diff --git a/funcs.c b/funcs.c
index 3f2d71f..70f7b4d 100644
--- a/funcs.c
+++ b/funcs.c
@@ -1975,6 +1975,9 @@ c_read(const char **wp)
 #define c_read_opts "Aad:N:n:prst:u,"
 #else
 #define c_read_opts "Aad:N:n:prsu,"
+#endif
+#ifdef __OS2__
+	int saved_mode;
 #endif
 
 	while ((c = ksh_getopt(wp, &builtin_opt, c_read_opts)) != -1)
@@ -2104,7 +2107,13 @@ c_read(const char **wp)
 	}
 #endif
 
+#ifdef __OS2__
+	saved_mode = setmode(fd, O_TEXT);
+#endif
 	if ((bytesread = blocking_read(fd, xp, bytesleft)) == (size_t)-1) {
+#ifdef __OS2__
+		setmode(fd, saved_mode);
+#endif
 		if (errno == EINTR) {
 			/* check whether the signal would normally kill */
 			if (!fatal_trap_check()) {
@@ -2119,6 +2128,9 @@ c_read(const char **wp)
 		rv = 2;
 		goto c_read_out;
 	}
+#ifdef __OS2__
+	setmode(fd, saved_mode);
+#endif
 
 	switch (readmode) {
 	case READALL:
diff --git a/main.c b/main.c
index e1dd769..802af50 100644
--- a/main.c
+++ b/main.c
@@ -1467,7 +1467,7 @@ openpipe(int *pv)
 	if (pv[1] != lpv[1])
 		close(lpv[1]);
 #ifdef __OS2__
-	setmode(pv[0], O_TEXT);
+	setmode(pv[0], O_BINARY);
 	setmode(pv[1], O_BINARY);
 #endif
 }
diff --git a/misc.c b/misc.c
index 6d964c9..1f845c2 100644
--- a/misc.c
+++ b/misc.c
@@ -1344,10 +1344,6 @@ blocking_read(int fd, char *buf, size_t nbytes)
 	ssize_t ret;
 	bool tried_reset = false;
 
-#ifdef __OS2__
-	int saved_mode = setmode(fd, O_TEXT);
-	int saved_errno;
-#endif
 	while ((ret = read(fd, buf, nbytes)) < 0) {
 		if (!tried_reset && errno == EAGAIN) {
 			if (reset_nonblock(fd) > 0) {
@@ -1358,11 +1354,6 @@ blocking_read(int fd, char *buf, size_t nbytes)
 		}
 		break;
 	}
-#ifdef __OS2__
-	saved_errno = errno;
-	setmode(fd, saved_mode);
-	errno = saved_errno;
-#endif
 	return (ret);
 }
 
diff --git a/os2.c b/os2.c
index 3c61f63..be65247 100644
--- a/os2.c
+++ b/os2.c
@@ -191,7 +191,8 @@ void os2_init(int *argcp, const char ***argvp)
 	init_extlibpath();
 	env_slashify();
 
-	setmode(STDIN_FILENO, O_TEXT);
+	if (!isatty(STDIN_FILENO))
+		setmode(STDIN_FILENO, O_BINARY);
 	if (!isatty(STDOUT_FILENO))
 		setmode(STDOUT_FILENO, O_BINARY);
 	if (!isatty(STDERR_FILENO))
diff --git a/shf.c b/shf.c
index ace0ab6..5eefee8 100644
--- a/shf.c
+++ b/shf.c
@@ -518,7 +518,23 @@ shf_getse(char *buf, ssize_t bsize, struct shf *shf)
 		shf->rnleft -= ncopy;
 		buf += ncopy;
 		bsize -= ncopy;
+#ifdef __OS2__
+		if (end && buf > orig_buf + 1 && buf[-2] == '\r') {
+			buf--;
+			bsize++;
+			buf[-1] = '\n';
+		}
+#endif
 	} while (!end && bsize);
+#ifdef __OS2__
+	if (!bsize && buf[-1] == '\r') {
+		int c = shf_getc(shf);
+		if (c == '\n')
+			buf[-1] = '\n';
+		else if (c != -1)
+			shf_ungetc(c, shf);
+	}
+#endif
 	*buf = '\0';
 	return (buf);
 }