diff --git a/common/string.cpp b/common/string.cpp
index b37af0ba4a..99b8f30d08 100644
--- a/common/string.cpp
+++ b/common/string.cpp
@@ -41,6 +41,59 @@
 static const char illegalFileNameChars[] = "\\/:\"<>|";
 
 
+wxString ConvertToNewOverbarNotation( const wxString& aOldStr )
+{
+    wxString newStr;
+    bool inOverbar = false;
+
+    for( wxString::const_iterator chIt = aOldStr.begin(); chIt != aOldStr.end(); ++chIt )
+    {
+        if( *chIt == '~' )
+        {
+            wxString::const_iterator lookahead = chIt;
+
+            if( ++lookahead != aOldStr.end() && *lookahead == '~' )
+            {
+                if( ++lookahead != aOldStr.end() && *lookahead == '{' )
+                {
+                    // This way the subseqent opening curly brace will not start an
+                    // overbar.
+                    newStr << "~~{}";
+                    continue;
+                }
+
+                // Two subsequent tildes mean a tilde.
+                newStr << "~";
+                continue;
+            }
+            else
+            {
+                if( inOverbar )
+                {
+                    newStr << "}";
+                    inOverbar = false;
+                }
+                else
+                {
+                    newStr << "~{";
+                    inOverbar = true;
+                }
+
+                continue;
+            }
+        }
+
+        newStr << *chIt;
+    }
+
+    // Explicitly end the overbar even if there was no terminating '~' in the aOldStr.
+    if( inOverbar )
+        newStr << "}";
+
+    return newStr;
+}
+
+
 bool ConvertSmartQuotesAndDashes( wxString* aString )
 {
     bool retVal = false;
diff --git a/eeschema/sch_file_versions.h b/eeschema/sch_file_versions.h
index 1139a39562..21e9104222 100644
--- a/eeschema/sch_file_versions.h
+++ b/eeschema/sch_file_versions.h
@@ -60,4 +60,5 @@
 //#define SEXPR_SCHEMATIC_FILE_VERSION 20210123  // Rename "unconnected" pintype to "no_connect".
 //#define SEXPR_SCHEMATIC_FILE_VERSION 20210125  // R/W uuids for pins, labels, wires, etc.
 //#define SEXPR_SCHEMATIC_FILE_VERSION 20210126  // Fix bug with writing pin uuids.
-#define SEXPR_SCHEMATIC_FILE_VERSION 20210406    // Add schematic level uuids.
+//#define SEXPR_SCHEMATIC_FILE_VERSION 20210406  // Add schematic level uuids.
+#define SEXPR_SCHEMATIC_FILE_VERSION 20210606  // Change overbar syntax from `~...~` to `~{...}`.
diff --git a/eeschema/sch_plugins/kicad/sch_sexpr_parser.cpp b/eeschema/sch_plugins/kicad/sch_sexpr_parser.cpp
index d62f2898fb..02b76c7b6d 100644
--- a/eeschema/sch_plugins/kicad/sch_sexpr_parser.cpp
+++ b/eeschema/sch_plugins/kicad/sch_sexpr_parser.cpp
@@ -41,6 +41,7 @@
 #include <lib_rectangle.h>
 #include <lib_text.h>
 #include <math/util.h>                           // KiROUND, Clamp
+#include <kicad_string.h>
 #include <sch_bitmap.h>
 #include <sch_bus_entry.h>
 #include <sch_symbol.h>
@@ -601,6 +602,11 @@ void SCH_SEXPR_PARSER::parseEDA_TEXT( EDA_TEXT* aText )
     wxCHECK_RET( aText && CurTok() == T_effects,
                  wxT( "Cannot parse " ) + GetTokenString( CurTok() ) + wxT( " as EDA_TEXT." ) );
 
+    // In version 20210606 the notation for overbars was changed from `~...~` to `~{...}`. We need to convert
+    // the old syntax to the new one.
+    if( m_requiredVersion < 20210606 )
+        aText->SetText( ConvertToNewOverbarNotation( aText->GetText() ) );
+
     T token;
 
     for( token = NextTok();  token != T_RIGHT;  token = NextTok() )
diff --git a/include/kicad_string.h b/include/kicad_string.h
index 23d204aeed..75df0c39bd 100644
--- a/include/kicad_string.h
+++ b/include/kicad_string.h
@@ -38,6 +38,11 @@
 #include <wx/filename.h>
 
 
+/**
+ * Convert the old `~...~` overbar notation to the new `~{...}` one.
+ */
+wxString ConvertToNewOverbarNotation( const wxString& aOldStr );
+
 /**
  * Convert curly quotes and em/en dashes to straight quotes and dashes.
  *
diff --git a/pcbnew/plugins/kicad/kicad_plugin.h b/pcbnew/plugins/kicad/kicad_plugin.h
index 8ace5199fd..63517dbce9 100644
--- a/pcbnew/plugins/kicad/kicad_plugin.h
+++ b/pcbnew/plugins/kicad/kicad_plugin.h
@@ -96,7 +96,8 @@ class PCB_TEXT;
 //#define SEXPR_BOARD_FILE_VERSION    20210108  // Pad locking moved from footprint to pads
 //#define SEXPR_BOARD_FILE_VERSION    20210126  // Store pintype alongside pinfunction (in pads).
 //#define SEXPR_BOARD_FILE_VERSION      20210228  // Move global margins back to board file
-#define SEXPR_BOARD_FILE_VERSION      20210424  // Correct locked flag syntax (remove parens).
+//#define SEXPR_BOARD_FILE_VERSION      20210424  // Correct locked flag syntax (remove parens).
+#define SEXPR_BOARD_FILE_VERSION      20210606  // Change overbar syntax from `~...~` to `~{...}`.
 
 #define BOARD_FILE_HOST_VERSION       20200825  ///< Earlier files than this include the host tag
 
diff --git a/pcbnew/plugins/kicad/pcb_parser.cpp b/pcbnew/plugins/kicad/pcb_parser.cpp
index 3b9d73c3c3..20895ccd1e 100644
--- a/pcbnew/plugins/kicad/pcb_parser.cpp
+++ b/pcbnew/plugins/kicad/pcb_parser.cpp
@@ -56,6 +56,7 @@
 #include <convert_basic_shapes_to_polygon.h>    // for RECT_CHAMFER_POSITIONS definition
 #include <template_fieldnames.h>
 #include <math/util.h>                           // KiROUND, Clamp
+#include <kicad_string.h>
 #include <wx/log.h>
 
 using namespace PCB_KEYS_T;
@@ -294,6 +295,11 @@ void PCB_PARSER::parseEDA_TEXT( EDA_TEXT* aText )
     wxCHECK_RET( CurTok() == T_effects,
                  wxT( "Cannot parse " ) + GetTokenString( CurTok() ) + wxT( " as EDA_TEXT." ) );
 
+    // In version 20210606 the notation for overbars was changed from `~...~` to `~{...}`. We need to convert
+    // the old syntax to the new one.
+    if( m_requiredVersion < 20210606 )
+        aText->SetText( ConvertToNewOverbarNotation( aText->GetText() ) );
+
     T token;
 
     // Prior to v5.0 text size was omitted from file format if equal to 60mils