diff --git a/src/ChangeLog b/src/ChangeLog
index ba298d8aa48..ce18c71a1cf 100644
--- a/src/ChangeLog
+++ b/src/ChangeLog
@@ -1,3 +1,9 @@
+2010-11-25  Eli Zaretskii  <eliz@gnu.org>
+
+	* xdisp.c (set_cursor_from_row): Don't forget to consider the
+	`cursor' property of the first character in overlay strings.
+	(Bug#7474)
+
 2010-11-24  Jan Djärv  <jan.h.d@swipnet.se>
 
 	* nsterm.m (NSLeftControlKeyMask, NSLeftCommandKeyMask)
diff --git a/src/xdisp.c b/src/xdisp.c
index b2d81cb60e9..fd80d7a0208 100644
--- a/src/xdisp.c
+++ b/src/xdisp.c
@@ -12943,7 +12943,7 @@ set_cursor_from_row (struct window *w, struct glyph_row *row,
 
 			  if (tem)
 			    cursor = glyph;
-			  for (glyph += incr;
+			  for ( ;
 			       (row->reversed_p ? glyph > stop : glyph < stop)
 				 && EQ (glyph->object, str);
 			       glyph += incr)