diff --git a/src/languages/definitions/shell/shell.test.ts b/src/languages/definitions/shell/shell.test.ts
index 20bb0124fe..1276a0eab5 100644
--- a/src/languages/definitions/shell/shell.test.ts
+++ b/src/languages/definitions/shell/shell.test.ts
@@ -338,7 +338,37 @@ testTokenization('shell', [
 			tokens: [
 				{ startIndex: 0, type: 'type.identifier.shell' },
 				{ startIndex: 4, type: 'white.shell' },
-				{ startIndex: 5, type: 'variable.shell' }
+				{ startIndex: 5, type: 'variable.shell' },
+				{ startIndex: 13, type: 'string.shell' },
+				{ startIndex: 17, type: 'variable.shell' }
+			]
+		}
+	],
+
+	// Issue #5231: Command substitution with parentheses inside strings
+	[
+		{
+			line: 'GIT_HOST=$(echo "$GIT_REPO" | sed -E \'s/^.*@([^:/]+).*$/\\1/\')',
+			tokens: [
+				{ startIndex: 0, type: '' },
+				{ startIndex: 8, type: 'delimiter.shell' },
+				{ startIndex: 9, type: 'variable.shell' },
+				{ startIndex: 16, type: 'string.shell' },
+				{ startIndex: 27, type: 'variable.shell' },
+				{ startIndex: 34, type: 'delimiter.shell' },
+				{ startIndex: 35, type: 'variable.shell' },
+				{ startIndex: 37, type: 'string.shell' },
+				{ startIndex: 60, type: 'variable.shell' }
+			]
+		},
+		{
+			line: 'DIR_NAME=$(basename "$GIT_REPO" .git)',
+			tokens: [
+				{ startIndex: 0, type: '' },
+				{ startIndex: 8, type: 'delimiter.shell' },
+				{ startIndex: 9, type: 'variable.shell' },
+				{ startIndex: 20, type: 'string.shell' },
+				{ startIndex: 31, type: 'variable.shell' }
 			]
 		}
 	]
diff --git a/src/languages/definitions/shell/shell.ts b/src/languages/definitions/shell/shell.ts
index 9f06df4513..823fae0f16 100644
--- a/src/languages/definitions/shell/shell.ts
+++ b/src/languages/definitions/shell/shell.ts
@@ -192,11 +192,11 @@ export const language = <languages.IMonarchLanguage>{
 			[/"/, 'string', '@dblStringBody']
 		],
 		stringBody: [
-			[/'/, 'string', '@popall'],
+			[/'/, 'string', '@pop'],
 			[/./, 'string']
 		],
 		dblStringBody: [
-			[/"/, 'string', '@popall'],
+			[/"/, 'string', '@pop'],
 			[/./, 'string']
 		],
 
@@ -233,9 +233,11 @@ export const language = <languages.IMonarchLanguage>{
 			[/["]/, 'variable', '@pop']
 		],
 		parameterBodyParen: [
-			[/[^#:%*@\-!_)]+/, 'variable'],
-			[/[#:%*@\-!_]/, 'delimiter'],
-			[/[)]/, 'variable', '@pop']
+			[/[)]/, 'variable', '@pop'],
+			{ include: '@strings' },
+			{ include: '@parameters' },
+			[/[^#:%*@\-!_)'"]+/, 'variable'],
+			[/[#:%*@\-!_]/, 'delimiter']
 		],
 		parameterBodyCurlyBrace: [
 			[/[^#:%*@\-!_}]+/, 'variable'],