diff --git a/modules/gdscript/gdscript_parser.cpp b/modules/gdscript/gdscript_parser.cpp
index bde67833220..69fa793059a 100644
--- a/modules/gdscript/gdscript_parser.cpp
+++ b/modules/gdscript/gdscript_parser.cpp
@@ -2420,6 +2420,9 @@ GDScriptParser::ExpressionNode *GDScriptParser::parse_assignment(ExpressionNode
 		push_error("Assignment is not allowed inside an expression.");
 		return parse_expression(false); // Return the following expression.
 	}
+	if (p_previous_operand == nullptr) {
+		return parse_expression(false); // Return the following expression.
+	}
 
 #ifdef DEBUG_ENABLED
 	VariableNode *source_variable = nullptr;
diff --git a/modules/gdscript/tests/scripts/parser/errors/dollar-assignment-bug-53696.gd b/modules/gdscript/tests/scripts/parser/errors/dollar-assignment-bug-53696.gd
new file mode 100644
index 00000000000..e9690ee93dd
--- /dev/null
+++ b/modules/gdscript/tests/scripts/parser/errors/dollar-assignment-bug-53696.gd
@@ -0,0 +1,2 @@
+func test():
+	$=$
diff --git a/modules/gdscript/tests/scripts/parser/errors/dollar-assignment-bug-53696.out b/modules/gdscript/tests/scripts/parser/errors/dollar-assignment-bug-53696.out
new file mode 100644
index 00000000000..b3dc181a22b
--- /dev/null
+++ b/modules/gdscript/tests/scripts/parser/errors/dollar-assignment-bug-53696.out
@@ -0,0 +1,2 @@
+GDTEST_PARSER_ERROR
+Expect node path as string or identifier after "$".