diff --git a/src/io.c b/src/io.c
index 11f9ee3..031be3d 100644
--- a/src/io.c
+++ b/src/io.c
@@ -220,7 +220,6 @@ find_and_hash_each_line (struct file_data *current)
   bool same_length_diff_contents_compare_anyway =
     diff_length_compare_anyway | ignore_case;
 
-  bool missing_newline_fixup = false;
   while (p < suffix_begin)
     {
       char const *ip = p;
@@ -377,15 +376,13 @@ find_and_hash_each_line (struct file_data *current)
 	  && current->missing_newline
 	  && ROBUST_OUTPUT_STYLE (output_style))
 	{
-	  missing_newline_fixup = true;
-	  /* This line is incomplete.  If this is significant,
-	     put the line into buckets[-1].  */
+	  /* The last line is incomplete and we do not silently
+	     complete lines.  If the line cannot compare equal to any
+	     complete line, put it into buckets[-1] so that it can
+	     compare equal only to the other file's incomplete line
+	     (if one exists).  */
 	  if (ignore_white_space < IGNORE_SPACE_CHANGE)
 	    bucket = &buckets[-1];
-
-	  /* Omit the inserted newline when computing linbuf later.  */
-	  p--;
-	  bufend = suffix_begin = p;
 	}
 
       for (i = *bucket;  ;  i = eqs[i].next)
@@ -474,11 +471,10 @@ find_and_hash_each_line (struct file_data *current)
 
       if (p == bufend)
 	{
-	  /* If we've added a newline sentinel and did not adjust "bufend"
-	     above, then linbuf[line] is now pointing at the sentinel, yet
-	     should instead be pointing to the preceding byte.  */
-	  if (!missing_newline_fixup && current->missing_newline)
-	    --linbuf[line];
+	  /* If the last line is incomplete and we do not silently
+	     complete lines, don't count its appended newline.  */
+	  if (current->missing_newline && ROBUST_OUTPUT_STYLE (output_style))
+	    linbuf[line]--;
 	  break;
 	}
 
diff --git a/tests/no-newline-at-eof b/tests/no-newline-at-eof
index c3694a1..092d1cd 100644
--- a/tests/no-newline-at-eof
+++ b/tests/no-newline-at-eof
@@ -6,24 +6,28 @@
 : ${srcdir=.}
 . "$srcdir/init.sh"; path_prepend_ ../src
 
-printf '\n1'      > a || framework_failure_
-printf '\n0\n\n1' > b || framework_failure_
+printf '\n1\n2\n3'      > a || framework_failure_
+printf '\n0\n\n1\n2\n3' > b || framework_failure_
 cat <<EOF > exp || framework_failure_
-@@ -1,2 +1,4 @@
+@@ -1,4 +1,6 @@
 
 +0
 +
  1
+ 2
+ 3
 \ No newline at end of file
 EOF
 
 cat <<EOF > exp2 || framework_failure_
-@@ -1,2 +1,4 @@
+@@ -1,4 +1,6 @@
 
--1
 +0
 +
-+1
+ 1
+ 2
+-3
++3
 \ No newline at end of file
 EOF
 
@@ -32,7 +36,7 @@ fail=0
 # So we don't have to record trailing blanks in expected output above.
 opt=--suppress-blank-empty
 
-diff $opt -U2 a b > out 2> err
+diff $opt -u a b > out 2> err
 test $? = 1 || fail=1
 
 sed -n '/^@@/,$p' out > k && mv k out || fail=1