diff --git a/go/vt/sqlparser/parse_test.go b/go/vt/sqlparser/parse_test.go
index 6051470720a..48aa8169b42 100644
--- a/go/vt/sqlparser/parse_test.go
+++ b/go/vt/sqlparser/parse_test.go
@@ -57,6 +57,10 @@ var (
 	}, {
 		input:  "select - -1 from t",
 		output: "select 1 from t",
+	}, {
+		input: "select a from t",
+	}, {
+		input: "select $ from t",
 	}, {
 		input:  "select 1 from t // aa\n",
 		output: "select 1 from t",
@@ -2585,9 +2589,6 @@ var (
 		output       string
 		excludeMulti bool // Don't use in the ParseNext multi-statement parsing tests.
 	}{{
-		input:  "select $ from t",
-		output: "syntax error at position 9 near '$'",
-	}, {
 		input:  "select : from t",
 		output: "syntax error at position 9 near ':'",
 	}, {
diff --git a/go/vt/sqlparser/token.go b/go/vt/sqlparser/token.go
index 5636a11efd5..760935acd83 100644
--- a/go/vt/sqlparser/token.go
+++ b/go/vt/sqlparser/token.go
@@ -980,7 +980,7 @@ func (tkn *Tokenizer) reset() {
 }
 
 func isLetter(ch uint16) bool {
-	return 'a' <= ch && ch <= 'z' || 'A' <= ch && ch <= 'Z' || ch == '_'
+	return 'a' <= ch && ch <= 'z' || 'A' <= ch && ch <= 'Z' || ch == '_' || ch == '$'
 }
 
 func isCarat(ch uint16) bool {