diff --git a/CHANGELOG.md b/CHANGELOG.md
index 940037e207..3509a78bb9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -19,6 +19,7 @@
 #### :rocket: New Feature
 
 - Reanalyze: add parallel processing for CMT file analysis with new `-parallel` and `-timing` flags, plus benchmark infrastructure for performance testing. https://github.com/rescript-lang/rescript/pull/8089
+- Allow `$` in identifiers. https://github.com/rescript-lang/rescript/pull/8095
 
 #### :bug: Bug fix
 
diff --git a/compiler/frontend/ast_utf8_string_interp.ml b/compiler/frontend/ast_utf8_string_interp.ml
index 90c5043256..cd8f499cdd 100644
--- a/compiler/frontend/ast_utf8_string_interp.ml
+++ b/compiler/frontend/ast_utf8_string_interp.ml
@@ -64,13 +64,13 @@ type exn += Error of pos * pos * error
 
 let valid_lead_identifier_char x =
   match x with
-  | 'a' .. 'z' | '_' -> true
+  | 'a' .. 'z' | '_' | '$' -> true
   | _ -> false
 
 (** Invariant: [valid_lead_identifier] has to be [valid_identifier] *)
 let valid_identifier_char x =
   match x with
-  | 'a' .. 'z' | 'A' .. 'Z' | '0' .. '9' | '_' | '\'' -> true
+  | 'a' .. 'z' | 'A' .. 'Z' | '0' .. '9' | '_' | '\'' | '$' -> true
   | _ -> false
 
