diff --git a/Changelog.md b/Changelog.md
index d427d637f..e6e49a3c6 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -1,5 +1,7 @@
 ### 0.6.12 (unreleased)
 
+Compiler Features:
+ * Code Generator: Evaluate ``keccak256`` of string literals at compile-time.
 
 
 
diff --git a/libsolidity/codegen/ExpressionCompiler.cpp b/libsolidity/codegen/ExpressionCompiler.cpp
index ffa8ced4c..694ea8fa6 100644
--- a/libsolidity/codegen/ExpressionCompiler.cpp
+++ b/libsolidity/codegen/ExpressionCompiler.cpp
@@ -792,20 +792,24 @@ bool ExpressionCompiler::visit(FunctionCall const& _functionCall)
 			TypePointer const& argType = arguments.front()->annotation().type;
 			solAssert(argType, "");
 			arguments.front()->accept(*this);
-			// Optimization: If type is bytes or string, then do not encode,
-			// but directly compute keccak256 on memory.
-			if (*argType == *TypeProvider::bytesMemory() || *argType == *TypeProvider::stringMemory())
+			if (auto const* stringLiteral = dynamic_cast<StringLiteralType const*>(argType))
+				// Optimization: Compute keccak256 on string literals at compile-time.
+				m_context << u256(keccak256(stringLiteral->value()));
+			else if (*argType == *TypeProvider::bytesMemory() || *argType == *TypeProvider::stringMemory())
 			{
+				// Optimization: If type is bytes or string, then do not encode,
+				// but directly compute keccak256 on memory.
 				ArrayUtils(m_context).retrieveLength(*TypeProvider::bytesMemory());
 				m_context << Instruction::SWAP1 << u256(0x20) << Instruction::ADD;
+				m_context << Instruction::KECCAK256;
 			}
 			else
 			{
 				utils().fetchFreeMemoryPointer();
 				utils().packedEncode({argType}, TypePointers());
 				utils().toSizeAfterFreeMemoryPointer();
+				m_context << Instruction::KECCAK256;
 			}
-			m_context << Instruction::KECCAK256;
 			break;
 		}
 		case FunctionType::Kind::Log0:
diff --git a/libsolidity/codegen/ir/IRGeneratorForStatements.cpp b/libsolidity/codegen/ir/IRGeneratorForStatements.cpp
index c14d65121..a8d657b02 100644
--- a/libsolidity/codegen/ir/IRGeneratorForStatements.cpp
+++ b/libsolidity/codegen/ir/IRGeneratorForStatements.cpp
@@ -1020,18 +1020,28 @@ void IRGeneratorForStatements::endVisit(FunctionCall const& _functionCall)
 
 		ArrayType const* arrayType = TypeProvider::bytesMemory();
 
-		auto array = convert(*arguments[0], *arrayType);
+		if (auto const* stringLiteral = dynamic_cast<StringLiteralType const*>(arguments.front()->annotation().type))
+		{
+			// Optimization: Compute keccak256 on string literals at compile-time.
+			define(_functionCall) <<
+				("0x" + keccak256(stringLiteral->value()).hex()) <<
+				"\n";
+		}
+		else
+		{
+			auto array = convert(*arguments[0], *arrayType);
 
-		define(_functionCall) <<
-			"keccak256(" <<
-			m_utils.arrayDataAreaFunction(*arrayType) <<
-			"(" <<
-			array.commaSeparatedList() <<
-			"), " <<
-			m_utils.arrayLengthFunction(*arrayType) <<
-			"(" <<
-			array.commaSeparatedList() <<
-			"))\n";
+			define(_functionCall) <<
+				"keccak256(" <<
+				m_utils.arrayDataAreaFunction(*arrayType) <<
+				"(" <<
+				array.commaSeparatedList() <<
+				"), " <<
+				m_utils.arrayLengthFunction(*arrayType) <<
+				"(" <<
+				array.commaSeparatedList() <<
+				"))\n";
+		}
 		break;
 	}
 	case FunctionType::Kind::ArrayPop:
diff --git a/test/libsolidity/semanticTests/specialFunctions/keccak256_optimized.sol b/test/libsolidity/semanticTests/specialFunctions/keccak256_optimized.sol
new file mode 100644
index 000000000..cb3c8d608
--- /dev/null
+++ b/test/libsolidity/semanticTests/specialFunctions/keccak256_optimized.sol
@@ -0,0 +1,19 @@
+// tests compile-time evaluation of keccak256 on literal strings
+contract C {
+    function short() public pure returns (bool) {
+        bytes32 a = keccak256("abcdefghijklmn");
+        bytes memory s = "abcdefghijklmn";
+        return a == keccak256(s);
+    }
+    bytes32 constant sc = keccak256("abcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmn");
+    function long() public pure returns (bool, bool) {
+        bytes32 a = keccak256("abcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmn");
+        bytes memory s = "abcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmnabcdefghijklmn";
+        return (a == keccak256(s), sc == keccak256(s));
+    }
+}
+// ====
+// compileViaYul: also
+// ----
+// short() -> true
+// long() -> true, true