diff --git a/src/channel.c b/src/channel.c
index 141bc5f..7af19b0 100644
--- a/src/channel.c
+++ b/src/channel.c
@@ -1013,7 +1013,16 @@
 	if (part == PART_SOCK)
 	    sock_close(*fd);
 	else
-	    fd_close(*fd);
+	{
+	    /* When using a pty the same FD is set on multiple parts, only
+	     * close it when the last reference is closed. */
+	    if ((part == PART_IN || channel->ch_part[PART_IN].ch_fd != *fd)
+		    && (part == PART_OUT
+				    || channel->ch_part[PART_OUT].ch_fd != *fd)
+		    && (part == PART_ERR
+				   || channel->ch_part[PART_ERR].ch_fd != *fd))
+		fd_close(*fd);
+	}
 	*fd = INVALID_FD;
 
 	channel->ch_to_be_closed &= ~(1 << part);
@@ -4280,6 +4289,12 @@
 		opt->jo_io_name[part] =
 		       get_tv_string_buf_chk(item, opt->jo_io_name_buf[part]);
 	    }
+	    else if (STRCMP(hi->hi_key, "pty") == 0)
+	    {
+		if (!(supported & JO_MODE))
+		    break;
+		opt->jo_pty = get_tv_number(item);
+	    }
 	    else if (STRCMP(hi->hi_key, "in_buf") == 0
 		    || STRCMP(hi->hi_key, "out_buf") == 0
 		    || STRCMP(hi->hi_key, "err_buf") == 0)
@@ -5074,10 +5089,10 @@
 	ch_logs(NULL, "Starting job: %s", (char *)ga.ga_data);
 	ga_clear(&ga);
     }
-    mch_start_job(argv, job, &opt);
+    mch_job_start(argv, job, &opt);
 #else
     ch_logs(NULL, "Starting job: %s", (char *)cmd);
-    mch_start_job((char *)cmd, job, &opt);
+    mch_job_start((char *)cmd, job, &opt);
 #endif
 
     /* If the channel is reading from a buffer, write lines now. */
diff --git a/src/os_unix.c b/src/os_unix.c
index ad70465..156168f 100644
--- a/src/os_unix.c
+++ b/src/os_unix.c
@@ -4098,6 +4098,32 @@
 }
 #endif
 
+#if defined(FEAT_GUI) || defined(FEAT_JOB_CHANNEL)
+    static void
+open_pty(int *pty_master_fd, int *pty_slave_fd)
+{
+    char	*tty_name;
+
+    *pty_master_fd = OpenPTY(&tty_name);	    /* open pty */
+    if (*pty_master_fd >= 0)
+    {
+	/* Leaving out O_NOCTTY may lead to waitpid() always returning
+	 * 0 on Mac OS X 10.7 thereby causing freezes. Let's assume
+	 * adding O_NOCTTY always works when defined. */
+#ifdef O_NOCTTY
+	*pty_slave_fd = open(tty_name, O_RDWR | O_NOCTTY | O_EXTRA, 0);
+#else
+	*pty_slave_fd = open(tty_name, O_RDWR | O_EXTRA, 0);
+#endif
+	if (*pty_slave_fd < 0)
+	{
+	    close(*pty_master_fd);
+	    *pty_master_fd = -1;
+	}
+    }
+}
+#endif
+
     int
 mch_call_shell(
     char_u	*cmd,
@@ -4206,7 +4232,6 @@
     int		pty_master_fd = -1;	    /* for pty's */
 # ifdef FEAT_GUI
     int		pty_slave_fd = -1;
-    char	*tty_name;
 # endif
     int		fd_toshell[2];		/* for pipes */
     int		fd_fromshell[2];
@@ -4269,25 +4294,7 @@
 	 * If the slave can't be opened, close the master pty.
 	 */
 	if (p_guipty && !(options & (SHELL_READ|SHELL_WRITE)))
-	{
-	    pty_master_fd = OpenPTY(&tty_name);	    /* open pty */
-	    if (pty_master_fd >= 0)
-	    {
-		/* Leaving out O_NOCTTY may lead to waitpid() always returning
-		 * 0 on Mac OS X 10.7 thereby causing freezes. Let's assume
-		 * adding O_NOCTTY always works when defined. */
-#ifdef O_NOCTTY
-		pty_slave_fd = open(tty_name, O_RDWR | O_NOCTTY | O_EXTRA, 0);
-#else
-		pty_slave_fd = open(tty_name, O_RDWR | O_EXTRA, 0);
-#endif
-		if (pty_slave_fd < 0)
-		{
-		    close(pty_master_fd);
-		    pty_master_fd = -1;
-		}
-	    }
-	}
+	    open_pty(&pty_master_fd, &pty_slave_fd);
 	/*
 	 * If not opening a pty or it didn't work, try using pipes.
 	 */
@@ -5100,12 +5107,14 @@
 
