diff --git a/src/screen.c b/src/screen.c
index 841dc18..e26bb44 100644
--- a/src/screen.c
+++ b/src/screen.c
@@ -10485,10 +10485,16 @@
     void
 clearmode(void)
 {
+    int save_msg_row = msg_row;
+    int save_msg_col = msg_col;
+
     msg_pos_mode();
     if (Recording)
 	recording_mode(HL_ATTR(HLF_CM));
     msg_clr_eos();
+
+    msg_col = save_msg_col;
+    msg_row = save_msg_row;
 }
 
     static void
diff --git a/src/testdir/test_messages.vim b/src/testdir/test_messages.vim
index 188406e..384d2aa 100644
--- a/src/testdir/test_messages.vim
+++ b/src/testdir/test_messages.vim
@@ -38,3 +38,24 @@
     let &more = oldmore
   endtry
 endfunction
+
+" Patch 7.4.1696 defined the "clearmode()" command for clearing the mode
+" indicator (e.g., "-- INSERT --") when ":stopinsert" is invoked.  Message
+" output could then be disturbed when 'cmdheight' was greater than one.
+" This test ensures that the bugfix for this issue remains in place.
+function! Test_stopinsert_does_not_break_message_output()
+  set cmdheight=2
+  redraw!
+
+  stopinsert | echo 'test echo'
+  call assert_equal(116, screenchar(&lines - 1, 1))
+  call assert_equal(32, screenchar(&lines, 1))
+  redraw!
+
+  stopinsert | echomsg 'test echomsg'
+  call assert_equal(116, screenchar(&lines - 1, 1))
+  call assert_equal(32, screenchar(&lines, 1))
+  redraw!
+
+  set cmdheight&
+endfunction
diff --git a/src/version.c b/src/version.c
index 04d8fb3..9d92ef8 100644
--- a/src/version.c
+++ b/src/version.c
@@ -762,6 +762,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    2,
+/**/
     1,
 /**/
     0