 let valid_identifier s =
diff --git a/compiler/syntax/src/res_printer.ml b/compiler/syntax/src/res_printer.ml
index 7132e16dd9..866473c054 100644
--- a/compiler/syntax/src/res_printer.ml
+++ b/compiler/syntax/src/res_printer.ml
@@ -406,11 +406,11 @@ let classify_ident_content ?(allow_uident = false) ?(allow_hyphen = false) txt =
         match String.unsafe_get txt i with
         | '\\' -> UppercaseExoticIdent
         | 'A' .. 'Z' when allow_uident -> loop (i + 1)
-        | 'a' .. 'z' | '_' -> loop (i + 1)
+        | 'a' .. 'z' | '_' | '$' -> loop (i + 1)
         | _ -> ExoticIdent
       else
         match String.unsafe_get txt i with
-        | 'A' .. 'Z' | 'a' .. 'z' | '0' .. '9' | '\'' | '_' -> loop (i + 1)
+        | 'A' .. 'Z' | 'a' .. 'z' | '0' .. '9' | '\'' | '_' | '$' -> loop (i + 1)
         | '-' when allow_hyphen -> loop (i + 1)
         | _ -> ExoticIdent
     in
diff --git a/compiler/syntax/src/res_scanner.ml b/compiler/syntax/src/res_scanner.ml
index 5615b32add..5ec1aad888 100644
--- a/compiler/syntax/src/res_scanner.ml
+++ b/compiler/syntax/src/res_scanner.ml
@@ -190,7 +190,7 @@ let scan_identifier scanner =
   let start_off = scanner.offset in
   let rec skip_good_chars scanner =
     match scanner.ch with
-    | 'A' .. 'Z' | 'a' .. 'z' | '0' .. '9' | '_' | '\'' ->
+    | 'A' .. 'Z' | 'a' .. 'z' | '0' .. '9' | '_' | '\'' | '$' ->
       next scanner;
       skip_good_chars scanner
     | _ -> ()
@@ -751,7 +751,7 @@ let rec scan scanner =
   let token =
     match scanner.ch with
     (* peeking 0 char *)
-    | 'A' .. 'Z' | 'a' .. 'z' -> scan_identifier scanner
+    | 'A' .. 'Z' | 'a' .. 'z' | '$' -> scan_identifier scanner
     | '0' .. '9' -> scan_number scanner
     | '`' ->
       next scanner;
diff --git a/packages/@rescript/runtime/Primitive_curry.res b/packages/@rescript/runtime/Primitive_curry.res
index 2f1dfc7e51..34f072ac92 100644
--- a/packages/@rescript/runtime/Primitive_curry.res
+++ b/packages/@rescript/runtime/Primitive_curry.res
@@ -87,22 +87,19 @@ let curry_1 = (o, a0, arity) =>
   switch arity {
   | 1 => apply1(Obj.magic(o), a0)
   | 2 => param => apply2(Obj.magic(o), a0, param)
-  | 3 => Obj.magic((param, \"param$1") => apply3(Obj.magic(o), a0, param, \"param$1"))
-  | 4 =>
-    Obj.magic((param, \"param$1", \"param$2") =>
-      apply4(Obj.magic(o), a0, param, \"param$1", \"param$2")
-    )
+  | 3 => Obj.magic((param, param$1) => apply3(Obj.magic(o), a0, param, param$1))
+  | 4 => Obj.magic((param, param$1, param$2) => apply4(Obj.magic(o), a0, param, param$1, param$2))
   | 5 =>
-    Obj.magic((param, \"param$1", \"param$2", \"param$3") =>
-      apply5(Obj.magic(o), a0, param, \"param$1", \"param$2", \"param$3")
+    Obj.magic((param, param$1, param$2, param$3) =>
+      apply5(Obj.magic(o), a0, param, param$1, param$2, param$3)
     )
   | 6 =>
-    Obj.magic((param, \"param$1", \"param$2", \"param$3", \"param$4") =>
-      apply6(Obj.magic(o), a0, param, \"param$1", \"param$2", \"param$3", \"param$4")
+    Obj.magic((param, param$1, param$2, param$3, param$4) =>
+      apply6(Obj.magic(o), a0, param, param$1, param$2, param$3, param$4)
     )
   | 7 =>
-    Obj.magic((param, \"param$1", \"param$2", \"param$3", \"param$4", \"param$5") =>
-      apply7(Obj.magic(o), a0, param, \"param$1", \"param$2", \"param$3", \"param$4", \"param$5")
+    Obj.magic((param, param$1, param$2, param$3, param$4, param$5) =>
+      apply7(Obj.magic(o), a0, param, param$1, param$2, param$3, param$4, param$5)
     )
