--- a/doc/templates.txt
+++ b/doc/templates.txt
@@ -203,6 +203,44 @@
 See `Error Handling`_ below for details on how such errors are handled.
 
 
+Escaping
+========
+
+If you need to include a literal dollar sign in the output where Genshi would
+normally detect an expression, you can simply add another dollar sign:
+
+.. code-block:: pycon
+
+  >>> from genshi.template import MarkupTemplate
+  >>> tmpl = MarkupTemplate('<em>$foo</em>') # Wanted "$foo" as literal output
+  >>> print tmpl.generate()
+  Traceback (most recent call last):
+    ...
+  UndefinedError: "foo" not defined
+  >>> tmpl = MarkupTemplate('<em>$$foo</em>')
+  >>> print tmpl.generate()
+  <em>$foo</em>
+
+But note that this is not necessary if the characters following the dollar sign
+do not qualify as an expression. For example, the following needs no escaping:
+
+.. code-block:: pycon
+
+  >>> tmpl = MarkupTemplate('<script>$(function() {})</script>')
+  >>> print tmpl.generate()
+  <script>$(function() {})</script>
+
+On the other hand, Genshi will always replace two dollar signs in text with a
+single dollar sign, so you'll need to use three dollar signs to get two in the
+output:
+
+.. code-block:: pycon
+
+  >>> tmpl = MarkupTemplate('<script>$$$("div")</script>')
+  >>> print tmpl.generate()
+  <script>$$("div")</script>
+
+
 .. _`code blocks`:
 
 Code Blocks