diff --git a/hgext/color.py b/hgext/color.py
--- a/hgext/color.py
+++ b/hgext/color.py
@@ -117,10 +117,16 @@ def _colorstatuslike(abbreviations, effe
 
     # apply color to output and display it
     for i in xrange(len(lines)):
-        status = abbreviations[lines_with_status[i][0]]
-        effects = effectdefs[status]
-        if effects:
-            lines[i] = render_effects(lines[i], effects)
+        try:
+            status = abbreviations[lines_with_status[i][0]]
+        except KeyError:
+            # Ignore lines with invalid codes, especially in the case of
+            # of unknown filenames containing newlines (issue2036).
+            pass
+        else:
+            effects = effectdefs[status]
+            if effects:
+                lines[i] = render_effects(lines[i], effects)
         ui.write(lines[i] + delimiter)
     return retval
 
diff --git a/tests/test-issue352 b/tests/test-eolfilename
rename from tests/test-issue352
rename to tests/test-eolfilename
--- a/tests/test-issue352
+++ b/tests/test-eolfilename
@@ -3,6 +3,7 @@
 
 "$TESTDIR/hghave" eol-in-paths || exit 80
 
+echo % test issue352
 hg init foo
 cd foo
 
@@ -21,4 +22,22 @@ hg ci -A -m m
 echo foo > "$A"
 hg debugwalk
 
+# http://mercurial.selenic.com/bts/issue2036
+cd ..
+echo % test issue2039
+
+hg init bar
+cd bar
+
+echo "[extensions]" >> $HGRCPATH
+echo "color=" >> $HGRCPATH
+
+A=`printf 'foo\nbar'`
+B=`printf 'foo\nbar.baz'`
+
+touch "$A"
+touch "$B"
+
+hg status --color=always
+
 exit 0
diff --git a/tests/test-issue352.out b/tests/test-eolfilename.out
rename from tests/test-issue352.out
rename to tests/test-eolfilename.out
--- a/tests/test-issue352.out
+++ b/tests/test-eolfilename.out
@@ -1,3 +1,4 @@
+% test issue352
 adding he
llo
 abort: '\n' and '\r' disallowed in filenames: 'he\rllo'
 adding he
llo
@@ -12,3 +13,8 @@ f  he
llo  he
llo
 f  hell
 o  hell
 o
+% test issue2039
+? foo
+bar
+? foo
+bar.baz