diff --git a/crates/nu-parser/src/lex.rs b/crates/nu-parser/src/lex.rs
index cbb94cfaec..a9e3949b72 100644
--- a/crates/nu-parser/src/lex.rs
+++ b/crates/nu-parser/src/lex.rs
@@ -59,7 +59,6 @@ fn is_item_terminator(
             || c == b'\r'
             || c == b'|'
             || c == b';'
-            || c == b'#'
             || additional_whitespace.contains(&c)
             || special_tokens.contains(&c))
 }
diff --git a/crates/nu-parser/tests/test_lex.rs b/crates/nu-parser/tests/test_lex.rs
index e88eb3d5ce..bbbb33e4af 100644
--- a/crates/nu-parser/tests/test_lex.rs
+++ b/crates/nu-parser/tests/test_lex.rs
@@ -93,6 +93,57 @@ fn lex_incomplete_quote() {
     assert!(matches!(err, ParseError::UnexpectedEof(v, _) if v == "'"));
 }
 
+#[test]
+fn lex_comments_no_space() {
+    // test for parses that contain tokens that normally introduce comments
+    // Code:
+    // let z = 42 #the comment
+    // let x#y = 69 #hello
+    // let flk = nixpkgs#hello #hello
+    let file = b"let z = 42 #the comment \n let x#y = 69 #hello \n let flk = nixpkgs#hello #hello";
+    let output = lex(file, 0, &[], &[], false);
+
+    assert_eq!(
+        output.0.get(4).unwrap(),
+        &Token {
+            contents: TokenContents::Comment,
+            span: Span::new(11, 24)
+        }
+    );
+
+    assert_eq!(
+        output.0.get(7).unwrap(),
+        &Token {
+            contents: TokenContents::Item,
+            span: Span::new(30, 33)
+        }
+    );
+
+    assert_eq!(
+        output.0.get(10).unwrap(),
+        &Token {
+            contents: TokenContents::Comment,
+            span: Span::new(39, 46)
+        }
+    );
+
+    assert_eq!(
+        output.0.get(15).unwrap(),
+        &Token {
+            contents: TokenContents::Item,
+            span: Span::new(58, 71)
+        }
+    );
+
+    assert_eq!(
+        output.0.get(16).unwrap(),
+        &Token {
+            contents: TokenContents::Comment,
+            span: Span::new(72, 78)
+        }
+    );
+}
+
 #[test]
 fn lex_comments() {
     // Comments should keep the end of line token