diff --git a/src/parse-gram.y b/src/parse-gram.y
index 6a19e571..9fcf8195 100644
--- a/src/parse-gram.y
+++ b/src/parse-gram.y
@@ -106,6 +106,7 @@
   /* Handle a %yacc directive.  */
   static void handle_yacc (location const *loc);
 
+  /* Implementation of yyerror.  */
   static void gram_error (location const *, char const *);
 
   /* A string that describes a char (e.g., 'a' -> "'a'").  */
@@ -196,7 +197,7 @@
 %token BRACED_CODE     "{...}"
 %token BRACED_PREDICATE "%?{...}"
 %token BRACKETED_ID    "[identifier]"
-%token CHAR            "char"
+%token CHAR            "character literal"
 %token COLON           ":"
 %token EPILOGUE        "epilogue"
 %token EQUAL           "="
@@ -732,12 +733,24 @@ id:
     { $$ = symbol_from_uniqstr ($1, @1); }
 | CHAR
     {
+      const char *var = "api.token.raw";
       if (current_class == nterm_sym)
         {
-          gram_error (&@1,
-                      _("character literals cannot be nonterminals"));
+          complain (&@1, complaint,
+                    _("character literals cannot be nonterminals"));
           YYERROR;
         }
+      if (muscle_percent_define_ifdef (var))
+        {
+          unsigned indent = 0;
+          complain_indent (&@1, complaint, &indent,
+                           _("character literals cannot be used together"
+                             " with %s"), var);
+          indent += SUB_INDENT;
+          location loc = muscle_percent_define_get_loc (var);
+          complain_indent (&loc, complaint, &indent,
+                           _("definition of %s"), var);
+        }
       $$ = symbol_get (char_name ($1), @1);
       symbol_class_set ($$, token_sym, @1, false);
       symbol_user_token_number_set ($$, $1, @1);
diff --git a/tests/diagnostics.at b/tests/diagnostics.at
index a4496952..8caef178 100644
--- a/tests/diagnostics.at
+++ b/tests/diagnostics.at
@@ -277,7 +277,7 @@ AT_TEST([[Carriage return]],
 [[input.y:10.8-11.0: <error>error:</error> missing '"' at end of line
    10 | %token <error>"</error>
       |        <error>^</error>
-input.y:10.8-11.0: <error>error:</error> syntax error, unexpected string, expecting char or identifier or <tag>
+input.y:10.8-11.0: <error>error:</error> syntax error, unexpected string, expecting character literal or identifier or <tag>
    10 | %token <error>"</error>
       |        <error>^</error>
 ]])
diff --git a/tests/input.at b/tests/input.at
index 64711222..8a265c42 100644
--- a/tests/input.at
+++ b/tests/input.at
@@ -232,10 +232,10 @@ input.y:3.17-24: error: nonterminals cannot be given a string alias
 input.y:4.8-10: error: character literals cannot be nonterminals
     4 | %nterm '+' '*';
       |        ^~~
-input.y:5.8-15: error: syntax error, unexpected string, expecting char or identifier or <tag>
+input.y:5.8-15: error: syntax error, unexpected string, expecting character literal or identifier or <tag>
     5 | %nterm "number";
       |        ^~~~~~~~
-input.y:6.8-13: error: syntax error, unexpected string, expecting char or identifier or <tag>
+input.y:6.8-13: error: syntax error, unexpected string, expecting character literal or identifier or <tag>
     6 | %token "tok1" 1;
       |        ^~~~~~
 input.y:7.14: error: syntax error, unexpected integer
@@ -2760,3 +2760,37 @@ AT_BISON_CHECK([[-fcaret input.y]], [[0]], [[]],
 
 AT_BISON_OPTION_POPDEFS
 AT_CLEANUP
+
+
+
+## -------------------------------------- ##
+## Character literals and api.token.raw.  ##
+## -------------------------------------- ##
+
+AT_SETUP([[Character literals and api.token.raw]])
+
+AT_BISON_OPTION_PUSHDEFS
+AT_DATA_GRAMMAR([[input.y]],
+[[%define api.token.raw
+%token 'a'
+%%
+exp: 'b' "c" {}
+]])
+
+AT_BISON_CHECK([[-fcaret input.y]], [[1]], [[]],
+[[input.y:10.8-10: error: character literals cannot be used together with api.token.raw
+   10 | %token 'a'
+      |        ^~~
+input.y:9.1-21:      definition of api.token.raw
+    9 | %define api.token.raw
+      | ^~~~~~~~~~~~~~~~~~~~~
+input.y:12.6-8: error: character literals cannot be used together with api.token.raw
+   12 | exp: 'b' "c" {}
+      |      ^~~
+input.y:9.1-21:     definition of api.token.raw
+    9 | %define api.token.raw
+      | ^~~~~~~~~~~~~~~~~~~~~
+]])
+
+AT_BISON_OPTION_POPDEFS
+AT_CLEANUP