diff --git a/dlls/riched20/caret.c b/dlls/riched20/caret.c
index a58d9f0710b..f6e0d7f419d 100644
--- a/dlls/riched20/caret.c
+++ b/dlls/riched20/caret.c
@@ -435,6 +435,9 @@ void ME_InsertTextFromCursor(ME_TextEditor *editor, int nCursor,
   /* Didn't affect performance for WM_SETTEXT (around 50sec/30K) */
   int freeSpace = editor->nTextLimit - ME_GetTextLength(editor);
 
+  /* text operations set modified state */
+  editor->nModifyStep = 1;
+
   assert(style);
 
   /* FIXME really HERE ? */
diff --git a/dlls/riched20/editor.c b/dlls/riched20/editor.c
index 738a6fc006e..c939c81365b 100644
--- a/dlls/riched20/editor.c
+++ b/dlls/riched20/editor.c
@@ -1639,6 +1639,7 @@ LRESULT WINAPI RichEditANSIWndProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lP
     size_t len = wszText ? lstrlenW(wszText) : 0;
     int from, to;
     ME_Style *style;
+    int oldModify = editor->nModifyStep;
     TRACE("EM_SETTEXTEX - %s, flags %d, cp %d\n", debugstr_w(wszText), (int)pStruct->flags, pStruct->codepage);
     if (pStruct->codepage != 1200) {
       FIXME("EM_SETTEXTEX only supports unicode right now!\n"); 
@@ -1659,7 +1660,10 @@ LRESULT WINAPI RichEditANSIWndProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lP
     }
     ME_CommitUndo(editor);
     if (!(pStruct->flags & ST_KEEPUNDO))
+    {
+      editor->nModifyStep = oldModify;
       ME_EmptyUndoStack(editor);
+    }
     ME_UpdateRepaint(editor);
     return len;
   }
@@ -1690,7 +1694,7 @@ LRESULT WINAPI RichEditANSIWndProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lP
   case EM_SETMODIFY:
   {
     if (wParam)
-      editor->nModifyStep = 0x80000000;
+      editor->nModifyStep = 1;
     else
       editor->nModifyStep = 0;
     
@@ -1732,6 +1736,7 @@ LRESULT WINAPI RichEditANSIWndProc(HWND hWnd, UINT msg, WPARAM wParam, LPARAM lP
       bRepaint = (from != to);
       ME_SetSelectionCharFormat(editor, p);
     }
+    editor->nModifyStep = 1;
     ME_CommitUndo(editor);
     if (bRepaint)
       ME_RewrapRepaint(editor);
diff --git a/dlls/riched20/tests/editor.c b/dlls/riched20/tests/editor.c
index 281206a5516..687ab257371 100644
--- a/dlls/riched20/tests/editor.c
+++ b/dlls/riched20/tests/editor.c
@@ -1192,10 +1192,8 @@ static void test_EM_GETMODIFY(void)
   SendMessage(hwndRichEdit, EM_SETMODIFY, FALSE, 0);
   SendMessage(hwndRichEdit, WM_SETFONT, (WPARAM)testFont,(LPARAM) MAKELONG((WORD) TRUE, 0));
   result = SendMessage(hwndRichEdit, EM_GETMODIFY, 0, 0);
-  todo_wine {
   ok (result == 0,
       "EM_GETMODIFY returned non-zero, instead of zero on setting font\n");
-  }
 
   /* setting text should set modify flag */
   SendMessage(hwndRichEdit, EM_SETMODIFY, FALSE, 0);
@@ -1207,20 +1205,16 @@ static void test_EM_GETMODIFY(void)
   /* undo previous text doesn't reset modify flag */
   SendMessage(hwndRichEdit, WM_UNDO, 0, 0);
   result = SendMessage(hwndRichEdit, EM_GETMODIFY, 0, 0);
-  todo_wine {
   ok (result != 0,
       "EM_GETMODIFY returned zero, instead of non-zero on undo after setting text\n");
-  }
   
   /* set text with no flag to keep undo stack should not set modify flag */
   SendMessage(hwndRichEdit, EM_SETMODIFY, FALSE, 0);
   setText.flags = 0;
   SendMessage(hwndRichEdit, EM_SETTEXTEX, (WPARAM)&setText, (LPARAM)TestItem1);
   result = SendMessage(hwndRichEdit, EM_GETMODIFY, 0, 0);
-  todo_wine {
   ok (result == 0,
       "EM_GETMODIFY returned non-zero, instead of zero when setting text while not keeping undo stack\n");
-  }
   
   /* WM_SETTEXT doesn't modify */
   SendMessage(hwndRichEdit, EM_SETMODIFY, FALSE, 0);
@@ -1295,10 +1289,8 @@ static void test_EM_GETMODIFY(void)
   pf2.wAlignment = PFA_RIGHT;
   SendMessage(hwndRichEdit, EM_SETPARAFORMAT, 0, (LPARAM) &pf2);
   result = SendMessage(hwndRichEdit, EM_GETMODIFY, 0, 0);
-  todo_wine {
   ok (result == 0,
       "EM_GETMODIFY returned zero, instead of non-zero for EM_SETPARAFORMAT\n");
-  }
 
   /* EM_STREAM */
   SendMessage(hwndRichEdit, EM_SETMODIFY, FALSE, 0);
diff --git a/dlls/riched20/undo.c b/dlls/riched20/undo.c
index 181121a3777..88de04aec2c 100644
--- a/dlls/riched20/undo.c
+++ b/dlls/riched20/undo.c
@@ -163,7 +163,6 @@ void ME_CommitUndo(ME_TextEditor *editor) {
     
   ME_AddUndoItem(editor, diUndoEndTransaction, NULL);
   ME_SendSelChange(editor);
-  editor->nModifyStep++;
 }
 
 void ME_PlayUndoItem(ME_TextEditor *editor, ME_DisplayItem *pItem)
@@ -260,7 +259,6 @@ void ME_Undo(ME_TextEditor *editor) {
   if (p)
     p->prev = NULL;
   editor->nUndoMode = nMode;
-  editor->nModifyStep--;
   ME_UpdateRepaint(editor);
 }
 
@@ -293,6 +291,5 @@ void ME_Redo(ME_TextEditor *editor) {
   if (p)
     p->prev = NULL;
   editor->nUndoMode = nMode;
-  editor->nModifyStep++;
   ME_UpdateRepaint(editor);
 }