diff --git a/django/template/__init__.py b/django/template/__init__.py
index ffdb4e4809..f84a1cef66 100644
--- a/django/template/__init__.py
+++ b/django/template/__init__.py
@@ -197,7 +197,19 @@ class Token(object):
             self.contents[:20].replace('\n', ''))
 
     def split_contents(self):
-        return list(smart_split(self.contents))
+        split = []
+        bits = iter(smart_split(self.contents))
+        for bit in bits:
+            # Handle translation-marked template pieces
+            if bit.startswith('_("') or bit.startswith("_('"):
+                sentinal = bit[2] + ')'
+                trans_bit = [bit]
+                while not bit.endswith(sentinal):
+                    bit = bits.next()
+                    trans_bit.append(bit)
+                bit = ' '.join(trans_bit)
+            split.append(bit)
+        return split
 
 class Lexer(object):
     def __init__(self, template_string, origin):
diff --git a/tests/regressiontests/templates/tests.py b/tests/regressiontests/templates/tests.py
index c6e915bb56..2cfc18916f 100644
--- a/tests/regressiontests/templates/tests.py
+++ b/tests/regressiontests/templates/tests.py
@@ -130,6 +130,12 @@ class Templates(unittest.TestCase):
             test_template_sources('/DIR1/index.HTML', template_dirs,
                                   ['/dir1/index.html'])
 
+    def test_token_smart_split(self):
+        # Regression test for #7027
+        token = template.Token(template.TOKEN_BLOCK, 'sometag _("Page not found") value|yesno:_("yes,no")')
+        split = token.split_contents()
+        self.assertEqual(split, ["sometag", '_("Page not found")', 'value|yesno:_("yes,no")'])
+
     def test_templates(self):
         template_tests = self.get_template_tests()
         filter_tests = filters.get_filter_tests()