diff --git a/src/vs/editor/common/controller/textAreaState.ts b/src/vs/editor/common/controller/textAreaState.ts
index 23ac8253b13..808c6a4c2df 100644
--- a/src/vs/editor/common/controller/textAreaState.ts
+++ b/src/vs/editor/common/controller/textAreaState.ts
@@ -163,7 +163,13 @@ export abstract class TextAreaState {
 		if (currentSelectionStart === currentSelectionEnd) {
 			// composition accept case
 			// [blahblah] => blahblah|
-			if (previousValue === currentValue && previousSelectionStart === 0 && previousSelectionEnd === previousValue.length && currentSelectionStart === currentValue.length) {
+			if (
+				previousValue === currentValue
+				&& previousSelectionStart === 0
+				&& previousSelectionEnd === previousValue.length
+				&& currentSelectionStart === currentValue.length
+				&& currentValue.indexOf('\n') === -1
+			) {
 				return {
 					text: '',
 					replaceCharCnt: 0
diff --git a/src/vs/editor/common/model/editableTextModel.ts b/src/vs/editor/common/model/editableTextModel.ts
index c9f124d6e59..0c993916807 100644
--- a/src/vs/editor/common/model/editableTextModel.ts
+++ b/src/vs/editor/common/model/editableTextModel.ts
@@ -334,6 +334,9 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 				currentLineEdits: ILineEdit[] = [],
 				currentLineNumber = 0;
 
+			var lastContentChangedVersionId = this.getVersionId();
+			let lastContentChanged2VersionId = this.getVersionId();
+
 			var adjustLineNumbers = (toLineNumber:number, delta:number): void => {
 				// console.log('adjustLineNumbers: ' + toLineNumber + ' by ' + delta + ', lines.length: ' + this._lines.length);
 				if (delta !== 0) {
@@ -351,6 +354,7 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 				if (editLineNumber !== currentLineNumber) {
 					if (currentLineEdits.length > 0) {
 						this._applyLineEdits(deferredEventsBuilder, currentLineNumber, currentLineEdits);
+						lastContentChangedVersionId = this.getVersionId();
 						currentLineEdits = [];
 					}
 					currentLineNumber = editLineNumber;
@@ -374,14 +378,13 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 				var r = 0;
 				if (currentLineEdits.length > 0) {
 					r = this._applyLineEdits(deferredEventsBuilder, currentLineNumber, currentLineEdits);
+					lastContentChangedVersionId = this.getVersionId();
 					currentLineEdits = [];
 				}
 				currentLineNumber = 0;
 				return r;
 			};
 
-			let lastContentChanged2VersionId = this.getVersionId();
-
 			let lastRealOpIndex = 0;
 			for (let i = operations.length - 1; i >= 0; i--) {
 				if (!operations[i].isNoOp) {
@@ -483,6 +486,7 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 					this.emitModelContentChangedLineChangedEvent(spliceStart);
 
 					this.emitModelContentChangedLinesDeletedEvent(spliceStart + 1, spliceStart + spliceCnt);
+					lastContentChangedVersionId = this.getVersionId();
 					// this.emitModelContentChangedLinesInsertedEvent(startLineNumber + editingLinesCnt + 1, startLineNumber + insertingLinesCnt, newLinesContent.join('\n'));
 				}
 
@@ -521,6 +525,7 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 					this._lines[startLineNumber + insertingLinesCnt - 1].append(deferredEventsBuilder.changedMarkers, leftoverLine);
 
 					this.emitModelContentChangedLinesInsertedEvent(startLineNumber + editingLinesCnt + 1, startLineNumber + insertingLinesCnt, newLinesContent.join('\n'));
+					lastContentChangedVersionId = this.getVersionId();
 				}
 
 				// console.log('~~~');
@@ -548,6 +553,10 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 				this._emitContentChanged2(seqEdit.range.startLineNumber, seqEdit.range.startColumn, seqEdit.range.endLineNumber, seqEdit.range.endColumn, seqEdit.rangeLength, seqEdit.text, this._isUndoing, this._isRedoing);
 			}
 
+			if (this.getVersionId() > lastContentChangedVersionId) {
+				// TODO@Alex: need to rewrite the eventing logic
+				this.emitModelContentChangedLineChangedEventNoVersionBump(baseLineNumber);
+			}
 
 			adjustLineNumbers(this._lines.length, deltaLines);
 		});
@@ -687,8 +696,7 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 		}
 	}
 
-	private emitModelContentChangedLineChangedEvent(lineNumber: number): void {
-		this._increaseVersionId();
+	private emitModelContentChangedLineChangedEventNoVersionBump(lineNumber: number): void {
 		var e:EditorCommon.IModelContentChangedLineChangedEvent = {
 			changeType: EditorCommon.EventType.ModelContentChangedLineChanged,
 			lineNumber: lineNumber,
@@ -702,6 +710,11 @@ export class EditableTextModel extends TextModelWithDecorations implements Edito
 		}
 	}
 
+	private emitModelContentChangedLineChangedEvent(lineNumber: number): void {
+		this._increaseVersionId();
+		this.emitModelContentChangedLineChangedEventNoVersionBump(lineNumber);
+	}
+
 	private emitModelContentChangedLinesDeletedEvent(fromLineNumber: number, toLineNumber: number): void {
 		this._increaseVersionId();
 		var e:EditorCommon.IModelContentChangedLinesDeletedEvent = {
diff --git a/src/vs/editor/test/common/controller/textAreaState.test.ts b/src/vs/editor/test/common/controller/textAreaState.test.ts
index 281f75c41a4..4111d68323f 100644
--- a/src/vs/editor/test/common/controller/textAreaState.test.ts
+++ b/src/vs/editor/test/common/controller/textAreaState.test.ts
@@ -230,6 +230,15 @@ suite('TextAreaState', () => {
 		);
 	});
 
+	test('issue #2586: Replacing selected end-of-line with newline locks up the document', () => {
+		testDeduceInput(
+			new IENarratorTextAreaState(null, ']\n', 1, 2, false, 0),
+			']\n',
+			2, 2, false,
+			'\n', 0
+		);
+	});
+
 	test('extractNewText - no previous state without selection', () => {
 		testDeduceInput(
 			null,
diff --git a/src/vs/editor/test/common/model/editableTextModel.test.ts b/src/vs/editor/test/common/model/editableTextModel.test.ts
index af35fdc1632..db3c404579a 100644
--- a/src/vs/editor/test/common/model/editableTextModel.test.ts
+++ b/src/vs/editor/test/common/model/editableTextModel.test.ts
@@ -1174,6 +1174,22 @@ suite('EditorModel - EditableTextModel.applyEdits', () => {
 		);
 	});
 
+	test('issue #2586 Replacing selected end-of-line with newline locks up the document', () => {
+		testApplyEdits(
+			[
+				'something',
+				'interesting'
+			],
+			[
+				editOp(1, 10, 2, 1, ['', ''])
+			],
+			[
+				'something',
+				'interesting'
+			]
+		);
+	});
+
 	function assertSyncedModels(text:string, callback:(model:EditableTextModel, assertMirrorModels:()=>void)=>void, setup:(model:EditableTextModel)=>void = null): void {
 		var model = new EditableTextModel([], TextModel.toRawText(text), null);
 		model.setEOL(EditorCommon.EndOfLineSequence.LF);