diff --git a/src/terminal/kbd.c b/src/terminal/kbd.c
index 016efabdb..ee203aa11 100644
--- a/src/terminal/kbd.c
+++ b/src/terminal/kbd.c
@@ -206,7 +206,7 @@ resize_terminal(void)
 	itrm_queue_event(ditrm, (char *) &ev, sizeof(ev));
 }
 
-static void
+void
 get_terminal_name(unsigned char name[MAX_TERM_LEN])
 {
 	unsigned char *term = getenv("TERM");
diff --git a/src/terminal/kbd.h b/src/terminal/kbd.h
index b369155ab..1ffddfd37 100644
--- a/src/terminal/kbd.h
+++ b/src/terminal/kbd.h
@@ -125,6 +125,7 @@ void resize_terminal(void);
 void dispatch_special(unsigned char *);
 void kbd_ctrl_c(void);
 int is_blocked(void);
+void get_terminal_name(unsigned char *);
 
 #define kbd_get_key(kbd_)	((kbd_)->key)
 #define kbd_key_is(kbd_, key)	(kbd_get_key(kbd_) == (key))
diff --git a/src/terminal/terminal.c b/src/terminal/terminal.c
index d5aab281d..f604e5c88 100644
--- a/src/terminal/terminal.c
+++ b/src/terminal/terminal.c
@@ -38,9 +38,24 @@
 
 INIT_LIST_HEAD(terminals);
 
-
 static void check_if_no_terminal(void);
 
+static int
+was_utf8(int in, int out)
+{
+	/* taken from setedit */
+	static unsigned char *str = "\033[1;1H\357\200\240\033[6n";
+	unsigned char buf[20];
+	int x, y;
+
+	hard_write(out, str, strlen(str));
+	buf[0] = '\0';
+	read(in, buf, 6);
+	if (sscanf(buf,"\033[%d;%dR",&y,&x)==2) {
+		if (x > 2) return 0;
+	}
+	return 1;
+}
 
 void
 redraw_terminal(struct terminal *term)
@@ -72,6 +87,7 @@ cls_redraw_all_terminals(void)
 struct terminal *
 init_term(int fdin, int fdout)
 {
+	unsigned char name[MAX_TERM_LEN + 9] = "terminal.";
 	struct terminal *term = mem_calloc(1, sizeof(*term));
 
 	if (!term) {
@@ -91,9 +107,16 @@ init_term(int fdin, int fdout)
 	term->fdout = fdout;
 	term->master = (term->fdout == get_output_handle());
 	term->blocked = -1;
-	term->spec = get_opt_rec(config_options, "terminal._template_");
+
+	get_terminal_name(name + 9);
+	term->spec = get_opt_rec(config_options, name);
 	object_lock(term->spec);
 
+	/* The hack to restore console in the right mode */
+	if (get_opt_int_tree(term->spec, "type") == TERM_LINUX) {
+		term->linux_was_utf8 = was_utf8(get_input_handle(), term->fdout);
+	}
+
 	add_to_list(terminals, term);
 
 	set_handlers(fdin, (select_handler_T) in_term, NULL,
@@ -141,6 +164,14 @@ destroy_terminal(struct terminal *term)
 	del_from_list(term);
 	close(term->fdin);
 
+	if (get_opt_int_tree(term->spec, "type") == TERM_LINUX) {
+		if (term->linux_was_utf8) {
+			hard_write(term->fdout, "\033%G", 3);
+		} else {
+			hard_write(term->fdout, "\033%@", 3);
+		}
+	}
+
 	if (term->fdout != 1) {
 		if (term->fdout != term->fdin) close(term->fdout);
 	} else {
diff --git a/src/terminal/terminal.h b/src/terminal/terminal.h
index 69c5aa46a..e9b26253b 100644
--- a/src/terminal/terminal.h
+++ b/src/terminal/terminal.h
@@ -131,6 +131,9 @@ struct terminal {
 	unsigned int utf8:1;
 #endif /* CONFIG_UTF_8 */
 
+	/* Indicates whether Linux console was in UTF-8 mode on startup */
+	unsigned int linux_was_utf8:1;
+
 	/* The current tab number. */
 	int current_tab;