diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index 02b6dcddcb1..d7bdfbf26aa 100644
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,3 +1,8 @@
+2002-02-02  Eli Zaretskii  <eliz@is.elta.co.il>
+
+	* term.el (term-emulate-terminal): Extract proper command string
+	which is supplied to term-command-hook.
+
 2002-02-03  Richard M. Stallman  <rms@gnu.org>
 
 	* international/quail.el (quail-help): Don't call help-setup-xref.
diff --git a/lisp/term.el b/lisp/term.el
index 43350c4dd91..fb253932704 100644
--- a/lisp/term.el
+++ b/lisp/term.el
@@ -2827,11 +2827,11 @@ See `term-prompt-regexp'."
 			   ((eq char ?\^G)
 			    (beep t)) ; Bell
 			   ((eq char ?\032)
-			    (let ((end (string-match "\n" str i)))
+			    (let ((end (string-match "\r?$" str i)))
 			      (if end
 				  (progn (funcall term-command-hook
-						  (substring str (1+ i) (1- end)))
-					 (setq i end))
+						  (substring str (1+ i) end))
+					 (setq i (match-end 0)))
 				(setq term-terminal-parameter
 				      (substring str i))
 				(setq term-terminal-state 4)