diff --git a/CHANGELOG.md b/CHANGELOG.md
index d3777eb..47aa553 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,7 +5,9 @@ All notable changes to this project will be documented in this file.
 
 ## [Unreleased]
 ### Chaned
-- Fixed string parsing by correctly handling "string continue" sequences
+- Fixed (byte) string literal parsing by:
+    - Correctly handling "string continue" sequences
+    - Correctly converting `\n\r` into `\n`
 
 
 ## [0.2.1] - 2021-06-04
diff --git a/src/bytestr/tests.rs b/src/bytestr/tests.rs
index 414dd1a..3029b2c 100644
--- a/src/bytestr/tests.rs
+++ b/src/bytestr/tests.rs
@@ -32,7 +32,7 @@ fn simple() {
 
 #[test]
 fn special_whitespace() {
-    let strings = ["\n", "\t", "foo\tbar", "baz\n", "\r\n"];
+    let strings = ["\n", "\t", "foo\tbar", "baz\n"];
 
     for &s in &strings {
         let input = format!(r#"b"{}""#, s);
@@ -97,6 +97,18 @@ bar", true, None);
         bar", false, Some(0));
 }
 
+#[test]
+fn crlf_newlines() {
+    let lit = ByteStringLit::parse("b\"foo\r\nbar\"").expect("failed to parse");
+    assert_eq!(lit.value(), b"foo\nbar");
+
+    let lit = ByteStringLit::parse("b\"\r\nbar\"").expect("failed to parse");
+    assert_eq!(lit.value(), b"\nbar");
+
+    let lit = ByteStringLit::parse("b\"foo\r\n\"").expect("failed to parse");
+    assert_eq!(lit.value(), b"foo\n");
+}
+
 #[test]
 fn raw_byte_string() {
     check!(br"", false, Some(0));
diff --git a/src/escape.rs b/src/escape.rs
index b4b7e03..c406c09 100644
--- a/src/escape.rs
+++ b/src/escape.rs
@@ -141,8 +141,16 @@ pub(crate) fn unescape_string<E: Escapee>(
                 i += len;
                 end_last_escape = i;
             }
-            b'\r' if input.as_bytes()[i + 1] != b'\n'
-                => return Err(perr(i, IsolatedCr)),
+            b'\r' => {
+                if input.as_bytes()[i + 1] == b'\n' {
+                    value.push_str(&input[end_last_escape..i]);
+                    value.push('\n');
+                    i += 2;
+                    end_last_escape = i;
+                } else {
+                    return Err(perr(i, IsolatedCr))
+                }
+            }
             b'"' => return Err(perr(i + 1..input.len(), UnexpectedChar)),
             b if !E::SUPPORTS_UNICODE && !b.is_ascii()
                 => return Err(perr(i, NonAsciiInByteLiteral)),
diff --git a/src/string/tests.rs b/src/string/tests.rs
index 75c65af..fb16a15 100644
--- a/src/string/tests.rs
+++ b/src/string/tests.rs
@@ -36,7 +36,7 @@ fn simple() {
 
 #[test]
 fn special_whitespace() {
-    let strings = ["\n", "\t", "foo\tbar", "🦊\n", "\r\n"];
+    let strings = ["\n", "\t", "foo\tbar", "🦊\n"];
 
     for &s in &strings {
         let input = format!(r#""{}""#, s);
@@ -131,6 +131,18 @@ fn string_continue() {
         bar", false, Some(0));
 }
 
+#[test]
+fn crlf_newlines() {
+    let lit = StringLit::parse("\"foo\r\nbar\"").expect("failed to parse");
+    assert_eq!(lit.value(), "foo\nbar");
+
+    let lit = StringLit::parse("\"\r\nbar\"").expect("failed to parse");
+    assert_eq!(lit.value(), "\nbar");
+
+    let lit = StringLit::parse("\"лиса\r\n\"").expect("failed to parse");
+    assert_eq!(lit.value(), "лиса\n");
+}
+
 #[test]
 fn raw_string() {
     check!(r"", false, Some(0));