diff --git a/CHANGELOG.md b/CHANGELOG.md
index 093c2aae4..2c3ea1823 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -20,6 +20,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 ### Fixed
 
 - Ensure utilities are sorted based on their actual property order ([#16995](https://github.com/tailwindlabs/tailwindcss/pull/16995))
+- Ensure strings in Pug and Slim templates are handled correctly ([#17000](https://github.com/tailwindlabs/tailwindcss/pull/17000))
 
 ## [4.0.11] - 2025-03-06
 
diff --git a/crates/oxide/src/extractor/pre_processors/pre_processor.rs b/crates/oxide/src/extractor/pre_processors/pre_processor.rs
index 4bbbbe6d1..8c807c8c3 100644
--- a/crates/oxide/src/extractor/pre_processors/pre_processor.rs
+++ b/crates/oxide/src/extractor/pre_processors/pre_processor.rs
@@ -25,4 +25,38 @@ pub trait PreProcessor: Sized + Default {
 
         assert_eq!(actual, expected);
     }
+
+    #[cfg(test)]
+    fn test_extract_contains(input: &str, items: Vec<&str>) {
+        use crate::extractor::{Extracted, Extractor};
+
+        let input = input.as_bytes();
+
+        let processor = Self::default();
+        let transformed = processor.process(input);
+
+        let extracted = Extractor::new(&transformed).extract();
+
+        // Extract all candidates and css variables.
+        let candidates = extracted
+            .iter()
+            .filter_map(|x| match x {
+                Extracted::Candidate(bytes) => std::str::from_utf8(bytes).ok(),
+                Extracted::CssVariable(bytes) => std::str::from_utf8(bytes).ok(),
+            })
+            .collect::<Vec<_>>();
+
+        // Ensure all items are present in the candidates.
+        let mut missing = vec![];
+        for item in &items {
+            if !candidates.contains(item) {
+                missing.push(item);
+            }
+        }
+
+        if !missing.is_empty() {
+            dbg!(&candidates, &missing);
+            panic!("Missing some items");
+        }
+    }
 }
diff --git a/crates/oxide/src/extractor/pre_processors/pug.rs b/crates/oxide/src/extractor/pre_processors/pug.rs
index d7433ae31..eca30e3e8 100644
--- a/crates/oxide/src/extractor/pre_processors/pug.rs
+++ b/crates/oxide/src/extractor/pre_processors/pug.rs
@@ -1,8 +1,6 @@
 use crate::cursor;
 use crate::extractor::bracket_stack::BracketStack;
-use crate::extractor::machine::Machine;
 use crate::extractor::pre_processors::pre_processor::PreProcessor;
-use crate::StringMachine;
 
 #[derive(Debug, Default)]
 pub struct Pug;
@@ -12,14 +10,29 @@ impl PreProcessor for Pug {
         let len = content.len();
         let mut result = content.to_vec();
         let mut cursor = cursor::Cursor::new(content);
-        let mut string_machine = StringMachine;
         let mut bracket_stack = BracketStack::default();
 
         while cursor.pos < len {
             match cursor.curr {
                 // Consume strings as-is
                 b'\'' | b'"' => {
-                    string_machine.next(&mut cursor);
+                    let len = cursor.input.len();
+                    let end_char = cursor.curr;
+
+                    cursor.advance();
+
+                    while cursor.pos < len {
+                        match cursor.curr {
+                            // Escaped character, skip ahead to the next character
+                            b'\\' => cursor.advance_twice(),
+
+                            // End of the string
+                            b'\'' | b'"' if cursor.curr == end_char => break,
+
+                            // Everything else is valid
+                            _ => cursor.advance(),
+                        };
+                    }
                 }
 
                 // Replace dots with spaces
diff --git a/crates/oxide/src/extractor/pre_processors/slim.rs b/crates/oxide/src/extractor/pre_processors/slim.rs
index a5c21cdf0..8cceb0536 100644
--- a/crates/oxide/src/extractor/pre_processors/slim.rs
+++ b/crates/oxide/src/extractor/pre_processors/slim.rs
@@ -1,8 +1,6 @@
 use crate::cursor;
 use crate::extractor::bracket_stack::BracketStack;
-use crate::extractor::machine::Machine;
 use crate::extractor::pre_processors::pre_processor::PreProcessor;
-use crate::StringMachine;
 
 #[derive(Debug, Default)]
 pub struct Slim;
@@ -12,14 +10,29 @@ impl PreProcessor for Slim {
         let len = content.len();
         let mut result = content.to_vec();
         let mut cursor = cursor::Cursor::new(content);
-        let mut string_machine = StringMachine;
         let mut bracket_stack = BracketStack::default();
 
         while cursor.pos < len {
             match cursor.curr {
                 // Consume strings as-is
                 b'\'' | b'"' => {
-                    string_machine.next(&mut cursor);
+                    let len = cursor.input.len();
+                    let end_char = cursor.curr;
+
+                    cursor.advance();
+
+                    while cursor.pos < len {
+                        match cursor.curr {
+                            // Escaped character, skip ahead to the next character
+                            b'\\' => cursor.advance_twice(),
+
+                            // End of the string
+                            b'\'' | b'"' if cursor.curr == end_char => break,
+
+                            // Everything else is valid
+                            _ => cursor.advance(),
+                        };
+                    }
                 }
 
                 // Replace dots with spaces
@@ -103,8 +116,42 @@ mod tests {
             ),
             // Nested brackets, with "invalid" syntax but valid due to nesting
             ("content-['50[]']", "content-['50[]']"),
+            // Escaped string
+            ("content-['a\'b\'c\'']", "content-['a\'b\'c\'']"),
         ] {
             Slim::test(input, expected);
         }
     }
+
+    #[test]
+    fn test_nested_slim_syntax() {
+        let input = r#"
+            .text-black[
+              data-controller= ['foo', ('bar' if rand.positive?)].join(' ')
+            ]
+              .bg-green-300
+                | BLACK on GREEN - OK
+
+              .bg-red-300[
+                data-foo= 42
+              ]
+                | Should be BLACK on RED - FAIL
+        "#;
+
+        let expected = r#"
+             text-black 
+              data-controller= ['foo', ('bar' if rand.positive?)].join(' ')
+            ]
+               bg-green-300
+                | BLACK on GREEN - OK
+
+               bg-red-300 
+                data-foo= 42
+              ]
+                | Should be BLACK on RED - FAIL
+        "#;
+
+        Slim::test(input, expected);
+        Slim::test_extract_contains(input, vec!["text-black", "bg-green-300", "bg-red-300"]);
+    }
 }