Index: usr.bin/grep/grep.h
===================================================================
--- usr.bin/grep/grep.h
+++ 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: usr.bin/grep/grep.c
===================================================================
--- usr.bin/grep/grep.c
+++ 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: usr.bin/grep/util.c
===================================================================
--- usr.bin/grep/util.c
+++ 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 matchidx;			/* Latest used match index */
 	bool binary;				/* Binary file? */
@@ -384,7 +384,7 @@
 		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++) {
@@ -466,7 +466,7 @@
 			}
 			/* avoid excessive matching - skip further patterns */
 			if ((color == NULL && !oflag) || qflag || lflag ||
-			    matchidx >= MAX_LINE_MATCHES)
+			    matchidx >= MAX_MATCHES)
 				break;
 		}