diff --git a/README.md b/README.md
index 42f687b..7d0d7c9 100644
--- a/README.md
+++ b/README.md
@@ -90,6 +90,18 @@ u'\d'   # u'\\d'
 # but in python3.x, that's our friend ☃
 ```
 
+### `ur` string literals
+
+`ur'...'` literals are not valid in python 3.x
+
+```python
+ur'foo'         # u'foo'
+ur'\s'          # u'\\s'
+# unicode escapes are left alone
+ur'\u2603'      # u'\u2603'
+ur'\U0001f643'  # u'\U0001f643'
+```
+
 ### Long literals
 
 Availability:
diff --git a/pyupgrade.py b/pyupgrade.py
index 52db3b9..5f9c1aa 100644
--- a/pyupgrade.py
+++ b/pyupgrade.py
@@ -415,15 +415,14 @@ ESCAPE_STARTS_BYTES = ESCAPE_STARTS - frozenset(('N', 'u', 'U'))
 ESCAPE_RE = re.compile(r'\\.', re.DOTALL)
 
 
-def _fix_escape_sequences(last_name, token):
-    match = STRING_PREFIXES_RE.match(token.src)
-    prefix = match.group(1)
-    rest = match.group(2)
+def _parse_string_literal(s):
+    match = STRING_PREFIXES_RE.match(s)
+    return match.group(1), match.group(2)
 
-    if last_name is not None:  # pragma: no cover (py2 bug)
-        actual_prefix = (last_name.src + prefix).lower()
-    else:  # pragma: no cover (py3 only)
-        actual_prefix = prefix.lower()
+
+def _fix_escape_sequences(token):
+    prefix, rest = _parse_string_literal(token.src)
+    actual_prefix = prefix.lower()
 
     if 'r' in actual_prefix or '\\' not in rest:
         return token
@@ -452,36 +451,53 @@ def _fix_escape_sequences(last_name, token):
         return token
 
 
-def _remove_u_prefix(last_name, token):
-    match = STRING_PREFIXES_RE.match(token.src)
-    prefix = match.group(1)
+def _remove_u_prefix(token):
+    prefix, rest = _parse_string_literal(token.src)
     if 'u' not in prefix.lower():
         return token
     else:
-        rest = match.group(2)
         new_prefix = prefix.replace('u', '').replace('U', '')
         return Token('STRING', new_prefix + rest)
 
 
+def _fix_ur_literals(token):
+    prefix, rest = _parse_string_literal(token.src)
+    if prefix.lower() != 'ur':
+        return token
+    else:
+        def cb(match):
+            escape = match.group()
+            if escape[1].lower() == 'u':
+                return escape
+            else:
+                return '\\' + match.group()
+
+        rest = ESCAPE_RE.sub(cb, rest)
+        prefix = prefix.replace('r', '').replace('R', '')
+        return token._replace(src=prefix + rest)
+
+
 def _fix_strings(contents_text, py3_plus):
     remove_u_prefix = py3_plus or _imports_unicode_literals(contents_text)
 
-    last_name = None
     try:
         tokens = src_to_tokens(contents_text)
     except tokenize.TokenError:
         return contents_text
     for i, token in enumerate(tokens):
-        if token.name == 'NAME':
-            last_name = token
-            continue
-        elif token.name != 'STRING':
-            last_name = None
+        if token.name != 'STRING':
             continue
 
+        # when a string prefix is not recognized, the tokenizer produces a
+        # NAME token followed by a STRING token
+        if i > 0 and tokens[i - 1].name == 'NAME':
+            tokens[i] = token._replace(src=tokens[i - 1].src + token.src)
+            tokens[i - 1] = tokens[i - 1]._replace(src='')
+
+        tokens[i] = _fix_ur_literals(tokens[i])
         if remove_u_prefix:
