diff --git a/src/engine.ts b/src/engine.ts
index 9446cc37..16feff68 100644
--- a/src/engine.ts
+++ b/src/engine.ts
@@ -179,10 +179,10 @@ function openFile(file, config) {
 function doReplacement(_file_rr: string, _config_rr: any, _data_rr: string) {
 	chat('Work on content from: ' + _file_rr);
 
-	// Main regexp of the whole thing
+	// Main regexp of the whole thing. With --output-match the replacement prints the matches, so the code of --replacement-js is not run.
 	const result = _data_rr.replace(
 		_config_rr.regex,
-		_config_rr.replacementJs
+		_config_rr.replacementJs && !_config_rr.outputMatch
 			? dynamicReplacement(_file_rr, _config_rr, _data_rr)
 			: _config_rr.replacement
 	);
@@ -568,9 +568,10 @@ function dynamicReplacement(_file_rr, _config_rr, _data_rr) {
 		_size = readableSize(_bytes);
 	}
 
-	// Run only once if no captured groups (replacement cant change)
+	// Run only once if no captured groups (replacement cant change).
+	// The result is given back from a function, so `$&` and `$$` in it are inserted as they are and not expanded.
 	if (!/\$\d/.test(_config_rr.replacement)) {
-		return dynamicContent(
+		const result = dynamicContent(
 			require,
 			fs,
 			globs,
@@ -619,6 +620,7 @@ function dynamicReplacement(_file_rr, _config_rr, _data_rr) {
 			_,
 			code_rr
 		);
+		return () => result;
 	}
 	// Capture groups used, so need to run once per match
 	return function () {
diff --git a/test/js/replacement-js.test.js b/test/js/replacement-js.test.js
index a3f045da..2bead76f 100644
--- a/test/js/replacement-js.test.js
+++ b/test/js/replacement-js.test.js
@@ -269,13 +269,10 @@ describe('--replacement-js', () => {
 		});
 	});
 
-	test.todo(
-		'BUG #689: the result of the code is inserted as it is (now $& and $$ in it are expanded)',
-		async () => {
-			expect(await js('o', '"$" + "&"', 'fo')).toBe('f$&');
-			expect(await js('o', '"$" + "$"', 'fo')).toBe('f$$');
-		}
-	);
+	test('the result of the code is inserted as it is, also $& and $$ (#689)', async () => {
+		expect(await js('o', '"$" + "&"', 'fo')).toBe('f$&');
+		expect(await js('o', '"$" + "$"', 'fo')).toBe('f$$');
+	});
 
 	describe('combined', () => {
 		test('with --void-euro there is only the $ to get to the groups', async () => {