2 files changed, 16 insertions, 2 deletions

diff --git a/src/ChangeLog b/src/ChangeLog
index 08f33eb7d02..af2d38d2e87 100644
--- a/src/ChangeLog
+++ b/src/ChangeLog
@@ -1,3 +1,13 @@
+2013-04-13  Eli Zaretskii  <eliz@gnu.org>
+
+        * indent.c (Fvertical_motion): Don't consider display strings on
+        overlay strings as display strings on the buffer position we
+        started from.  This prevents vertical cursor motion from jumping
+        more than one line when there's an overlay string with a display
+        property at end of line.
+        Reported by Karl Chen <Karl.Chen@quarl.org> in
+        http://lists.gnu.org/archive/html/emacs-devel/2013-04/msg00362.html.
+
 2013-04-12  Stefan Monnier  <monnier@iro.umontreal.ca>
 
         * window.c (select_window): `record_buffer' even if window is
diff --git a/src/indent.c b/src/indent.c
index 67796ab8a8f..47358e17db8 100644
--- a/src/indent.c
+++ b/src/indent.c
@@ -2006,11 +2006,15 @@ whether or not it is currently displayed in some window.  */)
           const char *s = SSDATA (it.string);
           const char *e = s + SBYTES (it.string);
 
+          disp_string_at_start_p =
           /* If it.area is anything but TEXT_AREA, we need not bother
              about the display string, as it doesn't affect cursor
              positioning.  */
-          disp_string_at_start_p =
-            it.string_from_display_prop_p && it.area == TEXT_AREA;
+            it.area == TEXT_AREA
+            && it.string_from_display_prop_p
+            /* A display string on anything but buffer text (e.g., on
+               an overlay string) doesn't affect cursor positioning.  */
+            && (it.sp > 0 && it.stack[it.sp - 1].method == GET_FROM_BUFFER);
           while (s < e)
             {
               if (*s++ == '\n')