diff --git a/lib/rdoc/text.rb b/lib/rdoc/text.rb
index 77318e46e4..407421f453 100644
--- a/lib/rdoc/text.rb
+++ b/lib/rdoc/text.rb
@@ -237,7 +237,7 @@ def to_html text
       when s.scan(/``/) then # backtick double quote
         html << encoded[:open_dquote]
         after_word = nil
-      when s.scan(/''/) then # tick double quote
+      when s.scan(/(?:&#39;|'){2}/) then # tick double quote
         html << encoded[:close_dquote]
         after_word = nil
       when s.scan(/`/) then # backtick
diff --git a/test/rdoc/test_rdoc_text.rb b/test/rdoc/test_rdoc_text.rb
index 02c56a2829..590d41c3d9 100644
--- a/test/rdoc/test_rdoc_text.rb
+++ b/test/rdoc/test_rdoc_text.rb
@@ -514,6 +514,7 @@ def test_to_html_dash
   def test_to_html_double_backtick
     assert_equal '“a',  to_html('``a')
     assert_equal '“a“', to_html('``a``')
+    assert_equal '“a”', to_html("``a''")
   end
 
   def test_to_html_double_quote