diff --git a/spec/app/edit-session-spec.coffee b/spec/app/edit-session-spec.coffee
index 98169e109..51a1fa12f 100644
--- a/spec/app/edit-session-spec.coffee
+++ b/spec/app/edit-session-spec.coffee
@@ -1015,6 +1015,14 @@ describe "EditSession", ->
             expect(cursor2.getBufferPosition()).toEqual [8,0]
 
     describe ".insertNewlineBelow()", ->
+      describe "when the operation is undone", ->
+        it "places the cursor back at the previous location", ->
+          editSession.setCursorBufferPosition([0,2])
+          editSession.insertNewlineBelow()
+          expect(editSession.getCursorBufferPosition()).toEqual [1,0]
+          editSession.undo()
+          expect(editSession.getCursorBufferPosition()).toEqual [0,2]
+
       xit "inserts a newline below the cursor's current line, autoindents it, and moves the cursor to the end of the line", ->
         editSession.setAutoIndent(true)
         editSession.insertNewlineBelow()
diff --git a/src/app/edit-session.coffee b/src/app/edit-session.coffee
index 326d5dd4b..77e8360f2 100644
--- a/src/app/edit-session.coffee
+++ b/src/app/edit-session.coffee
@@ -171,8 +171,9 @@ class EditSession
     @insertText('\n')
 
   insertNewlineBelow: ->
-    @moveCursorToEndOfLine()
-    @insertNewline()
+    @transact =>
+      @moveCursorToEndOfLine()
+      @insertNewline()
 
   insertNewlineAbove: ->
     @transact =>