diff --git a/src/edit.c b/src/edit.c
index da1b238..912f05f 100644
--- a/src/edit.c
+++ b/src/edit.c
@@ -4308,9 +4308,17 @@
 	    {
 		ins_buf = curbuf;
 		first_match_pos = *ini;
-		/* So that ^N can match word immediately after cursor */
-		if (ctrl_x_mode == 0)
-		    dec(&first_match_pos);
+		/* Move the cursor back one character so that ^N can match the
+		 * word immediately after the cursor. */
+		if (ctrl_x_mode == 0 && dec(&first_match_pos) < 0)
+		{
+		    /* Move the cursor to after the last character in the
+		     * buffer, so that word at start of buffer is found
+		     * correctly. */
+		    first_match_pos.lnum = ins_buf->b_ml.ml_line_count;
+		    first_match_pos.col =
+				 (colnr_T)STRLEN(ml_get(first_match_pos.lnum));
+		}
 		last_match_pos = first_match_pos;
 		type = 0;