diff --git a/src/edit.c b/src/edit.c
index 45176d7..b5c129f 100644
--- a/src/edit.c
+++ b/src/edit.c
@@ -1722,11 +1722,19 @@
     {
 	aco_save_T	aco;
 
+	// Sync undo when the autocommand calls setline() or append(), so that
+	// it can be undone separately.
+	u_sync_once = 2;
+
 	// save and restore curwin and curbuf, in case the autocmd changes them
 	aucmd_prepbuf(&aco, curbuf);
 	apply_autocmds(EVENT_TEXTCHANGEDI, NULL, NULL, FALSE, curbuf);
 	aucmd_restbuf(&aco);
 	curbuf->b_last_changedtick = CHANGEDTICK(curbuf);
+
+	if (u_sync_once == 1)
+	    ins_need_undo = TRUE;
+	u_sync_once = 0;
     }
 
 #ifdef FEAT_INS_EXPAND
diff --git a/src/testdir/test_autocmd.vim b/src/testdir/test_autocmd.vim
index 19c54d1..b52493f 100644
--- a/src/testdir/test_autocmd.vim
+++ b/src/testdir/test_autocmd.vim
@@ -587,7 +587,7 @@
   " Cleanup
   au! OptionSet
   for opt in ['nu', 'ai', 'acd', 'ar', 'bs', 'backup', 'cul', 'cp']
-    exe printf(":set %s&vi", opt)
+    exe printf(":set %s&vim", opt)
   endfor
   call test_override('starting', 0)
   delfunc! AutoCommandOptionSet
@@ -1313,6 +1313,31 @@
   bw!
 endfunc
 
+let g:setline_handled = v:false
+func! SetLineOne()
+  if !g:setline_handled
+    call setline(1, "(x)")
+    let g:setline_handled = v:true
+  endif
+endfunc
+
+func Test_TextChangedI_with_setline()
+  new
+  call test_override('char_avail', 1)
+  autocmd TextChangedI <buffer> call SetLineOne()
+  call feedkeys("i(\<CR>\<Esc>", 'tx')
+  call assert_equal('(', getline(1))
+  call assert_equal('x)', getline(2))
+  undo
+  call assert_equal('(', getline(1))
+  call assert_equal('', getline(2))
+  undo
+  call assert_equal('', getline(1))
+
+  call test_override('starting', 0)
+  bwipe!
+endfunc
+
 func Test_Changed_FirstTime()
   if !has('terminal') || has('gui_running')
     return
diff --git a/src/version.c b/src/version.c
index 0834540..3b437c4 100644
--- a/src/version.c
+++ b/src/version.c
@@ -795,6 +795,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    245,
+/**/
     244,
 /**/
     243,