diff --git a/lib/readline.js b/lib/readline.js
index 2de74397be6..02d15527cd8 100644
--- a/lib/readline.js
+++ b/lib/readline.js
@@ -656,8 +656,13 @@ Interface.prototype._ttyWrite = function(s, key) {
                 self.pause();
                 self.emit('SIGCONT');
               }
+              // explictly re-enable "raw mode" and move the cursor to the correct
+              // position. See https://github.com/joyent/node/issues/3295.
+              self._setRawMode(true);
+              self._refreshLine();
             };
           })(this));
+          this._setRawMode(false);
           process.kill(process.pid, 'SIGTSTP');
         }
         break;