diff --git a/.idea/libraries/jline.xml b/.idea/libraries/jline.xml
index e71d9184d77..473c1e61a55 100644
--- a/.idea/libraries/jline.xml
+++ b/.idea/libraries/jline.xml
@@ -4,11 +4,11 @@
       <root url="file://$PROJECT_DIR$/annotations" />
     </ANNOTATIONS>
     <CLASSES>
-      <root url="jar://$PROJECT_DIR$/dependencies/jline.jar!/" />
+      <root url="jar://$PROJECT_DIR$/dependencies/jline3.jar!/" />
     </CLASSES>
     <JAVADOC />
     <SOURCES>
-      <root url="jar://$PROJECT_DIR$/dependencies/jline-sources.jar!/" />
+      <root url="jar://$PROJECT_DIR$/dependencies/jline3-sources.jar!/" />
     </SOURCES>
   </library>
 </component>
\ No newline at end of file
diff --git a/build.xml b/build.xml
index 5353bbe257d..7f65217c613 100644
--- a/build.xml
+++ b/build.xml
@@ -61,8 +61,8 @@
         <pathelement location="${tools.jar}"/>
 
         <fileset dir="${basedir}/lib" includes="**/*.jar"/>
+        <fileset dir="${dependencies}" includes="jline3.jar"/>
         <fileset dir="${dependencies}" includes="jansi.jar"/>
-        <fileset dir="${dependencies}" includes="jline.jar"/>
         <fileset dir="${dependencies}" includes="javaslang-2.0.6.jar"/>
         <fileset dir="${dependencies}" includes="json-org.jar"/>
         <fileset dir="${dependencies}" includes="kotlinx-coroutines-core.jar"/>
@@ -400,7 +400,8 @@
                 <zipfileset src="${idea.sdk}/lib/jna-platform.jar"/>
                 <zipfileset src="${idea.sdk}/lib/oromatcher.jar" excludes="META-INF/jb/** META-INF/LICENSE"/>
                 <zipfileset src="${idea.sdk}/jps/jps-model.jar"/>
-                <zipfileset src="${dependencies}/jline.jar"/>
+                <zipfileset src="${dependencies}/jline3.jar"/>
+                <zipfileset src="${dependencies}/jansi.jar"/>
                 <zipfileset src="${dependencies}/javaslang-2.0.6.jar"/>
                 <zipfileset src="${dependencies}/json-org.jar"/>
                 <zipfileset src="${protobuf.jar}"/>
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/messages/ReplConsoleWriter.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/messages/ReplConsoleWriter.kt
index 1ec366bcd9c..c8f89446ffa 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/messages/ReplConsoleWriter.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/messages/ReplConsoleWriter.kt
@@ -17,17 +17,6 @@
 package org.jetbrains.kotlin.cli.jvm.repl.messages
 
 class ReplConsoleWriter : ReplWriter {
-    init {
-        Runtime.getRuntime().addShutdownHook(object : Thread("Kotlin REPL shutdown hook") {
-            override fun run() {
-                // Print an empty line to make the command prompt start from the beginning of the line after REPL exits.
-                // This is essentially a workaround of a jline2 bug.
-                // TODO: remove this as soon as we update to jline3
-                println()
-            }
-        })
-    }
-
     override fun printlnWelcomeMessage(x: String) = println(x)
     override fun printlnHelpMessage(x: String) = println(x)
     override fun outputCompileError(x: String) = println(x)
@@ -39,4 +28,4 @@ class ReplConsoleWriter : ReplWriter {
     override fun notifyIncomplete() {}
     override fun notifyCommandSuccess() {}
     override fun sendInternalErrorReport(x: String) {}
-}
\ No newline at end of file
+}
diff --git a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/reader/ConsoleReplCommandReader.kt b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/reader/ConsoleReplCommandReader.kt
index 09936e3c564..ba8d1a493fe 100644
--- a/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/reader/ConsoleReplCommandReader.kt
+++ b/compiler/cli/src/org/jetbrains/kotlin/cli/jvm/repl/reader/ConsoleReplCommandReader.kt
@@ -16,22 +16,38 @@
 
 package org.jetbrains.kotlin.cli.jvm.repl.reader
 
-import jline.console.ConsoleReader
-import jline.console.history.FileHistory
 import org.jetbrains.kotlin.cli.jvm.repl.ReplFromTerminal
+import org.jline.reader.EndOfFileException
+import org.jline.reader.LineReader
+import org.jline.reader.LineReaderBuilder
+import org.jline.reader.UserInterruptException
+import org.jline.terminal.TerminalBuilder
 import java.io.File
 