   | _ => Obj.magic(app(o, [a0]))
   }
@@ -130,18 +127,16 @@ let curry_2 = (o, a0, a1, arity) =>
   | 1 => app(apply1(Obj.magic(o), a0), [a1])
   | 2 => apply2(Obj.magic(o), a0, a1)
   | 3 => param => apply3(Obj.magic(o), a0, a1, param)
-  | 4 => Obj.magic((param, \"param$1") => apply4(Obj.magic(o), a0, a1, param, \"param$1"))
+  | 4 => Obj.magic((param, param$1) => apply4(Obj.magic(o), a0, a1, param, param$1))
   | 5 =>
-    Obj.magic((param, \"param$1", \"param$2") =>
-      apply5(Obj.magic(o), a0, a1, param, \"param$1", \"param$2")
-    )
+    Obj.magic((param, param$1, param$2) => apply5(Obj.magic(o), a0, a1, param, param$1, param$2))
   | 6 =>
-    Obj.magic((param, \"param$1", \"param$2", \"param$3") =>
-      apply6(Obj.magic(o), a0, a1, param, \"param$1", \"param$2", \"param$3")
+    Obj.magic((param, param$1, param$2, param$3) =>
+      apply6(Obj.magic(o), a0, a1, param, param$1, param$2, param$3)
     )
   | 7 =>
-    Obj.magic((param, \"param$1", \"param$2", \"param$3", \"param$4") =>
-      apply7(Obj.magic(o), a0, a1, param, \"param$1", \"param$2", \"param$3", \"param$4")
+    Obj.magic((param, param$1, param$2, param$3, param$4) =>
+      apply7(Obj.magic(o), a0, a1, param, param$1, param$2, param$3, param$4)
     )
   | _ => Obj.magic(app(o, [a0, a1]))
   }
@@ -170,14 +165,14 @@ let curry_3 = (o, a0, a1, a2, arity) =>
   | 2 => app(apply2(Obj.magic(o), a0, a1), [a2])
   | 3 => apply3(Obj.magic(o), a0, a1, a2)
   | 4 => param => apply4(Obj.magic(o), a0, a1, a2, param)
-  | 5 => Obj.magic((param, \"param$1") => apply5(Obj.magic(o), a0, a1, a2, param, \"param$1"))
+  | 5 => Obj.magic((param, param$1) => apply5(Obj.magic(o), a0, a1, a2, param, param$1))
   | 6 =>
-    Obj.magic((param, \"param$1", \"param$2") =>
-      apply6(Obj.magic(o), a0, a1, a2, param, \"param$1", \"param$2")
+    Obj.magic((param, param$1, param$2) =>
+      apply6(Obj.magic(o), a0, a1, a2, param, param$1, param$2)
     )
   | 7 =>
-    Obj.magic((param, \"param$1", \"param$2", \"param$3") =>
-      apply7(Obj.magic(o), a0, a1, a2, param, \"param$1", \"param$2", \"param$3")
+    Obj.magic((param, param$1, param$2, param$3) =>
+      apply7(Obj.magic(o), a0, a1, a2, param, param$1, param$2, param$3)
     )
   | _ => Obj.magic(app(o, [a0, a1, a2]))
   }
@@ -207,10 +202,10 @@ let curry_4 = (o, a0, a1, a2, a3, arity) =>
   | 3 => app(apply3(Obj.magic(o), a0, a1, a2), [a3])
   | 4 => apply4(Obj.magic(o), a0, a1, a2, a3)
   | 5 => param => apply5(Obj.magic(o), a0, a1, a2, a3, param)
-  | 6 => Obj.magic((param, \"param$1") => apply6(Obj.magic(o), a0, a1, a2, a3, param, \"param$1"))
+  | 6 => Obj.magic((param, param$1) => apply6(Obj.magic(o), a0, a1, a2, a3, param, param$1))
   | 7 =>
-    Obj.magic((param, \"param$1", \"param$2") =>
-      apply7(Obj.magic(o), a0, a1, a2, a3, param, \"param$1", \"param$2")
+    Obj.magic((param, param$1, param$2) =>
+      apply7(Obj.magic(o), a0, a1, a2, a3, param, param$1, param$2)
     )
   | _ => Obj.magic(app(o, [a0, a1, a2, a3]))
   }
@@ -241,8 +236,7 @@ let curry_5 = (o, a0, a1, a2, a3, a4, arity) =>
   | 4 => app(apply4(Obj.magic(o), a0, a1, a2, a3), [a4])
   | 5 => apply5(Obj.magic(o), a0, a1, a2, a3, a4)
   | 6 => param => apply6(Obj.magic(o), a0, a1, a2, a3, a4, param)
-  | 7 =>
-    Obj.magic((param, \"param$1") => apply7(Obj.magic(o), a0, a1, a2, a3, a4, param, \"param$1"))
+  | 7 => Obj.magic((param, param$1) => apply7(Obj.magic(o), a0, a1, a2, a3, a4, param, param$1))
   | _ => Obj.magic(app(o, [a0, a1, a2, a3, a4]))
   }
 
