diff --git a/bin/sh/eval.c b/bin/sh/eval.c
index 76172031b0b1..14396cf92d70 100644
--- a/bin/sh/eval.c
+++ b/bin/sh/eval.c
@@ -1,4 +1,4 @@
-/*	$NetBSD: eval.c,v 1.77 2004/06/26 14:09:58 dsl Exp $	*/
+/*	$NetBSD: eval.c,v 1.78 2004/06/26 22:09:49 dsl Exp $	*/
 
 /*-
  * Copyright (c) 1993
@@ -37,7 +37,7 @@
 #if 0
 static char sccsid[] = "@(#)eval.c	8.9 (Berkeley) 6/8/95";
 #else
-__RCSID("$NetBSD: eval.c,v 1.77 2004/06/26 14:09:58 dsl Exp $");
+__RCSID("$NetBSD: eval.c,v 1.78 2004/06/26 22:09:49 dsl Exp $");
 #endif
 #endif /* not lint */
 
@@ -354,7 +354,7 @@ evalfor(union node *n, int flags)
 	setstackmark(&smark);
 	arglist.lastp = &arglist.list;
 	for (argp = n->nfor.args ; argp ; argp = argp->narg.next) {
-		expandarg(argp, &arglist, EXP_FULL | EXP_TILDE | EXP_IFS_SPLIT);
+		expandarg(argp, &arglist, EXP_FULL | EXP_TILDE);
 		if (evalskip)
 			goto out;
 	}
@@ -702,6 +702,7 @@ evalcommand(union node *cmd, int flags, struct backcmd *backcmd)
 
 	arglist.lastp = &arglist.list;
 	varflag = 1;
+	/* Expand arguments, ignoring the initial 'name=value' ones */
 	for (argp = cmd->ncmd.args ; argp ; argp = argp->narg.next) {
 		char *p = argp->narg.text;
 		if (varflag && is_name(*p)) {
@@ -718,6 +719,7 @@ evalcommand(union node *cmd, int flags, struct backcmd *backcmd)
 
 	expredir(cmd->ncmd.redirect);
 
+	/* Now do the initial 'name=value' ones we skipped above */
 	varlist.lastp = &varlist.list;
 	for (argp = cmd->ncmd.args ; argp ; argp = argp->narg.next) {
 		char *p = argp->narg.text;
diff --git a/bin/sh/expand.c b/bin/sh/expand.c
index 4cefa8b47411..924fc7e0f257 100644
--- a/bin/sh/expand.c
+++ b/bin/sh/expand.c
@@ -1,4 +1,4 @@
-/*	$NetBSD: expand.c,v 1.65 2004/06/26 20:48:44 dsl Exp $	*/
+/*	$NetBSD: expand.c,v 1.66 2004/06/26 22:09:49 dsl Exp $	*/
 
 /*-
  * Copyright (c) 1991, 1993
@@ -37,7 +37,7 @@
 #if 0
 static char sccsid[] = "@(#)expand.c	8.5 (Berkeley) 5/15/95";
 #else
-__RCSID("$NetBSD: expand.c,v 1.65 2004/06/26 20:48:44 dsl Exp $");
+__RCSID("$NetBSD: expand.c,v 1.66 2004/06/26 22:09:49 dsl Exp $");
 #endif
 #endif /* not lint */
 
@@ -175,9 +175,9 @@ expandarg(union node *arg, struct arglist *arglist, int flag)
 
 
 /*
- * Perform variable and command substitution.  If EXP_FULL is set, output CTLESC
- * characters to allow for further processing.  Otherwise treat
- * $@ like $* since no splitting will be performed.
+ * Perform variable and command substitution.
+ * If EXP_FULL is set, output CTLESC characters to allow for further processing.
+ * Otherwise treat $@ like $* since no splitting will be performed.
  */
 
