diff --git a/src/sbbs3/sexyz.c b/src/sbbs3/sexyz.c
index d2d5dd2d5c007fad587402d49a0e7baeb6e17ea8..c29b120239d86e9411929440c0fe7bb48abdf75e 100644
--- a/src/sbbs3/sexyz.c
+++ b/src/sbbs3/sexyz.c
@@ -1481,6 +1481,9 @@ int main(int argc, char **argv)
 		} 
 	}
 
+	if(telnet)
+		zm.escape_telnet_iac = TRUE;
+
 	if(sock==INVALID_SOCKET || sock<1) {
 #ifdef __unix__
 		if(STDOUT_FILENO > STDIN_FILENO)