-            tokens[i] = _remove_u_prefix(last_name, tokens[i])
-        tokens[i] = _fix_escape_sequences(last_name, tokens[i])
+            tokens[i] = _remove_u_prefix(tokens[i])
+        tokens[i] = _fix_escape_sequences(tokens[i])
 
     return tokens_to_src(tokens)
 

diff --git a/tests/pyupgrade_test.py b/tests/pyupgrade_test.py
index b9e975d..37b28cb 100644
--- a/tests/pyupgrade_test.py
+++ b/tests/pyupgrade_test.py
@@ -331,6 +331,25 @@ def test_unicode_literals(s, py3_plus, expected):
     assert ret == expected
 
 
+@pytest.mark.parametrize(
+    ('s', 'expected'),
+    (
+        pytest.param('ur"hi"', 'u"hi"', id='basic case'),
+        pytest.param('UR"hi"', 'U"hi"', id='upper case raw'),
+        pytest.param(r'ur"\s"', r'u"\\s"', id='with an escape'),
+        pytest.param('ur"\\u2603"', 'u"\\u2603"', id='with unicode escapes'),
+        pytest.param('ur"\\U0001f643"', 'u"\\U0001f643"', id='emoji'),
+    ),
+)
+def test_fix_ur_literals(s, expected):
+    ret = _fix_strings(s, py3_plus=False)
+    assert ret == expected
+
+
+def test_fix_ur_literals_gets_fixed_before_u_removed():
+    assert _fix_strings("ur'\\s\\u2603'", py3_plus=True) == "'\\\\s\\u2603'"
+
+
 @pytest.mark.parametrize(
     's',
     (

Rewrite `ur` literals
`ur` literals are invalid syntax in python3.x
tests/pyupgrade_test.py::test_fix_ur_literals[basic tests/pyupgrade_test.py::test_fix_ur_literals[upper tests/pyupgrade_test.py::test_fix_ur_literals[with tests/pyupgrade_test.py::test_fix_ur_literals[emoji] tests/pyupgrade_test.py::test_fix_ur_literals_gets_fixed_before_u_removed
tests/pyupgrade_test.py::test_roundtrip_text[] tests/pyupgrade_test.py::test_roundtrip_text[foo] tests/pyupgrade_test.py::test_roundtrip_text[{}] tests/pyupgrade_test.py::test_roundtrip_text[{0}] tests/pyupgrade_test.py::test_roundtrip_text[{named}] tests/pyupgrade_test.py::test_roundtrip_text[{!r}] tests/pyupgrade_test.py::test_roundtrip_text[{:>5}] tests/pyupgrade_test.py::test_roundtrip_text[{{] tests/pyupgrade_test.py::test_roundtrip_text[}}] tests/pyupgrade_test.py::test_roundtrip_text[{0!s:15}] tests/pyupgrade_test.py::test_intentionally_not_round_trip[{:}-{}] tests/pyupgrade_test.py::test_intentionally_not_round_trip[{0:}-{0}] tests/pyupgrade_test.py::test_intentionally_not_round_trip[{0!r:}-{0!r}] tests/pyupgrade_test.py::test_sets[set()-set()] tests/pyupgrade_test.py::test_sets[set((\n))-set((\n))] tests/pyupgrade_test.py::test_sets[set tests/pyupgrade_test.py::test_sets[set(())-set()] tests/pyupgrade_test.py::test_sets[set([])-set()] tests/pyupgrade_test.py::test_sets[set(( tests/pyupgrade_test.py::test_sets[set((1, tests/pyupgrade_test.py::test_sets[set([1, tests/pyupgrade_test.py::test_sets[set(x tests/pyupgrade_test.py::test_sets[set([x tests/pyupgrade_test.py::test_sets[set((x tests/pyupgrade_test.py::test_sets[set(((1, tests/pyupgrade_test.py::test_sets[set((a, tests/pyupgrade_test.py::test_sets[set([(1, tests/pyupgrade_test.py::test_sets[set(\n tests/pyupgrade_test.py::test_sets[set([((1, tests/pyupgrade_test.py::test_sets[set((((1, tests/pyupgrade_test.py::test_sets[set(\n(1, tests/pyupgrade_test.py::test_sets[set((\n1,\n2,\n))\n-{\n1,\n2,\n}\n] tests/pyupgrade_test.py::test_sets[set((frozenset(set((1, tests/pyupgrade_test.py::test_sets[set((1,))-{1}] tests/pyupgrade_test.py::test_dictcomps[x