diff --git a/ChangeLog b/ChangeLog
index 9ba531c355..ea14d3f0ec 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -394,19 +394,19 @@
 
 0.3.13 2008-xx-xx Gregory Nutt <spudmonkey@racsa.co.cr>
 
-	* Added mkfatfs, mkfifo, sleep, usleep and nice commands to NSH
+	* NSH: Added mkfatfs, mkfifo, sleep, usleep and nice commands
 	* Fixed problem with console input in Cygwin-based simulator; NSH now works
 	  with simulator.
 	* NSH will now execute commands in background
 	* sched_get_priority_max/min returned error on SCHED_RR
 	* Removed duplicate getenv() implementation in /lib
 	* Correct detection of End-of-File in fgets
-	* Implement sh and crude script handler in NSH
+	* NSH: Implemented sh and crude script handler
 	* Fix prototype of read() and write(). Need to use ssize_t and size_t, not
 	  int and unsigned int.
-	* Add support for redirection of command output in NSH
+	* NSH now supports redirection of command output
 	* NSH can now use both telnet and serial front ends together
-	* $variable can be used for any command value in NSH.
+	* NSH: $variable can be used for any command value
 	* Fixed an error in opendir() that could cause an assertion to fail
 	  inappropriately.
 	* Correct an error in the FAT that caused files opened for writing with
@@ -414,4 +414,5 @@
 	  end of the file in that case.
 	* NSH now supports last exit status $?
 	* NSH now supports if-then[-else]-fi construct
+	* NSH now supports comments beginning with '#'
 
diff --git a/Documentation/NuttX.html b/Documentation/NuttX.html
index f84038533c..fcf807ef79 100644
--- a/Documentation/NuttX.html
+++ b/Documentation/NuttX.html
@@ -1028,19 +1028,19 @@ buildroot-0.1.0 2007-03-09 &lt;spudmonkey@racsa.co.cr&gt
 <pre><ul>
 nuttx-0.3.13 2008-xx-xx Gregory Nutt &lt;spudmonkey@racsa.co.cr&gt;
 
-	* Added mkfatfs, mkfifo, sleep, usleep and nice commands to NSH
+	* NSH: Added mkfatfs, mkfifo, sleep, usleep and nice commands
 	* Fixed problem with console input in Cygwin-based simulator; NSH now works
 	  with simulator.
 	* NSH will now execute commands in background
 	* sched_get_priority_max/min returned error on SCHED_RR
 	* Removed duplicate getenv() implementation in /lib
 	* Correct detection of End-of-File in fgets
-	* Implement sh and crude script handler in NSH
+	* NSH: Implemented sh and crude script handler
 	* Fix prototype of read() and write(). Need to use ssize_t and size_t, not
 	  int and unsigned int.
-	* Add support for redirection of command output in NSH
+	* NSH now supports redirection of command output
 	* NSH can now use both telnet and serial front ends together
-	* $variable can be used for any command value in NSH.
+	* NSH: $variable can be used for any command value
 	* Fixed an error in opendir() that could cause an assertion to fail
 	  inappropriately.
 	* Correct an error in the FAT that caused files opened for writing with
@@ -1048,6 +1048,7 @@ nuttx-0.3.13 2008-xx-xx Gregory Nutt &lt;spudmonkey@racsa.co.cr&gt;
 	  end of the file in that case.
 	* NSH now supports last exit status $?
 	* NSH now supports if-then[-else]-fi construct
+	* NSH now supports comments beginning with '#'
 
 pascal-0.1.3 2008-xx-xx Gregory Nutt &lt;spudmonkey@racsa.co.cr&gt;
 
diff --git a/examples/nsh/nsh_main.c b/examples/nsh/nsh_main.c
index bde02fc03d..b2915a75ae 100644
--- a/examples/nsh/nsh_main.c
+++ b/examples/nsh/nsh_main.c
@@ -321,7 +321,7 @@ char *nsh_argument(FAR struct nsh_vtbl_s *vtbl, char **saveptr)
       return NULL;
     }
 
-  /* Does the token begin with '>' */
+  /* Does the token begin with '>' -- redirection of output? */
 
   if (*pbegin == '>')
     {
@@ -330,17 +330,29 @@ char *nsh_argument(FAR struct nsh_vtbl_s *vtbl, char **saveptr)
       if (*(pbegin + 1) == '>')
         {
           *saveptr = pbegin + 2;
-	  pbegin = (char*)g_redirect2;
+          pbegin   = (char*)g_redirect2;
         }
       else
         {
           *saveptr = pbegin + 1;
-	  pbegin = (char*)g_redirect1;
+          pbegin   = (char*)g_redirect1;
         }
     }
+
+  /* Does the token begin with '#' -- comment */
+
+  else if (*pbegin == '#')
+    {
+      /* Return NULL meaning that we are at the end of the line */
+
+      *saveptr = pbegin;
+      pbegin   = NULL;
+    }
   else
     {
-      /* Does the token begin with '"'? */
+      /* Otherwise, we are going to have to parse to find the end of
+       * the token.  Does the token begin with '"'?
+       */
 
       if (*pbegin == '"')
         {
@@ -379,41 +391,41 @@ char *nsh_argument(FAR struct nsh_vtbl_s *vtbl, char **saveptr)
       /* Save the pointer where we left off */
 
       *saveptr = pend;
-    }
 
-  /* Check for references to environment variables */
+      /* Check for references to environment variables */
 
-  if (pbegin[0] == '$' && !quoted)
-    {
-      /* Check for built-in variables */
-
-      if (strcmp(pbegin, g_exitstatus) == 0)
+      if (pbegin[0] == '$' && !quoted)
         {
-          if (vtbl->np.np_fail)
-            {
-              return (char*)g_failure;
-            }
-          else
-            {
-              return (char*)g_success;
-            }
-        }
+          /* Check for built-in variables */
 
-      /* Not a built-in? Return the value of the environment variable with this name */
+          if (strcmp(pbegin, g_exitstatus) == 0)
+            {
+              if (vtbl->np.np_fail)
+                {
+                  return (char*)g_failure;
+                }
+              else
+                {
+                  return (char*)g_success;
+                }
+            }
+
+          /* Not a built-in? Return the value of the environment variable with this name */
 #ifndef CONFIG_DISABLE_ENVIRON
-      else
-        {
-          char *value = getenv(pbegin+1);
-          if (value)
-            {
-              return value;
-            }
           else
             {
-              return (char*)"";
+              char *value = getenv(pbegin+1);
+              if (value)
+                {
+                  return value;
+                }
+              else
+                {
+                  return (char*)"";
+                }
             }
-        }
 #endif
+        }
     }
 
   /* Return the beginning of the token. */