diff --git a/mercurial/commands.py b/mercurial/commands.py
--- a/mercurial/commands.py
+++ b/mercurial/commands.py
@@ -2660,7 +2660,7 @@ def grep(ui, repo, pattern, *pats, **opt
             mstart, mend = match.span()
             linenum += body.count('\n', begin, mstart) + 1
             lstart = body.rfind('\n', begin, mstart) + 1 or begin
-            begin = body.find('\n', mend) + 1 or len(body)
+            begin = body.find('\n', mend) + 1 or len(body) + 1
             lend = begin - 1
             yield linenum, mstart - lstart, mend - lstart, body[lstart:lend]
 
diff --git a/tests/test-grep.t b/tests/test-grep.t
--- a/tests/test-grep.t
+++ b/tests/test-grep.t
@@ -106,12 +106,8 @@ match in last "line" without newline
   $ python -c 'fp = open("noeol", "wb"); fp.write("no infinite loop"); fp.close();'
   $ hg ci -Amnoeol
   adding noeol
-
-last character omitted in output to avoid infinite loop
-
   $ hg grep loop
-  noeol:4:no infinite loo
-
+  noeol:4:no infinite loop
 
   $ cd ..