diff --git a/src/asm/parser.y b/src/asm/parser.y
index d435ff5b..fe69ab4b 100644
--- a/src/asm/parser.y
+++ b/src/asm/parser.y
@@ -684,11 +684,19 @@ plain_directive	: label
 
 line		: plain_directive endofline
 		| line_directive /* Directives that manage newlines themselves */
-		| error endofline { /* Continue parsing the next line on a syntax error */
+		/* Continue parsing the next line on a syntax error */
+		| error {
+			lexer_SetMode(LEXER_NORMAL);
+			lexer_ToggleStringExpansion(true);
+		} endofline {
 			fstk_StopRept();
 			yyerrok;
 		}
-		| T_LABEL error endofline { /* Hint about unindented macros parsed as labels */
+		/* Hint about unindented macros parsed as labels */
+		| T_LABEL error {
+			lexer_SetMode(LEXER_NORMAL);
+			lexer_ToggleStringExpansion(true);
+		} endofline {
 			struct Symbol *macro = sym_FindExactSymbol($1);
 
 			if (macro && macro->type == SYM_MACRO)
diff --git a/test/asm/syntax-error-lexer-mode.asm b/test/asm/syntax-error-lexer-mode.asm
new file mode 100644
index 00000000..16af9a3c
--- /dev/null
+++ b/test/asm/syntax-error-lexer-mode.asm
@@ -0,0 +1,12 @@
+newline equs "\n"
+
+def x = 1 newline def y = 2
+println "x={d:x}, y={d:y}"
+
+; the lexer is already in normal mode at the `AF`, so `newline` gets expanded
+def m = AF newline def n = 2
+println "n={d:n}"
+
+; the lexer is in raw mode at the `AF`, but the parser resets it to normal
+def AF = 1 newline def q = 2
+println "q={d:q}"
diff --git a/test/asm/syntax-error-lexer-mode.err b/test/asm/syntax-error-lexer-mode.err
new file mode 100644
index 00000000..9b9c1233
--- /dev/null
+++ b/test/asm/syntax-error-lexer-mode.err
@@ -0,0 +1,5 @@
+ERROR: syntax-error-lexer-mode.asm(7):
+    syntax error, unexpected af
+ERROR: syntax-error-lexer-mode.asm(11):
+    syntax error, unexpected af, expecting identifier
+error: Assembly aborted (2 errors)!
diff --git a/test/asm/syntax-error-lexer-mode.out b/test/asm/syntax-error-lexer-mode.out
new file mode 100644
index 00000000..61bfd3a2
--- /dev/null
+++ b/test/asm/syntax-error-lexer-mode.out
@@ -0,0 +1,3 @@
+x=1, y=2
+n=2
+q=2