diff --git a/components/prism-powershell.js b/components/prism-powershell.js
index 6fe91131a2..90afbaae62 100644
--- a/components/prism-powershell.js
+++ b/components/prism-powershell.js
@@ -15,7 +15,8 @@ Prism.languages.powershell = {
 			greedy: true,
 			inside: {
 				'function': {
-					pattern: /(^|[^`])\$\(.*?\)/,
+					// Allow for one level of nesting
+					pattern: /(^|[^`])\$\((?:\$\(.*?\)|(?!\$\()[^\r\n)])*\)/,
 					lookbehind: true,
 					// Populated at end of file
 					inside: {}
diff --git a/components/prism-powershell.min.js b/components/prism-powershell.min.js
index a5b777d1d0..816c262fb4 100644
--- a/components/prism-powershell.min.js
+++ b/components/prism-powershell.min.js
@@ -1 +1 @@
-Prism.languages.powershell={comment:[{pattern:/(^|[^`])<#[\s\S]*?#>/,lookbehind:!0},{pattern:/(^|[^`])#.*/,lookbehind:!0}],string:[{pattern:/"(?:`[\s\S]|[^`"])*"/,greedy:!0,inside:{"function":{pattern:/(^|[^`])\$\(.*?\)/,lookbehind:!0,inside:{}}}},{pattern:/'(?:[^']|'')*'/,greedy:!0}],namespace:/\[[a-z](?:\[(?:\[[^\]]*]|[^\[\]])*]|[^\[\]])*]/i,"boolean":/\$(?:true|false)\b/i,variable:/\$\w+\b/i,"function":[/\b(?:Add-(?:Computer|Content|History|Member|PSSnapin|Type)|Checkpoint-Computer|Clear-(?:Content|EventLog|History|Item|ItemProperty|Variable)|Compare-Object|Complete-Transaction|Connect-PSSession|ConvertFrom-(?:Csv|Json|StringData)|Convert-Path|ConvertTo-(?:Csv|Html|Json|Xml)|Copy-(?:Item|ItemProperty)|Debug-Process|Disable-(?:ComputerRestore|PSBreakpoint|PSRemoting|PSSessionConfiguration)|Disconnect-PSSession|Enable-(?:ComputerRestore|PSBreakpoint|PSRemoting|PSSessionConfiguration)|Enter-PSSession|Exit-PSSession|Export-(?:Alias|Clixml|Console|Csv|FormatData|ModuleMember|PSSession)|ForEach-Object|Format-(?:Custom|List|Table|Wide)|Get-(?:Alias|ChildItem|Command|ComputerRestorePoint|Content|ControlPanelItem|Culture|Date|Event|EventLog|EventSubscriber|FormatData|Help|History|Host|HotFix|Item|ItemProperty|Job|Location|Member|Module|Process|PSBreakpoint|PSCallStack|PSDrive|PSProvider|PSSession|PSSessionConfiguration|PSSnapin|Random|Service|TraceSource|Transaction|TypeData|UICulture|Unique|Variable|WmiObject)|Group-Object|Import-(?:Alias|Clixml|Csv|LocalizedData|Module|PSSession)|Invoke-(?:Command|Expression|History|Item|RestMethod|WebRequest|WmiMethod)|Join-Path|Limit-EventLog|Measure-(?:Command|Object)|Move-(?:Item|ItemProperty)|New-(?:Alias|Event|EventLog|Item|ItemProperty|Module|ModuleManifest|Object|PSDrive|PSSession|PSSessionConfigurationFile|PSSessionOption|PSTransportOption|Service|TimeSpan|Variable|WebServiceProxy)|Out-(?:Default|File|GridView|Host|Null|Printer|String)|Pop-Location|Push-Location|Read-Host|Receive-(?:Job|PSSession)|Register-(?:EngineEvent|ObjectEvent|PSSessionConfiguration|WmiEvent)|Remove-(?:Computer|Event|EventLog|Item|ItemProperty|Job|Module|PSBreakpoint|PSDrive|PSSession|PSSnapin|TypeData|Variable|WmiObject)|Rename-(?:Computer|Item|ItemProperty)|Reset-ComputerMachinePassword|Resolve-Path|Restart-(?:Computer|Service)|Restore-Computer|Resume-(?:Job|Service)|Save-Help|Select-(?:Object|String|Xml)|Send-MailMessage|Set-(?:Alias|Content|Date|Item|ItemProperty|Location|PSBreakpoint|PSDebug|PSSessionConfiguration|Service|StrictMode|TraceSource|Variable|WmiInstance)|Show-(?:Command|ControlPanelItem|EventLog)|Sort-Object|Split-Path|Start-(?:Job|Process|Service|Sleep|Transaction)|Stop-(?:Computer|Job|Process|Service)|Suspend-(?:Job|Service)|Tee-Object|Test-(?:ComputerSecureChannel|Connection|ModuleManifest|Path|PSSessionConfigurationFile)|Trace-Command|Unblock-File|Undo-Transaction|Unregister-(?:Event|PSSessionConfiguration)|Update-(?:FormatData|Help|List|TypeData)|Use-Transaction|Wait-(?:Event|Job|Process)|Where-Object|Write-(?:Debug|Error|EventLog|Host|Output|Progress|Verbose|Warning))\b/i,/\b(?:ac|cat|chdir|clc|cli|clp|clv|compare|copy|cp|cpi|cpp|cvpa|dbp|del|diff|dir|ebp|echo|epal|epcsv|epsn|erase|fc|fl|ft|fw|gal|gbp|gc|gci|gcs|gdr|gi|gl|gm|gp|gps|group|gsv|gu|gv|gwmi|iex|ii|ipal|ipcsv|ipsn|irm|iwmi|iwr|kill|lp|ls|measure|mi|mount|move|mp|mv|nal|ndr|ni|nv|ogv|popd|ps|pushd|pwd|rbp|rd|rdr|ren|ri|rm|rmdir|rni|rnp|rp|rv|rvpa|rwmi|sal|saps|sasv|sbp|sc|select|set|shcm|si|sl|sleep|sls|sort|sp|spps|spsv|start|sv|swmi|tee|trcm|type|write)\b/i],keyword:/\b(?:Begin|Break|Catch|Class|Continue|Data|Define|Do|DynamicParam|Else|ElseIf|End|Exit|Filter|Finally|For|ForEach|From|Function|If|InlineScript|Parallel|Param|Process|Return|Sequence|Switch|Throw|Trap|Try|Until|Using|Var|While|Workflow)\b/i,operator:{pattern:/(\W?)(?:!|-(eq|ne|gt|ge|lt|le|sh[lr]|not|b?(?:and|x?or)|(?:Not)?(?:Like|Match|Contains|In)|Replace|Join|is(?:Not)?|as)\b|-[-=]?|\+[+=]?|[*\/%]=?)/i,lookbehind:!0},punctuation:/[|{}[\];(),.]/},Prism.languages.powershell.string[0].inside.boolean=Prism.languages.powershell.boolean,Prism.languages.powershell.string[0].inside.variable=Prism.languages.powershell.variable,Prism.languages.powershell.string[0].inside.function.inside=Prism.languages.powershell;
\ No newline at end of file
+Prism.languages.powershell={comment:[{pattern:/(^|[^`])<#[\s\S]*?#>/,lookbehind:!0},{pattern:/(^|[^`])#.*/,lookbehind:!0}],string:[{pattern:/"(?:`[\s\S]|[^`"])*"/,greedy:!0,inside:{"function":{pattern:/(^|[^`])\$\((?:\$\(.*?\)|(?!