diff --git a/nw/core/index.py b/nw/core/index.py
index 36c27b27..2a3a142a 100644
--- a/nw/core/index.py
+++ b/nw/core/index.py
@@ -321,8 +321,7 @@ class NWIndex():
                     nTitle = nLine
 
             elif aLine.startswith("@"):
-                self._indexNoteRef(tHandle, aLine, nLine, nTitle)
-                self._indexTag(tHandle, aLine, nLine, nTitle, itemClass)
+                self._indexKeyword(tHandle, aLine, nLine, nTitle, itemClass)
 
             elif aLine.startswith("%"):
                 if nTitle > 0:
@@ -463,41 +462,28 @@ class NWIndex():
                     self._noteIndex[tHandle][sTitle]["updated"] = round(time())
         return
 
-    def _indexNoteRef(self, tHandle, aLine, nLine, nTitle):
+    def _indexKeyword(self, tHandle, aLine, nLine, nTitle, itemClass):
         """Validate and save the information about a reference to a tag
         in another file.
         """
         isValid, theBits, _ = self.scanThis(aLine)
-        if not isValid or len(theBits) == 0:
-            return False
-
-        sTitle = "T%06d" % nTitle
-        if sTitle not in self._refIndex[tHandle]:
-            return False
-
-        if theBits[0] == nwKeyWords.TAG_KEY:
-            return False
+        if not isValid or len(theBits) < 2:
+            logger.warning("Skipping keyword with %d value(s) in %s" % (len(theBits), tHandle))
+            return
 
         if theBits[0] not in nwKeyWords.VALID_KEYS:
-            return False
-
-        for aVal in theBits[1:]:
-            self._refIndex[tHandle][sTitle]["tags"].append([nLine, theBits[0], aVal])
-
-        return True
-
-    def _indexTag(self, tHandle, aLine, nLine, nTitle, itemClass):
-        """Validate and save the information from a tag.
-        """
-        isValid, theBits, thePos = self.scanThis(aLine)
-        if not isValid or len(theBits) != 2:
-            return False
+            logger.warning("Skipping invalid keyword '%s' in %s" % (theBits[0], tHandle))
+            return
 
+        sTitle = "T%06d" % nTitle
         if theBits[0] == nwKeyWords.TAG_KEY:
-            sTitle = "T%06d" % nTitle
             self._tagIndex[theBits[1]] = [nLine, tHandle, itemClass.name, sTitle]
 
-        return True
+        elif sTitle in self._refIndex[tHandle]:
+            for aVal in theBits[1:]:
+                self._refIndex[tHandle][sTitle]["tags"].append([nLine, theBits[0], aVal])
+
+        return
 
     ##
     #  Check @ Lines
@@ -717,7 +703,7 @@ class NWIndex():
         for refTitle in self._refIndex[tHandle]:
             for aTag in self._refIndex[tHandle][refTitle].get("tags", []):
                 if len(aTag) == 3 and (sTitle is None or sTitle == refTitle):
-                    if aTag[1] in theRefs: # Future-compatible. Check can be removed in 1.2.
+                    if aTag[1] in theRefs:
                         theRefs[aTag[1]].append(aTag[2])
 
         return theRefs
diff --git a/tests/test_core/test_core_index.py b/tests/test_core/test_core_index.py
index 9b1c656a..487dd68e 100644
--- a/tests/test_core/test_core_index.py
+++ b/tests/test_core/test_core_index.py
@@ -198,14 +198,28 @@ def testCoreIndex_CheckThese(nwMinimal, dummyGUI):
 
     assert theIndex.scanText(cHandle, (
         "# Jane Smith\n"
-        "@tag: Jane"
+        "@tag: Jane\n"
+        "@tag:\n"
+        "@:\n"
     ))
     assert theIndex.scanText(nHandle, (
         "# Hello World!\n"
-        "@pov: Jane"
+        "@pov: Jane\n"
+        "@invalid: John\n" # Checks for issue #688
     ))
     assert theIndex._tagIndex == {"Jane": [2, cHandle, "CHARACTER", "T000001"]}
     assert theIndex.getNovelData(nHandle, "T000001")["title"] == "Hello World!"
+    assert theIndex.getReferences(nHandle, "T000001") == {
+        "@char": [],
+        "@custom": [],
+        "@entity": [],
+        "@focus": [],
+        "@location": [],
+        "@object": [],
+        "@plot": [],
+        "@pov": ["Jane"],
+        "@time": []
+    }
 
     assert theIndex.novelChangedSince(0)
     assert theIndex.notesChangedSince(0)
@@ -281,7 +295,7 @@ def testCoreIndex_ScanText(nwMinimal, dummyGUI):
         "This is a story about Jane Smith.\n\n"
         "Well, not really.\n"
     ))
-    assert str(theIndex._tagIndex) == "{'Jane': [2, '%s', 'CHARACTER', 'T000001']}" % cHandle
+    assert theIndex._tagIndex == {"Jane": [2, cHandle, "CHARACTER", "T000001"]}
     assert theIndex.getNovelData(nHandle, "T000001")["title"] == "Hello World!"
 
     # Check that title sections are indexed properly