diff --git a/IPython/frontend/qt/console/bracket_matcher.py b/IPython/frontend/qt/console/bracket_matcher.py
index 4c0b6a7..1b059ca 100644
--- a/IPython/frontend/qt/console/bracket_matcher.py
+++ b/IPython/frontend/qt/console/bracket_matcher.py
@@ -18,7 +18,7 @@ class BracketMatcher(QtCore.QObject):
     # 'QObject' interface
     #--------------------------------------------------------------------------
 
-    def __init__(self, parent, multiline=True):
+    def __init__(self, parent):
         """ Create a call tip manager that is attached to the specified Qt
             text edit widget.
         """
diff --git a/IPython/frontend/qt/console/console_widget.py b/IPython/frontend/qt/console/console_widget.py
index d09bd3d..98bdf2a 100644
--- a/IPython/frontend/qt/console/console_widget.py
+++ b/IPython/frontend/qt/console/console_widget.py
@@ -334,12 +334,11 @@ class ConsoleWidget(Configurable, QtGui.QWidget):
             else:
                 # Do this inside an edit block so continuation prompts are
                 # removed seamlessly via undo/redo.
-                cursor = self._control.textCursor()
+                cursor = self._get_end_cursor()
                 cursor.beginEditBlock()
-
-                self._append_plain_text('\n')
-                self._show_continuation_prompt()
-
+                cursor.insertText('\n')
+                self._insert_continuation_prompt(cursor)
+                self._control.moveCursor(QtGui.QTextCursor.End)
                 cursor.endEditBlock()
 
         return complete
@@ -431,9 +430,8 @@ class ConsoleWidget(Configurable, QtGui.QWidget):
         """ Sets the font to the default fixed-width font for this platform.
         """
         # FIXME: font family and size should be configurable by the user.
-        
         if sys.platform == 'win32':
-            # Fixme: we should test whether Consolas is available and use it
+            # FIXME: we should test whether Consolas is available and use it
             # first if it is.  Consolas ships by default from Vista onwards,
             # it's *vastly* more readable and prettier than Courier, and is
             # often installed even on XP systems.  So we should first check for
@@ -685,14 +683,34 @@ class ConsoleWidget(Configurable, QtGui.QWidget):
 
         else:
             if key in (QtCore.Qt.Key_Return, QtCore.Qt.Key_Enter):
-                if self._reading:
-                    self._append_plain_text('\n')
-                    self._reading = False
-                    if self._reading_callback:
-                        self._reading_callback()
-                elif not self._executing:
-                    self.execute(interactive=True)
                 intercepted = True
+                if self._in_buffer(position):
+                    if self._reading:
+                        self._append_plain_text('\n')
+                        self._reading = False
+                        if self._reading_callback:
+                            self._reading_callback()
+
+                    # If there is only whitespace after the cursor, execute.
+                    # Otherwise, split the line with a continuation prompt.
+                    elif not self._executing:
+                        cursor.movePosition(QtGui.QTextCursor.End,
+                                            QtGui.QTextCursor.KeepAnchor)
+                        if cursor.selectedText().trimmed().isEmpty():
+                            self.execute(interactive=True)
+                        else:
+                            cursor.beginEditBlock()
+                            cursor.setPosition(position)
+                            cursor.insertText('\n')
+                            self._insert_continuation_prompt(cursor)
+                        
+                            # Ensure that the whole input buffer is visible.
+                            # FIXME: This will not be usable if the input buffer
+                            # is taller than the console widget.
+                            self._control.moveCursor(QtGui.QTextCursor.End)
+                            self._control.setTextCursor(cursor)
+
+                            cursor.endEditBlock()
 
             elif key == QtCore.Qt.Key_Up:
                 if self._reading or not self._up_pressed():
@@ -981,6 +999,15 @@ class ConsoleWidget(Configurable, QtGui.QWidget):
         cursor.setPosition(position)
         return cursor
 
+    def _insert_continuation_prompt(self, cursor):
+        """ Inserts new continuation prompt using the specified cursor.
+        """
+        if self._continuation_prompt_html is None:
+            self._insert_plain_text(cursor, self._continuation_prompt)
+        else:
+            self._continuation_prompt = self._insert_html_fetching_plain_text(
+                cursor, self._continuation_prompt_html)
+
     def _insert_html(self, cursor, html):
         """ Inserts HTML using the specified cursor in such a way that future
             formatting is unaffected.
@@ -1264,15 +1291,6 @@ class ConsoleWidget(Configurable, QtGui.QWidget):
         self._prompt_pos = self._get_end_cursor().position()
         self._prompt_started()
 
-    def _show_continuation_prompt(self):
-        """ Writes a new continuation prompt at the end of the buffer.
-        """
-        if self._continuation_prompt_html is None:
-            self._append_plain_text(self._continuation_prompt)
-        else:
-            self._continuation_prompt = self._append_html_fetching_plain_text(
-                self._continuation_prompt_html)
-
 
 class HistoryConsoleWidget(ConsoleWidget):
     """ A ConsoleWidget that keeps a history of the commands that have been
diff --git a/IPython/frontend/qt/console/frontend_widget.py b/IPython/frontend/qt/console/frontend_widget.py
index 01ac331..04f7974 100644
--- a/IPython/frontend/qt/console/frontend_widget.py
+++ b/IPython/frontend/qt/console/frontend_widget.py
@@ -180,13 +180,13 @@ class FrontendWidget(HistoryConsoleWidget, BaseFrontendMixin):
                 return True
         return super(FrontendWidget, self)._event_filter_console_keypress(event)
 
-    def _show_continuation_prompt(self):
+    def _insert_continuation_prompt(self, cursor):
         """ Reimplemented for auto-indentation.
         """
-        super(FrontendWidget, self)._show_continuation_prompt()
+        super(FrontendWidget, self)._insert_continuation_prompt(cursor)
         spaces = self._input_splitter.indent_spaces
-        self._append_plain_text('\t' * (spaces / self.tab_width))
-        self._append_plain_text(' ' * (spaces % self.tab_width))
+        cursor.insertText('\t' * (spaces / self.tab_width))
+        cursor.insertText(' ' * (spaces % self.tab_width))
 
     #---------------------------------------------------------------------------
     # 'BaseFrontendMixin' abstract interface