $$ = new ExprCall(CUR_POS, new ExprVar(data->symbols.create("__div")), {$1, $3}); }
   | expr_op CONCAT expr_op { $$ = new ExprOpConcatLists(CUR_POS, $1, $3); }
+  | expr_op '$' expr_op { $$ = new ExprCall(CUR_POS, $1, {$3}); }
   | expr_app { $$ = $1.e; }
   ;
 
diff --git a/tests/lang/eval-fail-function-apply-dollar.nix b/tests/lang/eval-fail-function-apply-dollar.nix
new file mode 100644
index 000000000..805146f6d
--- /dev/null
+++ b/tests/lang/eval-fail-function-apply-dollar.nix
@@ -0,0 +1,6 @@
+let
+  a = 5;
+  b = 1;
+
+  add = a: b: a + b;
+in add a $ a $ b
diff --git a/tests/lang/eval-okay-function-apply-dollar.exp b/tests/lang/eval-okay-function-apply-dollar.exp
new file mode 100644
index 000000000..3c032078a
--- /dev/null
+++ b/tests/lang/eval-okay-function-apply-dollar.exp
@@ -0,0 +1 @@
+18
diff --git a/tests/lang/eval-okay-function-apply-dollar.nix b/tests/lang/eval-okay-function-apply-dollar.nix
new file mode 100644
index 000000000..f860ffd17
--- /dev/null
+++ b/tests/lang/eval-okay-function-apply-dollar.nix
@@ -0,0 +1,9 @@
+let
+  a = 5;
+  b = 1;
+  c = 2;
+  concat = a: b: "${a}${b}";
+  nested.attr.ab = 10;
+
+  add = a: b: a + b;
+in add nested.attr.${concat "a" "b"} $ add b $ add a c