\$\()[^\r\n)])*\)/,lookbehind:!0,inside:{}}}},{pattern:/'(?:[^']|'')*'/,greedy:!0}],namespace:/\[[a-z](?:\[(?:\[[^\]]*]|[^\[\]])*]|[^\[\]])*]/i,"boolean":/\$(?:true|false)\b/i,variable:/\$\w+\b/i,"function":[/\b(?:Add-(?:Computer|Content|History|Member|PSSnapin|Type)|Checkpoint-Computer|Clear-(?:Content|EventLog|History|Item|ItemProperty|Variable)|Compare-Object|Complete-Transaction|Connect-PSSession|ConvertFrom-(?:Csv|Json|StringData)|Convert-Path|ConvertTo-(?:Csv|Html|Json|Xml)|Copy-(?:Item|ItemProperty)|Debug-Process|Disable-(?:ComputerRestore|PSBreakpoint|PSRemoting|PSSessionConfiguration)|Disconnect-PSSession|Enable-(?:ComputerRestore|PSBreakpoint|PSRemoting|PSSessionConfiguration)|Enter-PSSession|Exit-PSSession|Export-(?:Alias|Clixml|Console|Csv|FormatData|ModuleMember|PSSession)|ForEach-Object|Format-(?:Custom|List|Table|Wide)|Get-(?:Alias|ChildItem|Command|ComputerRestorePoint|Content|ControlPanelItem|Culture|Date|Event|EventLog|EventSubscriber|FormatData|Help|History|Host|HotFix|Item|ItemProperty|Job|Location|Member|Module|Process|PSBreakpoint|PSCallStack|PSDrive|PSProvider|PSSession|PSSessionConfiguration|PSSnapin|Random|Service|TraceSource|Transaction|TypeData|UICulture|Unique|Variable|WmiObject)|Group-Object|Import-(?:Alias|Clixml|Csv|LocalizedData|Module|PSSession)|Invoke-(?:Command|Expression|History|Item|RestMethod|WebRequest|WmiMethod)|Join-Path|Limit-EventLog|Measure-(?:Command|Object)|Move-(?:Item|ItemProperty)|New-(?:Alias|Event|EventLog|Item|ItemProperty|Module|ModuleManifest|Object|PSDrive|PSSession|PSSessionConfigurationFile|PSSessionOption|PSTransportOption|Service|TimeSpan|Variable|WebServiceProxy)|Out-(?:Default|File|GridView|Host|Null|Printer|String)|Pop-Location|Push-Location|Read-Host|Receive-(?:Job|PSSession)|Register-(?:EngineEvent|ObjectEvent|PSSessionConfiguration|WmiEvent)|Remove-(?:Computer|Event|EventLog|Item|ItemProperty|Job|Module|PSBreakpoint|PSDrive|PSSession|PSSnapin|TypeData|Variable|WmiObject)|Rename-(?:Computer|Item|ItemProperty)|Reset-ComputerMachinePassword|Resolve-Path|Restart-(?:Computer|Service)|Restore-Computer|Resume-(?:Job|Service)|Save-Help|Select-(?:Object|String|Xml)|Send-MailMessage|Set-(?:Alias|Content|Date|Item|ItemProperty|Location|PSBreakpoint|PSDebug|PSSessionConfiguration|Service|StrictMode|TraceSource|Variable|WmiInstance)|Show-(?:Command|ControlPanelItem|EventLog)|Sort-Object|Split-Path|Start-(?:Job|Process|Service|Sleep|Transaction)|Stop-(?:Computer|Job|Process|Service)|Suspend-(?:Job|Service)|Tee-Object|Test-(?:ComputerSecureChannel|Connection|ModuleManifest|Path|PSSessionConfigurationFile)|Trace-Command|Unblock-File|Undo-Transaction|Unregister-(?:Event|PSSessionConfiguration)|Update-(?:FormatData|Help|List|TypeData)|Use-Transaction|Wait-(?:Event|Job|Process)|Where-Object|Write-(?:Debug|Error|EventLog|Host|Output|Progress|Verbose|Warning))\b/i,/\b(?:ac|cat|chdir|clc|cli|clp|clv|compare|copy|cp|cpi|cpp|cvpa|dbp|del|diff|dir|ebp|echo|epal|epcsv|epsn|erase|fc|fl|ft|fw|gal|gbp|gc|gci|gcs|gdr|gi|gl|gm|gp|gps|group|gsv|gu|gv|gwmi|iex|ii|ipal|ipcsv|ipsn|irm|iwmi|iwr|kill|lp|ls|measure|mi|mount|move|mp|mv|nal|ndr|ni|nv|ogv|popd|ps|pushd|pwd|rbp|rd|rdr|ren|ri|rm|rmdir|rni|rnp|rp|rv|rvpa|rwmi|sal|saps|sasv|sbp|sc|select|set|shcm|si|sl|sleep|sls|sort|sp|spps|spsv|start|sv|swmi|tee|trcm|type|write)\b/i],keyword:/\b(?:Begin|Break|Catch|Class|Continue|Data|Define|Do|DynamicParam|Else|ElseIf|End|Exit|Filter|Finally|For|ForEach|From|Function|If|InlineScript|Parallel|Param|Process|Return|Sequence|Switch|Throw|Trap|Try|Until|Using|Var|While|Workflow)\b/i,operator:{pattern:/(\W?)