diff --git a/kitty/rewrap.c b/kitty/rewrap.c
index edd87f766..778e76580 100644
--- a/kitty/rewrap.c
+++ b/kitty/rewrap.c
@@ -84,6 +84,8 @@ typedef struct Rewrap {
     init_line_func_t init_line;
     first_dest_line_func_t first_dest_line;
     next_dest_line_func_t next_dest_line;
+    LineBuf *scratch;
+    bool current_dest_line_has_multiline_cells, current_src_line_has_multline_cells, prev_src_line_ended_with_wrap;
 } Rewrap;
 
 static void
@@ -93,7 +95,7 @@ copy_range(Line *src, index_type src_at, Line* dest, index_type dest_at, index_t
 }
 
 static void
-init_line(TextCache *tc, index_type xnum, Line *l) {
+setup_line(TextCache *tc, index_type xnum, Line *l) {
     l->text_cache = tc;
     l->xnum = xnum;
 }
@@ -102,6 +104,18 @@ static void
 next_dest_line(Rewrap *r, bool continued) {
     r->dest_y = r->next_dest_line(r->dest_buf, r->historybuf, r->as_ansi_buf, &r->src, r->dest_y, &r->dest, continued);
     r->dest_x = 0;
+    r->current_dest_line_has_multiline_cells = false;
+    if (r->scratch->line_attrs[0].has_dirty_text) {
+        CPUCell *cpu_cells; GPUCell *gpu_cells;
+        linebuf_init_cells(r->scratch, 0, &cpu_cells, &gpu_cells);
+        memcpy(r->dest.cpu_cells, cpu_cells, r->dest_xnum * sizeof(cpu_cells[0]));
+        memcpy(r->dest.gpu_cells, gpu_cells, r->dest_xnum * sizeof(gpu_cells[0]));
+        r->current_dest_line_has_multiline_cells = true;
+    }
+    linebuf_index(r->scratch, 0, r->scratch->ynum - 1);
+    if (r->scratch->line_attrs[r->scratch->ynum - 1].has_dirty_text) {
+        linebuf_clear_line(r->scratch, r->scratch->ynum - 1, true);
+    }
 }
 
 static void
@@ -109,45 +123,52 @@ first_dest_line(Rewrap *r) {
     r->dest_y = r->first_dest_line(r->dest_buf, r->as_ansi_buf, &r->src, &r->dest);
 }
 
+static bool
+init_src_line(Rewrap *r) {
+    bool newline_needed = !r->prev_src_line_ended_with_wrap;
+    r->init_line(r->src_buf, r->src_y, &r->src);
+    r->src_x_limit = r->src_xnum;
+    if (!r->src.cpu_cells[r->src_xnum-1].next_char_was_wrapped) {
+        // Trim trailing blanks since there is a hard line break at the end of this line
+        while(r->src_x_limit && r->src.cpu_cells[r->src_x_limit - 1].ch_and_idx == BLANK_CHAR) r->src_x_limit--;
+    }
+    r->prev_src_line_ended_with_wrap = r->src.cpu_cells[r->src_xnum - 1].next_char_was_wrapped;
+    r->src.cpu_cells[r->src_xnum - 1].next_char_was_wrapped = false;
+    r->src_x = 0;
+    for (TrackCursor *t = r->cursors; !t->is_sentinel; t++) {
+        if (r->src_y == t->y) {
+            t->is_tracked_line = true;
+            if (t->x >= r->src_x_limit) t->x = MAX(1u, r->src_x_limit) - 1;
+        } else t->is_tracked_line = false;
+    }
+    return newline_needed;
+}
+
 static index_type
 rewrap_inner(Rewrap r) {
-    init_line(r.text_cache, r.src_xnum, &r.src); init_line(r.text_cache, r.dest_xnum, &r.dest);
+    setup_line(r.text_cache, r.src_xnum, &r.src); setup_line(r.text_cache, r.dest_xnum, &r.dest);
     static TrackCursor tc_end = {.is_sentinel = true };
     if (!r.cursors) r.cursors = &tc_end;
-    bool is_first_line = true, src_line_is_continued = false;
-    while (r.src_y < r.src_limit) {
-        for (TrackCursor *t = r.cursors; !t->is_sentinel; t++) t->is_tracked_line = r.src_y == t->y;
-        r.init_line(r.src_buf, r.src_y, &r.src);
-        r.src_x_limit = r.src.xnum;
-        if (!src_line_is_continued) {
-            if (is_first_line) { is_first_line = false; first_dest_line(&r); }
-            else next_dest_line(&r, false);
+    r.scratch = alloc_linebuf(SCALE_BITS << 1, r.dest_xnum, r.text_cache);
+    if (!r.scratch) fatal("Out of memory");
+    RAII_PyObject(scratch, (PyObject*)r.scratch);
+    for (; r.src_y < r.src_limit; r.src_y++) {
+        if (init_src_line(&r)) {
+            if (r.src_y) next_dest_line(&r, false);
+            else first_dest_line(&r);
         }
-        src_line_is_continued = r.src.cpu_cells[r.src.xnum-1].next_char_was_wrapped;
-        if (!src_line_is_continued) {
-            // Trim trailing blanks since there is a hard line break at the end of this line
-            while(r.src_x_limit && r.src.cpu_cells[r.src_x_limit - 1].ch_and_idx == BLANK_CHAR) r.src_x_limit--;
-        } else {
-            r.src.cpu_cells[r.src.xnum-1].next_char_was_wrapped = false;
-        }
-        if (r.src_x_limit) {
+        while (r.src_x < r.src_x_limit) {
+            if (r.dest_x >= r.dest_xnum) next_dest_line(&r, true);
+            index_type num = MIN(r.src.xnum - r.src_x, r.dest_xnum - r.dest_x);
+            copy_range(&r.src, r.src_x, &r.dest, r.dest_x, num);
             for (TrackCursor *t = r.cursors; !t->is_sentinel; t++) {
-                if (t->is_tracked_line && t->x >= r.src_x_limit) t->x = MAX(1u, r.src_x_limit) - 1;
-            }
-            while (r.src_x < r.src_x_limit) {
-                if (r.dest_x >= r.dest.xnum) next_dest_line(&r, true);
-                index_type num = MIN(r.src.xnum - r.src_x, r.dest.xnum - r.dest_x);
-                copy_range(&r.src, r.src_x, &r.dest, r.dest_x, num);
-                for (TrackCursor *t = r.cursors; !t->is_sentinel; t++) {
-                    if (t->is_tracked_line && r.src_x <= t->x && t->x < r.src_x + num) {
-                        t->y = r.dest_y;
-                        t->x = r.dest_x + (t->x - r.src_x + (t->x > 0));
-                    }
+                if (t->is_tracked_line && r.src_x <= t->x && t->x < r.src_x + num) {
+                    t->y = r.dest_y;
+                    t->x = r.dest_x + (t->x - r.src_x + (t->x > 0));
                 }
-                r.src_x += num; r.dest_x += num;
             }
+            r.src_x += num; r.dest_x += num;
         }
-        r.src_y++; r.src_x = 0;
     }
     return r.dest_y;
 }