diff --git a/internal/ingress/controller/template/template.go b/internal/ingress/controller/template/template.go
index 501355492..24466e4fc 100644
--- a/internal/ingress/controller/template/template.go
+++ b/internal/ingress/controller/template/template.go
@@ -120,6 +120,7 @@ var (
 			}
 			return true
 		},
+		"escapeLiteralDollar":        escapeLiteralDollar,
 		"shouldConfigureLuaRestyWAF": shouldConfigureLuaRestyWAF,
 		"buildLuaSharedDictionaries": buildLuaSharedDictionaries,
 		"buildLocation":              buildLocation,
@@ -161,6 +162,20 @@ var (
 	}
 )
 
+// escapeLiteralDollar will replace the $ character with ${literal_dollar}
+// which is made to work via the following configuration in the http section of
+// the template:
+// geo $literal_dollar {
+//     default "$";
+// }
+func escapeLiteralDollar(input interface{}) string {
+	inputStr, ok := input.(string)
+	if !ok {
+		return ""
+	}
+	return strings.Replace(inputStr, `$`, `${literal_dollar}`, -1)
+}
+
 // formatIP will wrap IPv6 addresses in [] and return IPv4 addresses
 // without modification. If the input cannot be parsed as an IP address
 // it is returned without modification.
diff --git a/internal/ingress/controller/template/template_test.go b/internal/ingress/controller/template/template_test.go
index 5de8657d1..7fcd43d41 100644
--- a/internal/ingress/controller/template/template_test.go
+++ b/internal/ingress/controller/template/template_test.go
@@ -858,3 +858,29 @@ func TestBuildUpstreamName(t *testing.T) {
 		}
 	}
 }
+
+func TestEscapeLiteralDollar(t *testing.T) {
+	escapedPath := escapeLiteralDollar("/$")
+	expected := "/${literal_dollar}"
+	if escapedPath != expected {
+		t.Errorf("Expected %v but returned %v", expected, escapedPath)
+	}
+
+	escapedPath = escapeLiteralDollar("/hello-$/world-$/")
+	expected = "/hello-${literal_dollar}/world-${literal_dollar}/"
+	if escapedPath != expected {
+		t.Errorf("Expected %v but returned %v", expected, escapedPath)
+	}
+
+	leaveUnchagned := "/leave-me/unchagned"
+	escapedPath = escapeLiteralDollar(leaveUnchagned)
+	if escapedPath != leaveUnchagned {
+		t.Errorf("Expected %v but returned %v", leaveUnchagned, escapedPath)
+	}
+
+	escapedPath = escapeLiteralDollar(false)
+	expected = ""
+	if escapedPath != expected {
+		t.Errorf("Expected %v but returned %v", expected, escapedPath)
+	}
+}
diff --git a/rootfs/etc/nginx/template/nginx.tmpl b/rootfs/etc/nginx/template/nginx.tmpl
index 282af4f1b..b86e6c904 100644
--- a/rootfs/etc/nginx/template/nginx.tmpl
+++ b/rootfs/etc/nginx/template/nginx.tmpl
@@ -347,6 +347,12 @@ http {
     }
     {{ end }}
 
+    # Create a variable that contains the literal $ character.
+    # This works because the geo module will not resolve variables.
+    geo $literal_dollar {
+        default "$";
+    }
+
     server_name_in_redirect off;
     port_in_redirect        off;
 
@@ -913,7 +919,7 @@ stream {
             set $ingress_name   "{{ $ing.Rule }}";
             set $service_name   "{{ $ing.Service }}";
             set $service_port   "{{ $location.Port }}";
-            set $location_path  "{{ $location.Path }}";
+            set $location_path  "{{ $location.Path | escapeLiteralDollar }}";
 
             {{ if $all.Cfg.EnableOpentracing }}
             opentracing_propagate_context;