 #if defined(FEAT_JOB_CHANNEL) || defined(PROTO)
     void
-mch_start_job(char **argv, job_T *job, jobopt_T *options)
+mch_job_start(char **argv, job_T *job, jobopt_T *options)
 {
     pid_t	pid;
     int		fd_in[2];	/* for stdin */
     int		fd_out[2];	/* for stdout */
     int		fd_err[2];	/* for stderr */
+    int		pty_master_fd = -1;
+    int		pty_slave_fd = -1;
     channel_T	*channel = NULL;
     int		use_null_for_in = options->jo_io[PART_IN] == JIO_NULL;
     int		use_null_for_out = options->jo_io[PART_OUT] == JIO_NULL;
@@ -5128,6 +5137,9 @@
     fd_err[0] = -1;
     fd_err[1] = -1;
 
+    if (options->jo_pty)
+	open_pty(&pty_master_fd, &pty_slave_fd);
+
     /* TODO: without the channel feature connect the child to /dev/null? */
     /* Open pipes for stdin, stdout, stderr. */
     if (use_file_for_in)
@@ -5141,7 +5153,7 @@
 	    goto failed;
 	}
     }
-    else if (!use_null_for_in && pipe(fd_in) < 0)
+    else if (!use_null_for_in && pty_master_fd < 0 && pipe(fd_in) < 0)
 	goto failed;
 
     if (use_file_for_out)
@@ -5155,7 +5167,7 @@
 	    goto failed;
 	}
     }
-    else if (!use_null_for_out && pipe(fd_out) < 0)
+    else if (!use_null_for_out && pty_master_fd < 0 && pipe(fd_out) < 0)
 	goto failed;
 
     if (use_file_for_err)
@@ -5169,7 +5181,8 @@
 	    goto failed;
 	}
     }
-    else if (!use_out_for_err && !use_null_for_err && pipe(fd_err) < 0)
+    else if (!use_out_for_err && !use_null_for_err
+				      && pty_master_fd < 0 && pipe(fd_err) < 0)
 	goto failed;
 
     if (!use_null_for_in || !use_null_for_out || !use_null_for_err)
@@ -5224,54 +5237,53 @@
 	    null_fd = open("/dev/null", O_RDWR | O_EXTRA, 0);
 
 	/* set up stdin for the child */
+	close(0);
 	if (use_null_for_in && null_fd >= 0)
-	{
-	    close(0);
 	    ignored = dup(null_fd);
-	}
+	else if (fd_in[0] < 0)
+	    ignored = dup(pty_slave_fd);
 	else
-	{
-	    if (!use_file_for_in)
-		close(fd_in[1]);
-	    close(0);
 	    ignored = dup(fd_in[0]);
-	    close(fd_in[0]);
-	}
 
 	/* set up stderr for the child */
+	close(2);
 	if (use_null_for_err && null_fd >= 0)
 	{
-	    close(2);
 	    ignored = dup(null_fd);
 	    stderr_works = FALSE;
 	}
 	else if (use_out_for_err)
-	{
-	    close(2);
 	    ignored = dup(fd_out[1]);
-	}
+	else if (fd_err[1] < 0)
+	    ignored = dup(pty_slave_fd);
 	else
-	{
-	    if (!use_file_for_err)
-		close(fd_err[0]);
-	    close(2);
 	    ignored = dup(fd_err[1]);
-	    close(fd_err[1]);
-	}
 
 	/* set up stdout for the child */
+	close(1);
 	if (use_null_for_out && null_fd >= 0)
-	{
-	    close(1);
 	    ignored = dup(null_fd);
-	}
+	else if (fd_out[1] < 0)
+	    ignored = dup(pty_slave_fd);
 	else
-	{
-	    if (!use_file_for_out)
-		close(fd_out[0]);
-	    close(1);
 	    ignored = dup(fd_out[1]);
+
+	if (fd_in[0] >= 0)
+	    close(fd_in[0]);
+	if (fd_in[1] >= 0)
+	    close(fd_in[1]);
+	if (fd_out[0] >= 0)
+	    close(fd_out[0]);
+	if (fd_out[1] >= 0)
 	    close(fd_out[1]);
+	if (fd_err[0] >= 0)
+	    close(fd_err[0]);
+	if (fd_err[1] >= 0)
+	    close(fd_err[1]);
+	if (pty_master_fd >= 0)
+	{
+	    close(pty_master_fd); /* not used */
+	    close(pty_slave_fd); /* duped above */
 	}
 
 	if (null_fd >= 0)
@@ -5296,7 +5308,9 @@
     job->jv_status = JOB_STARTED;
     job->jv_channel = channel;  /* ch_refcount was set above */
 
-    /* child stdin, stdout and stderr */
+    if (pty_master_fd >= 0)
+	close(pty_slave_fd); /* duped above */
+    /* close child stdin, stdout and stderr */
     if (!use_file_for_in && fd_in[0] >= 0)
 	close(fd_in[0]);
     if (!use_file_for_out && fd_out[1] >= 0)
@@ -5306,12 +5320,12 @@
     if (channel != NULL)
     {
 	channel_set_pipes(channel,
-		      use_file_for_in || use_null_for_in
-						      ? INVALID_FD : fd_in[1],
-		      use_file_for_out || use_null_for_out
-						     ? INVALID_FD : fd_out[0],
-		      use_out_for_err || use_file_for_err || use_null_for_err
-						    ? INVALID_FD : fd_err[0]);
+		use_file_for_in || use_null_for_in
+			? INVALID_FD : fd_in[1] < 0 ? pty_master_fd : fd_in[1],
+		use_file_for_out || use_null_for_out
+		      ? INVALID_FD : fd_out[0] < 0 ? pty_master_fd : fd_out[0],
+		use_out_for_err || use_file_for_err || use_null_for_err
+		     ? INVALID_FD : fd_err[0] < 0 ? pty_master_fd : fd_err[0]);
 	channel_set_job(channel, job, options);
     }
 
