20.9.3 Replace Commands and Case

If the first argument of a replace command is all lower case, the command ignores case while searching for occurrences to replace—provided case-fold-search is non-nil. If case-fold-search is set to nil, case is always significant in all searches.

In addition, when the newstring argument is all or partly lower case, replacement commands try to preserve the case pattern of each occurrence. Thus, the command

     M-x replace-string <RET> foo <RET> bar <RET>

replaces a lower case ‘foo’ with a lower case ‘bar’, an all-caps ‘FOO’ with ‘BAR’, and a capitalized ‘Foo’ with ‘Bar’. (These three alternatives—lower case, all caps, and capitalized, are the only ones that replace-string can distinguish.)

If upper-case letters are used in the replacement string, they remain upper case every time that text is inserted. If upper-case letters are used in the first argument, the second argument is always substituted exactly as given, with no case conversion. Likewise, if either case-replace or case-fold-search is set to nil, replacement is done without case conversion.