 STATIC void
@@ -186,6 +186,11 @@ argstr(char *p, int flag)
 	char c;
 	int quotes = flag & (EXP_FULL | EXP_CASE);	/* do CTLESC */
 	int firsteq = 1;
+	const char *ifs;
+	int ifs_split = EXP_IFS_SPLIT;
+
+	if (flag & EXP_IFS_SPLIT)
+		ifs = ifsset() ? ifsval() : " \t\n";
 
 	if (*p == '~' && (flag & (EXP_TILDE | EXP_VARTILDE)))
 		p = exptilde(p, flag);
@@ -200,6 +205,10 @@ argstr(char *p, int flag)
 				break;
 			if ((flag & EXP_FULL) != 0)
 				STPUTC(c, expdest);
+			ifs_split = 0;
+			break;
+		case CTLQUOTEEND:
+			ifs_split = EXP_IFS_SPLIT;
 			break;
 		case CTLESC:
 			if (quotes)
@@ -208,7 +217,7 @@ argstr(char *p, int flag)
 			STPUTC(c, expdest);
 			break;
 		case CTLVAR:
-			p = evalvar(p, flag);
+			p = evalvar(p, (flag & ~EXP_IFS_SPLIT) | (flag & ifs_split));
 			break;
 		case CTLBACKQ:
 		case CTLBACKQ|CTLQUOTE:
@@ -237,6 +246,11 @@ argstr(char *p, int flag)
 			break;
 		default:
 			STPUTC(c, expdest);
+			if (flag & EXP_IFS_SPLIT & ifs_split && strchr(ifs, c) != NULL) {
+				/* We need to get the output split here... */
+				recordregion(expdest - stackblock() - 1,
+						expdest - stackblock(), 0);
+			}
 			break;
 		}
 	}
@@ -685,7 +699,7 @@ again: /* jump here after setting a variable with ${var=text} */
 		/* FALLTHROUGH */
 	case VSMINUS:
 		if (!set) {
-		        argstr(p, flag);
+		        argstr(p, flag | (apply_ifs ? EXP_IFS_SPLIT : 0));
 			/*
 			 * ${x-a b c} doesn't get split, but removing the
 			 * 'apply_ifs = 0' apparantly breaks ${1+"$@"}..
@@ -907,6 +921,11 @@ recordregion(int start, int end, int inquotes)
 	if (ifslastp == NULL) {
 		ifsp = &ifsfirst;
 	} else {
+		if (ifslastp->endoff == start) {
+			/* extend previous area */
+			ifslastp->endoff = end;
+			return;
+		}
 		ifsp = (struct ifsregion *)ckmalloc(sizeof (struct ifsregion));
 		ifslastp->next = ifsp;
 	}
diff --git a/bin/sh/parser.c b/bin/sh/parser.c
index 83c125602e69..e768becbbe0d 100644
--- a/bin/sh/parser.c
+++ b/bin/sh/parser.c
@@ -1,4 +1,4 @@
-/*	$NetBSD: parser.c,v 1.55 2003/08/07 09:05:37 agc Exp $	*/
+/*	$NetBSD: parser.c,v 1.56 2004/06/26 22:09:49 dsl Exp $	*/
 
 /*-
  * Copyright (c) 1991, 1993
@@ -37,7 +37,7 @@
 #if 0
 static char sccsid[] = "@(#)parser.c	8.7 (Berkeley) 5/16/95";
 #else
-__RCSID("$NetBSD: parser.c,v 1.55 2003/08/07 09:05:37 agc Exp $");
+__RCSID("$NetBSD: parser.c,v 1.56 2004/06/26 22:09:49 dsl Exp $");
 #endif
 #endif /* not lint */
 
