diff --git a/tests/test-grep b/tests/test-grep
--- a/tests/test-grep
+++ b/tests/test-grep
@@ -53,6 +53,12 @@ hg ci -m 3 -d '0 0'
 hg grep orange
 hg grep --all orange
 
+echo % match in last "line" without newline
+python -c 'fp = open("noeol", "wb"); fp.write("no infinite loop"); fp.close();'
+hg ci -Amnoeol
+echo % last character omitted in output to avoid infinite loop
+hg grep loop
+
 # Got a traceback when using grep on a single
 # revision with renamed files.
 cd ..
@@ -66,3 +72,4 @@ hg ci -Am rename
 hg grep octarine
 # Used to crash here
 hg grep -r 1 octarine
+
diff --git a/tests/test-grep.out b/tests/test-grep.out
--- a/tests/test-grep.out
+++ b/tests/test-grep.out
@@ -32,6 +32,10 @@ color:3:orange
 color:3:+:orange
 color:2:-:orange
 color:1:+:orange
+% match in last line without newline
+adding noeol
+% last character omitted in output to avoid infinite loop
+noeol:4:no infinite loo
 % issue 685
 adding color
 color:0:octarine