diff --git a/pandoc.hs b/pandoc.hs
index ad01ad2caa8e..89eb0ad9e720 100644
--- a/pandoc.hs
+++ b/pandoc.hs
@@ -33,7 +33,7 @@ module Main where
 import Text.Pandoc
 import Text.Pandoc.Builder (setMeta)
 import Text.Pandoc.PDF (makePDF)
-import Text.Pandoc.Readers.LaTeX (handleIncludes)
+import Text.Pandoc.Readers.LaTeX ( handleIncludes, handleMacros )
 import Text.Pandoc.Shared ( tabFilter, readDataFileUTF8, readDataFile,
                             safeRead, headerShift, normalize, err, warn )
 import Text.Pandoc.XML ( toEntities )
@@ -1104,8 +1104,13 @@ main = do
                            then handleIncludes
                            else return
 
+  let handleMacros' = if readerName' == "latex" || readerName' == "latex+lhs"
+                           then handleMacros readerOpts
+                           else return
+
   doc <- readSources sources >>=
            handleIncludes' . convertTabs . intercalate "\n" >>=
+           handleMacros' >>=
            reader readerOpts
 
 
diff --git a/src/Text/Pandoc/Parsing.hs b/src/Text/Pandoc/Parsing.hs
index 701b2ef84ad2..cb79e800d2b0 100644
--- a/src/Text/Pandoc/Parsing.hs
+++ b/src/Text/Pandoc/Parsing.hs
@@ -87,6 +87,7 @@ module Text.Pandoc.Parsing ( (>>~),
                              dash,
                              nested,
                              macro,
+                             macroBlock,
                              applyMacros',
                              Parser,
                              F(..),
@@ -1060,7 +1061,7 @@ nested p = do
 --
 
 -- | Parse a \newcommand or \renewcommand macro definition.
-macro :: Parser [Char] ParserState Blocks
+macro :: Parser [Char] ParserState String
 macro = do
   apply <- getOption readerApplyMacros
   inp <- getInput
@@ -1072,7 +1073,14 @@ macro = do
                              updateState $ \st ->
                                st { stateMacros = ms ++ stateMacros st }
                              return mempty
-                           else return $ rawBlock "latex" def'
+                           else return def'
+
+macroBlock :: Parser [Char] ParserState Blocks
+macroBlock = do
+  result <- macro
+  case result of
+    "" -> return mempty
+    x  -> return $ rawBlock "latex" x
 
 -- | Apply current macros to string.
 applyMacros' :: String -> Parser [Char] ParserState String
diff --git a/src/Text/Pandoc/Readers/LaTeX.hs b/src/Text/Pandoc/Readers/LaTeX.hs
index 70d859e07b95..6f41200599b9 100644
--- a/src/Text/Pandoc/Readers/LaTeX.hs
+++ b/src/Text/Pandoc/Readers/LaTeX.hs
@@ -31,6 +31,7 @@ Conversion of LaTeX to 'Pandoc' document.
 module Text.Pandoc.Readers.LaTeX ( readLaTeX,
                                    rawLaTeXInline,
                                    rawLaTeXBlock,
+                                   handleMacros,
                                    handleIncludes
                                  ) where
 
@@ -40,6 +41,7 @@ import Text.Pandoc.Shared
 import Text.Pandoc.Options
 import Text.Pandoc.Parsing hiding ((<|>), many, optional, space)
 import qualified Text.Pandoc.UTF8 as UTF8
+import Text.TeXMath.Macros (applyMacros)
 import Data.Char ( chr, ord )
 import Control.Monad
 import Text.Pandoc.Builder
@@ -152,10 +154,10 @@ bracketed :: Monoid a => LP a -> LP a
 bracketed parser = try $ char '[' *> (mconcat <$> manyTill parser (char ']'))
 
 mathDisplay :: LP String -> LP Inlines
-mathDisplay p = displayMath <$> (try p >>= applyMacros' . trim)
+mathDisplay p = displayMath <$> (liftM trim (try p))
 
 mathInline :: LP String -> LP Inlines
-mathInline p = math <$> (try p >>= applyMacros')
+mathInline p = math <$> (try p)
 
 mathChars :: LP String
 mathChars = concat <$>
@@ -203,7 +205,6 @@ block :: LP Blocks
 block = (mempty <$ comment)
     <|> (mempty <$ ((spaceChar <|> newline) *> spaces))
     <|> preamble
-    <|> macro
     <|> environment
     <|> blockCommand
     <|> paragraph
@@ -333,12 +334,9 @@ inlineCommand = try $ do
   let raw = do
         rawargs <- withRaw (skipopts *> option "" dimenarg *> many braced)
         let rawcommand = '\\' : name ++ star ++ snd rawargs
-        transformed <- applyMacros' rawcommand
-        if transformed /= rawcommand
-           then parseFromString inlines transformed
-           else if parseRaw
-                   then return $ rawInline "latex" rawcommand
-                   else return mempty
+        if parseRaw
+           then return $ rawInline "latex" rawcommand
+           else return mempty
   case M.lookup name' inlineCommands of
        Just p      -> p <|> raw
        Nothing     -> case M.lookup name inlineCommands of
@@ -763,9 +761,26 @@ rawEnv name = do
   parseRaw <- getOption readerParseRaw
   if parseRaw
      then (rawBlock "latex" . addBegin) <$>
-            (withRaw (env name blocks) >>= applyMacros' . snd)
+            (withRaw (env name blocks) >>= return . snd)
      else env name blocks
 
+-- | Process all LaTeX macro definitions and expand them
+handleMacros :: ReaderOptions -> String -> IO String
+handleMacros opts input = do
+  expandedString <- readWith handleMacros' def{ stateOptions = opts } input
+  return expandedString
+
+handleMacros' :: LP (IO String)
+handleMacros' = do
+  remainingStrings <- many macroToken
+  macros <- liftM stateMacros getState
+  return . return $ applyMacros macros $ concat remainingStrings
+  where macroToken = try $ do
+                skipMany comment
+                choice [ macro
+                       , try $ string "\\%" -- avoid `comment` from consuming literal %
+                       , count 1 anyChar ]
+
 -- | Replace "include" commands with file contents.
 handleIncludes :: String -> IO String
 handleIncludes = handleIncludes' []
@@ -865,7 +880,7 @@ rawLaTeXBlock = snd <$> try (withRaw (environment <|> blockCommand))
 rawLaTeXInline :: Parser [Char] ParserState Inline
 rawLaTeXInline = do
   raw <- (snd <$> withRaw inlineCommand) <|> (snd <$> withRaw blockCommand)
-  RawInline "latex" <$> applyMacros' raw
+  RawInline "latex" <$> return raw
 
 environments :: M.Map String (LP Blocks)
 environments = M.fromList
diff --git a/src/Text/Pandoc/Readers/Markdown.hs b/src/Text/Pandoc/Readers/Markdown.hs
index 5456f25b5bdb..357966ab446b 100644
--- a/src/Text/Pandoc/Readers/Markdown.hs
+++ b/src/Text/Pandoc/Readers/Markdown.hs
@@ -442,7 +442,7 @@ block :: MarkdownParser (F Blocks)
 block = choice [ mempty <$ blanklines
                , codeBlockFenced
                , yamlMetaBlock
-               , guardEnabled Ext_latex_macros *> (macro >>= return . return)
+               , guardEnabled Ext_latex_macros *> (macroBlock >>= return . return)
                , header
                , lhsCodeBlock
                , rawTeXBlock