diff --git a/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/bios.c b/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/bios.c
index fe3394715bd..80bc4224165 100644
--- a/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/bios.c
+++ b/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/bios.c
@@ -53,15 +53,6 @@ VOID DosEchoCharacter(CHAR Character)
             break;
         }
 
-        case '\r':
-        case '\n':
-        {
-            /* Print both a carriage return and a newline */
-            DosPrintCharacter(DOS_OUTPUT_HANDLE, '\r');
-            DosPrintCharacter(DOS_OUTPUT_HANDLE, '\n');
-            break;
-        }
-
         case '\b':
         {
             /* Erase the character */
@@ -73,8 +64,11 @@ VOID DosEchoCharacter(CHAR Character)
 
         default:
         {
-            /* Check if this is a special character */
-            if (Character < 0x20)
+            /*
+             * Check if this is a special character
+             * NOTE: \r and \n are handled by the underlying driver!
+             */
+            if (Character < 0x20 && Character != 0x0A && Character != 0x0D)
             {
                 DosPrintCharacter(DOS_OUTPUT_HANDLE, '^');
                 Character += 'A' - 1;
diff --git a/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/dosfiles.c b/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/dosfiles.c
index ad710c4386f..560fa65a1c3 100644
--- a/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/dosfiles.c
+++ b/reactos/subsystems/mvdm/ntvdm/dos/dos32krnl/dosfiles.c
@@ -725,14 +725,25 @@ BYTE DosReadLineBuffered(WORD FileHandle, DWORD Buffer, BYTE MaxSize)
                 break;
             }
 
+            case '\n':
+            {
+                DosEchoCharacter('\r');
+                DosEchoCharacter('\n');
+                break;
+            }
+
             case '\b':
             {
                 if (LineSize > 0)
                 {
                     LineSize--;
-                    if (Pointer[LineSize] == 0) LineSize--;
-
                     DosEchoCharacter(Character);
+
+                    /* Erase the '^' too */
+                    if (Pointer[LineSize] > 0x00 && Pointer[LineSize] < 0x20)
+                    {
+                        DosEchoCharacter(Character);
+                    }
                 }
 
                 break;
@@ -813,6 +824,9 @@ WORD DosReadFile(WORD FileHandle,
                 {
                     /* A line feed marks the true end of the line */
                     SysVars->UnreadConInput = 0;
+
+                    /* Echo the line feed */
+                    DosEchoCharacter('\n');
                     break;
                 }
                 else