diff --git a/src/Cursor.cpp b/src/Cursor.cpp
index 875853bd01..86359ce8c9 100644
--- a/src/Cursor.cpp
+++ b/src/Cursor.cpp
@@ -43,6 +43,7 @@
 #include "insets/InsetText.h"
 
 #include "mathed/InsetMath.h"
+#include "mathed/InsetMathBrace.h"
 #include "mathed/InsetMathScript.h"
 #include "mathed/MacroTable.h"
 #include "mathed/MathData.h"
@@ -1208,6 +1209,8 @@ bool Cursor::macroModeClose()
 		return false;
 	InsetMathUnknown * p = activeMacro();
 	p->finalize();
+	MathData selection;
+	asArray(p->selection(), selection);
 	docstring const s = p->name();
 	--pos();
 	cell().erase(pos());
@@ -1225,12 +1228,37 @@ bool Cursor::macroModeClose()
 	if (in && in->interpretString(*this, s))
 		return true;
 	MathAtom atom = createInsetMath(name);
+
+	// try to put argument into macro, if we just inserted a macro
+	bool macroArg = false;
 	MathMacro * atomAsMacro = atom.nucleus()->asMacro();
 	if (atomAsMacro) {
-		// make non-greedy, i.e. don't eat parameters from the right
-		atomAsMacro->setDisplayMode(MathMacro::DISPLAY_INTERACTIVE_INIT);
+		// macros here are still unfolded (in init mode in fact). So
+		// we have to resolve the macro here manually and check its arity
+		// to put the selection behind it if arity > 0.
+		MacroData const * data = buffer().getMacro(atomAsMacro->name());
+		if (selection.size() > 0 && data && data->numargs() - data->optionals() > 0) {
+			macroArg = true;
+			atomAsMacro->setDisplayMode(MathMacro::DISPLAY_INTERACTIVE_INIT, 1);
+		} else
+			// non-greedy case. Do not touch the arguments behind
+			atomAsMacro->setDisplayMode(MathMacro::DISPLAY_INTERACTIVE_INIT, 0);
 	}
+
+	// insert remembered selection into first argument of a non-macro
+	else if (atom.nucleus()->nargs() > 0)
+		atom.nucleus()->cell(0).append(selection);
+	
 	plainInsert(atom);
+
+	// finally put the macro argument behind, if needed
+	if (macroArg) {
+		if (selection.size() > 1)
+			plainInsert(MathAtom(new InsetMathBrace(selection)));
+		else
+			insert(selection);
+	}
+	
 	return true;
 }
 
diff --git a/src/mathed/InsetMathNest.cpp b/src/mathed/InsetMathNest.cpp
index 5910e327b2..a4b42a2d36 100644
--- a/src/mathed/InsetMathNest.cpp
+++ b/src/mathed/InsetMathNest.cpp
@@ -1423,14 +1423,15 @@ bool InsetMathNest::interpretChar(Cursor & cur, char_type c)
 		return true;
 	}
 
-	selClearOrDel(cur);
-
 	if (c == '\\') {
 		//lyxerr << "starting with macro" << endl;
-		cur.insert(MathAtom(new InsetMathUnknown(from_ascii("\\"), false)));
+		docstring const safe = cap::grabAndEraseSelection(cur);
+		cur.insert(MathAtom(new InsetMathUnknown(from_ascii("\\"), safe, false)));
 		return true;
 	}
 
+	selClearOrDel(cur);
+
 	if (c == '\n') {
 		if (currentMode() == InsetMath::TEXT_MODE)
 			cur.insert(c);
diff --git a/src/mathed/InsetMathUnknown.cpp b/src/mathed/InsetMathUnknown.cpp
index 41baefc92c..22ea1fc888 100644
--- a/src/mathed/InsetMathUnknown.cpp
+++ b/src/mathed/InsetMathUnknown.cpp
@@ -16,11 +16,14 @@
 #include "MathStream.h"
 #include "MathStream.h"
 
+#include "frontends/Painter.h"
+
 
 namespace lyx {
 
-InsetMathUnknown::InsetMathUnknown(docstring const & nm, bool final, bool black)
-	: name_(nm), final_(final), black_(black)
+InsetMathUnknown::InsetMathUnknown(docstring const & nm,
+	docstring const & selection, bool final, bool black)
+	: name_(nm), final_(final), black_(black), selection_(selection)
 {}
 
 
@@ -62,7 +65,6 @@ void InsetMathUnknown::draw(PainterInfo & pi, int x, int y) const
 		drawStrBlack(pi, x, y, name_);
 	else
 		drawStrRed(pi, x, y, name_);
-	setPosCache(pi, x, y);
 }
 
 
diff --git a/src/mathed/InsetMathUnknown.h b/src/mathed/InsetMathUnknown.h
index d0c8480c78..e6427ea0cb 100644
--- a/src/mathed/InsetMathUnknown.h
+++ b/src/mathed/InsetMathUnknown.h
@@ -23,6 +23,7 @@ class InsetMathUnknown : public InsetMath {
 public:
 	///
 	explicit InsetMathUnknown(docstring const & name,
+		docstring const & selection = docstring(),
 		bool final = true, bool black = false);
 	///
 	void metrics(MetricsInfo & mi, Dimension & dim) const;
@@ -33,6 +34,9 @@ public:
 	///
 	docstring name() const;
 
+	///
+	docstring const & selection() const { return selection_; }
+	
 	/// identifies UnknownInsets
 	InsetMathUnknown const * asUnknownInset() const { return this; }
 	/// identifies UnknownInsets
@@ -54,6 +58,7 @@ public:
 	bool final() const;
 	///
 	int kerning(BufferView const *) const { return kerning_; }
+
 private:
 	virtual Inset * clone() const;
 	///
@@ -64,6 +69,8 @@ private:
 	bool black_;
 	///
 	mutable int kerning_;
+	/// the selection which was replaced by this
+	docstring selection_;
 };