diff --git a/CHANGELOG.md b/CHANGELOG.md
index 00097105b..3df13a94f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,8 @@
 
 #### :bug: Bug fix
 
+- Fix: incorrect highlighting of `as` inside labelled arguments like `toast` https://github.com/rescript-lang/rescript-vscode/pull/1085
+
 - Fix: bug where incremental analysis does not work when the project folder contains a dot. https://github.com/rescript-lang/rescript-vscode/pull/1080
 
 - Fix: bug where incremental compilation crashes when rewatch is being run in a specific package vs the root of the monorepo. https://github.com/rescript-lang/rescript-vscode/pull/1082
diff --git a/grammars/rescript.tmLanguage.json b/grammars/rescript.tmLanguage.json
index c01154554..7a5bade0f 100644
--- a/grammars/rescript.tmLanguage.json
+++ b/grammars/rescript.tmLanguage.json
@@ -10,7 +10,7 @@
     "RE_TO_DOWNTO_AS_LABELS": {
       "patterns": [
         {
-          "match": "(to|downto)\\s*(=)",
+          "match": "~(to|downto)\\s*(=)",
           "captures": {
             "1": {
               "name": "variable"
@@ -21,7 +21,7 @@
           }
         },
         {
-          "match": "(to|downto)\\s*(as)",
+          "match": "~(to|downto)\\s+(as)",
           "captures": {
             "1": {
               "name": "variable"