diff --git a/IPython/inprocess/blockingkernelmanager.py b/IPython/inprocess/blockingkernelmanager.py
index 26e7b4e..ebdf4cb 100644
--- a/IPython/inprocess/blockingkernelmanager.py
+++ b/IPython/inprocess/blockingkernelmanager.py
@@ -19,6 +19,7 @@ import Queue
 from threading import Event
 
 # Local imports.
+from IPython.utils.io import raw_print
 from IPython.utils.traitlets import Type
 from kernelmanager import InProcessKernelManager, ShellInProcessChannel, \
     SubInProcessChannel, StdInInProcessChannel
@@ -65,7 +66,18 @@ class BlockingSubInProcessChannel(BlockingChannelMixin, SubInProcessChannel):
     pass
 
 class BlockingStdInInProcessChannel(BlockingChannelMixin, StdInInProcessChannel):
-    pass
+    
+    def call_handlers(self, msg):
+        """ Overridden for the in-process channel.
+
+        This methods simply calls raw_input directly.
+        """
+        msg_type = msg['header']['msg_type']
+        if msg_type == 'input_request':
+            raw_input = self.manager.kernel.sys_raw_input
+            prompt = msg['content']['prompt']
+            raw_print(prompt, end='')
+            self.input(raw_input())
 
 class BlockingInProcessKernelManager(InProcessKernelManager):
 
diff --git a/IPython/inprocess/tests/test_kernel.py b/IPython/inprocess/tests/test_kernel.py
index bdf33b7..3094c5c 100644
--- a/IPython/inprocess/tests/test_kernel.py
+++ b/IPython/inprocess/tests/test_kernel.py
@@ -11,6 +11,8 @@
 from __future__ import print_function
 
 # Standard library imports
+from StringIO import StringIO
+import sys
 import unittest
 
 # Local imports
@@ -34,6 +36,21 @@ class InProcessKernelTestCase(unittest.TestCase):
         msg = get_stream_message(km)
         self.assert_('Welcome to pylab' in msg['content']['data'])
 
+    def test_raw_input(self):
+        """ Does the in-process kernel handle raw_input correctly?
+        """
+        km = BlockingInProcessKernelManager()
+        km.start_kernel()
+
+        io = StringIO('foobar\n')
+        sys_stdin = sys.stdin
+        sys.stdin = io
+        try:
+            km.shell_channel.execute('x = raw_input()')
+        finally:
+            sys.stdin = sys_stdin
+        self.assertEqual(km.kernel.shell.user_ns.get('x'), 'foobar')
+
     def test_stdout(self):
         """ Does the in-process kernel correctly capture IO?
         """
diff --git a/IPython/zmq/ipkernel.py b/IPython/zmq/ipkernel.py
index 170b093..fabd6fb 100755
--- a/IPython/zmq/ipkernel.py
+++ b/IPython/zmq/ipkernel.py
@@ -84,6 +84,7 @@ class Kernel(Configurable):
     control_stream = Instance(ZMQStream)
     iopub_socket = Instance(zmq.Socket)
     stdin_socket = Instance(zmq.Socket)
+    sys_raw_input = Any()
     log = Instance(logging.Logger)
     
     user_module = Any()
@@ -352,8 +353,10 @@ class Kernel(Configurable):
             raw_input = lambda prompt='' : self._no_raw_input()
 
         if py3compat.PY3:
+            self.sys_raw_input = __builtin__.input
             __builtin__.input = raw_input
         else:
+            self.sys_raw_input = __builtin__.raw_input
             __builtin__.raw_input = raw_input
 
         # Set the parent message of the display hook and out streams.
@@ -385,6 +388,12 @@ class Kernel(Configurable):
             reply_content.update(shell._showtraceback(etype, evalue, tb_list))
         else:
             status = u'ok'
+        finally:
+            # Restore raw_input.
+             if py3compat.PY3:
+                 __builtin__.input = self.sys_raw_input
+             else:
+                 __builtin__.raw_input = self.sys_raw_input
 
         reply_content[u'status'] = status