(?:!|-(eq|ne|gt|ge|lt|le|sh[lr]|not|b?(?:and|x?or)|(?:Not)?(?:Like|Match|Contains|In)|Replace|Join|is(?:Not)?|as)\b|-[-=]?|\+[+=]?|[*\/%]=?)/i,lookbehind:!0},punctuation:/[|{}[\];(),.]/},Prism.languages.powershell.string[0].inside.boolean=Prism.languages.powershell.boolean,Prism.languages.powershell.string[0].inside.variable=Prism.languages.powershell.variable,Prism.languages.powershell.string[0].inside.function.inside=Prism.languages.powershell;
\ No newline at end of file
diff --git a/tests/languages/powershell/issue1407.test b/tests/languages/powershell/issue1407.test
new file mode 100644
index 0000000000..3188bdc2d4
--- /dev/null
+++ b/tests/languages/powershell/issue1407.test
@@ -0,0 +1,43 @@
+While($true){
+    Write-Output "$($($InFiles | Where-Object {$_.ToCopy -eq 0}).count)"
+}
+
+----------------------------------------------------
+
+[
+	["keyword", "While"],
+	["punctuation", "("],
+	["boolean", "$true"],
+	["punctuation", ")"],
+	["punctuation", "{"],
+	["function", "Write-Output"],
+	["string", [
+		"\"",
+		["function", [
+			"$",
+			["punctuation", "("],
+			"$",
+			["punctuation", "("],
+			["variable", "$InFiles"],
+			["punctuation", "|"],
+			["function", "Where-Object"],
+			["punctuation", "{"],
+			["variable", "$_"],
+			["punctuation", "."],
+			"ToCopy ",
+			["operator", "-eq"],
+			" 0",
+			["punctuation", "}"],
+			["punctuation", ")"],
+			["punctuation", "."],
+			"count",
+			["punctuation", ")"]
+		]],
+		"\""
+	]],
+	["punctuation", "}"]
+]
+
+----------------------------------------------------
+
+Checks for nested expressions in strings.
\ No newline at end of file
diff --git a/tests/languages/powershell/string_feature.test b/tests/languages/powershell/string_feature.test
index c444facd8e..b730668c69 100644
--- a/tests/languages/powershell/string_feature.test
+++ b/tests/languages/powershell/string_feature.test
@@ -11,6 +11,7 @@ an empty '' string
 "has $interpolated <# variables #>"
 "$($expression)"
 "`$(escaped expression)"
+"$($($exp))"
 
 ----------------------------------------------------
 
@@ -56,6 +57,19 @@ an empty '' string
 	]],
 	["string", [
 		"\"`$(escaped expression)\""
+	]],
+	["string", [
+		"\"",
+		["function", [
+			"$",
+			["punctuation", "("],
+			"$",
+			["punctuation", "("],
+			["variable", "$exp"],
+			["punctuation", ")"],
+			["punctuation", ")"]
+		]],
+		"\""
 	]]
 ]