diff --git a/lib/ace/document.js b/lib/ace/document.js
index 490ee225..b0e7d2d8 100644
--- a/lib/ace/document.js
+++ b/lib/ace/document.js
@@ -183,10 +183,17 @@ var Document = function(text) {
             var end = this.insertInLine(position, text);
         }
         else {
+            // Insert the first line
             if (newLines[0].length > 0) {
                 var end = this.insertInLine(position, newLines[0]);
                 this.insertNewLine(end);
             }
+            else {
+                this.insertNewLine(position);
+            }
+
+            // Now insert remaining lines
+
             // If we are inserting at the end of the document, we don't need to
             // use insertInLine (concorde depends on this optimization!)
             if (position.row + 1 == this.getLength()) {
diff --git a/lib/ace/test/edit_session_test.js b/lib/ace/test/edit_session_test.js
index f5b72140..3cb061bb 100644
--- a/lib/ace/test/edit_session_test.js
+++ b/lib/ace/test/edit_session_test.js
@@ -325,6 +325,20 @@ var Test = {
         assert.equal(session.$wrapData.length, 2);
         assert.equal(session.$wrapData[0].length, 1);
         assert.equal(session.$wrapData[1].length, 1);
+    },
+
+    "test first line blank with wrap": function() {
+        var session = new EditSession("\nfoo");
+        session.setUseWrapMode(true);
+        assert.equal(session.doc.getValue(), ["", "foo"].join("\n"));
+    },
+
+    "test first line blank with wrap 2" : function() {
+        var session = new EditSession("");
+        session.setUseWrapMode(true);
+        session.setValue("\nfoo");
+
+        assert.equal(session.doc.getValue(), ["", "foo"].join("\n"));
     }
 };