diff --git a/src/change.c b/src/change.c
index 67b7023..84afcc7 100644
--- a/src/change.c
+++ b/src/change.c
@@ -713,7 +713,10 @@
     // When text has been changed at the end of the line, possibly the start of
     // the next line may have SpellCap that should be removed or it needs to be
     // displayed.  Schedule the next line for redrawing just in case.
-    if (spell_check_window(curwin) && lnum < curbuf->b_ml.ml_line_count)
+    // Don't do this when displaying '$' at the end of changed text.
+    if (spell_check_window(curwin)
+	    && lnum < curbuf->b_ml.ml_line_count
+	    && vim_strchr(p_cpo, CPO_DOLLAR) == NULL)
 	redrawWinline(curwin, lnum + 1);
 #endif
 #ifdef FEAT_DIFF
diff --git a/src/edit.c b/src/edit.c
index 2484fe5..ab268c1 100644
--- a/src/edit.c
+++ b/src/edit.c
@@ -1738,8 +1738,8 @@
 }
 
 /*
- * Called when p_dollar is set: display a '$' at the end of the changed text
- * Only works when cursor is in the line that changes.
+ * Called when "$" is in 'cpoptions': display a '$' at the end of the changed
+ * text.  Only works when cursor is in the line that changes.
  */
     void
 display_dollar(colnr_T col_arg)
diff --git a/src/testdir/dumps/Test_spell_compatible_1.dump b/src/testdir/dumps/Test_spell_compatible_1.dump
new file mode 100644
index 0000000..4f6b268
--- /dev/null
+++ b/src/testdir/dumps/Test_spell_compatible_1.dump
@@ -0,0 +1,8 @@
+|t+0&#5fd7ff255|e|s|t| +0&#ffffff0|t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| >t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| 
+|t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t|$| @49
+@75
+|e+0&#5fd7ff255|n|d| +0&#ffffff0@71
+|~+0#4040ff13&| @73
+|~| @73
+|~| @73
+|-+2#0000000&@1| |I|N|S|E|R|T| |-@1| +0&&@44|1|,|5|1| @9|A|l@1| 
diff --git a/src/testdir/dumps/Test_spell_compatible_2.dump b/src/testdir/dumps/Test_spell_compatible_2.dump
new file mode 100644
index 0000000..e1243a6
--- /dev/null
+++ b/src/testdir/dumps/Test_spell_compatible_2.dump
@@ -0,0 +1,8 @@
+|t+0&#5fd7ff255|e|s|t| +0&#ffffff0|t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |x>e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| 
+|t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t| |t|e|s|t|$| @49
+@75
+|e+0&#5fd7ff255|n|d| +0&#ffffff0@71
+|~+0#4040ff13&| @73
+|~| @73
+|~| @73
+|-+2#0000000&@1| |I|N|S|E|R|T| |-@1| +0&&@44|1|,|5|2| @9|A|l@1| 
diff --git a/src/testdir/test_spell.vim b/src/testdir/test_spell.vim
index 97c7e3c..3f77695 100644
--- a/src/testdir/test_spell.vim
+++ b/src/testdir/test_spell.vim
@@ -956,13 +956,12 @@
              \ ])
        set spell spelllang=en_nz
   END
-  call writefile(lines, 'XtestSpell')
+  call writefile(lines, 'XtestSpell', 'D')
   let buf = RunVimInTerminal('-S XtestSpell', {'rows': 8})
   call VerifyScreenDump(buf, 'Test_spell_1', {})
 
   " clean up
   call StopVimInTerminal(buf)
-  call delete('XtestSpell')
 endfunc
 
 func Test_spell_screendump_spellcap()
@@ -979,7 +978,7 @@
              \ ])
        set spell spelllang=en
   END
-  call writefile(lines, 'XtestSpellCap')
+  call writefile(lines, 'XtestSpellCap', 'D')
   let buf = RunVimInTerminal('-S XtestSpellCap', {'rows': 8})
   call VerifyScreenDump(buf, 'Test_spell_2', {})
 
@@ -997,7 +996,30 @@
 
   " clean up
   call StopVimInTerminal(buf)
-  call delete('XtestSpellCap')
+endfunc
+
+func Test_spell_compatible()
+  CheckScreendump
+
+  let lines =<< trim END
+       call setline(1, [
+             \ "test "->repeat(20),
+             \ "",
+             \ "end",
+             \ ])
+       set spell cpo+=$
+  END
+  call writefile(lines, 'XtestSpellComp', 'D')
+  let buf = RunVimInTerminal('-S XtestSpellComp', {'rows': 8})
+
+  call term_sendkeys(buf, "51|C")
+  call VerifyScreenDump(buf, 'Test_spell_compatible_1', {})
+
+  call term_sendkeys(buf, "x")
+  call VerifyScreenDump(buf, 'Test_spell_compatible_2', {})
+
+  " clean up
+  call StopVimInTerminal(buf)
 endfunc
 
 let g:test_data_aff1 = [
diff --git a/src/version.c b/src/version.c
index 61f2fd2..ed91d27 100644
--- a/src/version.c
+++ b/src/version.c
@@ -700,6 +700,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    664,
+/**/
     663,
 /**/
     662,