diff --git a/terminal.go b/terminal.go
index 965f0cf..741eeb1 100644
--- a/terminal.go
+++ b/terminal.go
@@ -789,6 +789,10 @@ func (t *Terminal) SetSize(width, height int) error {
 		// If the width didn't change then nothing else needs to be
 		// done.
 		return nil
+	case len(t.line) == 0 && t.cursorX == 0 && t.cursorY == 0:
+		// If there is nothing on current line and no prompt printed,
+		// just do nothing
+		return nil
 	case width < oldWidth:
 		// Some terminals (e.g. xterm) will truncate lines that were
 		// too long when shinking. Others, (e.g. gnome-terminal) will
diff --git a/terminal_test.go b/terminal_test.go
index 6579801..a663fe4 100644
--- a/terminal_test.go
+++ b/terminal_test.go
@@ -241,3 +241,29 @@ func TestPasswordNotSaved(t *testing.T) {
 		t.Fatalf("password was saved in history")
 	}
 }
+
+var setSizeTests = []struct {
+	width, height int
+}{
+	{40, 13},
+	{80, 24},
+	{132, 43},
+}
+
+func TestTerminalSetSize(t *testing.T) {
+	for _, setSize := range setSizeTests {
+		c := &MockTerminal{
+			toSend:       []byte("password\r\x1b[A\r"),
+			bytesPerRead: 1,
+		}
+		ss := NewTerminal(c, "> ")
+		ss.SetSize(setSize.width, setSize.height)
+		pw, _ := ss.ReadPassword("Password: ")
+		if pw != "password" {
+			t.Fatalf("failed to read password, got %s", pw)
+		}
+		if string(c.received) != "Password: \r\n" {
+			t.Errorf("failed to set the temporary prompt expected %q, got %q", "Password: ", c.received)
+		}
+	}
+}