diff --git a/CHANGELOG.md b/CHANGELOG.md
index 162b3a8e..0322c7a1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,9 @@
 
 ## Unreleased
 
+* Parsing fixes
+  * Quotes in inherit statements (like `inherit "or";`) are now supported.
+
 ## 0.6.0 -- 2023-10-31
 
 * Fix escaping of interpolations after dollar signs.
diff --git a/src/Nixfmt/Parser.hs b/src/Nixfmt/Parser.hs
index 0c11cfc3..bb32f1bf 100644
--- a/src/Nixfmt/Parser.hs
+++ b/src/Nixfmt/Parser.hs
@@ -26,7 +26,7 @@ import qualified Text.Megaparsec.Char.Lexer as L (decimal)
 
 import Nixfmt.Lexer (lexeme)
 import Nixfmt.Types
-  (Ann, Binder(..), Expression(..), File(..), Fixity(..), Leaf, Operator(..),
+  (Ann(..), Binder(..), Expression(..), File(..), Fixity(..), Leaf, Operator(..),
   ParamAttr(..), Parameter(..), Parser, Path, Selector(..), SimpleSelector(..),
   String, StringPart(..), Term(..), Token(..), operators, tokenText)
 import Nixfmt.Parser.Float (floatParse)
@@ -103,6 +103,21 @@ interpolation :: Parser StringPart
 interpolation = Interpolation <$>
     symbol TInterOpen <*> expression <*> rawSymbol TInterClose
 
+-- Interpolation, but only allowing identifiers and simple strings inside
+interpolationRestricted :: Parser StringPart
+interpolationRestricted = Interpolation <$>
+    symbol TInterOpen <*>
+    -- simple string without dynamic interpolations
+    (Term <$> String <$> do
+        str <- string
+        guard $ not $ containsInterpolation str
+        return str
+    ) <*>
+    rawSymbol TInterClose
+    where
+        containsInterpolation (Ann str _ _) =
+            any (\part -> case part of { Interpolation _ _ _ -> True; _ -> False }) $ concat str
+
 simpleStringPart :: Parser StringPart
 simpleStringPart = TextPart <$> someText (
     chunk "\\n" *> pure "\n" <|>
@@ -214,18 +229,25 @@ parens :: Parser Term
 parens = Parenthesized <$>
     symbol TParenOpen <*> expression <*> symbol TParenClose
 
+simpleSelector :: Parser StringPart -> Parser SimpleSelector
+simpleSelector parseInterpolation =
+    ((IDSelector <$> identifier) <|>
+     (InterpolSelector <$> lexeme parseInterpolation) <|>
+     (StringSelector <$> lexeme simpleString))
+
 selector :: Maybe (Parser Leaf) -> Parser Selector
 selector parseDot = Selector <$>
-    sequence parseDot <* notFollowedBy path <*>
-    ((IDSelector <$> identifier) <|>
-     (InterpolSelector <$> lexeme interpolation) <|>
-     (StringSelector <$> lexeme simpleString)) <*>
-    optional (liftM2 (,) (reserved KOr) term)
+    sequence parseDot <* notFollowedBy path <*> simpleSelector interpolation
 
 selectorPath :: Parser [Selector]
 selectorPath = (pure <$> selector Nothing) <>
     many (selector $ Just $ symbol TDot)
 
+-- Path with a leading dot
+selectorPath' :: Parser [Selector]
+selectorPath' = many $ try $ selector $ Just $ symbol TDot
+
+-- Everything but selection
 simpleTerm :: Parser Term
 simpleTerm = (String <$> string) <|> (Path <$> path) <|>
     (Token <$> (envPath <|> float <|> integer <|> identifier)) <|>
@@ -234,9 +256,11 @@ simpleTerm = (String <$> string) <|> (Path <$> path) <|>
 term :: Parser Term
 term = label "term" $ do
     t <- simpleTerm
-    s <- many $ try $ selector $ Just $ symbol TDot
-    return $ case s of [] -> t
-                       _  -> Selection t s
+    sel <- selectorPath'
+    def <- optional (liftM2 (,) (reserved KOr) term)
+    return $ case sel of
+        [] -> t
+        _  -> Selection t sel def
 
 -- ABSTRACTIONS
 
@@ -271,7 +295,7 @@ abstraction = try (Abstraction <$>
 
 inherit :: Parser Binder
 inherit = Inherit <$> reserved KInherit <*> optional parens <*>
-    many identifier <*> symbol TSemicolon
+    many (simpleSelector interpolationRestricted) <*> symbol TSemicolon
 
 assignment :: Parser Binder
 assignment = Assignment <$>
diff --git a/src/Nixfmt/Pretty.hs b/src/Nixfmt/Pretty.hs
index eb4d7200..51a77de3 100644
--- a/src/Nixfmt/Pretty.hs
+++ b/src/Nixfmt/Pretty.hs
@@ -11,7 +11,7 @@ module Nixfmt.Pretty where
 import Prelude hiding (String)
 
 import Data.Char (isSpace)
-import Data.Maybe (fromMaybe)
+import Data.Maybe (fromMaybe, isNothing)
 import Data.Text (Text, isPrefixOf, isSuffixOf, stripPrefix)
 import qualified Data.Text as Text
   (dropEnd, empty, init, isInfixOf, last, null, strip, takeWhile)
@@ -62,13 +62,9 @@ instance Pretty SimpleSelector where
         = prettySimpleString s <> pretty trailing <> pretty leading
 
 instance Pretty Selector where
-    pretty (Selector dot sel Nothing)
+    pretty (Selector dot sel)
         = pretty dot <> pretty sel
 
