diff --git a/crates/hir-def/src/nameres/mod_resolution.rs b/crates/hir-def/src/nameres/mod_resolution.rs
index 11d20d3db3..4c263846d2 100644
--- a/crates/hir-def/src/nameres/mod_resolution.rs
+++ b/crates/hir-def/src/nameres/mod_resolution.rs
@@ -34,7 +34,7 @@ impl ModDir {
         let path = match attr_path.map(SmolStr::as_str) {
             None => {
                 let mut path = self.dir_path.clone();
-                path.push(&name.to_smol_str());
+                path.push(&name.unescaped().to_smol_str());
                 path
             }
             Some(attr_path) => {
diff --git a/crates/hir-def/src/nameres/tests/mod_resolution.rs b/crates/hir-def/src/nameres/tests/mod_resolution.rs
index c575bf7cac..a019312884 100644
--- a/crates/hir-def/src/nameres/tests/mod_resolution.rs
+++ b/crates/hir-def/src/nameres/tests/mod_resolution.rs
@@ -156,6 +156,43 @@ pub struct Baz;
     );
 }
 
+#[test]
+fn module_resolution_works_for_inline_raw_modules() {
+    check(
+        r#"
+//- /lib.rs
+mod r#async {
+    pub mod a;
+    pub mod r#async;
+}
+use self::r#async::a::Foo;
+use self::r#async::r#async::Bar;
+
+//- /async/a.rs
+pub struct Foo;
+
+//- /async/async.rs
+pub struct Bar;
+"#,
+        expect![[r#"
+            crate
+            Bar: t v
+            Foo: t v
+            r#async: t
+
+            crate::r#async
+            a: t
+            r#async: t
+
+            crate::r#async::a
+            Foo: t v
+
+            crate::r#async::r#async
+            Bar: t v
+        "#]],
+    );
+}
+
 #[test]
 fn module_resolution_decl_path() {
     check(