diff --git a/docs/runtime/shell.mdx b/docs/runtime/shell.mdx
index 4cc6ed402917..40927db29c35 100644
--- a/docs/runtime/shell.mdx
+++ b/docs/runtime/shell.mdx
@@ -269,6 +269,8 @@ await $`
 `;
 ```
 
+Bun Shell removes the newlines at the end of the output, and any `\r` directly before them. A quoted substitution in a command (`"$(...)"`) keeps the rest of the output. An unquoted substitution also drops trailing spaces, tabs and `\r`. A variable assignment drops them too, also when the substitution is quoted.
+
 <Note>
 
 Because Bun internally uses the special [`raw`](https://developer.mozilla.org/en-US/docs/Web/JavaScript/Reference/Template_literals#raw_strings) property on the input template literal, using the backtick syntax for command substitution doesn't work:
diff --git a/src/runtime/shell/builtin/exit.rs b/src/runtime/shell/builtin/exit.rs
index cce673241ec4..b2c6432999ef 100644
--- a/src/runtime/shell/builtin/exit.rs
+++ b/src/runtime/shell/builtin/exit.rs
@@ -55,6 +55,7 @@ impl Exit {
 }
 
 fn parse_exit_code(s: &[u8]) -> Option<crate::shell::ExitCode> {
-    // %256 is bash semantics — keep wrapper fn.
-    bun_core::fmt::parse_decimal::<u64>(s).map(|n| (n % 256) as crate::shell::ExitCode)
+    // Blanks around the number and %256 are bash semantics — keep wrapper fn.
+    bun_core::fmt::parse_decimal::<u64>(bun_core::strings::trim(s, b" \t"))
+        .map(|n| (n % 256) as crate::shell::ExitCode)
 }
diff --git a/src/runtime/shell/states/Expansion.rs b/src/runtime/shell/states/Expansion.rs
index e82f0af8d51c..a0d2801ace08 100644
--- a/src/runtime/shell/states/Expansion.rs
+++ b/src/runtime/shell/states/Expansion.rs
@@ -544,6 +544,16 @@ impl Expansion {
         me.meta_offsets.clear();
     }
 
+    /// POSIX 2.6.3: a command substitution ends before its trailing newlines.
+    fn strip_trailing_line_ends(stdout: &mut Vec<u8>) {
+        if stdout.last() == Some(&b'\n') {
+            // bash keeps a CR before a trailing LF. It goes here so CRLF output gives a clean word.
+            while matches!(stdout.last(), Some(b'\n' | b'\r')) {
+                stdout.pop();
+            }
+        }
+    }
+
     /// Newlines→spaces, trim, then split on whitespace runs into separate
     /// argv words.
     fn post_subshell_expansion(me: &mut Expansion, mut stdout: Vec<u8>) {
@@ -646,11 +656,16 @@ impl Expansion {
                 me.out_exit_code = exit_code;
             }
             if no_split {
-                let mut hi = stdout.len();
-                while hi > 0 && matches!(stdout[hi - 1], b' ' | b'\n' | b'\r' | b'\t') {
-                    hi -= 1;
+                if me.assign_ctx {
+                    // `$X` is never field split, so a value still loses these trailing bytes.
+                    let mut hi = stdout.len();
+                    while hi > 0 && matches!(stdout[hi - 1], b' ' | b'\n' | b'\r' | b'\t') {
+                        hi -= 1;
+                    }
+                    stdout.truncate(hi);
+                } else {
+                    Self::strip_trailing_line_ends(&mut stdout);
                 }
-                stdout.truncate(hi);
                 // A quoted substitution that printed only NUL bytes is one empty word, as in bash.
                 if had_nul && me.cmd_subst_quoted {
                     me.has_quoted_empty = true;
diff --git a/test/js/bun/shell/bunshell.test.ts b/test/js/bun/shell/bunshell.test.ts
index 7b305694c2b0..da9b2db12e6f 100644
--- a/test/js/bun/shell/bunshell.test.ts
+++ b/test/js/bun/shell/bunshell.test.ts
@@ -379,6 +379,42 @@ describe("bunshell", () => {
         .ensureTempDir()
         .runAsTest("make sure its two separate arguments");
     });
+
+    // POSIX 2.6.3: only the newlines at the end of the output are removed.
+    describe("quoted substitution keeps trailing whitespace", () => {
+      TestBuilder.command`echo "[$(echo 'a ')]"`.stdout("[a ]\n").runAsTest("space");
+      TestBuilder.command`echo "[$(echo -e 'a\t')]"`.stdout("[a\t]\n").runAsTest("tab");
+      TestBuilder.command`echo "[$(echo -n -e 'a\r')]"`.stdout("[a\r]\n").runAsTest("CR with no LF after it");
+      TestBuilder.command`echo "a$(echo -n '  ')b"`.stdout("a  b\n").runAsTest("only spaces");
+      TestBuilder.command`echo "[$(echo a; echo ' ')]"`.stdout("[a\n ]\n").runAsTest("space on the last line");
+      TestBuilder.command`echo "$(echo 'a ')$(echo 'b ')c"`
+        .stdout("a b c\n")
+        .runAsTest("two substitutions in one word");
+      TestBuilder.command`echo "[$(echo "$(echo 'a ')b")]"`.stdout("[a b]\n").runAsTest("nested substitution");
+      TestBuilder.command`[[ -n "$(echo -n ' ')" ]] && echo yes`.stdout("yes\n").runAsTest("[[ -n ]] operand");
+
+      TestBuilder.command`${BUN} run ./code.ts a "$(echo -n ' ')" b`
+        .ensureTempDir()
+        .file("code.ts", `console.log(JSON.stringify(process.argv.slice(2)))`)
+        .stdout('["a"," ","b"]\n')
+        .runAsTest("output of one space is one argument");
+
+      // Windows removes a trailing space from a file name.