tests/pyupgrade_test.py::test_dictcomps[dict()-dict()] tests/pyupgrade_test.py::test_dictcomps[(-(] tests/pyupgrade_test.py::test_dictcomps[dict tests/pyupgrade_test.py::test_dictcomps[dict((a, tests/pyupgrade_test.py::test_dictcomps[dict([a, tests/pyupgrade_test.py::test_dictcomps[dict(((a, tests/pyupgrade_test.py::test_dictcomps[dict([(a, tests/pyupgrade_test.py::test_dictcomps[dict(((a), tests/pyupgrade_test.py::test_dictcomps[dict((k, tests/pyupgrade_test.py::test_dictcomps[dict(\n tests/pyupgrade_test.py::test_dictcomps[x(\n tests/pyupgrade_test.py::test_format_literals["{0}"format(1)-"{0}"format(1)] tests/pyupgrade_test.py::test_format_literals['{}'.format(1)-'{}'.format(1)] tests/pyupgrade_test.py::test_format_literals['{'.format(1)-'{'.format(1)] tests/pyupgrade_test.py::test_format_literals['}'.format(1)-'}'.format(1)] tests/pyupgrade_test.py::test_format_literals[x tests/pyupgrade_test.py::test_format_literals['{0} tests/pyupgrade_test.py::test_format_literals['{0}'.format(1)-'{}'.format(1)] tests/pyupgrade_test.py::test_format_literals['{0:x}'.format(30)-'{:x}'.format(30)] tests/pyupgrade_test.py::test_format_literals['''{0}\n{1}\n'''.format(1, tests/pyupgrade_test.py::test_format_literals['{0}' tests/pyupgrade_test.py::test_format_literals[print(\n tests/pyupgrade_test.py::test_format_literals['{0:<{1}}'.format(1, tests/pyupgrade_test.py::test_imports_unicode_literals[import tests/pyupgrade_test.py::test_imports_unicode_literals[from tests/pyupgrade_test.py::test_imports_unicode_literals[x tests/pyupgrade_test.py::test_imports_unicode_literals["""docstring"""\nfrom tests/pyupgrade_test.py::test_unicode_literals[(-False-(] tests/pyupgrade_test.py::test_unicode_literals[u''-False-u''] tests/pyupgrade_test.py::test_unicode_literals[u''-True-''] tests/pyupgrade_test.py::test_unicode_literals[from tests/pyupgrade_test.py::test_unicode_literals["""with tests/pyupgrade_test.py::test_fix_escape_sequences_noop[""] tests/pyupgrade_test.py::test_fix_escape_sequences_noop[r"\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences_noop[r'\\d'] tests/pyupgrade_test.py::test_fix_escape_sequences_noop[r"""\\d"""] tests/pyupgrade_test.py::test_fix_escape_sequences_noop[r'''\\d'''] tests/pyupgrade_test.py::test_fix_escape_sequences_noop[rb"\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences_noop["\\\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences_noop["\\u2603"] tests/pyupgrade_test.py::test_fix_escape_sequences_noop["\\r\\n"] tests/pyupgrade_test.py::test_fix_escape_sequences_noop["""\\\n"""] tests/pyupgrade_test.py::test_fix_escape_sequences_noop["""\\\r\n"""] tests/pyupgrade_test.py::test_fix_escape_sequences_noop["""\\\r"""] tests/pyupgrade_test.py::test_fix_escape_sequences["\\d"-r"\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences["\\n\\d"-"\\n\\\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences[u"\\d"-u"\\\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences[b"\\d"-br"\\d"] tests/pyupgrade_test.py::test_fix_escape_sequences["\\8"-r"\\8"] tests/pyupgrade_test.py::test_fix_escape_sequences["\\9"-r"\\9"] tests/pyupgrade_test.py::test_fix_escape_sequences[b"\\u2603"-br"\\u2603"] tests/pyupgrade_test.py::test_fix_escape_sequences["""\\\n\\q"""-"""\\\n\\\\q"""] tests/pyupgrade_test