diff --git a/src/dict.c b/src/dict.c
index 874b823..fa54c60 100644
--- a/src/dict.c
+++ b/src/dict.c
@@ -911,13 +911,15 @@
     int		vim9script = in_vim9script();
     int		had_comma;
 
-    // First check if it's not a curly-braces thing: {expr}.
+    // First check if it's not a curly-braces expression: {expr}.
     // Must do this without evaluating, otherwise a function may be called
     // twice.  Unfortunately this means we need to call eval1() twice for the
     // first item.
-    // But {} is an empty Dictionary.
+    // "{}" is an empty Dictionary.
+    // "#{abc}" is never a curly-braces expression.
     if (!vim9script
 	    && *curly_expr != '}'
+	    && !literal
 	    && eval1(&curly_expr, &tv, NULL) == OK
 	    && *skipwhite(curly_expr) == '}')
 	return NOTDONE;