diff --git a/tests/syntax_tests/data/parsing/errors/pattern/expected/templateLiteral.res.txt b/tests/syntax_tests/data/parsing/errors/pattern/expected/templateLiteral.res.txt
index 380027d9ba..d4470d7c88 100644
--- a/tests/syntax_tests/data/parsing/errors/pattern/expected/templateLiteral.res.txt
+++ b/tests/syntax_tests/data/parsing/errors/pattern/expected/templateLiteral.res.txt
@@ -11,18 +11,6 @@
   String interpolation is not supported in pattern matching.
 
 
-  Syntax error!
-  syntax_tests/data/parsing/errors/pattern/templateLiteral.res:5:33
-
-  3 │ switch l {
-  4 │ | `zero coord ${zeroCoord}` => ()
-  5 │ | `first coord ${zeroCoord} snd ${zeroCoord} ` => ()
-  6 │ | _ => ()
-  7 │ }
-
-  Not sure what to do with this character: "$".
-
-
   Syntax error!
   syntax_tests/data/parsing/errors/pattern/templateLiteral.res:5:3-46
 
diff --git a/tests/syntax_tests/data/parsing/errors/scanner/expected/badCharacter.res.txt b/tests/syntax_tests/data/parsing/errors/scanner/expected/badCharacter.res.txt
index 02d25879dc..a2dfcba0da 100644
--- a/tests/syntax_tests/data/parsing/errors/scanner/expected/badCharacter.res.txt
+++ b/tests/syntax_tests/data/parsing/errors/scanner/expected/badCharacter.res.txt
@@ -1,17 +1 @@
-
-  Syntax error!
-  syntax_tests/data/parsing/errors/scanner/badCharacter.res:1:5
-
-  1 │ let $ = 1
-
-  Not sure what to do with this character: "$".
-
-
-  Syntax error!
-  syntax_tests/data/parsing/errors/scanner/badCharacter.res:1:5-7
-
-  1 │ let $ = 1
-
-  I was expecting a name for this let-binding. Example: `let message = "hello"`
-
-let 1 = [%rescript.exprhole ]
\ No newline at end of file
+let ($) = 1
\ No newline at end of file
diff --git a/tests/syntax_tests/data/parsing/other/dollarIdent.res b/tests/syntax_tests/data/parsing/other/dollarIdent.res
new file mode 100644
index 0000000000..6f5d6f1dcf
--- /dev/null
+++ b/tests/syntax_tests/data/parsing/other/dollarIdent.res
@@ -0,0 +1,6 @@
+let count$ = signal(0)
+let $count = count$ + 1
+let value$$ = {count$, $count}
+let update = {...value$$, count$: $count}
+let fn = (~count$, ~on$count) => count$ + on$count
+let fromRecord = value$$.count$ + value$$.$count
diff --git a/tests/syntax_tests/data/parsing/other/expected/dollarIdent.res.txt b/tests/syntax_tests/data/parsing/other/expected/dollarIdent.res.txt
new file mode 100644
index 0000000000..9954769743
--- /dev/null
+++ b/tests/syntax_tests/data/parsing/other/expected/dollarIdent.res.txt
@@ -0,0 +1,6 @@
+let count$ = signal 0
+let ($count) = count$ + 1
+let value$$ = { count$; ($count) }
+let update = { value$$ with count$ = ($count) }
+let fn [arity:2]~count$  ~on$count  = count$ + on$count
+let fromRecord = value$$.count$ + value$$.($count)
\ No newline at end of file
diff --git a/tests/syntax_tests/data/ppx/react/expected/v4.res.txt b/tests/syntax_tests/data/ppx/react/expected/v4.res.txt
index e5f9b37a7a..994d03fc4a 100644
--- a/tests/syntax_tests/data/ppx/react/expected/v4.res.txt
+++ b/tests/syntax_tests/data/ppx/react/expected/v4.res.txt
@@ -57,11 +57,11 @@ module Rec = {
   type props = {}
 
   let rec make = {
-    let \"make$Internal" = (_: props): React.element => {
+    let make$Internal = (_: props): React.element => {
       make(({}: props))
     }
     let make = {
-      let \"V4$Rec" = props => \"make$Internal"(props)
+      let \"V4$Rec" = props => make$Internal(props)
 
       \"V4$Rec"
     }
@@ -74,11 +74,11 @@ module Rec1 = {
   type props = {}
 
   let rec make = {
-    let \"make$Internal" = (_: props): React.element => {
+    let make$Internal = (_: props): React.element => {
       React.null
     }
     let make = {
-      let \"V4$Rec1" = props => \"make$Internal"(props)
+      let \"V4$Rec1" = props => make$Internal(props)
 
