diff --git a/Lib/code.py b/Lib/code.py
index 75c64e6..6bdc658 100644
--- a/Lib/code.py
+++ b/Lib/code.py
@@ -303,4 +303,5 @@
 
 
 if __name__ == '__main__':
-    interact()
+    import pdb
+    pdb.run("interact()\n")
diff --git a/Lib/codeop.py b/Lib/codeop.py
index c97b4df..cc9d5b2 100644
--- a/Lib/codeop.py
+++ b/Lib/codeop.py
@@ -63,6 +63,8 @@
 
 __all__ = ["compile_command", "Compile", "CommandCompiler"]
 
+PyCF_DONT_IMPLY_DEDENT = 0x200          # Matches pythonrun.h
+
 def _maybe_compile(compiler, source, filename, symbol):
     # Check for source consisting of only blank lines and comments
     for line in source.split("\n"):
@@ -103,6 +105,9 @@
     if not code1 and e1 == e2:
         raise SyntaxError, err1
 
+def _compile(source, filename, symbol):
+    return compile(source, filename, symbol, PyCF_DONT_IMPLY_DEDENT)
+
 def compile_command(source, filename="<input>", symbol="single"):
     r"""Compile a command and determine whether it is incomplete.
 
@@ -121,7 +126,7 @@
       syntax error (OverflowError and ValueError can be produced by
       malformed literals).
     """
-    return _maybe_compile(compile, source, filename, symbol)
+    return _maybe_compile(_compile, source, filename, symbol)
 
 class Compile:
     """Instances of this class behave much like the built-in compile
@@ -129,7 +134,7 @@
     statement, it "remembers" and compiles all subsequent program texts
     with the statement in force."""
     def __init__(self):
-        self.flags = 0
+        self.flags = PyCF_DONT_IMPLY_DEDENT
 
     def __call__(self, source, filename, symbol):
         codeob = compile(source, filename, symbol, self.flags, 1)
diff --git a/Lib/test/test_codeop.py b/Lib/test/test_codeop.py
index a0ce0bc..7af83eb 100644
--- a/Lib/test/test_codeop.py
+++ b/Lib/test/test_codeop.py
@@ -5,13 +5,13 @@
 import unittest
 from test.test_support import run_unittest
 
-from codeop import compile_command
+from codeop import compile_command, PyCF_DONT_IMPLY_DEDENT
 
 class CodeopTests(unittest.TestCase):
 
     def assertValid(self, str, symbol='single'):
         '''succeed iff str is a valid piece of code'''
-        expected = compile(str, "<input>", symbol)
+        expected = compile(str, "<input>", symbol, PyCF_DONT_IMPLY_DEDENT)
         self.assertEquals( compile_command(str, "<input>", symbol), expected)
 
 
@@ -42,7 +42,8 @@
 
         # special case
         self.assertEquals(compile_command(""),
-                          compile("pass", "<input>", 'single'))
+                          compile("pass", "<input>", 'single',
+                                  PyCF_DONT_IMPLY_DEDENT))
 
         av("3**3","eval")
         av("(lambda z: \n z**3)","eval")
diff --git a/Lib/test/test_compile.py b/Lib/test/test_compile.py
index 1fe7f52..1812fbc 100644
--- a/Lib/test/test_compile.py
+++ b/Lib/test/test_compile.py
@@ -89,6 +89,15 @@
 expect_error("1e-")
 expect_error("3-4e/21")
 
+if verbose:
+    print "testing compile() of indented block w/o trailing newline"
+
+s = """
+if 1:
+    if 2:
+        pass"""
+compile(s, "<string>", "exec")
+
 
 if verbose:
     print "testing literals with leading zeroes"