diff --git a/Changes b/Changes
index e14145ec9..20017430a 100644
--- a/Changes
+++ b/Changes
@@ -24,6 +24,7 @@ Verilator 4.213 devel
 * Fix cygwin compile error due to missing -std=gnu++14 (#3149). [Sun Kim]
 * Fix missing install of vl_file_copy/vl_hier_graph (#3165). [Popolon]
 * Fix calling new with arguments in same class (#3166). [Matthew Ballance]
+* Fix false EOFNEWLINE warning when DOS carriage returns present (#3171).
 
 
 Verilator 4.212 2021-09-01
diff --git a/src/V3PreProc.cpp b/src/V3PreProc.cpp
index 02dbeeaa4..c3a43f880 100644
--- a/src/V3PreProc.cpp
+++ b/src/V3PreProc.cpp
@@ -824,9 +824,7 @@ void V3PreProcImp::openFile(FileLine*, VInFilter* filterp, const string& filenam
         for (const char* cp = sp; cp < ep; cp++) {
             if (VL_UNLIKELY(*cp == '\r' || *cp == '\0')) {
                 strip = true;
-                break;
-            }
-            if (VL_UNLIKELY(*cp == '\n')) {
+            } else if (VL_UNLIKELY(*cp == '\n')) {
                 eof_newline = 0;
                 ++eof_lineno;
             } else {
@@ -853,7 +851,7 @@ void V3PreProcImp::openFile(FileLine*, VInFilter* filterp, const string& filenam
         FileLine* fl = new FileLine{flsp};
         fl->contentLineno(eof_lineno);
         fl->column(eof_newline + 1, eof_newline + 1);
-        fl->v3warn(EOFNEWLINE, "Missing newline at end of file (POSIX 3.206)."
+        fl->v3warn(EOFNEWLINE, "Missing newline at end of file (POSIX 3.206).\n"
                                    << fl->warnMore() << "... Suggest add newline.");
     }
 }
diff --git a/test_regress/t/t_dos.pl b/test_regress/t/t_dos.pl
index b46d46042..f2ebe7037 100755
--- a/test_regress/t/t_dos.pl
+++ b/test_regress/t/t_dos.pl
@@ -11,6 +11,7 @@ if (!$::Driver) { use FindBin; exec("$FindBin::Bin/bootstrap.pl", @ARGV, $0); di
 scenarios(simulator => 1);
 
 compile(
+    verilator_flags2 => ['-Wall -Wno-DECLFILENAME'],  # To check EOFNEWLINE with DOS CRs
     );
 
 execute(
diff --git a/test_regress/t/t_lint_eofline_bad.out b/test_regress/t/t_lint_eofline_bad.out
index 6d20a0dc1..cc52c6298 100644
--- a/test_regress/t/t_lint_eofline_bad.out
+++ b/test_regress/t/t_lint_eofline_bad.out
@@ -1,4 +1,5 @@
-%Warning-EOFNEWLINE: obj_vlt/t_lint_eofline_bad/t_lint_eofline_bad.v:4:10: Missing newline at end of file (POSIX 3.206).                                                                         : ... Suggest add newline.
+%Warning-EOFNEWLINE: obj_vlt/t_lint_eofline_bad/t_lint_eofline_bad.v:4:10: Missing newline at end of file (POSIX 3.206).
+                                                                         : ... Suggest add newline.
     4 | endmodule
       |          ^
                      ... For warning description see https://verilator.org/warn/EOFNEWLINE?v=latest