diff --git a/src/engine/builtins.c b/src/engine/builtins.c
index 4bb6a626d..18b2260ca 100644
--- a/src/engine/builtins.c
+++ b/src/engine/builtins.c
@@ -450,7 +450,7 @@ void load_builtins()
         char const * args [] = { "path", 0 };
         bind_builtin( "MAKEDIR", builtin_makedir, 0, args );
     }
-    
+
     {
         const char * args [] = { "path", 0 };
         bind_builtin( "READLINK", builtin_readlink, 0, args );
@@ -1981,7 +1981,7 @@ LIST *builtin_readlink( FRAME * frame, int flags )
         bufsize *= 2;
         buf = BJAM_MALLOC( bufsize );
     }
-    
+
     if ( buf != static_buf )
         BJAM_FREE( buf );
 
@@ -2460,15 +2460,6 @@ PyObject * bjam_caller( PyObject * self, PyObject * args )
 #endif  /* defined(_MSC_VER) || defined(__BORLANDC__) */
 
 
-static char * rtrim( char * const s )
-{
-    char * p = s;
-    while ( *p ) ++p;
-    for ( --p; p >= s && isspace( *p ); *p-- = 0 );
-    return s;
-}
-
-
 LIST * builtin_shell( FRAME * frame, int flags )
 {
     LIST   * command = lol_get( frame->args, 0 );
@@ -2515,8 +2506,6 @@ LIST * builtin_shell( FRAME * frame, int flags )
         buffer[ ret ] = 0;
         if ( !no_output_opt )
         {
-            if ( strip_eol_opt )
-                rtrim( buffer );
             string_append( &s, buffer );
         }
 
@@ -2524,6 +2513,9 @@ LIST * builtin_shell( FRAME * frame, int flags )
         if ( feof( p ) ) break;
     }
 
+    if ( strip_eol_opt )
+        string_rtrim( &s );
+
     exit_status = pclose( p );
 
     /* The command output is returned first. */
diff --git a/src/engine/strings.c b/src/engine/strings.c
index 3d3e19b3e..19f03c984 100644
--- a/src/engine/strings.c
+++ b/src/engine/strings.c
@@ -189,6 +189,12 @@ char string_back( string * self )
     return self->value[ self->size - 1 ];
 }
 
+void string_rtrim( string * self )
+{
+    assert_invariants( self );
+    char * p = self->value + self->size - 1;
+    for ( p; p >= self->value && ( *p == '\0' || isspace( *p ) ); *p-- = 0 );
+}
 
 #ifndef NDEBUG
 void string_unit_test()
@@ -219,5 +225,25 @@ void string_unit_test()
         assert( copy->size == strlen( original ) );
         string_free( copy );
     }
+
+    {
+        char * const foo = "Foo    ";
+        string foo_copy[ 1 ];
+        string_copy( foo_copy, foo );
+        string_rtrim( foo_copy );
+        assert( !strcmp( foo_copy->value, "Foo" ) );
+
+        string_rtrim( foo_copy );
+        assert( !strcmp( foo_copy->value, "Foo" ) );
+
+        char * const bar = "Bar\0\0\0";
+        string bar_copy[ 1 ];
+        string_copy( bar_copy, bar );
+        string_rtrim( bar_copy );
+        assert( !strcmp( bar_copy->value, "Bar" ) );
+
+        string_rtrim( bar_copy );
+        assert( !strcmp( bar_copy->value, "Bar" ) );
+    }
 }
 #endif
diff --git a/src/engine/strings.h b/src/engine/strings.h
index 749f28783..81a40cc90 100644
--- a/src/engine/strings.h
+++ b/src/engine/strings.h
@@ -31,6 +31,7 @@ void string_reserve( string *, size_t );
 void string_truncate( string *, size_t );
 void string_pop_back( string * );
 char string_back( string * );
+void string_rtrim( string * );
 void string_unit_test();
 
 #endif
diff --git a/test/core-language/test.jam b/test/core-language/test.jam
index b0ac767ef..63a5373b8 100644
--- a/test/core-language/test.jam
+++ b/test/core-language/test.jam
@@ -1239,7 +1239,7 @@ for y in $(values)
 }
 
 check-order break-for-exec : r1-v1 ;
-check-equal break-for-cleanup : $(z) : original ; 
+check-equal break-for-cleanup : $(z) : original ;
 
 for local y in $(values)
 {
@@ -1250,7 +1250,7 @@ for local y in $(values)
 }
 
 check-order break-for-local-exec : r1-v1 ;
-check-equal break-for-local-cleanup : $(z) : original ; 
+check-equal break-for-local-cleanup : $(z) : original ;
 
 local z1 = z1val ;
 local z2 = z2val ;
@@ -1505,11 +1505,32 @@ check-equal shell : "value\n"   : [ SHELL $(c) ] ;
 check-equal shell : ""          : [ SHELL $(c) : no-output ] ;
 check-equal shell : "value\n" 0 : [ SHELL $(c) : exit-status ] ;
 check-equal shell : ""      0   : [ SHELL $(c) : no-output : exit-status ] ;
+check-equal shell : ""      0   : [ SHELL $(c) : no-output : exit-status : strip-eol ] ;
 check-equal command : "value\n"   : [ COMMAND $(c) ] ;
 check-equal command : ""          : [ COMMAND $(c) : no-output ] ;
 check-equal command : "value\n" 0 : [ COMMAND $(c) : exit-status ] ;
 check-equal command : ""      0   : [ COMMAND $(c) : no-output : exit-status ] ;
 
+# buffered output
+
+local expected = "When the shell output buffer splits on whitespace, the whitespace shouldn't be trimmed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             end." ;
+local buffered = "echo \"$(expected)\"" ;
+if $(OS) = VMS { buffered = "PIPE WRITE SYS$OUTPUT \"$(expected)\"" ; }
+
+check-equal shell : "$(expected)\n"   : [ SHELL $(buffered) ] ;
+check-equal shell : ""                : [ SHELL $(buffered) : no-output ] ;
+check-equal shell : "$(expected)\n" 0 : [ SHELL $(buffered) : exit-status ] ;
+check-equal shell : "$(expected)" 0 : [ SHELL $(buffered) : strip-eol : exit-status ] ;
+check-equal shell : ""      0         : [ SHELL $(buffered) : no-output : exit-status ] ;
+check-equal shell : ""      0         : [ SHELL $(buffered) : no-output : exit-status : strip-eol ] ;
+check-equal shell : "$(expected)" 0 : [ SHELL $(buffered) : strip-eol : exit-status ] ;
+
+check-equal command : "$(expected)\n"   : [ COMMAND $(buffered) ] ;
+check-equal command : ""                : [ COMMAND $(buffered) : no-output ] ;
+check-equal command : "$(expected)\n" 0 : [ COMMAND $(buffered) : exit-status ] ;
+check-equal command : "$(expected)" 0 : [ COMMAND $(buffered) : strip-eol : exit-status ] ;
+check-equal command : ""      0         : [ COMMAND $(buffered) : no-output : exit-status ] ;
+
 }
 
 # Test SUBST