diff --git a/package-lock.json b/package-lock.json
index f51c954422..00026c70ad 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "powershell",
-  "version": "2026.1.1",
+  "version": "2026.1.2",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "powershell",
-      "version": "2026.1.1",
+      "version": "2026.1.2",
       "license": "SEE LICENSE IN LICENSE.txt",
       "dependencies": {
         "@microsoft/applicationinsights-common": "^3.4.1",
diff --git a/src/extension.ts b/src/extension.ts
index e6002ad05e..77727710b2 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -82,6 +82,19 @@ export async function activate(
                 ["(", ")"],
             ],
 
+            autoClosingPairs: [
+                ["{", "}"],
+                ["[", "]"],
+                ["(", ")"],
+                // Here-strings: auto-close @' with \n'@ and @" with \n"@
+                // (fix for https://github.com/PowerShell/vscode-powershell/issues/1517)
+                { open: "@'", close: "\n'@", notIn: ["string", "comment"] },
+                { open: '@"', close: '\n"@', notIn: ["string", "comment"] },
+                { open: '"', close: '"', notIn: ["string"] },
+                { open: "'", close: "'", notIn: ["string", "comment"] },
+                ["<#", "#>"],
+            ],
+
             onEnterRules: [
                 {
                     // e.g. /** | */