diff --git a/packages/mcp-server/tests/server.test.ts b/packages/mcp-server/tests/server.test.ts
index d64f01220..617a65e2c 100644
--- a/packages/mcp-server/tests/server.test.ts
+++ b/packages/mcp-server/tests/server.test.ts
@@ -109,6 +109,25 @@ test("execute query runs safe multi-statement SQL one statement at a time", asyn
   assert.match(result.content[0].text, /Statement 2/);
 });
 
+test("execute query preserves string literals and PostgreSQL dollar quotes", async () => {
+  const executed: string[] = [];
+  const scopedBackend: Backend = {
+    ...backend,
+    executeQuery: async (_config, sql) => {
+      executed.push(sql);
+      return { columns: ["value"], rows: [{ value: 1 }], row_count: 1 };
+    },
+  };
+  const server = createDbxMcpServer(scopedBackend, { isWebMode: true });
+
+  await (server as any)._registeredTools.dbx_execute_query.handler({
+    connection_name: "local",
+    sql: "SELECT 'a;b' AS first; SELECT $tag$c;d$tag$ AS second;",
+  });
+
+  assert.deepEqual(executed, ["SELECT 'a;b' AS first", "SELECT $tag$c;d$tag$ AS second"]);
+});
+
 test("execute query reports the blocked statement number for unsafe multi-statement SQL", async () => {
   const server = createDbxMcpServer(backend, { isWebMode: true });
 
diff --git a/packages/node-core/src/sql-safety.ts b/packages/node-core/src/sql-safety.ts
index 782b6ccc1..49c16b08e 100644
--- a/packages/node-core/src/sql-safety.ts
+++ b/packages/node-core/src/sql-safety.ts
@@ -81,5 +81,106 @@ export function sqlSafetyFromEnv(env: NodeJS.ProcessEnv = process.env): SqlSafet
 }
 
 export function splitSqlStatements(sql: string): string[] {
-  return splitSqlStatementsForSafety(sql);
+  const statements: string[] = [];
+  let statementStart = 0;
+  let index = 0;
+  let state: "none" | "single" | "double" | "backtick" | "bracket" | "lineComment" | "blockComment" | "dollar" = "none";
+  let dollarTag = "";
+
+  const pushStatement = (end: number) => {
+    const statement = sql.slice(statementStart, end).trim();
+    if (statement) statements.push(statement);
+  };
+
+  while (index < sql.length) {
+    const char = sql[index] ?? "";
+    const next = sql[index + 1] ?? "";
+
+    if (state === "lineComment") {
+      if (char === "\n" || char === "\r") state = "none";
+      index += 1;
+      continue;
+    }
+    if (state === "blockComment") {
+      if (char === "*" && next === "/") {
+        state = "none";
+        index += 2;
+      } else {
+        index += 1;
+      }
+      continue;
+    }
+    if (state === "dollar") {
+      if (sql.startsWith(dollarTag, index)) {
+        index += dollarTag.length;
+        state = "none";
+      } else {
+        index += 1;
+      }
+      continue;
+    }
+    if (state === "single" || state === "double" || state === "backtick") {
+      const quote = state === "single" ? "'" : state === "double" ? '"' : "`";
+      if (char === quote) {
+        if (next === quote) {
+          index += 2;
+          continue;
+        }
+        state = "none";
+      } else if (char === "\\" && next) {
+        // Preserve dialects that accept backslash escapes without letting an escaped quote end the literal.
+        index += 2;
+        continue;
+      }
+      index += 1;
+      continue;
+    }
+    if (state === "bracket") {
+      if (char === "]") {
+        if (next === "]") {
+          index += 2;
+          continue;
+        }
+        state = "none";
+      }
+      index += 1;
+      continue;
+    }
+
+    if (char === "-" && next === "-") {
+      state = "lineComment";
+      index += 2;
+      continue;
+    }
+    if (char === "#") {
+      state = "lineComment";
+      index += 1;
+      continue;
+    }
+    if (char === "/" && next === "*") {
+      state = "blockComment";
+      index += 2;
+      continue;
+    }
+    if (char === "'") state = "single";
+    else if (char === '"') state = "double";
+    else if (char === "`") state = "backtick";
+    else if (char === "[") state = "bracket";
+    else if (char === "$") {
+      const match = /^\$[A-Za-z_0-9]*\$/.exec(sql.slice(index));
+      if (match) {
+        dollarTag = match[0];
+        state = "dollar";
+        index += dollarTag.length;
+        continue;
+      }
+    } else if (char === ";") {
+      pushStatement(index);
+      statementStart = index + 1;
+    }
+    index += 1;
+  }
+
+  pushStatement(sql.length);
+  return statements;
 }
diff --git a/packages/node-core/tests/sql-safety.test.ts b/packages/node-core/tests/sql-safety.test.ts
index fe2375a5b..0ff4f5a98 100644
--- a/packages/node-core/tests/sql-safety.test.ts
+++ b/packages/node-core/tests/sql-safety.test.ts
@@ -1,6 +1,6 @@
 import assert from "node:assert/strict";
 import { test } from "vitest";
-import { evaluateSqlSafety, sqlSafetyFromEnv } from "../src/sql-safety.js";
+import { evaluateSqlSafety, splitSqlStatements, sqlSafetyFromEnv } from "../src/sql-safety.js";
 
 test("allows read-only SQL by default", () => {
   const decision = evaluateSqlSafety("select * from users limit 5");
@@ -79,6 +79,24 @@ test("checks every statement in a multi-statement SQL string", () => {
   assert.match(decision.reason ?? "", /WHERE/i);
 });
 
+test("splits statements without altering SQL literals or comments", () => {
+  const sql = "SELECT 'a;b' AS value, ''abc'' AS quoted; -- keep comment\nSELECT $$c;d$$ AS dollar;";
+
+  assert.deepEqual(splitSqlStatements(sql), [
+    "SELECT 'a;b' AS value, ''abc'' AS quoted",
+    "-- keep comment\nSELECT $$c;d$$ AS dollar",
+  ]);
+});
+
+test("keeps tagged dollar quotes and quoted identifiers intact", () => {
+  const sql = 'SELECT $body$begin; end$body$ AS body, "semi;colon" AS "quoted;column"; SELECT 2;';
+
+  assert.deepEqual(splitSqlStatements(sql), [
+    'SELECT $body$begin; end$body$ AS body, "semi;colon" AS "quoted;column"',
+    "SELECT 2",
+  ]);
+});
+
 test("sqlSafetyFromEnv allows writes by default but keeps dangerous SQL blocked", () => {
   const options = sqlSafetyFromEnv({});