diff --git a/Lib/idlelib/pyshell.py b/Lib/idlelib/pyshell.py
index 81a97ef6d6bcc5..b6172fd6b9bba6 100755
--- a/Lib/idlelib/pyshell.py
+++ b/Lib/idlelib/pyshell.py
@@ -882,7 +882,7 @@ def __init__(self, flist=None):
         self.usetabs = True
         # indentwidth must be 8 when using tabs.  See note in EditorWindow:
         self.indentwidth = 8
-
+        self.context_use_ps1 = True
         self.sys_ps1 = sys.ps1 if hasattr(sys, 'ps1') else '>>> '
         self.prompt_last_line = self.sys_ps1.split('\n')[-1]
         self.prompt = self.sys_ps1  # Changes when debug active
diff --git a/Misc/NEWS.d/next/IDLE/2018-12-28-17-16-33.bpo-34055.TmmpzR.rst b/Misc/NEWS.d/next/IDLE/2018-12-28-17-16-33.bpo-34055.TmmpzR.rst
new file mode 100644
index 00000000000000..7e475fbfa9f3df
--- /dev/null
+++ b/Misc/NEWS.d/next/IDLE/2018-12-28-17-16-33.bpo-34055.TmmpzR.rst
@@ -0,0 +1 @@
+Fix erroneous 'smart' indents and newlines in IDLE Shell.