Index: pdb.py
===================================================================
--- pdb.py	(revision 80760)
+++ pdb.py	(working copy)
@@ -61,7 +61,7 @@
     def __init__(self, completekey='tab', stdin=None, stdout=None, skip=None):
         bdb.Bdb.__init__(self, skip=skip)
         cmd.Cmd.__init__(self, completekey, stdin, stdout)
-        if stdout:
+        if stdout is not None and stdout is not sys.stdout:
             self.use_rawinput = 0
         self.prompt = '(Pdb) '
         self.aliases = {}
Index: doctest.py
===================================================================
--- doctest.py	(revision 80760)
+++ doctest.py	(working copy)
@@ -1361,7 +1361,6 @@
         save_stdout = sys.stdout
         if out is None:
             out = save_stdout.write
-        sys.stdout = self._fakeout
 
         # Patch pdb.set_trace to restore sys.stdout during interactive
         # debugging (so it's not still redirected to self._fakeout).
@@ -1373,6 +1372,8 @@
         self.debugger.reset()
         pdb.set_trace = self.debugger.set_trace
 
+        sys.stdout = self._fakeout
+
         # Patch linecache.getlines, so we can see the example's source
         # when we're inside the debugger.
         self.save_linecache_getlines = linecache.getlines
Index: test/test_pdb.py
===================================================================
--- test/test_pdb.py	(revision 80760)
+++ test/test_pdb.py	(working copy)
@@ -3,6 +3,7 @@
 
 import imp
 import sys
+import unittest
 
 from test import test_support
 # This little helper class is essential for testing pdb under doctest.
@@ -126,10 +127,36 @@
     """
 
 
+import pdb
+class TestPdbReadline (unittest.TestCase):
+
+    def setUp (self):
+        self.iscalled = False
+        def fake_rawinput (prompt):
+            self.iscalled = True
+            return self.real_rawinput (prompt)
+        self.real_rawinput = __builtins__.raw_input
+        self.real_stdin = sys.stdin
+        sys.stdin = _FakeInput (["continue"])
+        __builtins__.raw_input = fake_rawinput
+        self.pdb_inst = pdb.Pdb (stdout = sys.stdout, stdin = sys.stdin)
+        self.pdb_inst.set_trace (sys._getframe())
+
+    def testreadline (self):
+        self.assertEqual(self.iscalled, True)
+
+    def tearDown (self):
+        __builtins__.raw_input = self.real_rawinput
+        sys.stdin = self.real_stdin
+
+
+
+
 def test_main():
     from test import test_pdb
     test_support.run_doctest(test_pdb, verbosity=True)
+    suite = unittest.TestLoader().loadTestsFromTestCase(TestPdbReadline)
+    unittest.TextTestRunner(verbosity=1).run(suite)
 
-
 if __name__ == '__main__':
     test_main()