       \"V4$Rec1"
     }
@@ -91,11 +91,11 @@ module Rec2 = {
   type props = {}
 
   let rec make = {
-    let \"make$Internal" = (_: props): React.element => {
+    let make$Internal = (_: props): React.element => {
       mm(({}: props))
     }
     let make = {
-      let \"V4$Rec2" = props => \"make$Internal"(props)
+      let \"V4$Rec2" = props => make$Internal(props)
 
       \"V4$Rec2"
     }
diff --git a/tests/syntax_tests/data/printer/identifiers/dollarIdent.res b/tests/syntax_tests/data/printer/identifiers/dollarIdent.res
new file mode 100644
index 0000000000..b2035c9d23
--- /dev/null
+++ b/tests/syntax_tests/data/printer/identifiers/dollarIdent.res
@@ -0,0 +1,4 @@
+let count$ = signal(0)
+let $count = count$ + 1
+let record$ = {count$, $count}
+let access = record$.count$ + record$.$count
diff --git a/tests/syntax_tests/data/printer/identifiers/expected/dollarIdent.res.txt b/tests/syntax_tests/data/printer/identifiers/expected/dollarIdent.res.txt
new file mode 100644
index 0000000000..b2035c9d23
--- /dev/null
+++ b/tests/syntax_tests/data/printer/identifiers/expected/dollarIdent.res.txt
@@ -0,0 +1,4 @@
+let count$ = signal(0)
+let $count = count$ + 1
+let record$ = {count$, $count}
+let access = record$.count$ + record$.$count
diff --git a/tests/tests/src/dollar_escape_test.res b/tests/tests/src/dollar_escape_test.res
index 7f046e5926..f6e3c911fb 100644
--- a/tests/tests/src/dollar_escape_test.res
+++ b/tests/tests/src/dollar_escape_test.res
@@ -1,9 +1,9 @@
 open Mocha
 open Test_utils
 
-let \"$$" = (x, y) => x + y
+let $$ = (x, y) => x + y
 
-let v = \"$$"(1, 2)
+let v = $$(1, 2)
 
 let \"$$+" = (x, y) => x * y
 
diff --git a/tests/tests/src/dollar_ident_js_test.mjs b/tests/tests/src/dollar_ident_js_test.mjs
new file mode 100644
index 0000000000..4aee97860d
--- /dev/null
+++ b/tests/tests/src/dollar_ident_js_test.mjs
@@ -0,0 +1,44 @@
+// Generated by ReScript, PLEASE EDIT WITH CARE
+
+
+let $count = 3;
+
+let record$ = {
+  count$: 1,
+  $count: $count
+};
+
+let sum$ = 1 + $count | 0;
+
+let update$ = {
+  count$: 5,
+  $count: $count
+};
+
+function fn$(count$, inc$) {
+  return count$ + inc$ | 0;
+}
+
+let $ = 1 + $count | 0;
+
+function $$(value$) {
+  console.log(value$);
+  return value$ + $count | 0;
+}
+
+let call$$ = $$($);
+
+let count$ = 1;
+
+export {
+  count$,
+  $count,
+  record$,
+  sum$,
+  update$,
+  fn$,
+  $,
+  $$,
+  call$$,
+}
+/* call$$ Not a pure module */
diff --git a/tests/tests/src/dollar_ident_js_test.res b/tests/tests/src/dollar_ident_js_test.res
new file mode 100644
index 0000000000..3b56557ed5
--- /dev/null
+++ b/tests/tests/src/dollar_ident_js_test.res
@@ -0,0 +1,18 @@
+let count$ = 1
+let $count = count$ + 2
+
+type t$ = {count$: int, $count: int}
+
+let record$: t$ = {count$, $count}
+let sum$ = record$.count$ + record$.$count
+
+let update$ = {...record$, count$: 5}
+
+let fn$ = (~count$, ~inc$) => count$ + inc$
+
+let $ = count$ + $count
+let $$ = value$ => {
+  Console.log(value$)
+  value$ + $count
+}
+let call$$ = $$($)