 class ConsoleReplCommandReader : ReplCommandReader {
-    private val consoleReader = ConsoleReader("kotlin", System.`in`, System.`out`, null).apply {
-        isHistoryEnabled = true
-        expandEvents = false
-        history = FileHistory(File(File(System.getProperty("user.home")), ".kotlin_history"))
-    }
+    private val lineReader = LineReaderBuilder.builder()
+            .appName("kotlin")
+            .terminal(TerminalBuilder.terminal())
+            .variable(LineReader.HISTORY_FILE, File(File(System.getProperty("user.home")), ".kotlinc_history").absolutePath)
+            .build()
+            .apply {
+                setOpt(LineReader.Option.DISABLE_EVENT_EXPANSION)
+            }
 
     override fun readLine(next: ReplFromTerminal.WhatNextAfterOneLine): String? {
         val prompt = if (next == ReplFromTerminal.WhatNextAfterOneLine.INCOMPLETE) "... " else ">>> "
-        return consoleReader.readLine(prompt)
+        try {
+            return lineReader.readLine(prompt)
+        }
+        catch (e: UserInterruptException) {
+            println("<interrupted>")
+            System.out.flush()
+            return ""
+        }
+        catch (e: EndOfFileException) {
+            return null
+        }
     }
 
-    override fun flushHistory() = (consoleReader.history as FileHistory).flush()
-}
\ No newline at end of file
+    override fun flushHistory() = lineReader.history.save()
+}
diff --git a/compiler/compiler.pro b/compiler/compiler.pro
index 9ad65a1d1bc..24f22e0ec58 100644
--- a/compiler/compiler.pro
+++ b/compiler/compiler.pro
@@ -15,6 +15,7 @@
 !org/apache/log4j/net/SMTP*,
 !org/apache/log4j/or/jms/MessageRenderer*,
 !org/jdom/xpath/Jaxen*,
+!org/jline/builtins/ssh/**,
 !org/mozilla/javascript/xml/impl/xmlbeans/**,
 !net/sf/cglib/**,
 !META-INF/maven**,
@@ -51,6 +52,7 @@ messages/**)
 -dontwarn org.w3c.dom.ElementTraversal
 -dontwarn javaslang.match.annotation.Unapply
 -dontwarn javaslang.match.annotation.Patterns
+-dontwarn org.jline.builtins.Nano$Buffer
 
 -libraryjars '<rtjar>'
 -libraryjars '<jssejar>'
diff --git a/libraries/tools/kotlin-compiler-embeddable/pom.xml b/libraries/tools/kotlin-compiler-embeddable/pom.xml
index 8424dfe87fa..2d9f2c102f7 100644
--- a/libraries/tools/kotlin-compiler-embeddable/pom.xml
+++ b/libraries/tools/kotlin-compiler-embeddable/pom.xml
@@ -113,8 +113,8 @@
                                     <shadedPattern>${kotlin.relocated.package}.org.picocontainer</shadedPattern>
                                 </relocation>
                                 <relocation>
-                                    <pattern>jline</pattern>
-                                    <shadedPattern>${kotlin.relocated.package}.jline</shadedPattern>
+                                    <pattern>org.jline</pattern>
+                                    <shadedPattern>${kotlin.relocated.package}.org.jline</shadedPattern>
                                 </relocation>
                                 <relocation>
                                     <pattern>gnu</pattern>
diff --git a/update_dependencies.xml b/update_dependencies.xml
index 1e9a5add14e..5bbd517ef53 100644
--- a/update_dependencies.xml
+++ b/update_dependencies.xml
@@ -191,10 +191,10 @@
              dest="${dependencies}/jflex/idea-flex.skeleton" usetimestamp="true"/>
 
         <!-- jline -->
-        <get-maven-library prefix="jline" lib="jline" version="2.12.1" target.jar.name.base="jline"/>
+        <get-maven-library prefix="org/jline" lib="jline" version="3.3.1" target.jar.name.base="jline3"/>
 
         <!-- jansi -->
-        <get-maven-library prefix="org/fusesource/jansi" lib="jansi" version="1.11" target.jar.name.base="jansi"/>
+        <get-maven-library prefix="org/fusesource/jansi" lib="jansi" version="1.16" target.jar.name.base="jansi"/>
 
         <!-- Guava 19 sources-->
         <get-maven-library prefix="com/google/guava" lib="guava" version="19.0" bin="false"/>