diff --git a/c64/kernal/chrout.s b/c64/kernal/chrout.s
index 8fbb5309..7d6c1d03 100644
--- a/c64/kernal/chrout.s
+++ b/c64/kernal/chrout.s
@@ -34,6 +34,10 @@ not_0a:
 	;; Carriage return
 	cmp #$0d
 	bne not_0d
+	;; RETURN clears quote and insert modes
+	lda #$00
+	sta quote_mode_flag
+	sta insert_mode
 	jmp screen_advance_to_next_line
 not_0d: