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;
diff --git a/src/testdir/test_listdict.vim b/src/testdir/test_listdict.vim
index bf3117b..63ba47f 100644
--- a/src/testdir/test_listdict.vim
+++ b/src/testdir/test_listdict.vim
@@ -321,6 +321,10 @@
 
   " allow key starting with number at the start, not a curly expression
   call assert_equal({'1foo': 77}, #{1foo: 77})
+
+  " #{expr} is not a curly expression
+  let x = 'x'
+  call assert_equal(#{g: x}, #{g:x})
 endfunc
 
 " This was allowed in legacy Vim script
diff --git a/src/version.c b/src/version.c
index c4be809..746852a 100644
--- a/src/version.c
+++ b/src/version.c
@@ -704,6 +704,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    409,
+/**/
     408,
 /**/
     407,