diff --git a/lisp/ChangeLog b/lisp/ChangeLog
index f78240cdced..01ccb886434 100644
--- a/lisp/ChangeLog
+++ b/lisp/ChangeLog
@@ -1,3 +1,8 @@
+2012-11-15  Glenn Morris  <rgm@gnu.org>
+
+	* term.el (ansi-term): Don't let C-x escape-char binding
+	clobber the more standard C-c binding.  (Bug#12842)
+
 2012-11-15  Stefan Monnier  <monnier@iro.umontreal.ca>
 
 	* emacs-lisp/gv.el (setf): Fix debug spec for multiple assignments
diff --git a/lisp/term.el b/lisp/term.el
index e6466b8fa95..d6acaef1ae9 100644
--- a/lisp/term.el
+++ b/lisp/term.el
@@ -4178,11 +4178,16 @@ the process.  Any more args are arguments to PROGRAM."
   (term-mode)
   (term-char-mode)
 
-  ;; I wanna have find-file on C-x C-f -mm
-  ;; your mileage may definitely vary, maybe it's better to put this in your
-  ;; .emacs ...
-
-  (term-set-escape-char ?\C-x)
+  ;; Historical baggage.  A call to term-set-escape-char used to not
+  ;; undo any previous call to t-s-e-c.  Because of this, ansi-term
+  ;; ended up with both C-x and C-c as escape chars.  Who knows what
+  ;; the original intention was, but people could have become used to
+  ;; either.   (Bug#12842)
+  (let (term-escape-char)
+    ;; I wanna have find-file on C-x C-f -mm
+    ;; your mileage may definitely vary, maybe it's better to put this in your
+    ;; .emacs ...
+    (term-set-escape-char ?\C-x))
 
   (switch-to-buffer term-ansi-buffer-name))