diff --git a/app/helpers/application_helper.rb b/app/helpers/application_helper.rb
index 363653cd8..acb7ba9db 100644
--- a/app/helpers/application_helper.rb
+++ b/app/helpers/application_helper.rb
@@ -978,19 +978,20 @@ module ApplicationHelper
     end
   end
 
-  TOC_RE = /<p>\{\{([<>]?)toc\}\}<\/p>/i unless const_defined?(:TOC_RE)
+  TOC_RE = /<p>\{\{((<|&lt;)|(>|&gt;))?toc\}\}<\/p>/i unless const_defined?(:TOC_RE)
 
   # Renders the TOC with given headings
   def replace_toc(text, headings)
     text.gsub!(TOC_RE) do
+      left_align, right_align = $2, $3
       # Keep only the 4 first levels
       headings = headings.select{|level, anchor, item| level <= 4}
       if headings.empty?
         ''
       else
         div_class = 'toc'
-        div_class << ' right' if $1 == '>'
-        div_class << ' left' if $1 == '<'
+        div_class << ' right' if right_align
+        div_class << ' left' if left_align
         out = "<ul class=\"#{div_class}\"><li>"
         root = headings.map(&:first).min
         current = root
diff --git a/test/unit/helpers/application_helper_test.rb b/test/unit/helpers/application_helper_test.rb
index f645f1a52..e0abe026e 100644
--- a/test/unit/helpers/application_helper_test.rb
+++ b/test/unit/helpers/application_helper_test.rb
@@ -1167,6 +1167,24 @@ RAW
     assert textilizable(raw).gsub("\n", "").include?(expected)
   end
 
+  def test_toc_with_textile_formatting_should_be_parsed
+    with_settings :text_formatting => 'textile' do
+      assert_select_in textilizable("{{toc}}\n\nh1. Heading"), 'ul.toc li', :text => 'Heading'
+      assert_select_in textilizable("{{<toc}}\n\nh1. Heading"), 'ul.toc.left li', :text => 'Heading'
+      assert_select_in textilizable("{{>toc}}\n\nh1. Heading"), 'ul.toc.right li', :text => 'Heading'
+    end
+  end
+
+  if Object.const_defined?(:Redcarpet)
+  def test_toc_with_markdown_formatting_should_be_parsed
+    with_settings :text_formatting => 'markdown' do
+      assert_select_in textilizable("{{toc}}\n\n# Heading"), 'ul.toc li', :text => 'Heading'
+      assert_select_in textilizable("{{<toc}}\n\n# Heading"), 'ul.toc.left li', :text => 'Heading'
+      assert_select_in textilizable("{{>toc}}\n\n# Heading"), 'ul.toc.right li', :text => 'Heading'
+    end
+  end
+  end
+
   def test_section_edit_links
     raw = <<-RAW
 h1. Title