@@ -5332,6 +5346,10 @@
 	close(fd_err[0]);
     if (fd_err[1] >= 0)
 	close(fd_err[1]);
+    if (pty_master_fd >= 0)
+	close(pty_master_fd);
+    if (pty_slave_fd >= 0)
+	close(pty_slave_fd);
 }
 
     char *
diff --git a/src/os_win32.c b/src/os_win32.c
index f2fd808..8a38bcc 100644
--- a/src/os_win32.c
+++ b/src/os_win32.c
@@ -4964,7 +4964,7 @@
 }
 
     void
-mch_start_job(char *cmd, job_T *job, jobopt_T *options)
+mch_job_start(char *cmd, job_T *job, jobopt_T *options)
 {
     STARTUPINFO		si;
     PROCESS_INFORMATION	pi;
diff --git a/src/proto/os_unix.pro b/src/proto/os_unix.pro
index 700b69e..11191c9 100644
--- a/src/proto/os_unix.pro
+++ b/src/proto/os_unix.pro
@@ -57,7 +57,7 @@
 void mch_new_shellsize(void);
 int mch_parse_cmd(char_u *cmd, int use_shcf, char ***argv, int *argc);
 int mch_call_shell(char_u *cmd, int options);
-void mch_start_job(char **argv, job_T *job, jobopt_T *options);
+void mch_job_start(char **argv, job_T *job, jobopt_T *options);
 char *mch_job_status(job_T *job);
 job_T *mch_detect_ended_job(job_T *job_list);
 int mch_stop_job(job_T *job, char_u *how);
diff --git a/src/proto/os_win32.pro b/src/proto/os_win32.pro
index ca67146..6c5dc4f 100644
--- a/src/proto/os_win32.pro
+++ b/src/proto/os_win32.pro
@@ -41,7 +41,7 @@
 void mch_new_shellsize(void);
 void mch_set_winsize_now(void);
 int mch_call_shell(char_u *cmd, int options);
-void mch_start_job(char *cmd, job_T *job, jobopt_T *options);
+void mch_job_start(char *cmd, job_T *job, jobopt_T *options);
 char *mch_job_status(job_T *job);
 job_T *mch_detect_ended_job(job_T *job_list);
 int mch_stop_job(job_T *job, char_u *how);
diff --git a/src/structs.h b/src/structs.h
index 5a7f28b..44df356 100644
--- a/src/structs.h
+++ b/src/structs.h
@@ -1705,6 +1705,7 @@
     char_u	jo_io_name_buf[4][NUMBUFLEN];
     char_u	*jo_io_name[4];	/* not allocated! */
     int		jo_io_buf[4];
+    int		jo_pty;
     int		jo_modifiable[4];
     int		jo_message[4];
     channel_T	*jo_channel;
diff --git a/src/terminal.c b/src/terminal.c
index df40866..0d974ed 100644
--- a/src/terminal.c
+++ b/src/terminal.c
@@ -34,7 +34,6 @@
  * TODO:
  * - When 'termsize' is set and dragging the separator the terminal gets messed
  *   up.
- * - Use a pty for I/O with the job.
  * - set buffer options to be scratch, hidden, nomodifiable, etc.
  * - set buffer name to command, add (1) to avoid duplicates.
  * - If [command] is not given the 'shell' option is used.
@@ -52,6 +51,8 @@
  * - add test for giving error for invalid 'termsize' value.
  * - support minimal size when 'termsize' is "rows*cols".
  * - support minimal size when 'termsize' is empty?
+ * - implement "term" for job_start(): more job options when starting a
+ *   terminal.
  * - implement ":buf {term-buf-name}"
  * - implement term_list()			list of buffers with a terminal
  * - implement term_getsize(buf)
@@ -673,6 +674,7 @@
     opt->jo_set |= JO_OUT_IO + (JO_OUT_IO << (PART_ERR - PART_OUT));
     opt->jo_io_buf[PART_OUT] = curbuf->b_fnum;
     opt->jo_io_buf[PART_ERR] = curbuf->b_fnum;
+    opt->jo_pty = TRUE;
     opt->jo_set |= JO_OUT_BUF + (JO_OUT_BUF << (PART_ERR - PART_OUT));
     opt->jo_term_rows = rows;
     opt->jo_term_cols = cols;
diff --git a/src/version.c b/src/version.c
index da56b9a..31dc8d6 100644
--- a/src/version.c
+++ b/src/version.c
@@ -770,6 +770,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    744,
+/**/
     743,
 /**/
     742,