diff --git a/gclient.py b/gclient.py
index 3a70aa9ae..f8df1acd9 100755
--- a/gclient.py
+++ b/gclient.py
@@ -1858,6 +1858,9 @@ class CipdDependency(Dependency):
 
   def ToLines(self):
     """Return a list of lines representing this in a DEPS file."""
+    def escape_cipd_var(package):
+      return package.replace('{', '{{').replace('}', '}}')
+
     s = []
     self._CreatePackageIfNecessary()
     if self._cipd_package.authority_for_subdir:
@@ -1873,7 +1876,7 @@ class CipdDependency(Dependency):
           cmp=lambda x, y: cmp(x.name, y.name)):
         s.extend([
             '      {',
-            '        "package": "%s",' % p.name,
+            '        "package": "%s",' % escape_cipd_var(p.name),
             '        "version": "%s",' % p.version,
             '      },',
         ])
diff --git a/testing_support/fake_repos.py b/testing_support/fake_repos.py
index 0ed3220ae..61a6ec02e 100755
--- a/testing_support/fake_repos.py
+++ b/testing_support/fake_repos.py
@@ -730,6 +730,7 @@ deps = {
 
     self._commit_git('repo_14', {
       'DEPS': textwrap.dedent("""\
+        vars = {}
         deps = {
           'src/cipd_dep': {
             'packages': [
@@ -753,6 +754,15 @@ deps = {
             ],
             'dep_type': 'cipd',
           },
+          'src/cipd_dep_with_cipd_variable': {
+            'packages': [
+              {
+                'package': 'package3/${{platform}}',
+                'version': '1.2',
+              },
+            ],
+            'dep_type': 'cipd',
+          },
         }"""),
       'origin': 'git/repo_14@2\n'
     })
diff --git a/tests/gclient_smoketest.py b/tests/gclient_smoketest.py
index bded04e85..26642a0e0 100755
--- a/tests/gclient_smoketest.py
+++ b/tests/gclient_smoketest.py
@@ -1423,6 +1423,17 @@ class GClientSmokeGIT(GClientSmokeBase):
         '    "dep_type": "cipd",',
         '  },',
         '',
+        '  # src -> src/cipd_dep_with_cipd_variable',
+        '  "src/cipd_dep_with_cipd_variable": {',
+        '    "packages": [',
+        '      {',
+        '        "package": "package3/${{platform}}",',
+        '        "version": "1.2",',
+        '      },',
+        '    ],',
+        '    "dep_type": "cipd",',
+        '  },',
+        '',
         '}',
         '',
         '# ' + self.git_base + 'repo_14, DEPS',
@@ -1797,6 +1808,9 @@ class GClientSmokeCipd(GClientSmokeBase):
         '@Subdir src/cipd_dep',
         'package0 0.1',
         '',
+        '@Subdir src/cipd_dep_with_cipd_variable',
+        'package3/${platform} 1.2',
+        '',
     ], contents.splitlines())