Is the sentence correctly punctuated?

"Now, it was the first time I heard of it. I asked her what dissociation was. She said ‘It’s when I talk without thinking’,” he said.

Is the sentence correcrly punctuated, especially with regard to the word “thinking”?

Thanks.

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“It was the first time I heard about it. I asked her what dissociation was. She said, ‘It’s when I talk without thinking,’” he said.

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Now, it was the first time I heard about it. I asked her what dissociation was. She said, "It’s when I talk without thinking.”

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Thanks, Anglophile.

The text is quoted. It begins “Now, it was the first time…”.

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Then, I think, you have to go by what Torsten has said. (Usually, an embedded direct speech does not appear, though).

You may, however, consider this:

“Now, it was the first time I heard about it. I asked her what dissociation was. She said that it’s when she talked without thinking.” he said.

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