.py::test_fix_escape_sequences["""\\\r\n\\q"""-"""\\\r\n\\\\q"""] tests/pyupgrade_test.py::test_fix_escape_sequences["""\\\r\\q"""-"""\\\r\\\\q"""] tests/pyupgrade_test.py::test_noop_octal_literals[0] tests/pyupgrade_test.py::test_noop_octal_literals[00] tests/pyupgrade_test.py::test_noop_octal_literals[1] tests/pyupgrade_test.py::test_noop_octal_literals[12345] tests/pyupgrade_test.py::test_noop_octal_literals[1.2345] tests/pyupgrade_test.py::test_is_bytestring_true[b''] tests/pyupgrade_test.py::test_is_bytestring_true[b""] tests/pyupgrade_test.py::test_is_bytestring_true[B""] tests/pyupgrade_test.py::test_is_bytestring_true[B''] tests/pyupgrade_test.py::test_is_bytestring_true[rb''0] tests/pyupgrade_test.py::test_is_bytestring_true[rb''1] tests/pyupgrade_test.py::test_is_bytestring_false[] tests/pyupgrade_test.py::test_is_bytestring_false[""] tests/pyupgrade_test.py::test_is_bytestring_false[''] tests/pyupgrade_test.py::test_is_bytestring_false[u""] tests/pyupgrade_test.py::test_is_bytestring_false["b"] tests/pyupgrade_test.py::test_parse_percent_format[""-expected0] tests/pyupgrade_test.py::test_parse_percent_format["%%"-expected1] tests/pyupgrade_test.py::test_parse_percent_format["%s"-expected2] tests/pyupgrade_test.py::test_parse_percent_format["%s tests/pyupgrade_test.py::test_parse_percent_format["%(hi)s"-expected4] tests/pyupgrade_test.py::test_parse_percent_format["%()s"-expected5] tests/pyupgrade_test.py::test_parse_percent_format["%#o"-expected6] tests/pyupgrade_test.py::test_parse_percent_format["% tests/pyupgrade_test.py::test_parse_percent_format["%5d"-expected8] tests/pyupgrade_test.py::test_parse_percent_format["%*d"-expected9] tests/pyupgrade_test.py::test_parse_percent_format["%.f"-expected10] tests/pyupgrade_test.py::test_parse_percent_format["%.5f"-expected11] tests/pyupgrade_test.py::test_parse_percent_format["%.*f"-expected12] tests/pyupgrade_test.py::test_parse_percent_format["%ld"-expected13] tests/pyupgrade_test.py::test_parse_percent_format["%(complete)#4.4f"-expected14] tests/pyupgrade_test.py::test_percent_to_format[%s-{}] tests/pyupgrade_test.py::test_percent_to_format[%%%s-%{}] tests/pyupgrade_test.py::test_percent_to_format[%(foo)s-{foo}] tests/pyupgrade_test.py::test_percent_to_format[%2f-{:2f}] tests/pyupgrade_test.py::test_percent_to_format[%r-{!r}] tests/pyupgrade_test.py::test_percent_to_format[%a-{!a}] tests/pyupgrade_test.py::test_simplify_conversion_flag[-] tests/pyupgrade_test.py::test_simplify_conversion_flag[ tests/pyupgrade_test.py::test_simplify_conversion_flag[#0- tests/pyupgrade_test.py::test_simplify_conversion_flag[--<] tests/pyupgrade_test.py::test_percent_format_noop["%s" tests/pyupgrade_test.py::test_percent_format_noop[b"%s" tests/pyupgrade_test.py::test_percent_format_noop["%*s" 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tests/pyupgrade_test.py::test_main_changes_a_file tests/pyupgrade_test.py::test_main_keeps_line_endings tests/pyupgrade_test.py::test_main_syntax_error tests/pyupgrade_test.py::test_main_non_utf8_bytes tests/pyupgrade_test.py::test_keep_percent_format tests/pyupgrade_test.py::test_py3_plus_argument_unicode_literals tests/pyupgrade_test.py::test_py3_plus_super tests/pyupgrade_test.py::test_py3_plus_new_style_classes tests/pyupgrade_test.py::test_py36_plus_fstrings