diff --git a/lib/readline.js b/lib/readline.js
index 2d62cb5c46..354b162843 100644
--- a/lib/readline.js
+++ b/lib/readline.js
@@ -801,12 +801,14 @@ exports.Interface = Interface;
  */
 
 function emitKeypressEvents(stream) {
-  if (stream._emitKeypress) return;
-  stream._emitKeypress = true;
+  if (stream._keypressDecoder) return;
+  var StringDecoder = require('string_decoder').StringDecoder; // lazy load
+  stream._keypressDecoder = new StringDecoder('utf8');
 
   function onData(b) {
     if (stream.listeners('keypress').length > 0) {
-      emitKey(stream, b);
+      var r = stream._keypressDecoder.write(b);
+      if (r) emitKey(stream, r);
     } else {
       // Nobody's watching anyway
       stream.removeListener('data', onData);
diff --git a/test/simple/test-readline-interface.js b/test/simple/test-readline-interface.js
index 33a5e7a16e..a3fde04481 100644
--- a/test/simple/test-readline-interface.js
+++ b/test/simple/test-readline-interface.js
@@ -32,100 +32,104 @@ function FakeInput() {
 inherits(FakeInput, EventEmitter);
 FakeInput.prototype.resume = function() {};
 FakeInput.prototype.pause = function() {};
+FakeInput.prototype.write = function() {};
+FakeInput.prototype.end = function() {};
 
-var fi;
-var rli;
-var called;
+[ true, false ].forEach(function(terminal) {
+  var fi;
+  var rli;
+  var called;
 
-// sending a full line
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-called = false;
-rli.on('line', function(line) {
-  called = true;
-  assert.equal(line, 'asdf');
-});
-fi.emit('data', 'asdf\n');
-assert.ok(called);
+  // sending a full line
+  fi = new FakeInput();
+  rli = new readline.Interface({ input: fi, output: fi, terminal: terminal });
+  called = false;
+  rli.on('line', function(line) {
+    called = true;
+    assert.equal(line, 'asdf');
+  });
+  fi.emit('data', 'asdf\n');
+  assert.ok(called);
 
-// sending a blank line
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-called = false;
-rli.on('line', function(line) {
-  called = true;
-  assert.equal(line, '');
-});
-fi.emit('data', '\n');
-assert.ok(called);
+  // sending a blank line
+  fi = new FakeInput();
+  rli = new readline.Interface({ input: fi, output: fi, terminal: terminal });
+  called = false;
+  rli.on('line', function(line) {
+    called = true;
+    assert.equal(line, '');
+  });
+  fi.emit('data', '\n');
+  assert.ok(called);
 
-// sending a single character with no newline
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-called = false;
-rli.on('line', function(line) {
-  called = true;
-});
-fi.emit('data', 'a');
-assert.ok(!called);
-rli.close();
+  // sending a single character with no newline
+  fi = new FakeInput();
+  rli = new readline.Interface(fi, {});
+  called = false;
+  rli.on('line', function(line) {
+    called = true;
+  });
+  fi.emit('data', 'a');
+  assert.ok(!called);
+  rli.close();
 
-// sending a single character with no newline and then a newline
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-called = false;
-rli.on('line', function(line) {
-  called = true;
-  assert.equal(line, 'a');
-});
-fi.emit('data', 'a');
-assert.ok(!called);
-fi.emit('data', '\n');
-assert.ok(called);
-rli.close();
+  // sending a single character with no newline and then a newline
+  fi = new FakeInput();
+  rli = new readline.Interface({ input: fi, output: fi, terminal: terminal });
+  called = false;
+  rli.on('line', function(line) {
+    called = true;
+    assert.equal(line, 'a');
+  });
+  fi.emit('data', 'a');
+  assert.ok(!called);
+  fi.emit('data', '\n');
+  assert.ok(called);
+  rli.close();
 
-// sending multiple newlines at once
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-var expectedLines = ['foo\n', 'bar\n', 'baz\n'];
-var callCount = 0;
-rli.on('line', function(line) {
-  assert.equal(line, expectedLines[callCount]);
-  callCount++;
-});
-fi.emit('data', expectedLines.join('\n') + '\n');
-assert.equal(callCount, expectedLines.length);
-rli.close();
+  // sending multiple newlines at once
+  fi = new FakeInput();
+  rli = new readline.Interface({ input: fi, output: fi, terminal: terminal });
+  var expectedLines = ['foo', 'bar', 'baz'];
+  var callCount = 0;
+  rli.on('line', function(line) {
+    assert.equal(line, expectedLines[callCount]);
+    callCount++;
+  });
+  fi.emit('data', expectedLines.join('\n') + '\n');
+  assert.equal(callCount, expectedLines.length);
+  rli.close();
 
-// sending multiple newlines at once that does not end with a new line
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-var expectedLines = ['foo\n', 'bar\n', 'baz\n', 'bat'];
-var callCount = 0;
-rli.on('line', function(line) {
-  assert.equal(line, expectedLines[callCount]);
-  callCount++;
-});
-fi.emit('data', expectedLines.join('\n'));
-assert.equal(callCount, expectedLines.length - 1);
-rli.close();
+  // sending multiple newlines at once that does not end with a new line
+  fi = new FakeInput();
+  rli = new readline.Interface({ input: fi, output: fi, terminal: terminal });
+  expectedLines = ['foo', 'bar', 'baz', 'bat'];
+  callCount = 0;
+  rli.on('line', function(line) {
+    assert.equal(line, expectedLines[callCount]);
+    callCount++;
+  });
+  fi.emit('data', expectedLines.join('\n'));
+  assert.equal(callCount, expectedLines.length - 1);
+  rli.close();
 
-// sending a multi-byte utf8 char over multiple writes
-var buf = Buffer('☮', 'utf8');
-fi = new FakeInput();
-rli = new readline.Interface(fi, {});
-callCount = 0;
-rli.on('line', function(line) {
-  callCount++;
-  assert.equal(line, buf.toString('utf8'));
-});
-[].forEach.call(buf, function(i) {
-  fi.emit('data', Buffer([i]));
-});
-assert.equal(callCount, 0);
-fi.emit('data', '\n');
-assert.equal(callCount, 1);
-rli.close();
+  // sending a multi-byte utf8 char over multiple writes
+  var buf = Buffer('☮', 'utf8');
+  fi = new FakeInput();
+  rli = new readline.Interface({ input: fi, output: fi, terminal: terminal });
+  callCount = 0;
+  rli.on('line', function(line) {
+    callCount++;
+    assert.equal(line, buf.toString('utf8'));
+  });
+  [].forEach.call(buf, function(i) {
+    fi.emit('data', Buffer([i]));
+  });
+  assert.equal(callCount, 0);
+  fi.emit('data', '\n');
+  assert.equal(callCount, 1);
+  rli.close();
 
-assert.deepEqual(fi.listeners('end'), []);
-assert.deepEqual(fi.listeners('data'), []);
+  assert.deepEqual(fi.listeners('end'), []);
+  assert.deepEqual(fi.listeners(terminal ? 'keypress' : 'data'), []);
+});