Index: Python/pythonrun.c
===================================================================
--- Python/pythonrun.c	(revision 85857)
+++ Python/pythonrun.c	(working copy)
@@ -1342,27 +1342,36 @@
 static void
 print_error_text(PyObject *f, int offset, const char *text)
 {
+    static const char* leading_whitespace = "    ";
     char *nl;
+
     if (offset >= 0) {
-        for (;;) {
-            nl = strchr(text, '\n');
-            if (nl == NULL || nl-text >= offset)
-                break;
-            offset -= (int)(nl+1-text);
-            text = nl+1;
-        }
+        /* Remove any newline at the end of the string, if offset points there. */
+        if (offset > 0 && offset == (int)strlen(text) && text[offset-1] == '\n')
+            offset--;
+
+	/* Skip past any newlines, but not past offset. */
+	nl = strrchr(text+offset, '\n');
+	if (!(nl == NULL || nl-text >= offset)) {
+	    offset -= (int)(nl+1-text);
+	    text = nl+1;
+	}
+
+	/* Skip any whitespace. */
         while (*text == ' ' || *text == '\t') {
             text++;
             offset--;
         }
     }
-    PyFile_WriteString("    ", f);
+    PyFile_WriteString(leading_whitespace, f);
     PyFile_WriteString(text, f);
     if (*text == '\0' || text[strlen(text)-1] != '\n')
         PyFile_WriteString("\n", f);
     if (offset == -1)
         return;
-    PyFile_WriteString("    ", f);
+
+    /* Point (with a caret) at the error. */
+    PyFile_WriteString(leading_whitespace, f);
     while (--offset)
         PyFile_WriteString(" ", f);
     PyFile_WriteString("^\n", f);
Index: Lib/test/test_traceback.py
===================================================================
--- Lib/test/test_traceback.py	(revision 85857)
+++ Lib/test/test_traceback.py	(working copy)
@@ -296,7 +296,14 @@
         msg = self.get_report(e).splitlines()
         self.assertEqual(msg[-2], "        ^")
 
+    def test_syntax_error_offset_at_newline(self):
+        # See #10206
+        def e():
+            raise SyntaxError('', ('', 0, 2, "'\n"))
+        msg = self.get_report(e).splitlines()
+        self.assertEqual(msg[-2], "    ^")
 
+
 class PyExcReportingTests(BaseExceptionReportingTests, unittest.TestCase):
     #
     # This checks reporting through the 'traceback' module, with both