diff --git a/lib/chibi/repl.scm b/lib/chibi/repl.scm
index 30321fe4..44d24013 100644
--- a/lib/chibi/repl.scm
+++ b/lib/chibi/repl.scm
@@ -162,7 +162,12 @@
             (guard
              (exn
               (else (print-exception exn (current-error-port))))
-             (let* ((expr (call-with-input-string line read/ss))
+             (let* ((expr (call-with-input-string line
+                            (lambda (in2)
+                              (set-port-fold-case! in2 (port-fold-case? in))
+                              (let ((expr (read/ss in2)))
+                                (set-port-fold-case! in (port-fold-case? in2))
+                                expr))))
                     (thread
                      (make-thread
                       (lambda ()
diff --git a/lib/srfi/38.scm b/lib/srfi/38.scm
index 42d236a1..1f4e991e 100644
--- a/lib/srfi/38.scm
+++ b/lib/srfi/38.scm
@@ -180,7 +180,18 @@
                 (read-one))
                ((#\|)
                 (skip-comment in 0))
-               ((#\!) (skip-line in) (read-one in))
+               ((#\!)
+                (let ((name (read-name #f in)))
+                  (cond
+                   ((string-ci=? name "!fold-case")
+                    (set-port-fold-case! in #t))
+                   ((string-ci=? name "!no-fold-case")
+                    (set-port-fold-case! in #f))
+                   (else ;; assume a #!/bin/bash line
+                    (skip-line in)))
+                  (let ((res (read-one)))
+                    (if (not (eof-object? res))
+                        res))))
                ((#\() (list->vector (read-one)))
                ((#\') (read-char in) (list 'syntax (read-one)))
                ((#\`) (read-char in) (list 'quasisyntax (read-one)))