diff --git a/src/command.c b/src/command.c
index 6112ad11c..019a54f18 100644
--- a/src/command.c
+++ b/src/command.c
@@ -221,19 +221,17 @@ enter (WInput *lc_cmdline)
 	do_cd_command (cmd);
 	new_input (lc_cmdline);
 	return MSG_HANDLED;
+    } else if (strcmp (cmd, "exit") == 0) {
+	assign_text (lc_cmdline, "");
+	if (!quiet_quit_cmd ())
+	    return MSG_NOT_HANDLED;
     } else {
 	char *command, *s;
 	size_t i, j, cmd_len;
 
 	if (!vfs_current_is_local ()) {
-	    if (strcmp (cmd, "exit") == 0) {
-		quiet_quit_cmd ();
-		return MSG_HANDLED;
-	    }
-
 	    message (D_ERROR, MSG_ERROR,
 		     _("Cannot execute commands on non-local filesystems"));
-
 	    return MSG_NOT_HANDLED;
 	}
 #ifdef HAVE_SUBSHELL_SUPPORT
@@ -267,10 +265,16 @@ enter (WInput *lc_cmdline)
 	g_free (command);
 
 #ifdef HAVE_SUBSHELL_SUPPORT
-	if (quit & SUBSHELL_EXIT) {
-	    quiet_quit_cmd ();
-	    return MSG_HANDLED;
+	if ((quit & SUBSHELL_EXIT) != 0) {
+	    if (quiet_quit_cmd ())
+		return MSG_HANDLED;
+
+	    quit = 0;
+	    /* restart subshell */
+	    if (use_subshell)
+		init_subshell ();
 	}
+
 	if (use_subshell)
 	    load_prompt (0, 0);
 #endif
diff --git a/src/execute.c b/src/execute.c
index 9fcbadb27..8e40667f9 100644
--- a/src/execute.c
+++ b/src/execute.c
@@ -273,9 +273,8 @@ toggle_panels (void)
 #ifdef HAVE_SUBSHELL_SUPPORT
     if (use_subshell)
     {
-        new_dir_p = vfs_current_is_local ()? &new_dir : NULL;
-        if (invoke_subshell (NULL, VISIBLY, new_dir_p))
-            quiet_quit_cmd ();  /* User did `exit' or `logout': quit MC quietly */
+        new_dir_p = vfs_current_is_local () ? &new_dir : NULL;
+        invoke_subshell (NULL, VISIBLY, new_dir_p);
     }
     else
 #endif /* HAVE_SUBSHELL_SUPPORT */
@@ -290,6 +289,7 @@ toggle_panels (void)
         else
             get_key_code (0);
     }
+
     if (console_flag)
         handle_console (CONSOLE_SAVE);
 
@@ -300,8 +300,19 @@ toggle_panels (void)
 
     /* Prevent screen flash when user did 'exit' or 'logout' within
        subshell */
-    if (quit)
-        return;
+    if ((quit & SUBSHELL_EXIT) != 0)
+    {
+        /* User did `exit' or `logout': quit MC */
+        if (quiet_quit_cmd ())
+            return;
+
+        quit = 0;
+#ifdef HAVE_SUBSHELL_SUPPORT
+        /* restart subshell */
+        if (use_subshell)
+            init_subshell ();
+#endif /* HAVE_SUBSHELL_SUPPORT */
+    }
 
     enable_mouse ();
     channels_up ();
diff --git a/src/main.c b/src/main.c
index 2546bc148..f10fa71ad 100644
--- a/src/main.c
+++ b/src/main.c
@@ -331,7 +331,7 @@ stop_dialogs (void)
         ((Dlg_head *) top_dlg->data)->state = DLG_CLOSED;
 }
 
-static int
+static gboolean
 quit_cmd_internal (int quiet)
 {
     int q = quit;
@@ -347,9 +347,9 @@ quit_cmd_internal (int quiet)
                     n);
 
         if (query_dialog (_("The Midnight Commander"), msg,
-                         D_NORMAL, 2, _("&Yes"), _("&No")) == 0)
-            q = 1;
-
+                         D_NORMAL, 2, _("&Yes"), _("&No")) != 0)
+            return FALSE;
+        q = 1;
     } else if (quiet || !confirm_exit)
         q = 1;
     else if (query_dialog (_("The Midnight Commander"),
@@ -369,20 +369,20 @@ quit_cmd_internal (int quiet)
 
     if (q != 0)
         quit |= 1;
-    return quit;
+    return (quit != 0);
 }
 
-static void
+static gboolean
 quit_cmd (void)
 {
-    quit_cmd_internal (0);
+    return quit_cmd_internal (0);
 }
 
-void
+gboolean
 quiet_quit_cmd (void)
 {
     print_last_revert = 1;
-    quit_cmd_internal (1);
+    return quit_cmd_internal (1);
 }
 
 /* Wrapper for do_subshell_chdir, check for availability of subshell */
diff --git a/src/main.h b/src/main.h
index 0cf9a5cbc..d416adb52 100644
--- a/src/main.h
+++ b/src/main.h
@@ -114,7 +114,7 @@ int do_cd (const char *new_dir, enum cd_enum cd_type);  /* For find.c */
 void sort_cmd (void);
 void change_panel (void);
 void save_cwds_stat (void);
-void quiet_quit_cmd (void);     /* For cmd.c and command.c */
+gboolean quiet_quit_cmd (void);     /* For cmd.c and command.c */
 
 void touch_bar (void);
 void update_xterm_title_path (void);