+      test.skipIf(isWindows)("redirect target", async () => {
+        await TestBuilder.command`echo hi > "$(echo 'out ')"`.ensureTempDir().fileEquals("out ", "hi\n").run();
+      });
+    });
+
+    // A CR directly before a trailing LF goes with it on every platform. bash keeps that CR.
+    describe("quoted substitution removes trailing line ends", () => {
+      TestBuilder.command`echo "[$(echo a; echo; echo)]"`.stdout("[a]\n").runAsTest("every LF");
+      TestBuilder.command`echo "[$(echo -n -e 'a\r\n\r\n')]"`.stdout("[a]\n").runAsTest("every CRLF");
+      TestBuilder.command`echo "[$(echo -n -e 'a\r\r\n')]"`.stdout("[a]\n").runAsTest("every CR before the LF");
+      TestBuilder.command`echo "[$(echo -n -e 'a \r\n')]"`.stdout("[a ]\n").runAsTest("CRLF after a space");
+      TestBuilder.command`echo "[$(echo -n -e 'a \r\r\n\r\r\n')]"`
+        .stdout("[a ]\n")
+        .runAsTest("two line ends after a space");
+    });
   });
 
   describe("unicode", () => {
@@ -1580,6 +1616,19 @@ describe("deno_task", () => {
     TestBuilder.command`VAR=$(echo a && echo b) && echo "$VAR"`
       .stdout("a\nb\n")
       .runAsTest("assignment keeps command substitution newlines");
+
+    // An unquoted $VAR is not split into fields, so an assignment value drops the trailing whitespace.
+    TestBuilder.command`A=$(echo 'f '); B="$(echo 'g ')"; export C="$(echo 'h ')"; ${BUN} run ./code.ts $A $B $C`
+      .ensureTempDir()
+      .file("code.ts", `console.log(JSON.stringify(process.argv.slice(2)))`)
+      .stdout('["f","g","h"]\n')
+      .runAsTest("unquoted variable assigned a command substitution with a trailing space");
+
+    // bash keeps the space in the value and drops it when it splits an unquoted $VAR.
+    TestBuilder.command`VAR="$(echo 'a ')" && echo "[$VAR]"`
+      .stdout("[a ]\n")
+      .todo("an unquoted variable is not split into fields")
+      .runAsTest("assignment keeps the trailing space of a command substitution");
   });
 
   describe("env variables", async () => {
diff --git a/test/js/bun/shell/commands/exit.test.ts b/test/js/bun/shell/commands/exit.test.ts
index 5a3239d0f49d..f57747a6e367 100644
--- a/test/js/bun/shell/commands/exit.test.ts
+++ b/test/js/bun/shell/commands/exit.test.ts
@@ -15,6 +15,23 @@ describe("exit", async () => {
 
   TestBuilder.command`exit 62757836`.exitCode(204).runAsTest("exit code wraps u8");
 
+  // bash accepts a space or a tab around the number, and no other byte after it.
+  describe("blanks around the number", () => {
+    for (const arg of ["3 ", " 3", "3\t"]) {
+      TestBuilder.command`exit ${arg}`.exitCode(3).runAsTest(`accepts ${JSON.stringify(arg)}`);
+    }
+
+    for (const arg of ["3\r", "3\n", "3\f"]) {
+      TestBuilder.command`exit ${arg}`
+        .exitCode(1)
+        .stderr("exit: numeric argument required\n")
+        .runAsTest(`rejects ${JSON.stringify(arg)}`);
+    }
+
+    // A quoted substitution keeps its trailing space, so the status reaches exit with it.
+    TestBuilder.command`exit "$(echo '3 ')"`.exitCode(3).runAsTest("accepts a quoted command substitution");
+  });
+
   // prettier-ignore
   TestBuilder.command`exit abc`.exitCode(1).stderr("exit: numeric argument required\n").runAsTest("numeric argument required");
 });
diff --git a/test/js/bun/shell/exec.test.ts b/test/js/bun/shell/exec.test.ts
index 2243fb93fad4..5c670e8ba6b8 100644
--- a/test/js/bun/shell/exec.test.ts
+++ b/test/js/bun/shell/exec.test.ts
@@ -47,6 +47,11 @@ describe("bun exec", () => {
     .stdout("ab\n")
     .runAsTest("command substitution drops NUL bytes from the output");
 
+  TestBuilder.command`${BUN} exec ${`echo "[$(echo 'a ')]"`}`
+    .env(bunEnv)
+    .stdout("[a ]\n")
+    .runAsTest("quoted command substitution keeps a trailing space");
+
   describe("--help works", () => {
     // prettier-ignore
     const programs = [