diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index bd1f4e7b3c9..a11cb793648 100644
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,3 +1,9 @@
+2011-02-26  Eli Zaretskii  <eliz@gnu.org>
+
+	* international/mule-cmds.el (set-default-coding-systems): Use the
+	-unix variant of encoding in default-keyboard-coding-system.
+	(Bug#8122)
+
 2011-02-23  Kenichi Handa  <handa@m17n.org>
 
 	* mail/rmailmm.el (rmail-mime-process-multipart): Do not signal an
diff --git a/lisp/international/mule-cmds.el b/lisp/international/mule-cmds.el
index 0ca4a740586..29b2218ae54 100644
--- a/lisp/international/mule-cmds.el
+++ b/lisp/international/mule-cmds.el
@@ -368,7 +368,9 @@ This also sets the following values:
 		 (coding-system-get coding-system 'ascii-compatible-p)))
 	(setq default-file-name-coding-system coding-system)))
   (setq default-terminal-coding-system coding-system)
-  (setq default-keyboard-coding-system coding-system)
+  ;; Prevent default-terminal-coding-system from converting ^M to ^J.
+  (setq default-keyboard-coding-system
+	(coding-system-change-eol-conversion coding-system 'unix))
   ;; Preserve eol-type from existing default-process-coding-systems.
   ;; On non-unix-like systems in particular, these may have been set
   ;; carefully by the user, or by the startup code, to deal with the