diff --git a/filter/mathjaxloader/filter.php b/filter/mathjaxloader/filter.php
index 50e568e45d2..0906e18fb49 100644
--- a/filter/mathjaxloader/filter.php
+++ b/filter/mathjaxloader/filter.php
@@ -128,37 +128,116 @@ class filter_mathjaxloader extends moodle_text_filter {
             $text = str_replace('\\]', '\\)', $text);
         }
 
-        $hasinline = strpos($text, '\\(') !== false && strpos($text, '\\)') !== false;
-        $hasdisplay = (strpos($text, '$$') !== false) ||
-                      (strpos($text, '\\[') !== false && strpos($text, '\\]') !== false);
-
         $hasextra = false;
-
         foreach ($extradelimiters as $extra) {
             if ($extra && strpos($text, $extra) !== false) {
                 $hasextra = true;
                 break;
             }
         }
-        if ($hasinline || $hasdisplay || $hasextra) {
+
+        $hasdisplayorinline = false;
+        if ($hasextra) {
+            // If custom dilimeters are used, wrap whole text to prevent autolinking.
+            $text = '<span class="nolink">' . $text . '</span>';
+        } else {
+            // Wrap display and inline math environments in nolink spans.
+            // Do not wrap nested environments, i.e., if inline math is nested
+            // inside display math, only the outer display math is wrapped in
+            // a span. The span HTML inside a LaTex math environment would break
+            // MathJax. See MDL-61981.
+            list($text, $hasdisplayorinline) = $this->wrap_math_in_nolink($text);
+        }
+
+        if ($hasdisplayorinline || $hasextra) {
             $PAGE->requires->yui_module('moodle-filter_mathjaxloader-loader', 'M.filter_mathjaxloader.typeset');
-            if ($hasextra) {
-                // If custom dilimeters are used, wrap whole text to prevent autolinking.
-                $text = '<span class="nolink">' . $text . '</span>';
-            } else {
-                if ($hasinline) {
-                    // If the default inline TeX delimiters \( \) are present, wrap each pair in nolink.
-                    $text = preg_replace('/\\\\\\([\S\s]*?\\\\\\)/u',
-                        '<span class="nolink">\0</span>', $text);
-                }
-                if ($hasdisplay) {
-                    // If default display TeX is used, wrap $$ $$ or \[ \] individually.
-                    $text = preg_replace('/\$\$[\S\s]*?\$\$|\\\\\\[[\S\s]*?\\\\\\]/u',
-                        '<span class="nolink">\0</span>', $text);
-                }
-            }
             return '<span class="filter_mathjaxloader_equation">' . $text . '</span>';
         }
         return $text;
     }
+
+    /**
+     * Find math environments in the $text and wrap them in no link spans
+     * (<span class="nolink"></span>). If math environments are nested, only
+     * the outer environment is wrapped in the span.
+     *
+     * The recognized math environments are \[ \] and $$ $$ for display
+     * mathematics and \( \) for inline mathematics.
+     *
+     * @param string $text The text to filter.
+     * @return array An array containing the potentially modified text and
+     * a boolean that is true if any changes were made to the text.
+     */
+    protected function wrap_math_in_nolink($text) {
+        $i = 1;
+        $len = strlen($text);
+        $displaystart = -1;
+        $displaybracket = false;
+        $displaydollar = false;
+        $inlinestart = -1;
+        $changesdone = false;
+        // Loop over the $text once.
+        while ($i < $len) {
+            if ($displaystart === -1) {
+                // No display math has started yet.
+                if ($text[$i - 1] === '\\' && $text[$i] === '[') {
+                    // Display mode \[ begins.
+                    $displaystart = $i - 1;
+                    $displaybracket = true;
+                } else if ($text[$i - 1] === '$' && $text[$i] === '$') {
+                    // Display mode $$ begins.
+                    $displaystart = $i - 1;
+                    $displaydollar = true;
+                } else if ($text[$i - 1] === '\\' && $text[$i] === '(') {
+                    // Inline math \( begins, not nested inside display math.
+                    $inlinestart = $i - 1;
+                } else if ($text[$i - 1] === '\\' && $text[$i] === ')' && $inlinestart > -1) {
+                    // Inline math ends, not nested inside display math.
+                    // Wrap the span around it.
+                    $text = $this->insert_span($text, $inlinestart, $i);
+
+                    $inlinestart = -1; // Reset.
+                    $i += 28; // The $text length changed due to the <span>.
+                    $len += 28;
+                    $changesdone = true;
+                }
+            } else {
+                // Display math open.
+                if (($text[$i - 1] === '\\' && $text[$i] === ']' && $displaybracket) ||
+                        ($text[$i - 1] === '$' && $text[$i] === '$' && $displaydollar)) {
+                    // Display math ends, wrap the span around it.
+                    $text = $this->insert_span($text, $displaystart, $i);
+
+                    $displaystart = -1; // Reset.
+                    $displaybracket = false;
+                    $displaydollar = false;
+                    $i += 28; // The $text length changed due to the <span>.
+                    $len += 28;
+                    $changesdone = true;
+                }
+            }
+
+            ++$i;
+        }
+        return array($text, $changesdone);
+    }
+
+    /**
+     * Wrap a portion of the $text inside a no link span
+     * (<span class="nolink"></span>). The whole text is then returned.
+     *
+     * @param string $text The text to modify.
+     * @param int $start The start index of the substring in $text that should
+     * be wrapped in the span.
+     * @param int $end The end index of the substring in $text that should be
+     * wrapped in the span.
+     * @return string The whole $text with the span inserted around
+     * the defined substring.
+     */
+    protected function insert_span($text, $start, $end) {
+        return substr_replace($text,
+                '<span class="nolink">'. substr($text, $start, $end - $start + 1) .'</span>',
+                $start,
+                $end - $start + 1);
+    }
 }