diff --git a/src/edit.c b/src/edit.c
index d2f058a..02d8225 100644
--- a/src/edit.c
+++ b/src/edit.c
@@ -199,7 +199,7 @@
 static void spell_back_to_badword __ARGS((void));
 static int  spell_bad_len = 0;	/* length of located bad word */
 #endif
-static void stop_insert __ARGS((pos_T *end_insert_pos, int esc));
+static void stop_insert __ARGS((pos_T *end_insert_pos, int esc, int nomove));
 static int  echeck_abbr __ARGS((int));
 static int  replace_pop __ARGS((void));
 static void replace_join __ARGS((int off));
@@ -6698,7 +6698,7 @@
     if (!arrow_used)	    /* something has been inserted */
     {
 	AppendToRedobuff(ESC_STR);
-	stop_insert(end_insert_pos, FALSE);
+	stop_insert(end_insert_pos, FALSE, FALSE);
 	arrow_used = TRUE;	/* this means we stopped the current insert */
     }
 #ifdef FEAT_SPELL
@@ -6787,9 +6787,10 @@
  * to another window/buffer.
  */
     static void
-stop_insert(end_insert_pos, esc)
+stop_insert(end_insert_pos, esc, nomove)
     pos_T	*end_insert_pos;
     int		esc;			/* called by ins_esc() */
+    int		nomove;			/* <c-\><c-o>, don't move cursor */
 {
     int		cc;
     char_u	*ptr;
@@ -6860,7 +6861,7 @@
 	 * Do this when ESC was used or moving the cursor up/down.
 	 * Check for the old position still being valid, just in case the text
 	 * got changed unexpectedly. */
-	if (did_ai && (esc || (vim_strchr(p_cpo, CPO_INDENT) == NULL
+	if (!nomove && did_ai && (esc || (vim_strchr(p_cpo, CPO_INDENT) == NULL
 			&& curwin->w_cursor.lnum != end_insert_pos->lnum))
 		&& end_insert_pos->lnum <= curbuf->b_ml.ml_line_count)
 	{
@@ -8377,7 +8378,7 @@
 	    disabled_redraw = TRUE;
 	    return FALSE;	/* repeat the insert */
 	}
-	stop_insert(&curwin->w_cursor, TRUE);
+	stop_insert(&curwin->w_cursor, TRUE, nomove);
 	undisplay_dollar();
     }