-    pretty (Selector dot sel (Just (kw, def)))
-        = pretty dot <> pretty sel
-          <> hardspace <> pretty kw <> hardspace <> pretty def
-
 instance Pretty Binder where
     pretty (Inherit inherit Nothing ids semicolon)
         = base $ group (pretty inherit <> softline
@@ -89,7 +85,9 @@ prettyTerm :: Term -> Doc
 prettyTerm (Token t) = pretty t
 prettyTerm (String s) = pretty s
 prettyTerm (Path p) = pretty p
-prettyTerm (Selection term selectors) = pretty term <> hcat selectors
+prettyTerm (Selection term selectors Nothing) = pretty term <> hcat selectors
+prettyTerm (Selection term selectors (Just (kw, def))) =
+    pretty term <> hcat selectors <> hardspace <> pretty kw <> hardspace <> pretty def
 
 prettyTerm (List (Ann paropen Nothing []) [] parclose)
     = pretty paropen <> hardspace <> pretty parclose
@@ -264,13 +262,13 @@ instance Pretty [Token] where
 -- STRINGS
 
 isSimpleSelector :: Selector -> Bool
-isSimpleSelector (Selector _ (IDSelector _) Nothing) = True
-isSimpleSelector _                                   = False
+isSimpleSelector (Selector _ (IDSelector _)) = True
+isSimpleSelector _                           = False
 
 isSimple :: Expression -> Bool
 isSimple (Term (Token (Ann (Identifier _) Nothing []))) = True
-isSimple (Term (Selection t selectors))
-    = isSimple (Term t) && all isSimpleSelector selectors
+isSimple (Term (Selection t selectors def))
+    = isSimple (Term t) && all isSimpleSelector selectors && isNothing def
 isSimple _ = False
 
 hasQuotes :: [StringPart] -> Bool
diff --git a/src/Nixfmt/Types.hs b/src/Nixfmt/Types.hs
index 042b76c0..fd09cd21 100644
--- a/src/Nixfmt/Types.hs
+++ b/src/Nixfmt/Types.hs
@@ -57,11 +57,12 @@ data SimpleSelector
     deriving (Eq, Show)
 
 data Selector
-    = Selector (Maybe Leaf) SimpleSelector (Maybe (Leaf, Term))
+    -- `.selector`
+    = Selector (Maybe Leaf) SimpleSelector
     deriving (Eq, Show)
 
 data Binder
-    = Inherit Leaf (Maybe Term) [Leaf] Leaf
+    = Inherit Leaf (Maybe Term) [SimpleSelector] Leaf
     | Assignment [Selector] Leaf Expression Leaf
     deriving (Eq, Show)
 
@@ -71,7 +72,7 @@ data Term
     | Path Path
     | List Leaf [Term] Leaf
     | Set (Maybe Leaf) Leaf [Binder] Leaf
-    | Selection Term [Selector]
+    | Selection Term [Selector] (Maybe (Leaf, Term))
     | Parenthesized Leaf Expression Leaf
     deriving (Eq, Show)
 
diff --git a/test/correct/quotes-in-inherit-2.nix b/test/correct/quotes-in-inherit-2.nix
new file mode 100644
index 00000000..c25efa8c
--- /dev/null
+++ b/test/correct/quotes-in-inherit-2.nix
@@ -0,0 +1,7 @@
+let
+  foo = 1;
+  "bar" = 2;
+  ${"baz"} = 3;
+  ${"in"} = 4;
+
+in { inherit ${"foo"} bar "baz" "in"; }
diff --git a/test/correct/quotes-in-inherit.nix b/test/correct/quotes-in-inherit.nix
new file mode 100644
index 00000000..a36f90d9
--- /dev/null
+++ b/test/correct/quotes-in-inherit.nix
@@ -0,0 +1 @@
+{ inherit ({ "in" = 1; }) "in"; }
diff --git a/test/invalid/interpolation-in-inherit-1.nix b/test/invalid/interpolation-in-inherit-1.nix
new file mode 100644
index 00000000..bf47290a
--- /dev/null
+++ b/test/invalid/interpolation-in-inherit-1.nix
@@ -0,0 +1,4 @@
+let
+  bar = "bar";
+
+in { inherit ${bar}; }
diff --git a/test/invalid/interpolation-in-inherit-2.nix b/test/invalid/interpolation-in-inherit-2.nix
new file mode 100644
index 00000000..431b1d1a
--- /dev/null
+++ b/test/invalid/interpolation-in-inherit-2.nix
@@ -0,0 +1 @@
+{ inherit ${"foo" + "bar"}; }