diff --git a/ChangeLog b/ChangeLog
index 8c055461..7e1e7f68 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,8 +1,11 @@
 2012-03-03  Paul Smith  <psmith@gnu.org>
 
+	* job.c (construct_command_argv_internal): In oneshell we need to
+	break the SHELLFLAGS up for argv.  Fixes Savannah bug #35397.
+
 	* function.c (func_filter_filterout): Recompute the length of each
 	filter word in case it was compressed due to escape chars.  Don't
-	reset the string as it's freed.  See Savannah bug #35410.
+	reset the string as it's freed.  Fixes Savannah bug #35410.
 
 	* misc.c (collapse_continuations): Only use POSIX-style
 	backslash/newline handling if the .POSIX target is set.
diff --git a/job.c b/job.c
index d56bfe9e..82612c0f 100644
--- a/job.c
+++ b/job.c
@@ -2960,11 +2960,29 @@ construct_command_argv_internal (char *line, char **restp, char *shell,
             *t = '\0';
           }
 
-	new_argv = xmalloc (4 * sizeof (char *));
-	new_argv[0] = xstrdup(shell);
-	new_argv[1] = xstrdup(shellflags ? shellflags : "");
-	new_argv[2] = line;
-	new_argv[3] = NULL;
+        /* Create an argv list for the shell command line.  */
+        {
+          int n = 0;
+
+          new_argv = xmalloc ((4 + sflags_len/2) * sizeof (char *));
+          new_argv[n++] = xstrdup (shell);
+
+          /* Chop up the shellflags (if any) and assign them.  */
+          if (! shellflags)
+            new_argv[n++] = xstrdup ("");
+          else
+            {
+              const char *s = shellflags;
+              char *t;
+              unsigned int len;
+              while ((t = find_next_token (&s, &len)) != 0)
+                new_argv[n++] = xstrndup (t, len);
+            }
+
+          /* Set the command to invoke.  */
+          new_argv[n++] = line;
+          new_argv[n++] = NULL;
+        }
 	return new_argv;
       }
 
diff --git a/tests/ChangeLog b/tests/ChangeLog
index 2c2284fa..7e7db501 100644
--- a/tests/ChangeLog
+++ b/tests/ChangeLog
@@ -1,5 +1,11 @@
 2012-03-03  Paul Smith  <psmith@gnu.org>
 
+	* scripts/variables/SHELL: Ensure .SHELLFLAGS works with options
+	separated by whitespace.
+
+	* scripts/targets/ONESHELL: Try .ONESHELL in combination with
+	whitespace-separated options in .SHELLFLAGS.  See Savannah bug #35397.
+
 	* scripts/functions/filter-out: Add filter tests and test escape
 	operations.  See Savannah bug #35410.
 
diff --git a/tests/scripts/targets/ONESHELL b/tests/scripts/targets/ONESHELL
index 997423f4..0660e925 100644
--- a/tests/scripts/targets/ONESHELL
+++ b/tests/scripts/targets/ONESHELL
@@ -17,6 +17,19 @@ all:
 [ 0"$a" -eq "$$" ] || echo fail
 ');
 
+# Simple but use multi-word SHELLFLAGS
+
+run_make_test(q!
+.ONESHELL:
+.SHELLFLAGS = -e -c
+all:
+	a=$$$$
+	[ 0"$$a" -eq "$$$$" ] || echo fail
+!,
+              '', 'a=$$
+[ 0"$a" -eq "$$" ] || echo fail
+');
+
 # Again, but this time with inner prefix chars
 
 run_make_test(q!
diff --git a/tests/scripts/variables/SHELL b/tests/scripts/variables/SHELL
index 4416ce13..3d49349b 100644
--- a/tests/scripts/variables/SHELL
+++ b/tests/scripts/variables/SHELL
@@ -64,6 +64,14 @@ my $script = 'true; true';
 my $flags = '-xc';
 my $out = `/bin/sh $flags '$script' 2>&1`;
 
+run_make_test(qq!
+.SHELLFLAGS = $flags
+all: ; \@$script
+!,
+              '', $out);
+
+# Do it again but add spaces to SHELLFLAGS
+$flags = '-x -c';
 run_make_test(qq!
 .SHELLFLAGS = $flags
 all: ; \@$script