diff --git a/app/src/processing/app/syntax/JEditTextArea.java b/app/src/processing/app/syntax/JEditTextArea.java
index 5fb7392db5..6d936b2e5d 100644
--- a/app/src/processing/app/syntax/JEditTextArea.java
+++ b/app/src/processing/app/syntax/JEditTextArea.java
@@ -1434,10 +1434,24 @@ public final String getSelectedText()
    * @param selectedText The replacement text for the selection
    */
   public void setSelectedText(String selectedText) {
+    setSelectedText(selectedText, false);
+  }
+
+
+  /**
+   * Replaces the selection with the specified text.
+   * @param selectedText The replacement text for the selection
+   * @param recordCompoundEdit Whether the replacement should be 
+   * recorded as a compound edit
+   */
+  public void setSelectedText(String selectedText, boolean recordCompoundEdit) {
     if (!editable) {
       throw new InternalError("Text component read only");
     }
-    document.beginCompoundEdit();
+    
+    if (recordCompoundEdit) {
+      document.beginCompoundEdit();
+    }
 
     try {
       if (rectSelect) {
@@ -1494,7 +1508,10 @@ public void setSelectedText(String selectedText) {
 
     } finally {
       // No matter what happens... stops us from leaving document in a bad state
-      document.endCompoundEdit();
+      // (provided this has to be recorded as a compound edit, of course...)
+      if (recordCompoundEdit) {
+        document.endCompoundEdit();
+      }
     }
     setCaretPosition(selectionEnd);
   }
@@ -1566,7 +1583,10 @@ public void overwriteSetSelectedText(String str)
     // Don't overstrike if there is a selection
     if(!overwrite || selectionStart != selectionEnd)
     {
-      setSelectedText(str);
+      // record the whole operation as a compound edit if 
+      // selected text is being replaced
+      boolean isSelectAndReplaceOp = (selectionStart != selectionEnd);
+      setSelectedText(str, isSelectAndReplaceOp);
       return;
     }
 
@@ -1576,12 +1596,10 @@ public void overwriteSetSelectedText(String str)
     int caretLineEnd = getLineStopOffset(getCaretLine());
     if(caretLineEnd - caret <= str.length())
     {
-      setSelectedText(str);
+      setSelectedText(str, false);
       return;
     }
 
-    document.beginCompoundEdit();
-
     try
     {
       document.remove(caret,str.length());
@@ -1591,10 +1609,6 @@ public void overwriteSetSelectedText(String str)
     {
       bl.printStackTrace();
     }
-    finally
-    {
-      document.endCompoundEdit();
-    }
   }
 
   /**
diff --git a/app/src/processing/app/ui/Editor.java b/app/src/processing/app/ui/Editor.java
index 47081b99e1..3343b5b21f 100644
--- a/app/src/processing/app/ui/Editor.java
+++ b/app/src/processing/app/ui/Editor.java
@@ -297,7 +297,7 @@ public BasicSplitPaneDivider createDefaultDivider() {
       String lastText = textarea.getText();
       public void caretUpdate(CaretEvent e) {
         String newText = textarea.getText();
-        if (lastText.equals(newText) && isDirectEdit()) {
+        if (lastText.equals(newText) && isDirectEdit() && !textarea.isOverwriteEnabled()) {
           endTextEditHistory();
         }
         lastText = newText;
@@ -1572,6 +1572,11 @@ public void setSelectedText(String what) {
   }
 
 
+  public void setSelectedText(String what, boolean ever) {
+    textarea.setSelectedText(what, ever);
+  }
+
+
   public void setSelection(int start, int stop) {
     // make sure that a tool isn't asking for a bad location
     start = PApplet.constrain(start, 0, textarea.getDocumentLength());
@@ -1711,7 +1716,20 @@ public void setCode(SketchCode code) {
     SyntaxDocument document = (SyntaxDocument) code.getDocument();
 
     if (document == null) {  // this document not yet inited
-      document = new SyntaxDocument();
+      document = new SyntaxDocument() {
+        @Override
+        public void beginCompoundEdit() {
+          if (compoundEdit == null)
+            startCompoundEdit();
+          super.beginCompoundEdit();
+        }
+        
+        @Override
+        public void endCompoundEdit() {
+          stopCompoundEdit();
+          super.endCompoundEdit();
+        }
+      };
       code.setDocument(document);
 
       // turn on syntax highlighting
@@ -1730,17 +1748,20 @@ public void setCode(SketchCode code) {
       document.addDocumentListener(new DocumentListener() {
 
         public void removeUpdate(DocumentEvent e) {
-          if (isInserting && isDirectEdit()) {
+          if (isInserting && isDirectEdit() && !textarea.isOverwriteEnabled()) {
             endTextEditHistory();
           }
           isInserting = false;
         }
 
         public void insertUpdate(DocumentEvent e) {
-          if (!isInserting && isDirectEdit()) {
+          if (!isInserting && !textarea.isOverwriteEnabled() && isDirectEdit()) {
             endTextEditHistory();
           }
-          isInserting = true;
+          
+          if (!textarea.isOverwriteEnabled()) {
+            isInserting = true;
+          }
         }
 
         public void changedUpdate(DocumentEvent e) {
diff --git a/app/src/processing/app/ui/FindReplace.java b/app/src/processing/app/ui/FindReplace.java
index cf4ae60477..b9e9409cac 100644
--- a/app/src/processing/app/ui/FindReplace.java
+++ b/app/src/processing/app/ui/FindReplace.java
@@ -417,15 +417,27 @@ protected void setFound(boolean found) {
     replaceAndFindButton.setEnabled(found);
   }
 
+/**
+ * Replace the current selection with whatever's in the
+   * replacement text field.
+ * @param isCompoundEdit True if the action is to be marked as a copmound edit
+ */
+  public void replace(boolean isCompoundEdit) {
+    editor.setSelectedText(replaceField.getText(), isCompoundEdit);
+    
+    editor.getSketch().setModified(true);  // This necessary- calling replace()
+    // doesn't seem to mark a sketch as modified
+    
+    setFound(false);
+  }
+
 
   /**
    * Replace the current selection with whatever's in the
-   * replacement text field.
+   * replacement text field, marking the action as a compound edit.
    */
   public void replace() {
-    editor.setSelectedText(replaceField.getText());
-    editor.getSketch().setModified(true);  // TODO is this necessary?
-    setFound(false);
+    replace(true);
   }
 
 
@@ -451,6 +463,8 @@ public void replaceAll() {
     int startTab = -1;
     int startIndex = -1;
     int counter = 10000;  // prevent infinite loop
+
+    editor.startCompoundEdit();
     while (--counter > 0) {
       if (find(false, false)) {
         int caret = editor.getSelectionStart();
@@ -467,11 +481,12 @@ public void replaceAll() {
           startTab = editor.getSketch().getCurrentCodeIndex();
           startIndex = editor.getSelectionStart();
         }
-        replace();
+        replace(false);
      } else {
         break;
       }
     }
+    editor.stopCompoundEdit();
     if (!foundAtLeastOne) {
       Toolkit.beep();
     }