diff --git a/src/ChangeLog b/src/ChangeLog
index f7e0e94f..97eca1fa 100644
--- a/src/ChangeLog
+++ b/src/ChangeLog
@@ -1,3 +1,8 @@
+2003-10-26  Hrvoje Niksic  <hniksic@xemacs.org>
+
+	* netrc.c (parse_netrc): Reset the QUOTE flag after the closing
+	quote.
+
 2003-10-25  Hrvoje Niksic  <hniksic@xemacs.org>
 
 	* url.c (is_valid_ipv6_address): Reformat to GNU coding style.
diff --git a/src/netrc.c b/src/netrc.c
index 91a1d80e..1a16b0a8 100644
--- a/src/netrc.c
+++ b/src/netrc.c
@@ -328,9 +328,13 @@ parse_netrc (const char *path)
 	    p ++;
 	  }
 
-	  /* if field was quoted, squash the trailing quotation mark */
+	  /* If field was quoted, squash the trailing quotation mark
+	     and reset quote flag.  */
 	  if (quote)
-	    shift_left(p);
+	    {
+	      shift_left (p);
+	      quote = 0;
+	    }
 
 	  /* Null-terminate the token, if it isn't already.  */
 	  if (*p)