@@ -961,7 +961,7 @@ readtoken1(int firstc, char const *syntax, char *eofmark, int striptabs)
 #endif
 		CHECKEND();	/* set c to PEOF if at end of here document */
 		for (;;) {	/* until end of line or end of word */
-			CHECKSTRSPACE(3, out);	/* permit 3 calls to USTPUTC */
+			CHECKSTRSPACE(4, out);	/* permit 4 calls to USTPUTC */
 			switch(syntax[c]) {
 			case CNL:	/* '\n' */
 				if (syntax == BASESYNTAX)
@@ -987,57 +987,77 @@ readtoken1(int firstc, char const *syntax, char *eofmark, int striptabs)
 				if (c == PEOF) {
 					USTPUTC('\\', out);
 					pungetc();
-				} else if (c == '\n') {
+					break;
+				}
+				if (c == '\n') {
 					if (doprompt)
 						setprompt(2);
 					else
 						setprompt(0);
-				} else {
-					if (ISDBLQUOTE() && c != '\\' &&
-					    c != '`' && c != '$' &&
-					    (c != '"' || eofmark != NULL))
-						USTPUTC('\\', out);
-					if (SQSYNTAX[c] == CCTL)
-						USTPUTC(CTLESC, out);
-					else if (eofmark == NULL)
-						USTPUTC(CTLQUOTEMARK, out);
-					USTPUTC(c, out);
-					quotef++;
+					break;
 				}
+				quotef = 1;
+				if (ISDBLQUOTE() && c != '\\' &&
+				    c != '`' && c != '$' &&
+				    (c != '"' || eofmark != NULL))
+					USTPUTC('\\', out);
+				if (SQSYNTAX[c] == CCTL)
+					USTPUTC(CTLESC, out);
+				else if (eofmark == NULL) {
+					USTPUTC(CTLQUOTEMARK, out);
+					USTPUTC(c, out);
+					if (varnest != 0)
+						USTPUTC(CTLQUOTEEND, out);
+					break;
+				}
+				USTPUTC(c, out);
 				break;
 			case CSQUOTE:
 				if (syntax != SQSYNTAX) {
-				    if (eofmark == NULL)
-					    USTPUTC(CTLQUOTEMARK, out);
-				    syntax = SQSYNTAX;
-				    break;
+					if (eofmark == NULL)
+						USTPUTC(CTLQUOTEMARK, out);
+					quotef = 1;
+					syntax = SQSYNTAX;
+					break;
 				}
-				/* FALLTHROUGH */
+				/* End of single quotes... */
+				if (arinest)
+					syntax = ARISYNTAX;
+				else {
+					syntax = BASESYNTAX;
+					if (varnest != 0)
+						USTPUTC(CTLQUOTEEND, out);
+				}
+				break;
 			case CDQUOTE:
 				if (eofmark != NULL && arinest == 0 &&
 				    varnest == 0) {
 					USTPUTC(c, out);
-				} else {
-					if (arinest) {
-						if (c != '"' || ISDBLQUOTE()) {
-							syntax = ARISYNTAX;
-							CLRDBLQUOTE();
-						} else {
-							syntax = DQSYNTAX;
-							SETDBLQUOTE();
-							USTPUTC(CTLQUOTEMARK, out);
-						}
-					} else if (eofmark == NULL) {
-						if (c != '"' || ISDBLQUOTE()) {
-							syntax = BASESYNTAX;
-							CLRDBLQUOTE();
-						} else {
-							syntax = DQSYNTAX;
-							SETDBLQUOTE();
-							USTPUTC(CTLQUOTEMARK, out);
-						}
+					break;
+				}
+				quotef = 1;
+				if (arinest) {
+					if (ISDBLQUOTE()) {
+						syntax = ARISYNTAX;
+						CLRDBLQUOTE();
+					} else {
+						syntax = DQSYNTAX;
+						SETDBLQUOTE();
+						USTPUTC(CTLQUOTEMARK, out);
 					}
-					quotef++;
+					break;
+				}
+				if (eofmark != NULL)
+					break;
+				if (ISDBLQUOTE()) {
+					if (varnest != 0)
+						USTPUTC(CTLQUOTEEND, out);
+					syntax = BASESYNTAX;
+					CLRDBLQUOTE();
+				} else {
+					syntax = DQSYNTAX;
+					SETDBLQUOTE();
+					USTPUTC(CTLQUOTEMARK, out);
 				}
 				break;
 			case CVAR:	/* '$' */
diff --git a/bin/sh/parser.h b/bin/sh/parser.h
index 5181cece0d8d..b343c71cfff5 100644
--- a/bin/sh/parser.h
+++ b/bin/sh/parser.h
@@ -1,4 +1,4 @@
-/*	$NetBSD: parser.h,v 1.16 2003/08/07 09:05:37 agc Exp $	*/
+/*	$NetBSD: parser.h,v 1.17 2004/06/26 22:09:49 dsl Exp $	*/
 
 /*-
  * Copyright (c) 1991, 1993
@@ -45,7 +45,8 @@
 #define	CTLARI	'\206'		/* arithmetic expression */
 #define	CTLENDARI '\207'
 #define	CTLQUOTEMARK '\210'
-#define	CTL_LAST '\210'		/* last 'special' character */
+#define	CTLQUOTEEND '\211'	/* only inside ${...} */
+#define	CTL_LAST '\211'		/* last 'special' character */
 
 /* variable substitution byte (follows CTLVAR) */
 #define VSTYPE	0x0f		/* type of variable substitution */