diff --git a/index.js b/index.js
index 37c97ca..0630e2b 100644
--- a/index.js
+++ b/index.js
@@ -67,8 +67,14 @@ module.exports = function (options) {
   function resolveDataUrl(assetStr) {
     var resolvedPath = resolvePath(assetStr);
     var mimeType = mime.lookup(resolvedPath);
-    var data = base64.encode(fs.readFileSync(resolvedPath));
-    return 'data:' + mimeType + ';base64,' + data;
+    if (mimeType === 'image/svg+xml') {
+      var data = cssesc(fs.readFileSync(resolvedPath).toString());
+      var encoding = 'utf8';
+    } else {
+      data = base64.encode(fs.readFileSync(resolvedPath));
+      encoding = 'base64';
+    }
+    return 'data:' + mimeType + ';' + encoding + ',' + data;
   }
 
   function resolvePath(assetStr) {
diff --git a/package.json b/package.json
index 45f3150..0bc6c07 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "postcss-assets",
-  "version": "0.9.0",
+  "version": "0.9.1",
   "description": "PostCSS plugin to manage assets",
   "author": "Vadim Borodean <borodean@gmail.com>",
   "license": "MIT",
diff --git a/test/fixtures/alpha/trapezium-single-quotes.svg b/test/fixtures/alpha/trapezium-single-quotes.svg
new file mode 100644
index 0000000..84a4d86
--- /dev/null
+++ b/test/fixtures/alpha/trapezium-single-quotes.svg
@@ -0,0 +1,3 @@
+<svg xmlns='http://www.w3.org/2000/svg' width='160' height='120'>
+  <path fill='#4D4D4D' d='M160 120h-160l40-120h80z'/>
+</svg>
diff --git a/test/fixtures/alpha/trapezium.svg b/test/fixtures/alpha/trapezium.svg
new file mode 100644
index 0000000..b65440b
--- /dev/null
+++ b/test/fixtures/alpha/trapezium.svg
@@ -0,0 +1,3 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="160" height="120">
+  <path fill="#4D4D4D" d="M160 120h-160l40-120h80z"/>
+</svg>
diff --git a/test/fixtures/inline.css b/test/fixtures/inline.css
index 2047d71..f188033 100644
--- a/test/fixtures/inline.css
+++ b/test/fixtures/inline.css
@@ -2,4 +2,6 @@ body {
   background: url('alpha/blank.gif');
   background: url(  'alpha/blank.gif' );
   background: url('alpha/kateryna.jpg');
+  background: url('alpha/trapezium.svg');
+  background: url('alpha/trapezium-single-quotes.svg');
 }
diff --git a/test/fixtures/inline.expected.css b/test/fixtures/inline.expected.css
index 88e7e9a..0bdff64 100644
--- a/test/fixtures/inline.expected.css
+++ b/test/fixtures/inline.expected.css
@@ -2,4 +2,6 @@ body {
   background: url('data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAAAAAAALAAAAAABAAEAAAICRAEAOw==');
   background: url(  'data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAAAAAAALAAAAAABAAEAAAICRAEAOw==' );
   background: url('/alpha/kateryna.jpg');
+  background: url('data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" width="160" height="120">\D\A   <path fill="#4D4D4D" d="M160 120h-160l40-120h80z"/>\D\A</svg>\D\A');
+  background: url('data:image/svg+xml;utf8,<svg xmlns=\'http://www.w3.org/2000/svg\' width=\'160\' height=\'120\'>\D\A   <path fill=\'#4D4D4D\' d=\'M160 120h-160l40-120h80z\'/>\D\A</svg>\D\A');
 }