Index: head/usr.bin/grep/grep.h
===================================================================
--- head/usr.bin/grep/grep.h
+++ head/usr.bin/grep/grep.h
@@ -82,7 +82,7 @@
 #define	EXCL_PAT	0
 #define	INCL_PAT	1
 
-#define	MAX_LINE_MATCHES	32
+#define	MAX_MATCHES	32
 
 struct file {
 	int		 fd;
Index: head/usr.bin/grep/grep.c
===================================================================
--- head/usr.bin/grep/grep.c
+++ head/usr.bin/grep/grep.c
@@ -78,7 +78,7 @@
 };
 
 /* Flags passed to regcomp() and regexec() */
-int		 cflags = REG_NOSUB;
+int		 cflags = REG_NOSUB | REG_NEWLINE;
 int		 eflags = REG_STARTEND;
 
 /* XXX TODO: Get rid of this flag.
Index: head/usr.bin/grep/util.c
===================================================================
--- head/usr.bin/grep/util.c
+++ head/usr.bin/grep/util.c
@@ -61,7 +61,7 @@
  * other useful bits
  */
 struct parsec {
-	regmatch_t	matches[MAX_LINE_MATCHES];	/* Matches made */
+	regmatch_t	matches[MAX_MATCHES];		/* Matches made */
 	struct str	ln;				/* Current line */
 	size_t		lnstart;			/* Position in line */
 	size_t		matchidx;			/* Latest match index */
@@ -295,7 +295,7 @@
 		/* Print the matching line, but only if not quiet/binary */
 		if (t == 0 && printmatch) {
 			printline(&pc, ':');
-			while (pc.matchidx >= MAX_LINE_MATCHES) {
+			while (pc.matchidx >= MAX_MATCHES) {
 				/* Reset matchidx and try again */
 				pc.matchidx = 0;
 				if (procline(&pc) == 0)
@@ -401,7 +401,7 @@
 		lastmatches = 0;
 		startm = matchidx;
 		retry = 0;
-		if (st > 0)
+		if (st > 0 && pc->ln.dat[st - 1] != fileeol)
 			leflags |= REG_NOTBOL;
 		/* Loop to compare with all the patterns */
 		for (i = 0; i < patterns; i++) {
@@ -483,7 +483,7 @@
 			}
 			/* avoid excessive matching - skip further patterns */
 			if ((color == NULL && !oflag) || qflag || lflag ||
-			    matchidx >= MAX_LINE_MATCHES) {
+			    matchidx >= MAX_MATCHES) {
 				pc->lnstart = nst;
 				lastmatches = 0;
 				break;