diff --git a/daemon.c b/daemon.c
index 652f89b6e7..72dfeaf6e2 100644
--- a/daemon.c
+++ b/daemon.c
@@ -760,10 +760,8 @@ static int execute(void)
 	alarm(0);
 
 	len = strlen(line);
-	if (len && line[len-1] == '\n') {
-		line[--len] = 0;
-		pktlen--;
-	}
+	if (len && line[len-1] == '\n')
+		line[len-1] = 0;
 
 	/* parse additional args hidden behind a NUL byte */
 	if (len != pktlen)
diff --git a/t/t5570-git-daemon.sh b/t/t5570-git-daemon.sh
index b556469db6..755b05a8ae 100755
--- a/t/t5570-git-daemon.sh
+++ b/t/t5570-git-daemon.sh
@@ -196,5 +196,20 @@ test_expect_success 'daemon log records all attributes' '
 	test_cmp expect actual
 '
 
+test_expect_success FAKENC 'hostname interpolation works after LF-stripping' '
+	{
+		printf "git-upload-pack /interp.git\n\0host=localhost" | packetize
+		printf "0000"
+	} >input &&
+	fake_nc "$GIT_DAEMON_HOST_PORT" <input >output &&
+	depacketize <output >output.raw &&
+
+	# just pick out the value of master, which avoids any protocol
+	# particulars
+	perl -lne "print \$1 if m{^(\\S+) refs/heads/master}" <output.raw >actual &&
+	git -C "$repo" rev-parse master >expect &&
+	test_cmp expect actual
+'
+
 stop_git_daemon
 test_done