diff --git a/IPython/html/static/notebook/js/codecell.js b/IPython/html/static/notebook/js/codecell.js
index 497266f09..d4a9e22ff 100644
--- a/IPython/html/static/notebook/js/codecell.js
+++ b/IPython/html/static/notebook/js/codecell.js
@@ -389,7 +389,7 @@ define([
      * @private
      */
     CodeCell.prototype._handle_set_next_input = function (payload) {
-        var data = {'cell': this, 'text': payload.text};
+        var data = {'cell': this, 'text': payload.text, replace: payload.replace};
         this.events.trigger('set_next_input.Notebook', data);
     };
 
diff --git a/IPython/html/static/notebook/js/notebook.js b/IPython/html/static/notebook/js/notebook.js
index 42c765ef6..60d2cb20b 100644
--- a/IPython/html/static/notebook/js/notebook.js
+++ b/IPython/html/static/notebook/js/notebook.js
@@ -209,9 +209,14 @@ define([
         var that = this;
 
         this.events.on('set_next_input.Notebook', function (event, data) {
-            var index = that.find_cell_index(data.cell);
-            var new_cell = that.insert_cell_below('code',index);
-            new_cell.set_text(data.text);
+            if (data.replace) {
+                data.cell.set_text(data.text);
+                data.cell.clear_output();
+            } else {
+                var index = that.find_cell_index(data.cell);
+                var new_cell = that.insert_cell_below('code',index);
+                new_cell.set_text(data.text);
+            }
             that.dirty = true;
         });